Regional follows global : strategy mixes in the world automotive industry
By: SCHLIE, Erik
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Contributor(s): YIP, George.
Material type: 
ArticlePublisher: 2000Subject(s): Globalisation | Regionalisation | Global Strategy | Regional Strategy | Automotive | Industry StudyEuropean Management Journal 18, 4, p. 343-354Abstract: The authors posit the question of whether companies should formulate their strategies according to a global or regional corporate mindset. In their study, they explore the strategic responses of multinational automotive companies embedded in a simple framework of interdeptendent industry forces, total globalisation barriers, and competitive regionalisation advantages. Regional strategies could be viewed as alternative, potentially sperior solutions vis-a-vis fully globally integrated or locally responsive approaches. The presented evidence suggests that there are some valid reasons for companies to follow an eclectic course of regionalisation as well as globalisation. Such as approach involves clustering countries taht exhibt similar market conditions and addressing homogenised reginal consumer tastes, while minmising adpatation costs. In the context of the automotive industry, however, the preliminary findings suggest that a car producer should first become a global company, in order to efficiently and selectively regionalise in a second step. Overall, regional strategies could be associated with a later, rater than earlier, stages in the evolution of company`s global strategy
| Item type | Current location | Collection | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Periódico | Biblioteca Graciliano Ramos | Periódico | Not for loan |
The authors posit the question of whether companies should formulate their strategies according to a global or regional corporate mindset. In their study, they explore the strategic responses of multinational automotive companies embedded in a simple framework of interdeptendent industry forces, total globalisation barriers, and competitive regionalisation advantages. Regional strategies could be viewed as alternative, potentially sperior solutions vis-a-vis fully globally integrated or locally responsive approaches. The presented evidence suggests that there are some valid reasons for companies to follow an eclectic course of regionalisation as well as globalisation. Such as approach involves clustering countries taht exhibt similar market conditions and addressing homogenised reginal consumer tastes, while minmising adpatation costs. In the context of the automotive industry, however, the preliminary findings suggest that a car producer should first become a global company, in order to efficiently and selectively regionalise in a second step. Overall, regional strategies could be associated with a later, rater than earlier, stages in the evolution of company`s global strategy
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