examples of cost drivers in globalization

Mahesh Joshi - Globalization DriversĢ Some Thoughts Globalization is very difficultĪll firms are born global US was created as a result of globalization To be successful a firm must be active in global arena Mahesh Joshi - Globalization Driversĭemand New Markets Follow the customer Follow the competition Fend off new competition Supply Raw materials Land Labor capital Mahesh Joshi - Globalization Drivers 3Ĭost reduction Economies of scale, lower factor cost, focused production (rationalized production), flexibility, enhancing bargaining power Quality enhancements Exposure to demanding customers, focused offerings Enhanced customer preferences Global availability, global serviceability, global recognition Increased competitive leverage Cross subsidization of competitive moves, entering the backyard of your competitor 4 Mahesh Joshi - Globalization Drivers Joshi Director of Research & Practice Center for Innovation and Entrepreneurship and Associate Professor of Global Strategy and Entrepreneurship School of Business – George Mason University President - Joshi International, Inc.

Examples of cost drivers in globalization