Business Strategy in a Semiglobal Economy by Panos Mourdoukoutas

By Panos Mourdoukoutas

This groundbreaking textual content offers either conception and method for working in a semiglobal financial system within which foreign companies needs to compete in hugely globalized and hugely localized markets whilst. not like the normal transnational and matrix company versions, a semiglobal company organizes its operations based on the global/local content material of its worth propositions instead of based on nation-states, items, or contribution to the guardian company's functionality. to illustrate of a semiglobal company, the Honda Motor corporation has a world imaginative and prescient in terms of hugely worldwide bundles like automobile engines, and an area imaginative and prescient by way of hugely localized vehicle financing and servicing. Designed as a supplementary textual content for classes in foreign company, improvement economics, advertising, and strategic making plans, ''Business procedure in a Semiglobal Economy'' increases vital demanding situations to the normal versions of industrial association and the aggressive recommendations that continue from them.

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In these markets, products tend to become commodities and companies tend to compete primarily in terms of cost. 13. , 2002 Annual Report, Santa Clara, CA, p. 5. 14. , p. 4. 15. com 2/10/2005. Part I The Two Segments of the Semiglobal Economy Early Globalization, Multinationalization, and Today’s Semiglobalization Early globalization Early globalization 1875 High degree of economic integration; speedy flow of commodities and resources; weak government 1913 1931 Limited protectionismregulation; spread of second industrial revolution 1947 2000 TODAY Semiglobal Globalization: economy Decline of protectionism; deregulation; third industrial revolution Multinationalization For centuries, the world economy has been caught at the crosscurrents of two opposite trends, localization or multinationalization, the increasing fractionalization and localization of world markets, and globalization, the increasing integration and interdependence of world markets.

28. Mourdoukoutas (1999b), p. 46. 29. Intel, 2002 Annual Report, Santa Clara, CA, 2003. 30. Delaney and Bank (2004), p. A5. 31. Adams (2004), p. 39. 32. Porter (1992), p. 75. 33. Bolande (2003), p. A6. 34. Fowler (2003), p. B1. 35. ” Business Week, Mar. 11, 2002, pp. 72–76 (cover story). 36. For details, see Hout and Hemerling, (2003), pp. 31–33. 37. Ramstad and Dvorak (2003), p. A1. 38. Christensen (2003), p. 131. 39. Tam (2003), p. A111. 40. Tam (2003), p. A16. 41. Hirsh and Wheeler (1999), p.

This means that today’s globalization has a number of common characteristics with that of early globaliza19 20 THE TWO SEGMENTS OF THE SEMIGLOBAL ECONOMY tion: a high degree of integration of local and national markets, rapid technological change and product obsolescence, and a high degree of imitation and intensification of competition, with three major qualifications. First, today’s economic integration, imitation, and technological obsoleteness occur at a far faster pace than those of early globalization.

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