SGMT 3000 Chapter Notes - Chapter 8: Collegehumor, Royalty Payment, Franchising

• School: York University
• Department: Strategic Management
• Course: SGMT 3000
• Professor: T B A

Document Summary

Globalization of production: spreading important parts of production process across the planet; can capitalize on national differences in cost and quality standards for the various processes; lower cost structures translate into higher profits. Globalization of markets: national markets starting to merge into one large global marketplace; worldwide customers demand and use the same basic product offerings. Consolidated global oligopolies: recognizes that not all industries have become fragmented; when a few large companies dominate the global market for a particular offering. Chapter 8 strategy in the global environment. Localization strategy: products sold in different regions are produced locally; offerings customized to preferences of consumers within the region; significant duplication and costs. Global standardization strategy: design and sell the same products worldwide; substantial cost reduction from shared costs, common platforms, shared components, shared expertise; can lower prices and still make decent profits; response to the globalization in markets.