The harder it will be for new entrants to develop an effective competitive threat. On the one hand, the more the new economies of scale and scope shape the strategies of incumbents in global industries, The opening of McDonalds outlets in most countries of the world signalled similar tendencies in fast food. In some markets, customer needs and preferences are becoming more similar. There is an increasing trend to market globalisation for a variety of reasons.
Global scale and scope economics are already having far-reaching effects. Yips Drivers Of Globalisation Management Essay. At bottom is a simple fact: a single market will no longer be large enough to support a competitive strategy on a global scale in many industries. Economies of scale and scope,Įxperience effects, and exploiting differences in factor costs for product development, manufacturing, and sourcing in different parts of the world will assume a greater importance asĭeterminants of global strategy. The globalization of customer needs and the opportunities for scale and standardization it brings will fundamentally alter the economics of many industries. Innovations in the transportation technology revolutionized the industry. Yip identifies four sets of industry globalization drivers that underlie conditions in each industry that create the potential for that industry to become more. Available under Creative Commons-NonCommercial-ShareAlike 4.0 International License. The main purpose of using Yips model is to evaluate the extent of globalization.
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