BU491 Chapter Notes - Chapter 1: Laundry Detergent, Intangible Asset, Glocalization
Document Summary
Creating worldwide innovation and learning chapter 5. New competitive battleground: competitors achieving parity in scale and responsiveness, competitive battles shifting to innovation area, successful cross-border innovation and learning is driven by three key capabilities: Centralized assets and resources of the parent company are used to create a new product or service (r) usually remains in the r&d centre. Implementing strategy decided centrally and executed locally (i); implementation involved driving the innovation through subsidiaries whose role it was to introduce that innovation to their local market most widely done. Risk of market insensitivity, technological/competitive advantage of home market may fade, imperialism. Making central innovations effective: the most successful companies developed three important capabilities that are key to managing the center-for global process. Responding to perceived local opportunities, subsidiaries use their own resources and capabilities to create innovative responses implemented in the local market. Distributed assets and resources allow local response.
