Grappling with Globalization by Market Strategy Group

Grappling with Globalization – What Matters, What Doesn’t How should leaders reevaluate their global positioning and strategy given the relentless noise on the topic? Reassessing Globalization and What It Means The foundational conversation on global business trends has materially shifted over the past year to include nationalistic political movements, warnings of the “end of globalization” and continual uncertainty on foreign capital markets. In terms of major globalization milestones, the business community was first stunned by Brexit in June 2016. It was long thereafter that the tenor of globalization grew increasingly negative with the election of the new presidential administration in the US. Other populist movements In Europe and the growing negativity around global business expansion by the media have cause great uncertainty as leaders evaluate both their global performance and global strategies.

Depth of Global Connectedness, Relative to 20051

Is Globalization in Decline? Here’s what we’ve found from the most helpful indictors. The DHL Global Connectedness Index – which tracks trade, capital, information and people flows – shows globalization slowed in 2015, but did not reverse. The connectedness of information is increasing at a particularly high rate, however, the idea of globally-integrated enterprises operating in a borderless world is still not our reality. Leaders, both business and political, need to find a balance.

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160% 140%

120% 100% 80% 60% 2005 Information

DHL Global Connectedness Index © Market Strategy Group, 2017

2007 People

2010 Capital

2015 Trade

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Drilling Down, Other Globalization Themes to Consider Beyond globalization’s overall trajectory, there are many other globalization themes to consider and de-bunk. This list is long and we want to present those that are most relevant to today’s business environment. To dispel the confusion in the market and media about what are most important considerations factors for global strategy development, we have referred to industry reports, econometric data and third party resources to debunk the globalization myths.

MEDIA SENTIMENT HAS SHFITED Over the past fourteen months, media sentiment has shifted in the tone and emotion project of the word “globalization.” It studies run on US and UK news sources, the globalization sentiment score is in steady decline.

CHINA PUSHED INTO LEADERSHIP The world is looking to China in many ways to champion a more sustainable and inclusive version of globalization, as well as put its capital and expertise into global infrastructure projects. US-China relations will continue to play on center stage.

TRADE WARS ARE A POTENTIAL FUTURE

Nationalistic banter and a short-sighted trade policy can lead to increased tariffs in the near-term. Diane Swonk of DS Economics and other Economic luminaries predict increased tariffs with APAC, specifically China. Deciphering What Matters to Your Business Globalization trends and headlines will relentlessly be in the backdrop of strategic decision-making. We offer several recommendations for leaders to help in their global expansion strategy development to stay focused:

Get Granular in Understanding The Global Gap

Get smart, and get your hands on trusted data. There is a real propensity to underestimate the global gap and challenges to doing business overseas. Know your markets in and out, keep research fresh and a high-priority area for your organization.

Take Caution With Overly Nationalistic Debate Whether it’s the UK, France, US or other populist movements, we have not seen compelling figures that speak to receding global capital flows. Stay tuned to policy-changes and avoid the emotion.

Maintain Focus on Value Generation and Company Vision

What is it that you do better than anyone? What value can you bring to new markets? Keep focused on delivering that and your brand will help flip the anti-globalization sentiments

Maintain Long Game, Tides Will Inevitable Shift

Overcoming some of the hype means not being distracted or dissuaded by short-term exogenous shocks. Keeping sight of your long-game and medium to long-term potential futures should drive decisionmaking. Otherwise, there is too much uncertainty in the short-term to drive decision-making

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Getting Global Expansion Right MSG understands both the diverse opportunities and the extreme complexities of the global market. Growth in developed nations is as such the leaders of technology companies can no longer count on growth from markets at home. Instead, it is time to look strategically at international options to achieve growth goals. We know that doing this is hard, and have a team of seasoned experts who get it. We answer your hardest global expansion questions.

Target Market Selection WHERE?

WHEN & HOW?

• Detailed market analysis with overview of market size and growth potential, competition, channel analysis, economic drivers and political climate, conducted by region, country or sub-country levels • Country- and region-specific feasibility analysis to determine viability of expansion and universe of strategic and operational risks

Market Entry Strategy • Develop value prop, positioning, target customer, price levers and channel strategy specific to region, country or micro-geo • Assess potential partners and formulate partnership strategy • Determine roadmap for immediate-term launch & post-launch stabilization • Design and implement custom operating model to achieve strategy

Value From Our Services WHY?

• We support company leadership in developing data-driven market penetration strategies and getting the most out of their global expansion investments. We have done this across industries, business types and geos • We help executives to be better equipped to allocate limited resources across a domestic and international portfolio of growth opportunities

Global Expansion Service Line Leadership With a focus on international markets since the beginning of her career, Alex Kruzel has been assisting companies and public sector organizations to develop and execute their strategies for more than 10 years.

ALEX KRUZEL Partner

Alex has served clients across a variety of industries, including CPG/Retail, Technology, Energy, Travel, Hospitality & Leisure, Life Sciences & Healthcare, Financial & Professional Services and Public Sector. She specializes in helping clients identify opportunities for growth via global expansion and then implementing strategic initiatives by translating them into tactical, measurable and self-sustaining programs.

About Market Strategy Group Market Strategy Group sees business differently. To us, winning isn't about going from Point A to Point B. It's about aligning three distinct dimensions — business direction, people & process, and markets & customers — to drive growth. Getting this right is critical to your bottom line. And it’s more than an operational challenge, it is often a strategic issue. We have helped organizations get to an answer custom to your unique situation. We should chat if this is an issue: Alex Kruzel (alex.kruzel@mkt-strat.com).

http://mkt-strat.com/

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