First in a series of four posts.
By W Gary Winget, FasTrack Global Expansion Solutions
Why globalize a company’s strategy? A globalized strategy can lead to the integration of a company’s domestic and country-based strategies into a single, coordinated, worldwide strategy and the acceleration of a company’s success in the global marketplace.
How does a company globalize its strategy? To globalize a company, the company needs to analyze the strategic characteristics of its global environment and develop a strategic fit between its long-term strategies and its assumed future global environment.
The first step in the globalization process is to identify the company’s global strategic players and their current and future strategic impact on your company and industry. The global strategic players are:
- Strategic buyers,
- Strategic market segments,
- Strategic country markets,
- Strategic competitors
Strategic Buyers.
You will identify buyers that purchase products supplied by your industry and who are or are determined to be global strategic buyers. To be considered a global strategic buyer, a buyer must have or be expected to have a significant impact on your industry on a worldwide basis.
The buyer is considered strategic if it:
- Volume of Product The buyer purchases a significant volume of product relative to the size of the total global market for the product;
- Product Innovation. The buyer simulates demand for product advancements and innovations in your industry because they demand the highest quality and most advanced technologies;
- Headquartered in Strategic Country Market. The buyer is headquartered in a strategic country market;
- Specifies Globally. The buyer specifies standards for the purchase of your product on a global basis;
- Other Criteria. The buyer demonstrates other significant characteristics unique to your industry.
Strategic Market Segments.
Strategic market segments are those market segments that purchase products in your industry and have a significant impact on the globalization of your industry.
A market segment is considered strategic if it:
- Volume of Product Purchased. They global market segment purchases a significant volume of product relative to the size of the total global market for the product;
- Product Innovation. The market segment stimulates demand for product advancements and innovations in your industry by demanding the highest quality and most advanced technologies;
- Presence in Strategic County Market. The market segment is located in multiple strategic country markets for your product;
- Specifies Globally. The specifications for the product category that are the same or similar globally;
- Other Criteria. The market segment meets other significant criteria that are unique to your industry.
Strategic Country Markets.
Strategic country markets are unique markets that will have a significant impact on the globalization of your industry.
A strategic country market may be large or small. To be defined as a global strategic country market, it has to meet the following criteria:
- Volume of Product Purchased. The volume of product purchased in the country market is significant relative to the size of the total global market for your product;
- Product Innovation. The demand for product in the country market stimulates advancements and innovations in your product by requiring the highest quality and most advanced technologies;
- Headquarters of Strategic Buyer. The country market’s is the location of a strategic buyer’s headquarters;
- Headquarters of a Strategic Competitor. The country market is the location of a strategic competitor’s headquarters;
- Other Criteria. The country market demonstrates other significant characteristics that are unique to your industry.
Strategic Competitors.
The final task in identifying global strategic players is to identify and profile the competitors with which your company shares a global market.
The following criteria will assist you in identifying and profiling competitors that are globally strategic in your industry. A competitor is considered a strategic competitor if it meets the following criteria:
- Volume of Product Sold. They competitor sells a significant volume of product relative to the size of the total global market for your product;
- Product Innovation. The competitor is a significant source of quality products and product advancements and innovations in your industry;
- Large Market Share. The competitor has a significantly large market share in a global strategic country market;
- Core Competencies. The competitor has significant core competencies relevant to your industry;
- Other Criteria. The competitor demonstrates other significant characteristics unique to your industry.
Profile Strategic Players
After identifying the strategic players in your industry, develop in-depth profiles of each player that you determined to a global strategic player. Continually update the profiles as you increase your knowledge of the global strategic players and add new global strategic buyers, market segments, country markets, and competitors as they emerge.
Next Steps. Assessing Globalization Forces. Defining Global Strategies. Developing a Globalized Strategic Profile.
Reference. FasTrack Export Step-by-Step Process, pages 360-375. www.FasTrackGlobalizer.com.
Contact Tony.Kramer@FasTrackGlobalizer.com for more information