IM Session 5 Questions

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IM Session 5 - Questions

• 1. How English has become a global language
  and even if other languages have been found to be
  more scientific than English?2. How has QWERTY
  (computer key board) has come to stay as the
  standard even if it is not the best of all?3.
  While, you may suggest that reducing product cost
  can give you the patronage for your product in
  the market and help you to standardize your
  product but the question is how can reduce the
  cost of the product?

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Case of Matshushita Introduction to Questions
1. Why technological lead alone is not
sufficient to compete in the global market? 2.
How was technological compatibility important for
the Home Video business? 3. What were the
important factors to achieve global standard in
Home Video business? 4. Why did standard setting
strategy work in Home Video business? 5. What are
current businesses where global standard setting
is in vogue?
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STANDARDIZATION STRATEGY  Strategic Maneuvering
and Mass market Dynamics Cusumano, Mylonadis,
and Rosenbloom
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The Transformation
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Amar KJR Nayak/IM/XIMB
A case of home videocassette recorders (VCRs)
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Home-Video Families and World Color TV Shares,
1976-1977
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Home-Video Families and World Color TV Shares,
1976-1977
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VCR Production and Format Shares
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VCR Production and Format Shares, 1975-1984 (in
percent)
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Amar KJR Nayak/IM/XIMB
VCR Production and Format Shares, 1975-1984 (in
percent)
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Amar KJR Nayak/IM/XIMB
VCR Production and Format Shares, 1975-1984 ( in
percent)
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Amar KJR Nayak/IM/XIMB
VCR Production and Format Shares, 1975-1984 (in
percent)
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How did this happen?
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Case Questions

• Why technological lead alone is not sufficient to
  compete in the global market?
• 2. How was technological compatibility important
  for the Home Video business?
• 3. What were the important factors to achieve
  global standard in Home Video business?
• 4. Why did standard setting strategy work in Home
  Video business?
• 5. What are current businesses where global
  standard setting is in vogue?

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VCRs The Comparisons
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Incompatibility
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Amar KJR Nayak/IM/XIMB
Incompatibility in the two systems   Tape
handling mechanisms Cassette Size Coding
schemes for their video signals
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Recording-Playing Time Comparison
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Recording-Playing Time Comparison
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Recording-Playing Time Comparison
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Special Effects Comparison
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Special Effects Comparison
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Special Effects Comparison
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Group Alignments
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Group Alignments (1983-1984)   Note Suppliers
indicated by initials (J JVC, Ma Matsushita,
H Hitachi, Mi Mitsubishi, T Tokyo Sanyo, S
Sony, To Toshiba, Sa Sanyo, P Philips, G
Grundig)
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Amar KJR Nayak/IM/XIMB
Group Alignments (1983-1984)   Note Suppliers
indicated by initials (J JVC, Ma Matsushita,
H Hitachi, Mi Mitsubishi, T Tokyo Sanyo, S
Sony, To Toshiba, Sa Sanyo, P Philips, G
Grundig)
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Amar KJR Nayak/IM/XIMB
Group Alignments (1983-1984)   Note Suppliers
indicated by initials (J JVC, Ma Matsushita,
H Hitachi, Mi Mitsubishi, T Tokyo Sanyo, S
Sony, To Toshiba, Sa Sanyo, P Philips, G
Grundig)
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Amar KJR Nayak/IM/XIMB
Group Alignments (1983-1984)   Note Suppliers
indicated by initials (J JVC, Ma Matsushita,
H Hitachi, Mi Mitsubishi, T Tokyo Sanyo, S
Sony, To Toshiba, Sa Sanyo, P Philips, G
Grundig)
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Amar KJR Nayak/IM/XIMB
Group Alignments (1983-1984)   Note Suppliers
indicated by initials (J JVC, Ma Matsushita,
H Hitachi, Mi Mitsubishi, T Tokyo Sanyo, S
Sony, To Toshiba, Sa Sanyo, P Philips, G
Grundig)
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VCR Sales by Country and Format
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VCR Sales by Country and Format (1983)
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SummaryStrategic Moves
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Strategic Moves of Matsushita Group   Complement
Strengths in Product Development /Mass
Production Managerial Attitude to work with
Partners Make the video cassette players (VCP)
compatible with Video Cassette recorders Respond
to Market Demand (play duration of VCP)
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Amar KJR Nayak/IM/XIMB
Standardize and promote the production of VHS
formatted cassettes Collaborate with video
rental shops to promote VHS cassette
players Tie-up with other players in the value
chain of the product both in the home market and
foreign markets  Standardize product through
increased production and increased sales in home
and overseas markets Critical Volume to Market
Standardization
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Is the Strategy applicable to you?
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The Globalization of Markets
Theodore Levitt   Key Concerns How to
customize products for the demands of new
markets?   Differences in culture and values
among nations (Month of Ramadan, Bank Lending
rates, etc.)
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Differences in tastes of people in different
regions / nations   Customization of goods /
services for different market segments   Different
character of people and companies under the
influence of new technology
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Vindication of Model T  
General Rule! Lower the cost and price Improve
the quality reliability   Henry Ford
Production of Model T   Need for Global
imagination
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Strategic issues   Knowing a lot about many
things v/s knowing everything about one great
thing    Give customers what he says he wants or
what he can take    Lower cost international
product patronage expands exponentially
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Global Corporation accepts and adjusts to the
differences only reluctantly, after relentlessly
testing their immutability, and after trying in
various ways to circumvent and reshape them
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Summary   Converging commonality Developments
in technology From customizing items to offering
globally standardized products   Only Global
companies will achieve long-term success by
Concentrating on what everyone wants rather than
Cater to details of what everyone thinks they
might like
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Amar KJR Nayak/IM/XIMB
A strategy!!   Offer everyone simultaneously
high-quality, more or less standardized products
at optimally low prices Samsungs (Washing
Machines, Refrigerators, TVs, etc)
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Amar KJR Nayak/IM/XIMB
A strategy!!
Examples?    Global Corporations will seek
sensibly to force suitably standardized products
and practices on the entire globe!!