Countries differ from each other in terms of cost structures, skill levels, and resource endowments. Optimizing the choice of locations can play a major role in the creation of global competitive advantage. This video helps to clarify where your company stands on the three factors to evaluate on location choice.
- Optimizing the global architecture of each activity … in the value chain is merely the starting point … of making sure that the company will have … competitive advantage on the global stage. … Given any architecture, corporate leaders must also ensure … that they have picked the best locations … for the execution of the activities. … Countries differ from each other … in terms of cost structures, skill levels, … resource endowments. … If a company can exploit these differences … better than its competitors, … it can create a sizable advantage for itself. … There are three main criteria … that should guide the choice of locations. … Consider Microsoft's decision to establish … its second biggest research center in Beijing … in the late 1990s. … Along with the U.S. and India, … China produces more science graduates … than any other country in the world. … Microsoft concluded that tapping into some … of the most talented graduates … from this vast pool would add significantly … to the quality of the scientists …
- Why go global?
- Prioritizing across the world's markets
- Designing entry strategies
- Frugal innovation
- Leveraging global resources
- Cultivating a global mindset