9 EXAMPLES OF FIRMS IMPLEMENTING GLOBAL STRATEGY Agenda

9 EXAMPLES OF FIRMS IMPLEMENTING GLOBAL STRATEGY

Agenda

RedBull Product Repackaging for the Chinese

North American Redbull

Chinese Redbull

Companies add value by adapting packaging based on consumer preferences. North American Red Bull Red is a symbol of action and courage Silver is a symbol of maturity Blue is a symbol of youth spirituality and peace Packaging

Chinese Red Bull Red is a symbol of good luck Gold is a symbol of wealth and happiness Packaging Continued

Nokia Economic Adaptation For Emerging Markets

Africa North American & Europe Basic and affordable Advanced and expensive Economic Adaptation Lever: Variation

Barbie – Dolls of the World Cultural Adaptation

Created by Mattel in 1959 Barbie was a success in the USA Barbie

Barbie was a fashion icon Stereotypical feminine in the post war period Luxury designs for Barbie were created Barbie

Mattel has altered the doll to fit local cultures: African market – introducing a black Barbie. India – traditional clothing (sari). Cultural Preferences

There is little homogenisation Of all the countries, only a few have their “own” Barbie Ex. China, India, Mexico, Holland, and Argentina Focus

Levi Strauss Adapts to China Introduces a New Brand - Denizen

Design: To reduce the cost of variation. Levi’s Target Market: Price-sensitive and active youth. How: Levi’s created a similar product, however, made it more affordable to appeal to. creativeroots.org Adaptation Strategy: Design

Holland and Barrett Failure to Adapt in China

UK based health food retailer 80 years experience in health retail industry Over 1,000 high quality, vitamins, minerals and other nutritional supplements Holland & Barrett attempt to penetrate the Chinese market Holland and Barrett: Intro

Challenge Repositioning - H&B did not adjust to local costs and prices necessary given the large economic distance between China and UK. Adaptation: Variation

Success Segment Focus - H&B targeted a limited customer base in China that would appeal to their products. H&B targeted Shanghai, the region with the highest minimum wage and the most westernization. Challenge Segment Focus - Not a widely known brand name in the global market, therefore, it was not successful in grasping the niche cliental it was hoping for. Adaptation: Focus

Challenge Franchise - H&B lost control by franchising – should have had directly operated stores Franchisee incurs high fixed costs therefore high prices – increasing economic distance Adaptation: Externalization

Challenge Partitioning - H&B needed to partition more to meet the needs of the Chinese H&B should have introduced more variety in their products to reduce cultural distance Adaptation: Design

Challenge Localization – H&B did not focus on innovation in their target geographic region. H&B could have created smaller portions to meet the needs of price sensitive consumers in order to decrease economic distance. Adaptation: Innovation

P&G Adapt Gillette Razors For the Indian Consumer

Go to the source Understand the wants, needs, and desires of the target consumer. For example: shaving experience is markedly different for people in rural areas who shaved using little or no water while balancing a hand-held mirror in one hand. Gillette’s Approach in India

Gillette’s Approach in India Delight, don’t dilute Rather the lowering performance, the customer was kept at the center of the process offering a distinct service. P&G included features like easy-rinsing, given the paucity of water in target markets, or unique grips given the ways consumers tended to hold razors.

Gillette’s Approach in India Match the model to the market Succeeding in India requires new manufacturing, distribution and promotion approaches.

1) Outsource manufacturing to local factories and use local resources. 2) Create local relationship with Indian consumers through local shops called Kiranas (pictured right) Externalization

1) Simplicity: 80% less parts than Gillette Fusion sold in developed markets. 2) Designed a whole new razor with adjusted form (weight, # of blades, grip, etc.) to accommodate Indian culture and standards. Design and Variation

1) Reverse Innovation to penetrate price sensitive Indian market. 2) Simple cheap “good enough” razor. 3) 5 rupees - 10 cent blade 15 rupees - 30 cent razor Reverse Innovation

Reebok Adapting the Product-Line Across Markets

Sports brand specialized in shoes Subsidiary of Adidas Present in many emerging countries Introduction

Different product lines adapted to each country’s market where Reebok operates. Product variation depending on trends, climate and lifestyle. High cost of adaptation. Variation  Products

Chinese vs. Russian website homepages Chinese version Russian version Variation  Products

Ford Motor Company Product and Design-based Adaptation

Vehicle models and designs are targeted to varying needs of global customers Example: Smaller cars offered in European market Lever: Variation

New EcoBoost engine design Reduces emissions and improves fuel economy of vehicles Provides customers with a shorter ROI timeframe than hybrid vehicles Can be implemented in a wide variety of car models with various engine types Lever: Design

McDonald’s Modifying the Burger Around the World

McRice Burger (Southeast Asia) McLaks Burger (Norway) Black & White Burgers (China) India New-Zealand McDonald’s Expertise in Variation

Summary