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Bundling in a semi‐global economy

Bundling in a semi‐global economy Crosscurrents between globalization and localization have created two world industry segments, an open highly competitive global industry, and a closed highly localized industry. Searching for competitive advantage in this new market environment, global manufacturers are becoming more like local service providers by executing a dual strategy: a global cost leadership strategy and a local product differentiation strategy. To achieve global cost leadership, manufacturers cooperate with their competitors to reach economies of scale and reduce costs. To achieve local product differentiation, manufacturers compete with their global partners by cooperating with local service providers to differentiate their offerings. This trend is analyzed to suggest two interdependent mechanisms for building successful bundling strategies. The competitiveness of a bundle that brings together global products and local services depends upon the degree of bundle localization. Sustainable bundling strategies should be treated as bundles of international business relationships. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Business Review Emerald Publishing

Bundling in a semi‐global economy

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
0955-534X
DOI
10.1108/09555340410556602
Publisher site
See Article on Publisher Site

Abstract

Crosscurrents between globalization and localization have created two world industry segments, an open highly competitive global industry, and a closed highly localized industry. Searching for competitive advantage in this new market environment, global manufacturers are becoming more like local service providers by executing a dual strategy: a global cost leadership strategy and a local product differentiation strategy. To achieve global cost leadership, manufacturers cooperate with their competitors to reach economies of scale and reduce costs. To achieve local product differentiation, manufacturers compete with their global partners by cooperating with local service providers to differentiate their offerings. This trend is analyzed to suggest two interdependent mechanisms for building successful bundling strategies. The competitiveness of a bundle that brings together global products and local services depends upon the degree of bundle localization. Sustainable bundling strategies should be treated as bundles of international business relationships.

Journal

European Business ReviewEmerald Publishing

Published: Oct 1, 2004

Keywords: Globalization; Local economies; Competitive strategy; Sustainable development

References