Join Anil Gupta for an in-depth discussion in this video Industry economics matter, part of Global Strategy.
- Walmart entered Germany in 1997…by acquiring two small companies with a 5% market share.…Its competitors included Metro and Aldi,…two local giants with a combined share of over 50%.…On a global basis, Metro and Aldi were…much smaller than Walmart yet Walmart found…that it was a no match for Metro and Aldi in Germany.…
After struggling for years it withdrew from Germany in 2006.…Contrast Walmart's experience with that of Google.…Barely five years after its birth in 1998,…Google had become the leading search company…in over 70 countries including Germany.…The difference between Walmart and Google's experiences…has little to do with either…company's skill and global expansion.…
Instead the explanation lies in stock differences…in the economics of the two industries.…In discount retailing, over 90% of the…cost structure is purely local.…Since stores have to be local,…the cost of furnishing and operating pen,…the cost of inventory, and the cost of logistics…all need to be local.…The product sold in these stores are daily necessities:…
This course is aimed at helping managers learn how to maximize the benefits while minimizing the costs and risks associated with global expansion. Anil K. Gupta, Michael Dingman Chair in Strategy and Globalization at The University of Maryland's Smith School, and one of the world's leading experts on global strategy, outlines the logic of global strategy and the questions you need to address in order to globalize your company's market presence and leverage global resources.
Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
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- Why go global?
- Prioritizing across the world's markets
- Designing entry strategies
- Frugal innovation
- Leveraging global resources
- Cultivating a global mindset