GL

BALITY
COMPETING WITH______________
FROM ________________
FOR __________________
BY
HAROLD L. SIRKIN
JAMES W. HEMERLING
ARINDAM K. BHATTACHARYA

GL

BALITY
COMPETING WITH EVERYONE
FROM EVERYWHERE
FOR EVERYTHING
BY
HAROLD L. SIRKIN
JAMES W. HEMERLING
ARINDAM K. BHATTACHARYA

ADAPTING

CHOOSING
GLOBAL PRESENCE

TSUNAMI CONCEPT
STRUGGLES
CHALLENGERS
GLOBAL TRANSFORMATION
SUCCESS
IN GLOBALITY

GROWING PEOPLE
GLOBALITY
REINVENTING
THE BUSINESS
MODEL

LOCALIZING

CONNECTING
WITH CUSTOMERS

STEPPING INTO NEW MARKETS

BUILDING BRANDS

RETHINK
RECONFIGURE
REINVENT

 Graduated

from Cornell with a degree

in Architecture in 1962 then flew
back to India and joined the family
firm which was a trading company
in 1868 started by his great grandfather.
He made it a mission to modernize and
internationalize his company and also
help India open its borders and its
mind to worldwide business.

INCLUDES:
INFORMATION AND COMMUNICATION
TECHNOLOGY
CHEMICALS
HOTELS
AUTOMOTIVE AND STEEL
TODAY TATA GROUP HAS A MARKET CAPITALIZATION OF $50
BILLION AMD MORE THAN 50% OF ITS $50 BILLION ANNUAL SALES
IS FROM OUTSIDE INDIA.
WE NO LONGER DICUSS THE FUTURE OF INDIA says Kamal
Nath(countys minister of commerce),
But we say

THE FUTURE IS INDIA

 Raw

materials
Capital
Knowledge
Capabilities
Most importantly: LEADERS, MANAGERS,
WORKERS, PARTNERS, COLLABORATORS,
SUPPLIERS AND SO ON.

CUSTOMERS

 Shirts

are stitched in Romania

Our apricots are harvested in Turkey
The computer help-line staffed from India
Laptops assembled in China.

THATS HOW THE

GLOBALITY ASPECT IS
DEPICTED BY THE
AUTHORS.

 Set

of competitors from the developing

economies have risen up and challenged
the established players of the developed
markets.
Wave of global challengers from the
rapidly developing economies is far
bigger and much more significant. And
will have greater effect on the world.

THE UNIQUE ORIGINS OF THE

CHALLENGERS
THE UNPRECEDENTED GLOBAL
ACCESS THEY HAVE ENJOYED
THEIR HUNGER FOR
ACHIEVEMENT

 Country

origins of China and India in particular

are very different from those of the United States,
Japan, or Korea.
Massive countries huge population abundant
low wage workforce potential markets
resource providers.

 Access

to everyone, everywhere and everything

that the challenger companies have enjoyed.
Worldwide communications
Nets and international laws and policies favorable
to commerce.
Information, data, talent, organizations, capital,
systems it is all available at a click of a mouse
Cell phone connection.

 Hunger

of the people in rapidly developing

economies for learning, improvement,
achievement, success, and recognition.
People in the rapidly developing economies think
and act differently than those in the developed
economies.

 MINDING

THE COST GAP

GROWING PEOPLE
REACHING DEEP INTO
MARKETS
PINPOINTING
THINKING BIG, ACTING FAST,
GOING OUTSIDE
INNOVATING WITH INGENUITY
EMBRACING MANYNESS

Sometimes cost efficiency turns into a disadvantage :

Commodity suppliers wanting to become full fledged
global competitors often dont have control over low
cost.
To overcome this disadvantage they can concentrate on
innovation and brand legacy, to offset the cost
difference.
Keeping an eye over the cost differential Is the most
important.

ACTIONS THAT CAN BE TAKEN:

Optimizing with labor
Clustering
Superscaling
Simplifying

The developing economies are supposedly flooded with

educated and skilled workers and managers while, in the
developed economies the talent pool shrinks and wages rise.
Struggle for talent increases
Main issue is the alignment of the work to be done with the
right talent
Right people with the right capabilities is a huge task.
EG: Infosys, a giant Indian outsourcing firm, is looking to
hire 6000 chinese employees over a period of the next
5years.

ACTIONS:
Recruiting for rapid growth
Developing for depth
Deploying for early results
Letting leaders build

Rapidly developing economies are attracted not only by the size of

their population but also by the increasing wealth and
sophistication of both industrial consumers and general market
consumers.

However the incumbents are often confounded in their efforts to

reach out to the deep markets due to inadequate understanding of
consumers, cultural differences, infrastructural lacks, brand
legacies, complex distribution and retail systems.

ACTIONS:
Creating new categories
Finding the sweet spot
Localizing
Distributing amid chaos
Doing business with business
Stepping into other markets

INCUMBENTS
Thought of rapidly
developing countries as
low cost locations that
can support only low
cost work.

ACTIONS:
Connecting with customers
Distributing complexity
Reinventing the business
model

CHALLENGERS
More relentless and even
ruthless about
scrutinizing the elements
of the value chain,
breaking them into
discrete elements,
relocating them and then
folding them into their
business processes in a
way that makes distance
and location seem
almost irrelevant.

Mergers, acquisitions, partnerships and joint ventures are

pursued with an aim to increase scale, extend geographical
reach, add capabilities and other strategic purposes.
For challengers acquisitions in a speedy way to catch up wit
the incumbents.
Challengers are young companies or former state owned
bureaucracies or midsize companies with few resources and
out of date systems.

ACTIONS:
Scaling up
Building brands
Filling capability gaps
Bartering

Incumbents worry about innovation as much as they achieve

it.
Engineers, designers, managers and marketers constantly
think about new products that could and should be created
and how the existing ones should be improved.
Challengers have not been associated with break through
innovation. Rather they are known as expert copiers,
interpreters, simplifiers and adaptors of technology,
products and services.
Challengers are practicing their own particular style of
innovation. They have ingenuity.

ACTIONS:
Adapting
Leveraging
Rapid-fire inventing

Incumbent companies have a bias towards standardization.

Struggle of globality is learning to live with and thrive on
manyness.
Globality encompasses use of more than one strategy for
different cultures, products and services, customers , times
and competitive situations.
Manyness is an unfamiliar and even uncomfortable concept
foe those who are looking for a single strategy, ideal
organization structure , the signature leadership style.

ACTIONS:
Choosing global presence
Retaining local character
Polycentralizing

 THE

STRUGGLE IS TO DETERMINE WHICH

MANAGEMENT PRACTICES FROM
DEVELOPED MARKETS CAN BE
SUCCESSFULLY TRANSPLANTED OR
ADAPTED FOR EACH DEVELOPING
MARKET AND SITUATION, WHICH ONES
MUST BE REJECTED, HOW TO TAKE
ADVANTAGE OF MANYNESS IN ALL ITS
FORMS.

These 100 challengers come from 14 countries. 66

based in Asia, 41 based in China, 13 comes from
Brazil, 7 from Mexico and 6 from Russia.
34 provide industrial goods
14 make consumer durables
17 are resource extractors
14 of them offer food, beverage and cosmetic products
4 make technology equipment
Remaining 17 operate in wide variety of fields
including pharmaceuticals, mobile communications
services, shipping and infrastructure.

Received undergrad education at Harvard

University and earned his MBA at Harvard
Business School.
Mahindra & Mahindra was founded on the belief
that Indian are second to none in the global arena
and education is the key to their success.
If we use the power of the people after
education, there is no reason why we cant build a
company equal to the best

Trade agreements like World trade Organization,

rise of distributors, big retailers, emergence of
sophisticated shipping and logistics facilitators,
role of internet in connecting everybody from
everywhere with everything.
Challengers have sold tangible goods, from natural
resources to components to finished goods, by
working with established retailers in both
developed and developing economies.
Access to global markets has helped jump-start the
Indian economy.

Incorporated in 1945 as Western India Vegetable

Products ltd.
Started out producing cooking oils, bakery shortening
and edible cakes, selling its wares to households
throughout Maharashtra.
1966 : Azim Premji, Chairman and Managing Director
today, took the companys helm when his father died.
As years unfolded, Premji pushed Wipro in new
business lines.
1980: the company launched an information
Technology services business for the domestic market.

It began developing operating systems, financial

and accounting applications, databases and
systems-integration services for small to medium
size Indian companies.
1982: Changed its name to Wipro Limited

TODAY, THOUGH IT IS INTO SEVERAL

DIVISIONS THAT SELL PRODUCTS SUCH AS
CONSUMER CARE AND LIGHTING
EQUIPMENTS, IT IS STILL MAINLY KNOWN
AS A GLOBAL PROVIDER OF IT
CONSULTING AND SERVICES, OUTSOURCED
R&D, INFRASTRUCTURE OUTSOURCING,
AND BUSINESS PROCESS SERVICES.

1980s: Wipro bought technology from the United

States and adapted it for use in India.
Within a year, it produced a MADE IN INDIA multi
user mini computer, and quickly became the leading
computer company in the country.
The company sensed a business opportunity and
approached its erstwhile suppliers and partners and
established a new relationship with them which was:
selling its engineering expertise to these companies as
an engineering lab for hire.

 Wipro

has executed a blend of strategies centering

on Innovation.
The company has paired up the inorganic growth
with the organic expansion.
Wipro excels in talent management.
In conjuncture with BITS Pilani, a premier
engineering institute in India, its Wipro Academy
of Software Excellence(WASE) that provides
masters degree in IT/ software engineering.
Reinvented its business models to drive its world
wide expansion.
Wipros IT business boasts a global workforce of
more than 76000 employees

Although companies like Wipro and many others,

achieved great success as service providers, India
has been less attractive as a location for global
manufacturers.
Not so rich domestic market
Frustrating infrastructure.
Bureaucratic red tape and restrictive policies.

MOVING UP
THE VALUE
CHAIN

BIG BUILD
OUT

ONWARD TO
INNOVATION

Globality tells remarkable stories of

companies that have achieved amazing
worldwide success by doing business in way
that bring together the best practices and
strategies of the west and the East
ANAND MAHINDRA