YIPS-GLOBALIZATION-DRIVERS • 1. 25 May 09 International Business - Yip's Globalisation Drivers • Yip’s Globalisation Drivers Team 6 Sachin Arun KA Balaji Swapnil Arobinda • 25 May 09 International Business - Yip's Globalisation Drivers International Business Terms International companies: Importers and exporters; have no investment outside of their home country. Multinational companies: Have investment in other countries; More focused on adapting their products and service to each local market. Global companies: Have invested and are present in many countries; They market their products through the use of the same coordinated image/brand in all markets.

Exhibit 2.7 Industry Globalization Drivers ANALYZING AN INDUSTRY'S GLOBALIZATION POTENTIAL While it is tempting to simply extend the context of the five forces. Yip proposed a set of industry conditions that create the potential for global strategies.33 In his work, not all industries present the same.

Transnational companies: More complex organizations. They have invested in foreign operations; have Decentralized decision-making, R&D and marketing powers to each individual foreign market. • 25 May 09 International Business - Yip's Globalisation Drivers Introduction George Yip (1992) To know the degree of Globalisation within an industry, analyse 4 Main Categories of Drivers 1. Market Globalisation Drivers 2. Cost Globalisation Drivers 3. Government Globalisation Drivers 4. Competitive Globalisation Drivers Low (Domestic) High (Global) • 25 May 09 International Business - Yip's Globalisation Drivers Yip’s Framework Technological Factor Economic & Financial Factor Social & Demographic Factor Political & Legal Factor • 25 May 09 International Business - Yip's Globalisation Drivers Market Drivers Market Globalisation Drivers Customer needs Customers & channels Marketing Leading Countries Govt.

Globalisation Drivers Cost Globalisation Drivers Competitive Globalisation Drivers • 25 May 09 International Business - Yip's Globalisation Drivers Market Globalisation Driver - Strength Low (Domestic) High (Global) Airlines Computers Automobile Soft Drinks FMCG Retail Banking Book Publishing Baked Foods • 25 May 09 International Business - Yip's Globalisation Drivers Government Drivers Market Globalisation Drivers Customer needs Customers & channels Marketing Leading Countries Govt. Reinforced Concrete Design By H J Shah Free there. Globalisation Drivers Trade Policies Technical Standards Marketing Regulations Govt. Owned Competitors Govt. Owned Customers Legal protection Cost Globalisation Drivers Competitive Globalisation Drivers • 25 May 09 International Business - Yip's Globalisation Drivers Govt. Globalisation Driver: Strength Low (Domestic) High (Global) FMCG Baked Foods Soft Drinks Computers Automobile Pharma Airlines Retail Banking • 25 May 09 International Business - Yip's Globalisation Drivers Cost Drivers Market Globalisation Drivers Customer needs Customers & channels Marketing Leading Countries Govt. Globalisation Drivers Trade Policies Technical Standards Marketing Regulations Govt. Owned Competitors Govt.

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