global competitiveness and Strategic alliances

global competitiveness

1. NATIONAL AND INTERNATIONAL COMPETITIVENESS

2. 10 P’s Framework of Global Competitiveness

3. Strategic Options Available for Building Competitiveness

4. Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Comparative advantage:  The concept that a certain good can be produced more efficiently than others due to a number of factors, including productive skills, climate, natural resource availability, and so forth. Opportunity cost:  The cost of an opportunity forgone (and the loss of the benefits that could be received from that opportunity); the most valuable forgone alternative.

5. PORTER DIAMOND THEORY

6. INTERNATIONAL COMPETITIVENESS International competitiveness is the ability of a nation to compete successfully overseas and sustain improvements in real output and living standards. Countries can compete with cost, price and non-price competitiveness. For example, the quality of goods and services and the rate of innovation can change how competitive a country is.

7. MEASURES OF INTERNATIONAL COMPEITIVENESS Relative unit labour costs : Cost per output Relative export prices Non-Price competitiveness – Product Quality, design, marketing and branding Non-wage Cost: Cost of environment,Employment and environment protection, Pension plans.

8. FACTORS INFLUENCING INTERNATIONAL COMPETITIVENESS Ability to attract FDI from MNC’s Ability to produce or attract entrepreneurs Ability to attract (skilled) labour from abroad Exchange rate Unit Labour cost Quantity and quality of skills possessed by a nation’s workers Flexibility of labour Economic stability Taxation policies Rate of Innovation Interest rates

9. Global Marketing Mix Product Pricing Place Promotion

10. Global Marketing Mix: Product

11. Global Marketing Mix: Price Drivers in Foreign Market Pricing (4Cs) The most important factors that decide the prices are labelled the 4 C’s − Company (costs, company goals) Customers (price sensitivity, segments, consumer preferences) Competition (market structure and intensity of competition) Channels (of distribution)

12. International Pricing Challenge Export Price Escalation Inflation Currency Movements Anti-dumping Regulations Price Co-ordination Countertrade

13. Global Marketing Mix: Promotion Advertising and Culture Assessing Global Media Decisions Ad Regulations Choosing an Agency Other Communication Options: Sales events, direct marketing, sponsorships, mobile marketing, product placement, viral marketing, and public relations and publicity are also applicable. Globally Integrated Marketing Communications (GIMC)

14. Global Marketing Mix: Distribution Distribution Patterns Retail size/ Pattern Direct Marketing Choosing Your Middleman: Home Country Foreign Country Government Affiliated

15. Factors Affecting Choice of Channels The specific target market within and across countries. The goals in terms of volume, market share, and profit margin. The financial and organizational commitments. Control of the length and characteristics of the channels.

16. APPLICATION OF 4P’s