Global Marketing in the

era Industrial Revolution

4.0
Prof. Dr. Yunia Wardi, Drs., M.Si.
Ilham Thaib, S.E., M.M.
1. The Digital Revolution: A Brief History

1937–1942 1950s
World’s first electronic digital Invention of the silicon chip
computer was developed at Iowa
State University

The decade for companies like Atari,

The transistor was invented Commodore, and Apple

1947 1970s

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1. The Digital Revolution: A Brief History

1981 1984
IBM introduced its first Personal Apple introduced the Macintosh
Computer (PC)

The 286 microprocessor was unveiled The creation of the Pentium processor

1982 1993

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1. The Digital Revolution: A Brief History

1969 1973 2009

The Internet can trace its The creation of a cross- Search engine market
origins (Defense Advanced network protocol; the share: Google 64%; Yahoo!
Research Projects Agency) true birth of a network of 20%; Bing, new in 2009
networks or the Internet

Tim Berners-Lee invented

URL, HTML, and http;The
E-mail was sent for the Father of the World Wide
first time Web Digitalization Age

1972 1993 2019

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2. Industry Convergence

“The 2000s were the broadband decade, the disintermediation

decade, the file-sharing decade, the digital recording (and image)
decade, the iPod decade, the long-tail decade, the blog decade, the
user-generated decade, the on-demand decade, the all-access decade.
Inaugurating the new millennium, the Internet swallowed culture
whole and delivered it back—cheaper, faster, and smaller—to
everyone who can get online.”
Jon Pareles, New York Times columnist
 Industry Convergence

Convergence: The coming together of

previously separate industries and
product categories.
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3. Value Networks and Disruptive Technologies

Innovator’s Dilemma

Value network

Sustaining Technologies

Disruptive Technologies

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4. Innovator’s Dilemma
 Innovator’s Dilemma
 Staying committed to a current, profitable technology
 Failingto provide adequate levels of investment to new
and possibly risky technologies
 Company is responding to the needs of established
customers

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5. Value Network

Found in every industry

Cost structure that dictates the margins

needed to achieve profitability

Boundaries are defined by the unique

rank ordering of the importance of
various product attributes

Each network has its own metrics of

value
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6. Sustaining Technologies

Incremental or radical
innovations that improve product
performance

Most new technologies developed

by established companies are
sustaining in nature

The vast majority of innovations

are sustaining in nature 15-10
7. Disruptive Technologies

REDEFINE PERFORMANCE NEW ENTRANTS TO AN ENABLE SOMETHING TO BE ENABLE NEW MARKETS TO

INDUSTRY DONE THAT WAS EMERGE
PREVIOUSLY DEEMED
IMPOSSIBLE

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7.1 Five Principles of Disruptive Innovations

Companies are dependent on customers and many innovations are customer-driven.

By listening to those long-established customers, opportunities may be missed.

Small markets don’t solve the growth needs of large companies.

Markets that don’t exist can’t be analyzed.

An organization’s capabilities define its disabilities.

Technology supply may not equal market demand.

7.2 Global E-Commerce
EVERY 48 HOURS, YAHOO RECORDS MORE
THAN 24 TERABYTES OF DATA ABOUT ITS
USERS’ ONLINE HABITS— EQUAL TO ALL THE
INFORMATION CONTAINED IN ALL THE BOOKS
IN THE LIBRARY OF CONGRESS
BETWEEN 2003 AND 2010, THE NUMBER OF
INTERNET USERS IN CHINA INCREASED FROM
68 MILLION TO 450 MILLION; IN SHANGHAI,
BEIJING AND GUANGZHOU, ONE-THIRD OF
ALL RESIDENTS USE THE INTERNET
37% OF EUROPEAN ADULTS—136 MILLION
PEOPLE—SHOPPED ONLINE IN 2008. ONLINE
RETAIL AND TRAVEL SALES WILL HAVE A CAGR
OF 8%
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Global E-Commerce

• Divided into three broad categories

– Business to Business (B2B) largest share of the Internet economy

– Business to Consumer (B2C) iTunes

– Consumer to Consumer (Peer to peer) eBay

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Mobile Advertising and Mobile
Commerce

TERM FOR CONDUCTING WI-FI CELLULAR DATA PLANS VIA TABLETS LIKE IPAD, GALAXY
COMMERCIAL 3G, 4G NETWORKS
TRANSACTIONS USING CELL
PHONES

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Mobile Commerce

BLUETOOTH–USES LESS POWER THAN WI- HANDLES DATA, NOT VOICE

FI, WORKS WELL WITH CELL PHONES AND
COVERS SHORTER DISTANCES THAN WI-FI

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Internet Phone Service

Has the potential to

The next big thing for
render the current
the telecommunications
telecommunications
industry
infrastructure obsolete

Currently only accounts Skype acquired by

for a small percentage Microsoft for 48.6 billion
of total global calling in 2011

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Digital Books and Electronic Reading Devices

AMAZON’S KINDLE, SONY’S TEXTBOOKS ARE A HUGE PIRACY IS A CONCERN FOR

READER DIGITAL BOOK, APPLE’S MARKET OPPORTUNITY FOR MANY AUTHORS
IPAD PUBLISHERS

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References

1. Johansson, Johny K. (2009). Global Marketing: Foreign

Entry, Local Marketing, and Global Management. Mcgraw –
Hill Irwin
2. Keegan, Warent J., & Mark C, H. M. Green (2017). Global
Marketing. United State: Pearson.
3. Kotabe, Misaaki, & Kristiaan Helsen. (2017). Global
Marketing Management. United State: Wiley.
Quiz