STRATEGYMonths to result

Impediments to Global Competition Framework

Overcome obstacles to global competition

Problem it solves

obstacles to global competition

Best for

Large corporations with global operations

Not ideal for

Small businesses with limited resources

Overview

Why this framework exists

The Impediments to Global Competition Framework identifies the obstacles that can limit global competition, including economic, managerial, and institutional impediments. It provides a framework for assessing and overcoming these impediments to achieve global advantage.

Core principles

3 total
  1. Economic impediments can limit global competition
  2. Managerial impediments can limit global competition
  3. Institutional impediments can limit global competition

Steps

3 steps
  1. Identify Economic Impediments
    Determine the economic impediments to global competition, such as transportation costs and differing product needs.
    Pro tipConsider the industry's characteristics and the company's capabilities
    WarningBe aware of potential managerial and institutional impediments
  2. Assess Managerial Impediments
    Evaluate the managerial impediments to global competition, such as differing marketing tasks and intensive local services.
    Pro tipConsider the company's resources and capabilities to overcome impediments
    WarningBe aware of potential institutional impediments
  3. Develop a Strategy to Overcome Impediments
    Create a strategy to overcome the impediments to global competition, including economic, managerial, and institutional impediments.
    Pro tipConsider the company's strengths and weaknesses, as well as industry trends
    WarningBe aware of the potential risks and challenges of global competition

Checklist

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Examples

2 cases
Overcoming Economic Impediments in the Television Set Industry

Companies like Samsung and LG have overcome economic impediments, such as transportation costs, to achieve global advantage in the television set industry.

OutcomeIncreased market share and revenue for companies that have successfully overcome economic impediments
Overcoming Managerial Impediments in the High-Fashion Cosmetics Industry

Companies like L'Oréal and Estee Lauder have overcome managerial impediments, such as differing marketing tasks, to achieve global advantage in the high-fashion cosmetics industry.

OutcomeIncreased brand recognition and customer loyalty for companies that have successfully overcome managerial impediments

Common mistakes

3 traps
Ignoring Economic Impediments
Failing to consider economic impediments can lead to poor strategic decisions
Overestimating Managerial Capabilities
Overestimating managerial capabilities can lead to unrealistic expectations and poor resource allocation
Underestimating Institutional Impediments
Underestimating institutional impediments can lead to unexpected challenges and obstacles

Origin story

How this framework came to be

The concept of impediments to global competition has evolved over time, with the rise of multinational corporations and globalization. As companies expand their operations globally, they must navigate various obstacles to achieve global advantage.

Source

Traced to primary
Source · BOOK
Competitive Strategy
Michael E. Porter · 1980
Open source →

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