Quest for Global Dominance: Transforming Global Presence into Global Competitive Advantage

Quest for Global Dominance: Transforming Global Presence into Global Competitive Advantage

by Vijay Govindarajan, Anil K. Gupta
     
 

The current transformation of isolated state-dominated economies into market-driven globally integrated economies is creating business challenges and opportunities around the globe. Over the last ten years, these authors have studied over one hundred global corporations through a variety of research methods and here distill their findings into four essential goals

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Overview

The current transformation of isolated state-dominated economies into market-driven globally integrated economies is creating business challenges and opportunities around the globe. Over the last ten years, these authors have studied over one hundred global corporations through a variety of research methods and here distill their findings into four essential goals that executives must achieve in order to transform a company into a global success: Identify and pursue opportunities in key markets. Convert global presence into global competitive advantage. Cultivate a global mindset in order to recognize and exploit good ideas wherever they arise. And constantly reinvent the global game by creating value for customers. Case studies involving Yahoo!, Wal-Mart, and other global players show how the authors' findings can be applied in real-world situations.

Editorial Reviews

From the Publisher
In this rousing call to arms, the authors—business school professors at Dartmouth and the University of Maryland, respectively—lay out three persuasive reasons why corporations need to increase their global presence. First, global opportunities and threats can appear anywhere, so it's best to be firmly entrenched worldwide; second, simply having a "foreign" office doesn't count as a true global presence; and third, success around the globe means hiring the most talented people available to fule what the authors call your "knowledge engine." (Sept.) (Publishers Weekly, August 6, 2001)

"Rich with stories, lessons and concepts, The Quest for Global Dominance is a blueprint for companies that wish to keep pace with the advance of globalisation today..." (Business Monthly, September 2001)

"...this is a very practical and highly readable book." (Economic Outlook & Business Review, November 2001)

Business Monthly
Rich with stories, lessons and concepts, The Quest for Global Dominance is a blueprint for companies that wish to keep pace with the advance of globalisation today...
Publishers Weekly
In this rousing call to arms, the authors business school professors at Dartmouth and the University of Maryland, respectively lay out three persuasive reasons why corporations need to increase their global presence. First, global opportunities and threats can appear anywhere, so it's best to be firmly entrenched worldwide; second, simply having a "foreign" office doesn't count as a true global presence; and third, success around the globe means hiring the most talented people available to fuel what the authors call your "knowledge engine." (Sept.) Copyright 2001 Cahners Business Information.
Booknews
Govindarajan (Dartmouth College) and Gupta (University of Maryland, College Park) help managers understand how to "engineer and exploit" globalization in their specific industry and company. They focus both on content issues (such as choice of markets, entry strategies, and the impact of digital technology) and on process (such as "cultivating a global mindset," creating knowledge networks, and managing global business teams). The work is based on a 10-year study of 100 global corporations. Annotation c. Book News, Inc., Portland, OR (booknews.com)
Soundview Executive Book Summaries
The authors of The Quest for Global Dominance write that globalization is no longer an option; it is a strategic imperative for all but the smallest corporations. To stay competitive in the worldwide marketplace, Govindarajan and Gupta write that business executives must lead their companies in developing and sustaining efforts to globalize their organizations. This is as true for firms in industries such as cement, construction and health care as it is for firms in industries like semiconductors, televisions and automobiles. The authors of The Quest for Global Dominance offer the actions and mindset a company needs to emerge as a winner in the battle for global dominance.

At the industry level, globalization refers to the degree to which, within the industry, a company's competitive position in one country is interdependent with its competitive position in another country. The authors explain that the greater the degree of interdependence, the greater will be the extent to which the industry is dominated by the same set of global players who face each other in almost every market. For example, the global wireless industry is dominated by Nokia, Motorola and Ericsson, and the soft drink industry is dominated by Coca-Cola, Pepsi-Cola and Cadbury-Schweppes.

The authors write that a global company can be viewed along four dimensions: globalization of market presence, globalization of supply chain, globalization of capital base, and globalization of corporate mindset. Globalization of market presence is the extent to which a company is targeting customers in all major markets for its industry. Globalization of supply chain is the extent to which a company is accessing the most beneficial locations worldwide for meeting its supply-chain needs. Globalization of capital base is the extent to which the company is tapping into optimal sources of capital worldwide. Finally, globalization of corporate mindset occurs when a corporation understands global diversity and embraces it.

Four Essential Tasks for Global Dominance
The authors explain that companies that want to become globally dominant players within their industries must:

  • Lead their industry in identifying market opportunities worldwide and pursue these opportunities by building a presence in those key markets.
  • Work relentlessly to convert global presence into global competitive advantage and identify and exploit value-creation opportunities.
  • Cultivate a global mindset, view cultural and geographic diversity as opportunities to exploit, and be prepared to adopt successful practices and good ideas wherever they originate.
  • Constantly strive to reinvent the rules of the global game.

The authors write that transforming the game is fundamentally a creative undertaking that cannot result purely from a deliberate and purposeful process. Neither is it strictly a function of luck, accident or opportunism. The authors explain that it is possible to use an explicit and systematic framework to guide the creative process.

The authors write that companies must first identify their current business model. A company's business model is typically created by answering three questions: Who are our target customers? What value do we want to deliver to these customers? How will we create customer value? To radically change that business model, the authors write that businesses must redesign the end-to-end, value-chain architecture to be more efficient, reinvent what value the customer receives, or redefine the customer base. They add that changing any of the three will radically change the other two.

If a company chooses to reinvent customer value, the authors advise that it should consider making the move from selling discrete products to selling an integrated system of products and services. They warn companies to be aware that customers might be reluctant to make one company their sole source for products and services for fear that the company will exploit its position. Therefore, the authors write that a company should be sure that its total product or service system includes only products that are best in class, that the system designed is really superior to getting the goods or services from multiple sources, and offers the bundle at lower cost than it would cost to get the items or services from separate providers.

Reinventing the Customer Base
If a company chooses to redefine its customer base, the authors write that it must be sure that there are real benefits to doing so. They say for this to work, the customer segment it discovers must be so large as to result in dramatic enlargement of the entire industry's customer base.

The authors point out that the emergence of the digital era has done more to bridge distance than any other development in the last few decades. Innovations include computers and the Internet, point-and-click interfaces, broadband connections, mobile communication, speech recognition, and wireless data transfer. Digital technologies are making the world highly connected. As a result, the authors predict that every company will either be an Internet company within the next five years or it won't be a company at all.

Why Soundview Likes This Book
The authors of The Quest for Global Dominance provide a well-researched, thought-provoking plan for capitalizing on the global marketplace, and offer dozens of examples that highlight the issues they discuss. The many facets of globalization are revealed in clear details that create the foundation on which a successful worldwide plan can be built. The authors' numerous ideas about using technology and developing a global mindset provide helpful tools that expanding companies should not miss. Copyright (c) 2002 Soundview Executive Book Summaries

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Product Details

ISBN-13:
9780787957216
Publisher:
Wiley
Publication date:
01/28/2001
Edition description:
1 ED
Pages:
320
Product dimensions:
6.35(w) x 9.32(h) x 1.07(d)

What People are saying about this

From the Publisher
"The reality of thinking and being global in mind-set should be a no-brainer for all of us. But for those who believe that such is not the case, Professors Govindarajan and Gupta have put to rest any romantic or unrealistic views that we can sit back and bask in our prosperity. So it's back to work on figuring out how to win globally, not locally or nationally, that will get you in the Hall of Fame for Business Leaders worldwide. You will find yourself referring often to The Quest for Global Dominance as you chart your course forward."
— William F. Achtmeyer, president and chief executive officer, The Parthenon Group

"A must-read for executives who expect to harness the accelerating trend of globalization. Vijay and Anil make a compelling case for an accelerating rate of change based on broad-based support for free trade, the increased economic power of developing nations, and the pervasive impact of enabling technology."
— Alexander M. Cutler, chairman and chief executive officer, Eaton Corporation

"This book is not only visionary but very practical in thinking about globalization. It makes a compelling case for why globalization has to be at the very forefront of your plan to build a foundation for a lasting business."
— Desh Deshpande, chairman, Sycamore Networks

"In an interconnected global economy, every company-technology companies in particular-must look at the entire world as the playing field. Vijay Govindarajan and Anil K. Gupta have done an excellent job of unpacking what companies must do in order to emerge as the undisputed leaders in serving their customers worldwide, effectively and efficiently. This well-written book is a must-read for anybody charged with leading the globalization of his or her company."
— Robert W. Galvin, chairman of the executive committee of the board, Motorola

"Rich with up-to-date examples but also built on rigorous research, this book is a must for executives who are intent on going global."
— Donald C. Hambrick, Samuel Bronfman Professor of Democratic Business Enterprise, Columbia University

"The Quest for Global Dominance is an excellent review of the increasing need for global focus and the opportunities and challenges that face companies that globalize. It is a book of great value for managers who are facing globalization, but it can also serve as a checklist and reminder for managers already experienced in this important field."
— Jukka Härmälä, chief executive officer, Stora Enso

"The Quest for Global Dominance should be must-reading for CEOs and would-be CEOs in all industries, whether or not they realize that they are-or are about to be-global players. Professors Govindarajan and Gupta make a powerful case for the inevitability of globalization, and they give the senior executive a practical road map for making the most of the opportunities it presents, while avoiding some of the pitfalls."
— Frank C. Herringer, chairman of the board, Transamerica Corporation

"This book provides fundamental inputs for managers who are leading modern global corporations in the new age of information technology, networks, and e-business. Above all, I am impressed with the focus on building a global knowledge ecology within these modern corporations. Globality truly becomes relevant and meaningful when seen in the light of knowledge development, taking us from learning within smaller individual 'silos' or 'kingdoms' to learning and knowledge accumulation in a global context. Overall, this is a great book and a must for the modern leader of the global firm."
— Peter Lorange, president, International Institute for Management Development, Lausanne, Switzerland

"Contained between the covers of The Quest for Global Dominance is an exciting, challenging, and provocative assimilation of business values, beliefs, and accomplishments derived from a contemporary analysis of successful global business experiences. Govindarajan and Gupta have tied together in one high-energy, fast-moving document the concepts of globalization, diversity, and convergence into a coherent global business model facilitated by the real-time attributes of electronic knowledge and commerce. The world will not become smaller; rather we will learn to embrace it more effectively and efficiently through The Quest for Global Dominance."
— Richard Matzke, vice chairman of the board, Chevron Corporation

"The velocity of change in the global arena has significantly accelerated. The Quest for Global Dominance provides the strategic imperatives to succeed in a global business."
— John Menzer, president and chief executive officer, Wal-Mart International

"Globalization is undoubtedly a key imperative for business leaders the world over. Professors Gupta and Govindarajan bring rich experience, a keen eye for detail, and strong conceptual abilities to their investigation of this phenomenon. The Quest for Global Dominance not only presents incisive and in-depth analysis but also inspires real-world, implementable solutions to the challenges faced by practitioners of management in today's global village."
— N. R. Narayana Murthy, chairman and chief executive officer, Infosys Technologies Limited

"The Quest for Global Dominance presents the impact which globalization is having on countries, companies, and leaders in a fresh and superbly documented way. Above all, it raises the strategic implication of this in a fashion that should allow leaders to consider how to leverage their global presence and capability into a more successful leadership enterprise."
— John E. Pepper, chairman of the board, Procter & Gamble

"The Quest for Global Dominance comes at the appropriate time. The end of the twentieth century, because of the combined forces of technological and cultural changes, has brought a revolution in the way we work and develop our activities. Today what we lack most is 'time,' yesterday it was money.

But we are only at the beginning of change, and in the years to come the breakthroughs in our habits will be much more important than what we have lived recently. The magnitude of the changes to come will also modify our society, bringing major cultural modifications.

'Rising up to the global challenge' is a thorough study of these changes, an analysis of the old and new economies, of the links which exist at all levels of our not so 'brave new world.' Much more, it brings a prospective view of what is going to happen, how it is going to happen, and how we should adapt ourselves in order to succeed in our increasingly global world.

Today, as you will see in this complete, precise, and factual study of our world economy and its participants, we have no option; every strategy from the biggest to the smallest corporations cannot avoid the 'global' option because there is a growing interdependence among markets, among countries, among people, as reflected in increasing flows of goods and services, capital and know-how.

The Quest for Global Dominance treats for the first time-in the most complete way-all the aspects of what we have to think about and the dynamics which prevail. It is no doubt a book of reference that anyone involved in the new game should have and keep near by. From the student to the CEO, they will find most of the answers to the questions they have in mind on those subjects. It is no doubt targeted to managers worldwide who are entrepreneurs and want to expand their companies' global presence through new competitive differentiation. It is a leading-edge thoughtful work that will help entrepreneurs, students, politicians, and, in brief, all decision makers.

Many thanks to Vijay Govindarajan and Anil Gupta for their remarkable input in this analysis of the increasingly complex world in which we live."
— Didier Pineau-Valencienne, président d' honneur, Schneider S.A.

"Vijay Govindarajan and Anil K. Gupta are among the masters on the subject of global strategy. In this book, they have succeeded in putting forth tight logic and leading-edge thinking in a manner that is highly practical. If you were to read only one book this year on how to assess and develop a global strategy for your business, this would be it."
— John Quelch, dean, London Business School

"In The Quest for Global Dominance, the authors have successfully combined facts and figures with insightful examples; together they give us a highly educational, yet enjoyable, reading experience. The book helps every business leader to see the challenges and opportunities which globalization brings. It invites everybody to get on board and warns about the dangers of being left behind. It points out the great opportunities that globalization offers for those who adopt it early and why no company can ignore it, not even those operating in smaller, local markets. The Quest for Global Dominance is also a practical guide and offers clear advice on how to avoid a number of pitfalls in managing the global or globalizing company. This is the guide to the new era."
— Keijo Suila, president & CEO, Finnair

"I found The Quest for Global Dominance to be an outstanding guide to building global presence and effectiveness based on the real, often painful, experiences of some best-practice companies and a few theoretical underpinnings. It helped put words and a framework around some of the experiences and learnings in my own international career. I often found myself nodding in agreement and saying how I would have loved to have read this before my first expat assignment. It goes well beyond merely stating the imperative - it explains how to make the transition from international/multinational models to true globalization. The book is particularly helpful in giving practical advice on managing the complex human dimensions of global businesses and global teams."
— Peter F. Volanakis, president, Corning Technologies

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Meet the Author

Vijay Govindarajan is the Earl C. Daum 1924 Professor of International Business and director of the William F. Achtmeyer Center for Global Leadership at the Tuck School of Business Administration, Dartmouth College. At Tuck, he is also the faculty director for the Global Leadership 2020 Program. He consults with CEOs and senior executives from a variety of global corporations.
Anil K. Gupta is a Distinguished Scholar-Teacher and professor of strategy and global e-business at the Robert H. Smith School of Business, University of Maryland at College Park. Gupta has also served as a visiting professor in the Stanford Technology Ventures program at Stanford University. A director of three corporations, he also consults with CEOs and senior executives in a variety of global corporations.

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