Analyzing the External Strategic
Environment and Evaluating Industry Dynamics
The
strategy to craft globalization for any industry must include the precise
balance of innovation and ability to fight against the local market.
As
mentioned by Ezra, Martin, and Sven - the corporate leaders need to access the
area of competitiveness and cooperate in the crafting of a new societal deal
that helps individuals cope with disruptive technological change. Though
globalization comes with uncertain hiccups, the leaders who understand the
changes required in their industry and who can turn the situation to positive
momentum for their business should not be held back. The leaders can look into
nine major global forces and their interactions mentioned in the Article. These forces have several tensions to consider.
One of
the tensions reflect on accelerating industry disruption. Considering this
aspect of tension on Indian Business front, there are innumerable examples
where we can see the advent of B2C becoming “C2B,”
(In the words of Alibaba’s Jack Ma). The food delivery chain brand “Uber Eats”
gave a tough competition to the local food delivery brand “Swiggy” in India.
“Uber Eats” used various strategies to attract the crowd to use its services by
giving attractive discounts as low as 90% discounts to its users during their
initial stage. The response time and delivery executive availability were also
few factors which Uber Eats worked on to give an impactful competition to
Swiggy. The customers used the services at least in the initial phase which
gave Uber Eats a good kick start in the food delivery market where Swiggy had a
good hold initially. This ultimately forced Swiggy to come up with interim
offers to hold on to the food delivery market. From taking care of local taste
to taking care of market precision, globalization is never a straightforward
task. As mentioned in the Article Estée Lauder in 2012 introduced Osiao, its
first China-specific beauty brand, which is developed at the company’s Shanghai
R&D center. At the end of 2016, Hyundai announced it would be producing
several new models in China to compete with local brands. Talking about
the customer in the driver seat - Article, Digitization has brought consumers an
ever-expanding menu of goods and services to choose from, some of which are free.
Wikipedia’s English-language pages alone would fill the equivalent of more than
2,300 encyclopedias if printed. Skype, which allows users to make free video
and audio calls to other Skype users, provides over two billion minutes of
calls every day. And infinite variety means that just about any taste or
preference is being catered to. In an environment where so much costs so little
and proliferating variety fragments markets, customers are capturing more of
the surplus.
Other
tensions include global growth shifts and new societal deal. With the
globalization of digital products and services surging, the traditional market
is close to extinct, and it’s time to move beyond globalization. The
collaboration between business and government will act as a catalyst to
accelerate growth by undertaking the economic experiments and middle-class
progress. Today, with the outstanding advances in the technical front people
have easy access to a healthy lifestyle, reading and an opportunity to enter
the global middle class.
Thus,
for globalization, the strategist needs to fight against the small details of
the local market as well as take care of the strategic position as mentioned in
the Harvard Business Review (Nov – Dec 1996). The need-based positioning,
variety-based positioning, access-based positioning or a combination of these
will require a tailored set of activities.
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