““See the World, Erase Its Borders”See the World, Erase Its Borders”

Drive for global innovation forcing constant Drive for global innovation forcing constant experimentation to get right balance of local experimentation to get right balance of local initiative, high-speed information flows, and initiative, high-speed information flows, and cultureculture• Dutch electronics firm Philips experimented with matrix Dutch electronics firm Philips experimented with matrix

mngt in 1990smngt in 1990s Generated too much conflictGenerated too much conflict Now doing what amounts to “matrix in the mind”Now doing what amounts to “matrix in the mind”

• Brand marketers finding it increasingly problematic to Brand marketers finding it increasingly problematic to have undifferentiated producthave undifferentiated product

Coke’s Turkish division launching pear-flavored drink, Coke’s Turkish division launching pear-flavored drink, German division trying berry-flavored FantaGerman division trying berry-flavored Fanta

• But overcustomizing may be too costlyBut overcustomizing may be too costly GE Medical Systems found it was localizing medical GE Medical Systems found it was localizing medical

imaging products too muchimaging products too much

““See the World, Erase Its Borders”See the World, Erase Its Borders”

Real payoff is identifying great idea from one Real payoff is identifying great idea from one market and leveraging it globallymarket and leveraging it globally

Percent of sales coming from outside a home marketPercent of sales coming from outside a home market

19931993 19991999 WAL-MART WAL-MART 0.0 0.0 13.8%13.8%GENERAL ELECTRIC GENERAL ELECTRIC 16.5 16.5 30.1 30.1 TOYOTA TOYOTA 44.6 44.6 49.549.5MCDONALD'S MCDONALD'S 46.9 46.9 61.5 61.5 NOKIA NOKIA 85.0 85.0 97.6 97.6

DATA: STANDARD & POOR'S, COMPANY REPORTSDATA: STANDARD & POOR'S, COMPANY REPORTS

Source: Source: Business WeekBusiness Week, 8/28/00, 8/28/00

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