CRC Press Taylor & Francis Croup Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an Informa business
Contents
Preface The Authors
xiii xvii
Chapter 1 Research Framework: Core Competence and Global Strategy 1.1 1.2
1.3
1.4
The Importance of Network Capability in the BRICs Market Environment 1 Network Capability and Global Competitive Strategy 7 1.2.1 Three Types of Core Competencies and Global Expansion Strategy 7 1.2.2 Core Competence and Product Architecture... 9 Product Architecture and Supply Chain Integration... 12 1.3.1 Network Capability Dynamics and Portfolio Strategy 14 1.3.2 Network Capability and Intellectual Property Strategy 19 Structure of This Book 21
Chapter 2 Comparisons of Strategies of Established Global Firms and Indigenous Firms from BRICs 2.1 2.2
2.3
1
Introduction Global Supply Chain Management (SCM) Strategy and Specialization 2.2.1 Supply Chain Management in Emerging Markets 2.2.2 Supply Chain Management and Product Architecture Cases of Collaboration between Global Firms and Indigenous Firms 2.3.1 Global Supply Chain Collaboration between Apple and Foxconn
25 25 28 28 29 30 30
vi • Contents 2.3.2
2.4
Growth Process of the Chinese Mobile Phone Industry 2.3.3 LCD Industry: An Illustration of Supply Chain Structure in East Asia Conclusion
SECTION I
3.5
35 37
Research Framework
Chapter 3 Strategies of Chinese Indigenous Firms 3.1 3.2 3.3 3.4
33
Introduction Chinese Economic Context Case Studies of Chinese Firms Case Study of Haier 3.4.1 History of Haier 3.4.2 Strategie Management System: Four Phases of Development Strategy 3.4.2.1 Quality Strategy (Comprehensive Quality Management) (1984 to 1991) 3.4.2.2 Brand Strategy Phase (OEC Management) (1992 to 1998) 3.4.2.3 Diversification Strategy Period (1998 to 2005) 3.4.2.4 Global Brand Strategy Period (2006 to Present) 3.4.3 Haier's Product Strategy 3.4.3.1 Haier's Product Development Speed 3.4.3.2 Champion Quality of R&D Organization 3.4.3.3 Haier's Global Competitiveness and Its Product Strategy Lenovo Case 3.5.1 Early Market Experiences and Global Market Entry 3.5.2 Establishing Lenovo's Brand and Pursuit of Its Unique Customer Base
41 41 42 43 43 43 45
46 46 47 48 49 49 50 50 51 51 52
Contents • vii 3.5.3
3.6
Diversification of Its Businesses and Enhancement of Global Competitiveness 3.5.4 Lenovo Acquired IBM PC and Expanded Its Global Target Market Conclusion
Chapter 4 Strategies of Indian Indigenous Firms 4.1 4.2 4.3
4.4
Introduction India's Economic Growth Patterns Gase Studies of Indian Firms 4.3.1 Tata Group 4.3.2 Mahindra & Mahindra Limited (M&M) 4.3.3 Big Bazaar Conclusion
Chapter 6 Strategies of Russian Indigenous Firms 6.1 6.2
6.3
Introduction Russian Economic Context 6.2.1 Energy-Dependent Economic Structure 6.2.2 Aggressive Public Expenditures Russia's Automotive Industry 6.3.1 Current Status of the Russian Automotive Industry 6.3.1.1 Passenger Car Production and Sales Statistics 6.3.1.2 Domestic Production and Sales Record 6.3.2 Growth of Russian Indigenous Firms: AvtoVAZ
Russian Energy Industries 83 6.4.1 Growth of Russian Indigenous Firms: Gazprom 83 6.4.2 Comparison of Gazprom with Other Firms... 87
6.5
Conclusion
SECTION II
87
Emerging Global Firms
from China, India, Brazil, and Russia Chapter 7 Strategies of Japanese Firms in the Chinese Market 7.1 7.2
7.3
7.4
7.5
91
Introduction 91 Strategy of Komatsu China 92 7.2.1 An Overview of Komatsu China 92 7.2.2 Structure of KOMTRAX of Komatsu China... 93 7.2.3 KOMTRAX's Usage Patterns in Emerging Markets 94 7.2.4 Competition with Local Chinese Firms 97 Strategy of Daikin China 99 7.3.1 Daikin's China Market Strategy 100 7.3.2 Product Development Strategy of Daikin China 101 7.3.3 Brand Marketing Strategy of Daikin China 103 7.3.4 Strategie Talent Development That Supports Global Monozukuri (i.e., Japanese Manufacturing) 104 Strategy of Honda Guangzhou 104 7.4.1 Hondas Entry Strategy for the Chinese Market 105 7.4.2 Product and Technology Strategy of Honda China 106 7.4.3 Marketing Strategy of Honda China 110 7.4.4 Implementation of Localization Strategy: Establishing Collaboration System and Talent Development 111 Toyotas Global Supply Chain Management (SCM) in China 114
Contents • ix 7.6
Strategies of Other Japanese Global Firms 7.6.1 Strategy of Yaskawa Electrics of China 7.6.2 Strategy of Panasonic China 7.6.3 Strategy of Clarion China Conclusion
116 116 118 119 120
Chapter 8 Strategies of Japanese Firms in the Indian Market
121
7.7
8.1 8.2
8.3
8.4
8.5
Introduction 121 Strategy of Toyota India 121 8.2.1 Toyota Kirloskar Motor (TKM) and Toyota Kirloskar Auto Parts (TKAP) 122 8.2.2 Development of Etios Sedan 124 Strategy of Honda India 126 8.3.1 Nikkei Makers Lead in Indian Motorcycle Market 126 8.3.2 Hondas India Strategy 127 Strategies of Other Japanese Global Firms in India... 129 8.4.1 Strategy of Seiko Epson India 129 8.4.2 Strategy of Makino India 130 8.4.3 Strategy of Denso India 132 Conclusion 133
Chapter 9 Strategies of Japanese Firms in the Brazilian Market 9.1 9.2
9.3
9.4
Introduction Komatsu Brazil 9.2.1 A Brief Overview 9.2.2 Construction Equipment Usage Patterns in Brazil and Komatsu's Response 9.2.3 Summary Strategy of Toyota Brazil 9.3.1 Brazilian Automotive Industry. 9.3.2 Toyotas Entry into the Brazilian Market 9.3.3 Toyota Brazil: Plants and Quality Management 9.3.4 Present and Future of Toyota Brazil Brazil Hondas Strategy 9.4.1 Brazilian Motorcycle Market
Hondas Entry into the Brazilian Market Honda Brazil's Motorcycle Production and Marketing Strategy Other Japanese Firnis in Brazil 9.5.1 Strategy of Bridgestone Brazil 9.5.2 Case of Epson Brazil Conclusion
SECTION III
145 145 148 148 148 149
Japanese and Korean
Global Firms in Emerging Markets Chapter 10 Strategies of Korean Firms in the Chinese Market
153
10.1 Introduction 153 10.2 Samsung Chinas SCM Collaboration Strategy 155 10.2.1 Samsung LCD's SCM System 155 10.2.2 Samsung China LCD's Integration of BLU Suppliers 157 10.2.3 LCM (Low Cost Module) Strategie Challenges 159 10.2.4 Conclusion 160 10.3 Global SCM Strategy of Hyundai Beijing 160 10.4 Hankook Tire Strategy 163 10.4.1 Market Reality 163 10.4.2 Strategie Focus/Organizational Leadership... 164 10.4.3 Product/Value Innovation 166 10.4.4 Strategie Alliance 168 10.4.5 Global Market 168 10.5 Conclusion 169 Chapter 11 Strategies of Korean Firms in the Indian Market 11.1 Introduction 11.2 Historical Background of Korean Firms' Entrance to India 11.3 Localization Strategy of Hyundai Motor India (HMI) 11.3.1 Investment Goals in Indian Context
171 171 172 173 174
Contents • xi 11.3.2 Localization Strategy: Local Adaptive Product Development and Marketing 176 Strategy 11.3.3 Human Resource (HR) Policies: Develop Native Leaders and Education/Training at Headquarters 178 11.4 Samsung India Electronics (SIE) 179 11.4.1 Investment Context and Strategie Priority..l79 11.4.2 Localization Strategy: Pursuit of FPD TV-Based Premium Strategy 180 11.4.3 HR Policy ofManagement-Employee Relationships: Continuous Improvement by Field Employees 182 11.5 LG Electronics India (LGEI) 183 11.5.1 Investment Contexts and Strategie Priority 183 11.5.2 Localization Strategy: Customer-Driven Marketing and Premium Product Strategy .184 11.5.3 HR Policy and Management-Employee Relationships: Native Leadership and Incentive Systems 186 11.6 Conclusion 187 Chapter 12 Strategies of Korean Firms in the Brazilian Market.... 189 12.1 Introduction 12.2 Status of Korean Firms in Brazil 12.3 Localization Strategy of Korean Firms in Brazil 12.3.1 Samsung Brazil 12.3.2 LG Brazil 12.3.3 Comparisons of Samsung and LG 12.4 Concluding Remarks Chapter 13 Concluding Remarks and Future Research Issues 13.1 Comparison of Japanese and Korean Global Firms versus Indigenous Firms from BRICs 13.2 Emerging Market Strategy: Direction and Prospect 13.3 National and Firm Level Collaborations among BRICs and Beyond
189 190 190 193 195 196 197 199 199 202 203
xii • Contents 13.4 Firm Level Strategies in Global BOP Markets 13.5 Competitive Advantage of Firms in Emerging Economies
