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SMPM Session 04 - Stage 02 - Creating Continued
SMPM Session 04 - Stage 02 - Creating Continued
SMPM Session 04 - Stage 02 - Creating Continued
@ PGPM
SUSTAINING SESSION 05
EVOLVING SESSION 06
2
Start with basic factors of
production. Then add: National advantage occurs when R&S
INDUSTRIES emerge around a key
Cultivated Capabilities industry (industry clusters)
4
Knowledge Resources These supplier are themselves globally
Cultural Adaptability competitive sub-industries
Innovation Capability Eventually they create a national
Time Zone Advantages advantage for the Original Downstream
industry
1 MORE ON
FACTOR CONDITIONS
1. Finland & Sweden’s inhospitable terrain & wireless communication – NOKIA , Eriksson
2. American air traffic is between cities with fewer passengers / flight. But European air traffic is
between country capitals with heavier passenger load. So larger aircraft – Airbus
3. Japanese passion for recording events / travels – Camera
4. Germans have no speed limits. Their slogan is “Free speed for free people” – High-end Cars
5. British renowned for their gardens / gardening – Lawnmowers
6. Italy & its passion for fashion – High End Apparels & Accessories
RELATED AND SUPPORTING INDUSTRIES EMERGE AS
3 MORE ON INDUSTRY CLUSTERS
1. USA leads the world in Computer manufacturing because all key supplier industries are again US
[Semiconductor – Intel, AMD O/S – Microsoft, Apple Applications – Oracle Cloud Solutions – Amazon ]
2. Italy is successful in footwear because it is equally & independently strong in Leather Processing
3. Chennai - Detroit of India [Hyundai, Ford, Chrysler & Mahindra, Nissan] because it is equally strong as an auto ancillary vendor.
TVS group, Rane Group, Visteon, MRF etc are strong auto ancillary vendors – all operating mainly out of Chennai
4. Bangalore - IT / hub of India because of the emergence of support industries like HR head hunters, voice & accent training centers
5. Mumbai - Financial hub of India has got ancillary support in Merchant bankers, Lead Managers, Venture Capitalists etc.
4 MORE ON
FIRM STRATEGY,
STRUCTURE & RIVALRY
Absolute Strength of one determinant not enough unless reinforced by others vectors
This reinforcement ensures only Few Industries develop as Competitive for any Nation
Simply put, no country in the world can be a net exporter of everything !!!
1 2
Factor Demand
Conditions Conditions
3 Reverse
Related & PLC
Supporting
Reverse Industries
Engineering
Q2
Where is the similarity between
Samsung’s Global Footprint
&
CKP’s Strategic Intent?
Reverse PLC
Unseen
Commodity Market
Products Strategic Intent
Junior Partner in Global JVs
Innovation
Unconventional
R&D investment
Entry Tactics
Global Acquisitions
Product / Market
Leadership
Do you see:
Q3
• Cost
• Differentiation
• Focus
• Preemption &
• Synergy
20%
VCR, MWO 4. Introductory Products
1992
10 - 0 years gap
Semi Conductor technology
10%
1. Divested Products
1971
40 years gap
5%
2. Mature Products
1976 Monochrome TV
21 years gap
1%
Color TV
Coordination
Delegation
Creativity
Control
Autonomy
Leadership
Age