The type of industry you are in can play a major role in whether and how you go global. This video helps you determine whether you are in a multi-domestic industry or globally integrated industry.
- 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 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 … at global expansion. … Instead, the explanation lies in stark 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 them, the cost of inventory, … and the cost of logistics, all need to be local. …
- Why go global?
- Prioritizing across the world's markets
- Designing entry strategies
- Frugal innovation
- Leveraging global resources
- Cultivating a global mindset