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ry public. ? Globalization is largely a technologydriven phenomenon, not a tradedriven one. Globalization ? Globalization is more than just Westernization (Frank Griffel): Islamic fundamentalism ? Globalization and History by Jeffrey Williamson and Kevin O’Rourke ? Globalization also flourished in the 19th c and then faltered. ? Railroad and steamships, submarine telegraph cables and Suez Canal (1869) all encouraged a huge expansion of trade, global investment and migration. “By 1914, there was hardly a village or town anywhere on the globe whose prices were not influenced by distant foreign markets, whose infrastructure was not financed by foreign capital, whose engineering, manufacturing, and even business skills were not imported from abroad.” ? Governments powerless in face of illegal trade in drugs, arms, intellectual property, people and money. Globalization NA intraregional trade volume 421 billion USD, % of the global total European intraregional trade volume 1,624 billion USD, % of the global total AsiaPacific Intraregional Trade volume 807 billion USD, 13% of the global total Trade between EU and AsiaPacific region 477 billion USD, % Of the global total Trade between NA and AsiaPacific region 652 billion USD, % of the global total Trade between EU and NA 469 billion USD, % of the global total Balance between Globalization and Regionalization Strategy Economic Logic Staging Arenas Vehicles Differentiators Where will we be active? ?Which product categories? ?Which market segments? ?Which geographic areas? ?Which core technologies? ?Which valuecreation stages? What will be our speed and Sequence of moves? ?Speed of expansion? ?Sequence of initiatives? How will we obtain our returns? ?Lowest costs through scale advantages? ?Lowest costs through scope and replication advantages? ?Premium prices due to unmatchable service? ?Premium prices due to proprietary product features? How will we get there? ?Internal development? ?Joint ventures? ?Licensing/franchising? ?Acquisitions? How will we win? ?Image? ?Customization? ?Price? ?Styling? ?Product reliability? The Five Major Elements of Strategy Strategy Economic Logic Staging Arenas Vehicles Differentiators Arenas ?Inexpensive contemporary furniture ?Young, whitecollar customers ?Worldwide Staging ?Rapid international expansion, by region ?Early footholds in each country。 capabilities through worldwide diffusion and adaptation Matsushita and NEC Key Definitions Organizational Characteristics Multinational Global International Configuration of