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

Overview

The twin forces of ideological change and technology revolution make globalization the single most important issue facing companies today. To stay competitive in the worldwide marketplace, business executives must lead their companies in developing and sustaining the ongoing efforts to globalize their organizations.

Vijay Govindarajan and Anil K. Gupta are two of the most distinguished experts in the field of globalization. In The Quest for ...

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Overview

The twin forces of ideological change and technology revolution make globalization the single most important issue facing companies today. To stay competitive in the worldwide marketplace, business executives must lead their companies in developing and sustaining the ongoing efforts to globalize their organizations.

Vijay Govindarajan and Anil K. Gupta are two of the most distinguished experts in the field of globalization. In The Quest for Global Dominance they present the lessons from their ten-year research study of more than one hundred global corporations. Drawing from this rich knowledge base— which includes large-scale surveys, case studies, and in-depth discussions with several hundred executives— the authors make the compelling case that every industry must be considered a global industry and every business a knowledge business.

The Quest for Global Dominance focuses on four essential tasks in which a company must lead its industry in order to emerge and maintain its position as a globally dominant player. The richly illustrated conceptual frameworks presented in this book should help executives become more skilled at:

* Identifying market opportunities worldwide and pursuing them by establishing the necessary presence in all key markets

* Converting global presence into global competitive advantage by identifying and developing the opportunities for value creation that global presence offers

* Cultivating a global mindset by viewing cultural and geographic diversity as not just a challenge but also an opportunity and being prepared to adopt successful practices and good ideas

* Striving to reinvent the rules of the global game by rethinking answers to the classic questions: Who are our target customers? What value do we want to deliver to these customers? How will we create this value?

The Quest for Global Dominance provides executives with leading-edge ideas in a manner that makes them easy to put into action.

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Editorial Reviews

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, John & Sons, Incorporated
  • Publication date: 1/28/2001
  • Edition description: 1 ED
  • Edition number: 1
  • Pages: 320
  • Product dimensions: 6.35 (w) x 9.32 (h) x 1.07 (d)

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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Table of Contents

Foreword xiii
Preface xvii
1 Rising Up to the Global Challenge 1
2 Building Global Presence 22
3 Lessons from Wal-Mart's Globalization 51
4 Exploiting Global Presence 74
5 Cultivating a Global Mindset 105
6 Building a Global Knowledge Machine 137
7 Dynamics of Global Business Teams 170
8 Changing the Rules of the Global Game 195
9 Globalization in the Digital Age 223
Notes 247
Bibliography 261
Name and Subject Index 267
Company Index 289
The Authors 295
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