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2. Global ambition:
• There are two global indices:
- Global Revenue Index (GRI) is the ratio of the company
distribution of sales in the major world regions to the industry
distribution of demand in the same region.
- Global Capability Index (GCI) is the ratio of the company
distribution of assets or personnel in the major world regions to
the industry distribution the same region. Distribution of assets is
used when the company is engaged in a capital-intensive
industry. Otherwise, the distribution of personnel is used.
• Types of global ambitions
Depending on the value of the GRI and GCI, there are five main global
ambitions for different players.
- A Global player aspires to establish a sustainable competitive
position in the key markets of the world and to build an integrated
business system of designs spread over those key markets. It has both
a high GCI and a high GRI score.
- A Regional player captures a strong competitive advantage in
one of the key regions of the world (North America, Europe and Asia)
and is a relatively weak player in the other parts. It has both a low GCI
and a low GRI score.
- A Regional dominant player sells in more countries than a
regional player but it does not yet sell across the key markets of the
world. It has a medium score for CGI and GRI.
- A Global exporter sells across the key markets of the world
products manufactured or services operated in its home country and
builds operations only to support the export drive. It has a low CGI
and a high GRI score.
- A Global sourcer procures a large fraction of product
components in factories located outside its base market and
concentrates its sales in its domestic market. It has a high GCI and a
low GRI score.
3. Global positioning :
• Global positioning involves:
- Choice of countries
- Value proposition adopted.
• Value proposition:
- The value proposition comprises:
(a) Choice of value attributes
(b) Customer value curve
(c) Degree of world standardization of products/service
offering.
- Value attributes are the elements of the products/services that
customers value when making their purchasing decision; examples
include price, design, functionality, performance, quality and
customization.
- The customer’s value curve is the set of value attributes for
particular group of customers and a particular product/service.
- Degree of world standardization of products/services:
(a) A standardized value proposition adopts a similar
or standard value attribute to the same type of customer segments
across the world.
(b) An adaptive value proposition adopts a similar or
standard value proposition for different countries/regions.
• Choices of global positioning:
There are eight choices of global positioning depending on the company’s
decisions on:
- Scope of targeted customer segments (broad/focused player)
- Approach of making a value proposition in different countries
(standardized/adaptive)
- Choice of generic strategies adopted (differentiation or cost
leadership).
*These countries share many common characteristics with the emerging giants.