1. Chapter 6 Analyzing Global Industry and Competitors

2. Once we understand global and regional forces in the international arena, we can focus on them and use them to our advantage

3. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Global Industry Demand,
Using regression analysis to estimate demand over time in aggregate worldwide as well as disaggregated regional and national. Why do we need to do this?

4. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Global Industry Demand,
Using regression analysis to estimate demand over time in aggregate worldwide as well as disaggregated regional and national. This is done to determine where production and distribution centers should be.

5. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Global Industry Demand
Export Market Demand: uses national export statistics to locate markets that could be serviced from the home base or foreign based subsidiaries. This is the other side of the equation. The supply side for us, their exports and our imports.

6. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Global Industry Demand
Export Market Demand: uses national export statistics to locate markets that could be serviced from the home base or foreign based subsidiaries. This is the other side of the equation. The supply side for us, their exports and our imports. In order to identify potential markets we require statistics that shows product classifications. There are many sources of trade statistics.
the standard international trade classification—SITC, shows which nations import specific products.
Nations Trade Data Yearbook, is another source of data. These statistics are held by each country so they know their position in the global market as well as maintaining compliance with WTO rules.

7. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Global Industry Demand
Export Market Demand
Global Consumption and Production Trends. Who is buying (selling) what and where

8. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Locating Import Sources of Supply, Once we know who is buying what and where, we need to use the same data to see who is selling what are where, i.e. we need to secure reliable sources for our imports.

9. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Identifies dominant firms in particular industries: nationalities, sizes, influence

10. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Identifies dominant firms in particular industries: nationalities, sizes, influence
Industry structures are becoming more global as mergers and acquisitions, particularly among major players (‘mega-mergers’) are increasingly affecting industry competitive landscapes.

11. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Global Change:
WTO and IMF improve worldwide infrastructures and payments mechanisms;

12. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Global Change:
WTO and IMF improve worldwide infrastructures and payments mechanisms;
increasing numbers of nations are adopting democratic institutions;

13. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Global Change:
WTO and IMF improve worldwide infrastructures and payments mechanisms;
increasing numbers of nations are adopting democratic institutions;
more markets adopt capitalism and open up

14. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Global Change: WTO and IMF improve worldwide infrastructures and payments mechanisms;
increasing numbers of nations are adopting democratic institutions;
and more markets adopt capitalism and open up
Regional political trends: trade blocs increase and firms look to multi-market brands and supply chains

15. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Global Change:
WTO and IMF improve worldwide infrastructures and payments mechanisms;
increasing numbers of nations are adopting democratic institutions;
and more markets adopt capitalism and open up
Regional political trends: trade blocs increase and firms look to multi-market brands and supply chains
National elections and changes in political and economic agendas are constant sources of political uncertainty

16. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Global economic growth affects industry global demand

17. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Global economic growth affects industry global demand
Regional economic growth affects how firms allocate resources among worldwide operations

18. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Global economic growth affects industry global demand
Regional economic growth affects how firms allocate resources among worldwide operations
National economic growth affects country industry demand and affects national sales goals, manufacturing capacity plans and demand management for individual countries

19. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
National industrialization efforts:
create demand for new types of
financial services,
industrial products,
consumer products (education, healthcare, brands, labor-saving products)

20. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Global firms have the inside knowledge of international markets and therefore know the direction of the markets. Therefore they can always find a way to jump to the forefront of the market. For example, national industrialization efforts create demand for new types of financial services, industrial products, consumer products (education, healthcare, brands, labor-saving products)

21. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
National industrialization efforts: create demand for new types of financial services, industrial products, consumer products (education, healthcare, brands, labor-saving products)
Societal Priorities:
At the regional and country levels, national governments push issues onto corporate agenda (conservation, recycling, rural development, transportation)

22. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends
Worldwide Effects of technology on society.

23. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends Worldwide Effects of technology on society on:
Religion: reliance on technologies reduces religiosity and provides new media outlets for alternative viewpoints

24. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends
Religion: reliance on technologies reduces religiosity and provides new media outlets for alternative viewpoints
Demographics: better medical technologies have lead human longevity enhanced; graying of national populations

25. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends
Societal Effects
Religion: reliance on technologies reduces religiosity and provides new media outlets for alternative viewpoints
Demographics: human longevity enhanced; graying of national populations
Education: internet makes vast knowledge bases available to a wider potential population.

26. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends
Societal Effects
Religion: reliance on technologies reduces religiosity and provides new media outlets for alternative viewpoints
Demographics: human longevity enhanced; graying of national populations
Education: internet makes vast knowledge bases available
Popular Culture: new international media, products and services have made global icons out of people and brands

27. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends
Societal Effects
Religion: reliance on technologies reduces religiosity and provides new media outlets for alternative viewpoints
Demographics: human longevity enhanced; graying of national populations
Education: internet makes vast knowledge bases available
Popular Culture: new international media, products and services have made global icons out of people and brands
Company Effects of technology
Technology has transformed how firms do business internally and externally via internet and intranet.

28. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends
Societal Effects
Religion: reliance on technologies reduces religiosity and provides new media outlets for alternative viewpoints
Demographics: human longevity enhanced; graying of national populations
Education: internet makes vast knowledge bases available
Popular Culture: new international media, products and services have made global icons out of people and brands
Company Effects of technology
Technology has transformed how firms do business internally and externally via internet and intranet. Internet has made it possible to be in touch with customers and customize their services to their clients.

29. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends
Societal Effects
Religion: reliance on technologies reduces religiosity and provides new media outlets for alternative viewpoints
Demographics: human longevity enhanced; graying of national populations
Education: internet makes vast knowledge bases available
Popular Culture: new international media, products and services have made global icons out of people and brands
Company Effects of technology
Technology has transformed how firms do business internally and externally via internet and intranet. Internet has made it possible to be in touch with customers and customize their services to their clients. It has enabled firms to interface their suppliers with their distributors.

30. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends
Societal Effects
Religion: reliance on technologies reduces religiosity and provides new media outlets for alternative viewpoints
Demographics: human longevity enhanced; graying of national populations
Education: internet makes vast knowledge bases available
Popular Culture: new international media, products and services have made global icons out of people and brands
Company Effects of technology
Technology has transformed how firms do business internally and externally via internet and intranet. Internet has made it possible to be in touch with customers and customize their services to their clients. It has enabled firms to interface their suppliers with their distributors. It has give small companies an opportunity to compete globally.

31. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends
Societal Effects
Religion: reliance on technologies reduces religiosity and provides new media outlets for alternative viewpoints
Demographics: human longevity enhanced; graying of national populations
Education: internet makes vast knowledge bases available
Popular Culture: new international media, products and services have made global icons out of people and brands
Company Effects of technology
Technology has transformed how firms do business internally and externally via internet and intranet. Internet has made it possible to be in touch with customers and customize their services to their clients. It has enabled firms to interface their suppliers with their distributors. It has give small companies an opportunity to compete globally. Capital market is more competitive.

32. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Political Trends
Economic Trends
Societal Trends
Technological Trends
Societal Effects
Religion: reliance on technologies reduces religiosity and provides new media outlets for alternative viewpoints
Demographics: human longevity enhanced; graying of national populations
Education: internet makes vast knowledge bases available
Popular Culture: new international media, products and services have made global icons out of people and brands
Company Effects of technology Technology has transformed how firms do business internally and externally via internet and intranet. Internet has made it possible to be in touch with customers and customize their services to their clients. It has enabled firms to interface their suppliers with their distributors. It has give small companies an opportunity to compete globally. Capital market is more competitive. Intranet has made communication and data available to all employees of the companies faster and more accurately.

33. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Financial Benchmarks are important indicators of the industry attractiveness and competitiveness. These benchmarks are profit rate, return on assets, return on sales, etc.

34. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Financial Benchmarks
Key Success Factors are those that allow a company to prosper and survive such as:
strategic expertise,
competencies,
resources, and
competitive capabilities
They are different for different corporations depending whether they are providing a commodity or service.

35. Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Financial Benchmarks
Key Success Factors

36. Global Competitor Analyses
Competitors could come from the neighborhood (country), region, and worldwide.

37. Global Competitor Analyses
Global Competitor Analysis
GCA provides insights into rivals’ strategies

38. Global Competitor Analyses
Global Competitor Analysis
GCA provides insights into rivals’ strategies and enable companies to:
Outwit Rivals - detect marketplace changes more quickly than competitors

39. Global Competitor Analyses
Uses of Global Competitor Analysis
GCA provides insights into rivals’ strategies and enable companies to:
Outwit Rivals
Outmaneuver Rivals - Being the first to introduce new products and technologies

40. Global Competitor Analyses
Uses of Global Competitor Analysis
GCA provides insights into rivals’ strategies and enable companies to:
Outwit Rivals - detect marketplace changes more quickly than competitors
Outmaneuver Rivals - Being the first to introduce new products and technologies
Outperform Rivals - In terms of new product development, market share, customer satisfaction levels and corporate reputation

41. Global Competitor Analyses
Global Competitor Analysis would take place on different levels.

42. Global Competitor Analysis
1-- Internal Assessments
Corporate missions: provide overviews of corporate priorities in terms of products, markets, technology, and corporate culture

43. Global Competitor Analysis
1-- Internal Assessments
Corporate missions: provide overviews of corporate priorities in terms of products, markets, technology, and corporate culture
Strategic intents: relate to long-term competitive aspirations of the company such as its market position and share

44. Global Competitor Analysis
1-- Internal Assessments
Corporate missions: provide overviews of corporate priorities in terms of products, markets, technology, and corporate culture
Strategic intents: relate to long-term competitive aspirations of the company such as its market position and share
Core competencies: are articulations of what companies do better than others – their acknowledged expertise vis-à-vis the rest of the industry. Microsoft and software; Unilever and everyday products.

45. Global Competitor Analyses
2-- External Assessments: Analyzing Competitor Operations
Total sales and regional breakdowns show current revenue streams of competitors and regional sales dependencies

46. Global Competitor Analyses
2-- External Assessments: Analyzing Competitor Operations
Total sales and regional breakdowns show current revenue streams of competitors and regional sales dependencies
Global demand analyses show recent sales trends in specific regions and product areas

47. Global Competitor Analyses
2-- External Assessments: Analyzing Competitor Operations
Total sales and regional breakdowns show current revenue streams of competitors and regional sales dependencies
Global demand analyses show recent sales trends in specific regions and product areas
Supply Chain Strategy: the efforts firms are making to streamline purchasing, manufacturing, and distribution activities on a worldwide basis

48. Global Competitor Analyses
2-- External Assessments: Analyzing Competitor Operations
Total sales and regional breakdowns show current revenue streams of competitors and regional sales dependencies
Global demand analyses show recent sales trends in specific regions and product areas
Supply Chain Strategy: the efforts firms are making to streamline purchasing, manufacturing, and distribution activities on a worldwide basis
Strategic initiative analyses: highlight management priorities in market expansion efforts

49. Global Industry Analysis show us market opportunities.
Using Market Opportunity and Competitive Analyses to Craft Global Strategies
Global Industry Analysis show us market opportunities.

50. (interface with the suppliers)
Using Market Opportunity and Competitive Analyses to Craft Global Strategies
Global Industry Analysis show us market opportunities.
Supply chain Analysis shows where to buy resources for our production process
(interface with the suppliers)

51. Supply chain Analysis shows where to buy
Using Market Opportunity and Competitive Analyses to Craft Global Strategies
Global Industry Analysis show us market opportunities.
Supply chain Analysis shows where to buy
Competitor Analysis shows weaknesses and strengths of competition

52. Using Market Opportunity and Competitive Analyses to Craft Global Strategies
Global Industry Analysis show us market opportunities.
Supply chain Analysis shows where to buy
Competitor Analysis shows weaknesses and strengths of competition
From these we could craft strategies for market share and competitions’ strengths and weaknesses.

53. Market Selection Strategies
Using Market Opportunity and Competitive Analyses to Craft Global Strategies
Market Selection Strategies
Large international companies routinely monitor market sizes and growth rates in over 150 national markets: large markets and markets with potential are always priorities
Smaller companies may be more selective to avoid head-to-head competition

54. Competitive Effects on Strategic Decision-Making
Using Market Opportunity and Competitive Analyses to Craft Global Strategies
Competitive Effects on Strategic Decision-Making
Companies must not only satisfy customers but out-compete market rivals
Market challengers must be careful how they attack strong market leaders; but few firms are strong everywhere
Smaller companies lacking global reach or resources can use acquisitions, joint ventures or global alliances to attack larger competitors
Large companies can use superior brand names, corporate reputations, cost structures, and technologies to attack weaker competitors

55. Key Points Analyzing industries on a worldwide scale
Evaluation of market demand
Industry supply chains
Industry structure
Industry change drivers
Financial benchmarks
Analyses of global competitors

56. Key Points
Analyzing industries on a worldwide scale has become essential as companies and industry sectors have expanded their global presences throughout international markets.
Worldwide industry analyses starts with evaluations of worldwide and regional market demand and demand within individual countries. Export market demand should also be assessed using national and international trade statistics.

57. Key Points
Industry supply chains can be analyzed to assess international sources of supply, national expertise in manufacturing, and global distribution patterns
Industry structure analyses shows leading companies in particular sectors. Firms can then isolate individual rivals for in-depth competitor analyses of sales and supply chains

58. Key Points
Industry change drivers should be examined, including trends in global, regional, and national political and economic environments, societal and technological trends.
Financial benchmarks are provide guidelines for corporate assessment of business divisions and subsidiaries
Key success factors evaluate where to focus corporate efforts: “what they must do well” to be successful in their industry

59. Key Points Analyses of global competitors include:
Internal assessments of
Rivals’ corporate missions
Strategic intents
Core competencies
External assessments of
Global and regional revenue streams
Trends
Supply chain strategies
Strategic initiatives