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financial services: Deutsche Bank ? Compatible Technical Standards ?Motorola’s fight with Japanese standards ? Common Marketing Regulations ?Moral and cultural restrictions ? Governmentowned Competitors and Customers ? Host Government Concerns ?Fast relocations of business, valuechain specialization, price transfer, weakening of national decision centers Competitive Globalization Drivers Aircraft (Civil) Computers Credit cards Automobiles Soft Drinks Specialty Chemicals Pharmaceuticals (Ethical) Toothpaste Electrical Insulation Commercial Banking Pharmaceuticals (OTC) Booking Publishing Low High Strength Competitive Globalization Drivers for Selected Industries Competitive Globalization Drivers ? High Exports and Imports ? Competitors from Different Continents and Countries ? Interdependent Countries ?A petitor’s market share in one country contributes to its overall cost position and therefore, its share position in another country ? Globalized Competitors ? Transferable Competitive Advantage ?Such as technologybased ones ?The legal industry typifies the type of industrybased on local knowledge (of laws) and local relationships. There are very few genuinely global law firms, but a number operating as global alliances 。G, GlogatePalmolive…. ? The economies of scope involved in consumer research, product development, and the creation of marketing programs are a major source of the petitive advantage ? Less favorable for services that are primarily peoplebased ? Steep Experience Curve ? Global Sourcing Benefits ? Favorable Logistics ? Differences in Country Costs ? High Product Development Costs ? By 2021, developing a new pharmaceutical could cost $200 m or more。GOM 2 Global Strategy Industry Globalization Potential Globalization ? Globalization (Thomas Friedman: Understanding Globalization: The Lexus and the Olive Tree) ?One overarching feature—integration, the world has bee an increasingly interwoven place ?Defining technologies: puterization, miniaturization, digitization, satellite munications, fiber optics and the Inter ?Revolving around Moore’s law ? German Political theorist Carl Schmidt, the Cold War was a world of “friends” and “enemies”. The globalization world, by contrast, tends to turn all friends and enemies into “petitors”. Globalization ? Built around three balances: ?The traditional balance between nationstates ?Between nationstates and global markets (consists of Electrical Herd and Supermarkets) ?Between individuals and nationstates ?Everyone now is in everyone else’s business ? Joining the global economy and plugging into EH is the equivalent of taking your count