competing with giants
DESCRIPTION
A nascent insight into an HBR article which told about competing with Giant organisations.TRANSCRIPT
Competing with GIANTS
Survival Strategies for Local Companies in Emerging Markets
By Suraj Baliga
Introduction
•Barrier’s Fall - Opportunity grows
•Consumer Point - More Choices
•Local Companies - Death Sentence
Dominant
Foreign Rivals
•Financial Resources
•Advance Technology
•Superior Products
•Powerful Brands
•Seasoned Marketing and Marketing Skills
Survival At Stake!!
3 - Ways out
•Government
•Partner
•Sell and Leave
Other Ways Exist
•Vist in Russia
•Shanghai Jahwa in ChinaVs • Compaq
•Unilever
Others
Jollibee Foods - Phillipines Cemex - Mexico
Aligning Assets with Industry
Characteristics
1980’s
•Bajaj •HondaTechnolog
yQualityBrand appeal
Success in Thailand
and Malaysia
Independent Minded
Did not want
What Could Bajaj Do?
Closer Look
•Honda’s Advantage
•Honda’s Customer Base
•Scooter Industry
•Mature
•Stable Industry
What Customers Wanted
•Low Cost
•Durable Machines
•Maintenance
Bajaj
•Cheap•Rugged•Service Network
•Distribution System
Honda
•Sleek design
•Outlets in Major Cities
What Did Bajaj Do?
•No to Partnership
•fortify existing competitive assets
•beefed up distribution
•R & D
•Braced for Impact
And So They Came..
•Honda with local producer
•11% of Indian Scooter Market
•Stabilizes
Impact
•Bajaj - 77%
•But!!•Honda pulled out in 1998 from Scooter Manufacturing equity joint venture
What Bajaj Taught Us
•Every Manager Must ask
•How strong pressure to globalize your industry
•How internally transferable are your company’s assets
What It Gives
•Strength of your Multinational Rivals
•Assess assets effectiveness gives insight
Pressure Of Globalization
•Spectrum 1 : BIG
Fixed Costs for development
Capital Equipment
Marketing
Distribution
Sales in Multiple Markets
Spectrum 2
•Demand of Local Consumers
•Relationship With Customer
•Consumer Preferences
Success
• Standardized Products•Transportation Costs
Multinationals
Spectrum 3 : Middle Spectrum
•International Sales
•Local Preferences
Managers Thinking On Spectrum
•Strength & Weakness
•Similar Industries Different Spectrum
Next Step
•Spectrum Analysis - DONE
•Evaluation of Competing assets
•(Strength in home market)
Competitive Asset Of Bajaj
•Local Distribution Network
•Government Relationship
•Products with localization
Defensive
How can it be advantages to us•Low Cost Raw Material
•Expertise
•More Attention
•More Common
•Transferable assets
•Market Condition
•More Success
Strategic Thinking
•Transferable Assets
•Globalization Pressure
•IF
•Globalization Pressure Weak
•Non Transferable Assets
•Then
•Defensive Against Multinational
COMPANY DEFENDER
•IF
•Globalization Pressure Weak
•Transferable Assets
•THEN
•May Succeed in other limited Markets
COMPANY EXTENDER
•IF
•Globalization pressure strong
•Only home assets
•THEN
•Bigger Challenges
•Depend’s on ability to restructure Value Chain
COMPANY DOGER
•IF
•Transferable Assets
•THEN
•Can Compete at global level
COMPANY CONTENDER
Thank You