Case Studies 1

SUPPLY CHAIN MANAGEMENT WEEK 2-LECTURE 1

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DR. ISMAIL CIVELEK

BUILDING GLOBAL MARKET PARTICIPATION

Basis for global expansion:

• A business model that is internationally transferable • A strong basis of competitive advantage that can be leveraged

internationally

• A home economy (with respect to its industry) that is more developed than in most other economies

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TRANSFERABLE BUSINESS MODEL • Zara

• Nokia

• IKEA

• Wal-Mart

• Ford

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LEVERAGEABLE COMPETITIVE ADVANTAGE

Six categories of advantage:

• Customer market • Products and services • Business system/value chain • Assets and resources • Partners • Scale and scope

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CUSTOMER MARKET ADVANTAGE • Being the first company

• Xerox

• Microsoft/Apple

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PRODUCT AND SERVICE ADVANTAGE • Toyota’s innovation of a coffee cup holder

• Product superiority

• Prius vs Volt

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BUSINESS SYSTEM/VALUE- CHAIN ADVANTAGE • P&G’s marketing skills

• Dell’s distribution system

• Toyota’s manufacturing system

• Apple/Sony’s innovative designs

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ASSETS/RESOURCE ADVANTAGE

Coca-Cola

• 100 years • Brand name • Physical assets

Singapore Airlines

• Changi airport

Disney

• 1980s • Untapped resources

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PARTNER ADVANTAGE • Microsoft & IBM

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USING COMPETITIVE ADVANTAGE TO GLOBALIZE • Microsoft

• Facebook

• Google

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TYPES OF GLOBAL MARKET PARTICIPATION

Having demanding customers

The AC industry (Japan)

• The ductless split • Carrier • Toshiba

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BENEFITS OF GLOBAL MARKET PARTICIPATION • Cost reduction

• Improved quality

• Enhanced customer preference

• Competitive leverage

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DRAWBACKS OF GLOBAL MARKET PARTICIPATION • Higher coordination is a principal drawback to global integration.

• The cost of coordinating across countries depends in part on the differences and barriers between the countries.

• Other drawbacks arise from the crossing of national frontiers and the loss of customer focus.

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GLOBALLY BLOCKED INDUSTRIES • Acquisitions of foreign participants in the same industry

• Creating international strategic alliances

• Hiring out expertise to foreign partners or customers

• Murdoch’s entry to the US market

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