The benefits from globalization of marketsReduces the marketing cost;Creates new market opportunities;Levels unevenincome streams;Fits the local needs11
11 The benefits from globalization of markets ⚫Reduces the marketing cost; ⚫Creates new market opportunities; ⚫Levels uneven income streams; ⚫Fits the local needs
1.1.2 globalization of productionGlobalizationof production:refers to the sourcing of goods and servicesfrom locations around the globe, to takeadvantages of national differences in the costand quality of factors of production (such aslabor, energy, land, and capital)是指许多公司从全球不同地区利用生产要素和成本质量差异，寻找商品和服务来源的趋势，它们试图从中获得好处
12 1.1.2 globalization of production Globalization of production : refers to the sourcing of goods and services from locations around the globe, to take advantages of national differences in the cost and quality of factors of production (such as labor, energy, land, and capital). 是指许多公司从全球不同地区利用生产要素和成本质 量差异，寻找商品和服务来源的趋势，它们试图从中 获得好处
Example 1: BoeingThe Boeing company's jet commercial jet airlinerthe 777.It's 132,500 construction parts areoffered by 545 suppliers all over the world:8 Japanese suppliers make parts for fuselage,doors, and wings;1 supplierin Singapore makes doorsfor noselanding gear;3 suppliers in Italy manufacture wing flaps;Boeing 787 ........ 65% is built by foreigncompanies!13
13 ⚫ Example 1: Boeing ⚫ The Boeing company’s jet commercial jet airliner, the 777. It’s 132,500 construction parts are offered by 545 suppliers all over the world: ⚫ 8 Japanese suppliers make parts for fuselage, doors, and wings; ⚫ 1 supplier in Singapore makes doors for nose landing gear; ⚫ 3 suppliers in Italy manufacture wing flaps; Boeing 787 . 65% is built by foreign companies!
Example 2 : ThinkPad (lenovo)the U.S.Design:ThailandCase, keyboard, hard drive:Display screen, memory:South koreaMalaysiaBuilt-in wireless card:the U.SMicroprocessor:Assemble:Mexicothe U.SMarketing Strategy for North America:14
14 Example 2 : ThinkPad (lenovo) ⚫Design: the U.S. ⚫Case, keyboard, hard drive: Thailand ⚫Display screen, memory: South korea ⚫Built-in wireless card: Malaysia ⚫Microprocessor: the U.S. ⚫Assemble: Mexico ⚫ Marketing Strategy for North America: the U.S
ThefeaturesofGlobalizationof Production(1)CompanySIZEandBENEFITS :Both giant and small firms are also gettinginto the actandbenefiting.(see the case of Swan Optical)(2)Aglobalweb of suppliersyieldsabetterfinalproduct, which can enhance the chances of winninggreater shares of totalorder!(3)Outsourcing:from manufacturing enterprises toserviceenterprisesIT technologies and internetAmerican products? Japanese products?Germanproducts? Korean products? Chinese products?OR: (GLOBALPRODUCTS!15
15 The features of Globalization of Production (1) Company SIZE and BENEFITS : Both giant and small firms are also getting into the act and benefiting. (see the case of Swan Optical ) (2)A global web of suppliers yields a better final product, which can enhance the chances of winning greater shares of total order! American products? Japanese products? German products? Korean products? Chinese products? OR: GLOBAL PRODUCTS! (3) Outsourcing : from manufacturing enterprises to service enterprises ⚫ IT technologies and internet