Archive for August, 2011

By Nathan T. Washburn and B. Tom Hunsaker

Too many companies in mature markets assume the only reason to enter an emerging country is to pursue new customers. They fail to perceive the rich potential for innovation in those countries. However, our research shows that multinationals can position themselves to take advantage of the innovative energy that permeates emerging markets if they commit to the deployment of a new kind of manager that we call a “global bridger.” Our research, published in the September 2011 issue of Harvard Business Review, explores how companies based in mature markets can break the mold and bring home fresh ideas from the hotbeds of innovation where their expatriates live and work. Read the full article in Harvard Business Review. | Video: Rethinking Expat Assignments (2:55) | Podcast: Nokia’s hard lesson in India (5:23)
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A corporate strategy article by Thunderbird students Joel Baughman, Srinivas Chundi, Mikhail Kholyavko, Chintan Patel and Chris Vadner

There are striking similarities between the colonial powers of past and contemporary beer conglomerates. For years, there has been an uneasy quiet in the world beer markets as brewers have carved out territories and regions for themselves, often finding themselves in close proximity with competitors. Until now, they have appeared reluctant to disturb the status quo and encroach on competitors’ turf in pursuit of increased market share. Nevertheless, consolidation has accelerated in recent years, leading to high industry concentration. The growth in demand for beer in emerging markets, coupled with saturation and stagnation in developed markets, promises to unsettle this uneasy calm and force brewers to rethink their strategy. Read the full article in Thunderbird Student Projects, a Thunderbird Knowledge Network blog that showcases research from the Global Strategy class of Thunderbird Professor Nathan Washburn, Ph.D.

A corporate strategy article by Thunderbird students Bo Lin, Jason Martin, Chiemi Perry, Jian Tong and Wei Wang

Online auction company eBay has a vision “to be the world’s personal trading community.” Nevertheless, it struggled with early strategic moves in Asia, Japan and China in particular, and needed to reconsider its global strategy. In general, eBay sought global growth through acquisition and joint venture as ways to gain quick access to markets and establish a leadership position. Since 1998 eBay has made 37 significant acquisitions globally, 25 of which amounted to $10.1 billion. In Asia, three acquisitions of leading online marketplaces in South Korea, China, and India totaled $1.5 billion. eBay sites also exist in other Asian countries such as Taiwan and Thailand. Approximately 54 percent of eBay’s 2010 net revenue came from international locations, but revenue derived from Asian markets appear to be still much smaller. Read the full article in Thunderbird Student Projects, a Thunderbird Knowledge Network blog that showcases research from the Global Strategy class of Thunderbird Professor Nathan Washburn, Ph.D.

A corporate strategy article by Thunderbird students Brett Davis, Don Dennis, Tras Obsuwan, Kyungwhan Park and Ryan Wegner

How comfortable would you feel if you boarded an aircraft that was entirely developed, manufactured, and assembled in China by a wholly-owned Chinese company? That reality may occur in the near future. With global industry revenue projected to increase to $4 trillion by 2029, of which approximately 12 percent is expected to occur in the Chinese market, new competitors are quickly strengthening their positions in the historically duopolistic airline industry. Amongst these players is Commercial Aircraft Corporation of China (COMAC), a Chinese state-owned aircraft manufacturing company, which is focused on fiercely competing with industry leaders Boeing and Airbus. COMAC’s aspirations are to obtain market share and at the behest of the Chinese government reduce the country’s reliance on foreign airline manufacturers. Read the full article in Thunderbird Student Projects, a Thunderbird Knowledge Network blog that showcases research from the Global Strategy class of Thunderbird Professor Nathan Washburn, Ph.D.

A corporate strategy article by Thunderbird students Emma Brown, Caroline Caverly, Julie Goodman, Kelly Post and Angela Wong

Last year, when an apparel giant opened four stores in China and failed to gain a significant portion of the retail sales, multinational retail stores took note. The Gap, an apparel line successful in more than 3,000 locations worldwide, had everything going for them. So, what went wrong? The Gap’s biggest mistake was the cookie cutter approach it took to establishing its presence in the world’s largest youth market. The Gap sought to target the increasing middle-income consumers in the rapidly growing Chinese market, but failed to capture the attention of their most important customers, the Chinese youth. Read the full article in Thunderbird Student Projects, a Thunderbird Knowledge Network blog that showcases research from the Global Strategy class of Thunderbird Professor Nathan Washburn, Ph.D.

Western and Eastern European cultures share many things in common, but one distinction is the way people view their ability to change external conditions that affect their lives. “One of the key concepts in defining culture is how people perceive that they can affect their own environment,” says Thunderbird Professor Denis Leclerc, Ph.D. “Western Europeans have a belief that they can change their environment, while Eastern Europeans see more constraints.” Leclerc discusses European culture in this podcast from Thunderbird Online Executive Certificates. Thunderbird Online’s facilitated professional development programs are available to global business professionals around the world. These top-ranked programs are accessible, convenient and up-to-date with the most insightful global business content from the world’s No. 1-ranked school in international business. | Podcast: Cross-cultural communications while traveling in Europe (10:01)

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Hierarchy matters in Asia, whether you are doing business in China, Japan or any other country in the region. “The hierarchy really shapes the way people interact with each other,” says Thunderbird Professor Denis Leclerc, Ph.D., who discusses Asian communication styles in this podcast from Thunderbird Online Executive Certificates. Thunderbird Online’s facilitated professional development programs are available to global business professionals around the world. These top-ranked programs are accessible, convenient and up-to-date with the most insightful global business content from the world’s No. 1-ranked school in international business. | Podcast: Cross-cultural communications while traveling in Asia (9:40)

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Doing business in the Middle East starts with building relationships of trust through face-to-face interaction. “Nothing gets done in any of these countries if you have not spent the time to develop relationships,” says Thunderbird Professor Denis Leclerc, Ph.D., who discusses Middle East communication styles in this podcast from Thunderbird Online Executive Certificates. Thunderbird Online’s facilitated professional development programs are available to global business professionals around the world. These top-ranked programs are accessible, convenient and up-to-date with the most insightful global business content from the world’s No. 1-ranked school in international business. | Audio: Cross-cultural communications while traveling in the Middle East (8:22)

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Blending cultures from North and Latin America is a little like mixing oil and water. “There are components of each culture that are almost on opposite ends of the spectrum,” says Thunderbird Professor Denis Leclerc, Ph.D., who discusses Canadian, U.S. and Latin American communication styles in this podcast from Thunderbird Online Executive Certificates. Thunderbird Online’s facilitated professional development programs are available to global business professionals around the world. These top-ranked programs are accessible, convenient and up-to-date with the most insightful global business content from the world’s No. 1-ranked school in international business. | Podcast: Cross-cultural communications while traveling in the Americas (9:20)

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U.S. businesses content to operate at home might soon find a dragon knocking at their doors, says Thunderbird School of Global Management Professor Mary Teagarden, Ph.D. “Understanding China is so important because that is our competitor,” Teagarden says. “That is the dragon. He’s fit, he’s hungry and he’s coming.” Teagarden will discuss Chinese competition Oct. 4, 2011, at the Houston Professional Speaker Series at the University of Houston in Texas. “We’re going to look at challenges and opportunities associated with doing business in China,” Teagarden says. “And we’re going to look at challenges and opportunities associated with competing with the Chinese at home. | Video: The Dragon at the Door (1:38) | Video: Mary Teagarden on China’s Transformation (3:29)
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