China Emerged—Rethinking Global Strategies March 1, 2013... China Emerged: Rethinking Global...

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China Emerged—Rethinking Global Strategies March 1, 2013 ... China Emerged: Rethinking Global Strategies...

Transcript of China Emerged—Rethinking Global Strategies March 1, 2013... China Emerged: Rethinking Global...

Page 1: China Emerged—Rethinking Global Strategies March 1, 2013... China Emerged: Rethinking Global Strategies...

China Emerged—Rethinking Global Strategies

March 1, 2013

... China Emerged:Rethinking Global Strategies...

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Objectives:

Discuss the opportunities and challenges of an emerged China, and new realities of the Post-Globalization Economy

Operating in the Post Globalization Economy

Comparing Emerged China (Post-Globalization ) to Traditional Globalization Strategies

Understanding the Magnitude and Impact of China Consumption

Articulate Operating Strategies for an Emerged China

Open Discussion

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Economic expansion in Asia

Emerging power of the global consumer

Increasing demand for market relevant products is driving emerging market growth

China GDP / US GDP (1970 – 2010)Source: Wolfram/Alpha

New Realities: Operating in the Post-Globalization Economy

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Classical Globalization Strategy:

Source: Low Labor & Operating

Costs

Stable Currency

Large Resource Pool

Strong Supply Chain Infrastructure

Market:Large & Growing

Consumer Base

Strong Currency

High Per Capita Income

Dynamic Retail Opportunities

Post-Globalization Realities:

Source: Increasing Labor &

Operating Costs

Large & Growing Consumer Base

Stable Currency

Resource Constraints

Domestic Supply Chain Investments

Market:Slowing or Negative

Growth

High Consumer & Sovereign Debt

Currency Weakness

Increasing Poverty

Maturing Retail Environment

Success in Global Emerging Markets will require a fundamental redefinition of “Source” and “Market”, and these must be address for each individual market opportunity.

Perspective: Ideas move instantaneously. Can the supply chain move as quickly?

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New Realities of and Emerged China: Operating in the Post-Globalization Economy

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China Emerged: Understanding the Magnitude and Impacts of China Consumption

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Articulate Operating Strategies for an Emerged China

Address Critical Issues: Tackle head-on the challenges of China’s transition from “The World’s Factory” to “The World’s Largest Consumer Market Opportunity.

Competitive Advantage: Achieve through an integrated go-to-market strategy from across the entire supply chain (consumer insights to consumer feedback)

Speed & Agility: Accelerate speed-to-market with fresh, new product with significantly lower business risks.

Fight Complexity: Find opportunities to simplify and adapt business models for market and retail opportunities in China.

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Operating Strategies

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Operating Philosophy

Price Quality

Delivery Responsibility

BALANCE

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Operating Strategies

Buyer / Seller

Tactical

Transactional

Temporary

Negotiated

Partnership

Strategic

Collaborative

Planned

Sustainable

RELATIONSHIPS

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Operating Strategies

LEVERAGE

Simple – easy to use

Relies on your power

Single use environment

Erosion of foundations

Complicated – strategic use

Creates strength

Repeatable improvements

Builds reliable foundation

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Operating Strategies

INNOVATION

Business Model

People

Tools

Culture

Process

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Thank You!

Q & A

... China Emerged:Rethinking Global Strategies...