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    Yip's Globalization Drivers - R1

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    Abhineet Rawat
    This document discusses Yip's framework for analyzing the degree of globalization in industries. The framework identifies four main categories of globalization drivers: market drivers, cost drivers, government drivers, and competitive drivers. Each category contains parameters that can indicate whether an industry faces more pressure for globalization or localization. Analyzing the drivers helps understand the critical success factors and potential for globalization in an industry. Yip's framework can also be mapped to Porter's five forces model to assess how the globalization drivers impact industry competition.

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    Yip's Globalization Drivers - R1

    Uploaded by

    Abhineet Rawat
    4K views15 pages
    This document discusses Yip's framework for analyzing the degree of globalization in industries. The framework identifies four main categories of globalization drivers: market drivers, cost drivers, government drivers, and competitive drivers. Each category contains parameters that can indicate whether an industry faces more pressure for globalization or localization. Analyzing the drivers helps understand the critical success factors and potential for globalization in an industry. Yip's framework can also be mapped to Porter's five forces model to assess how the globalization drivers impact industry competition.

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    Yip’s Globalization Drivers- R1

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    This document discusses Yip's framework for analyzing the degree of globalization in industries. The framework identifies four main categories of globalization drivers: market drivers, cost drivers, government drivers, and competitive drivers. Each category contains parameters that can indicate whether an industry faces more pressure for globalization or localization. Analyzing the drivers helps understand the critical success factors and potential for globalization in an industry. Yip's framework can also be mapped to Porter's five forces model to assess how the globalization drivers impact industry competition.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    4K views15 pages

    Yip's Globalization Drivers - R1

    Uploaded by

    Abhineet Rawat
    This document discusses Yip's framework for analyzing the degree of globalization in industries. The framework identifies four main categories of globalization drivers: market drivers, cost drivers, government drivers, and competitive drivers. Each category contains parameters that can indicate whether an industry faces more pressure for globalization or localization. Analyzing the drivers helps understand the critical success factors and potential for globalization in an industry. Yip's framework can also be mapped to Porter's five forces model to assess how the globalization drivers impact industry competition.

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    Download as pptx, pdf, or txt
    of 15

    Yip s Globalization Drivers

    Academic Group 24 Abhineet Shweta Nidhi Swayam Rahul Vipin

    Globalization
    Globalization refers to the development of global or worldwide business activities, competition and markets and the increasing global interdependence of national economies Stonehouse et all. 2004 International integration in commodity, capital and labour markets Bordo et all. 2003, WTO World 3.0's remapping of the terrain suggests a better path forward. Specifically, a more realistic appraisal of both globalization and regulation suggests a path to greater prosperity that involves more market integration as well as limited and targeted market regulation. Ghemawat, World 3.0
    Industry Top 5 seller concentratio n 71% 70% 68% 59% 59% 55% 53% 40% 37%

    Entertainment Carbonated Soft Drinks Light Bulbs Computer Software Computer Hardware Aerospace/ Defense Automobiles Semiconductors Passenger Airlines
    Source : Ghemawat and Ghadar, 2006

    Globalization Drivers : Yip s Framework

    Developed by George Yip(1992) Helps analyze the degree of globalization in the industries The 4 main categories of drivers are :
    Market Globalization Drivers Cost Globalization Drivers Government Globalization Drivers Competitive Globalization Drivers

    Low (Domestic)

    High (Global)

    Macroeconomic Environment & Framework

    Technological Factor

    Market Drivers

    Social & Demographic Factor

    Cost Drivers

    Potential for Globalizatio n

    Government Drivers

    Economic & Financial Factor

    Competitive Drivers

    Political & Legal Factor

    Yip s Framework : Market Drivers


    Customer Needs
    Similarities/ Differences Culture Economic Development Physical Environment Climate

    Customers & Channels


    Global Suppliers Global Distributers

    Marketing
    Names Advertising

    Lead Countries
    Product Innovations

    Market Drivers : Explained


    Driver MARKET Parameter Customers Channels Marketing Countries Pressure for globalization Global customers Global channels Transferable marketing Lead countries Pressure for localization Local customers Local channels Differentiated Marketing No obvious lead countries

    Yip s Framework : Cost Drivers


    Economies of Scale/Scope
    National market size (Scale) Common distribution outlets (Scope) Group of goods packaged together

    Experience Curve
    Learning Curve

    Sourcing
    Names Advertising

    Logistics
    Transportation Costs

    Country Costs, Productivity & Skills Product Life Cycles & Product Development Costs

    Cost Drivers : Explained


    Driver COST Parameter Economies of scale Experience curve Sourcing Pressure for globalization High fixed costs Steep learning curve Low transportation costs & perishable products, no need to locate near customers Differences in cost High Rapid Pressure for localization Low fixed costs Shallow learning curve High transportation costs & perishable products, need to locate near customers Similarities in cost Low Slow

    Logistics Product development costs Technological change

    Yip s Framework : Government Drivers


    Trade Policies
    Liberalization Trade barriers

    Technical Standards
    Commonality between countries

    Marketing Regulations
    Advertising Standards

    Government-Owned Customers Government-Owned Companies


    Govt. subsidies, protection of home markets

    Host Government Concerns


    National conditions

    Government Drivers : Explained


    Driver GOVERNMENT Parameter Trade policies Technical standards Marketing regulations Government ownership Host govt. concerns Pressure for globalization Low trade barriers Compatible Common Govt. owned competitors present Policies that favor global businesses Pressure for localization High trade barriers Incompatible Different Govt. owned competitors absent Policies that hinder global businesses

    Yip s Framework : Competitive Drivers


    Exports & Imports
    Level of export & imports

    Competitors
    Domestic Global Global competition Global Strategy

    Interdependence of countries
    Level of interdependence Level of independence

    Competitive Drivers : Explained


    Driver COMPETITIVE Parameter Volume of exports & imports Competitors Interdependence of countries Pressure for globalization High exports & imports Competitors from different continents, globalized Countries largely interdependent Pressure for localization Low exports & imports Local competitors Countries largely independent

    Yip s Framework : Summary of Drivers


    Identifies the drivers that are local & global, attributes of transnational synergy can be tailored to match the drivers Can be mapped to Porter s five forces Changes in drivers indicated by macroeconomic analysis Analyze both industry and market Identifies the critical success factors of a global industry & market

    Yip s Framework : Porter s Five Forces


    Porter s Forces Threat of Entry Globalization driver impact Common Customer: Increase Global economies of scale : Decrease Global marketing : Decrease High product development costs : Decrease Global competition : Increase Lead nations : Increase Research & Development : Increase Innovation : Increase Global customers : Reduce supplier power Global suppliers : Counteract customer power Common customer needs : Increase Global customers : Increase Economies of scope : Increase Global sourcing : Increase Compatible technical standards & favorable trade policies : Increase Globalization Drivers Government Market

    Threat of Substitutes

    Government Market Market Cost

    Power of Suppliers/Buyers

    Competitive rivalry

    Competitive Cost

    THANK YOU !!

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