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I N N O VAT I O N D R I V E N
EFFICIENCY
DRIVEN
FA C T O R D R I V E N
SFA ACBA, IBA
Countries that..
FA C T O R D R I V E N
Compete based on N O V E LT Y
Ageing Population
G D P P e r C a p i t a 24 2 0 U S D •
•
China
Indonesia
Thailand
GDP Growth Rate 4.61% •
• Egypt
• South Africa
Population Growth 0.2% • Bulgaria
• Romania
Median Age 35 years • Ukraine
• Serbia
Av g . S c h o o l i n g 9 years • Columbia
• Peru
Govt. Spending 35%
• Low-to-Medium GDP/capita
• Moderate Growth Rates Homogenous Factors
• Younger Demographics
• Relatively Skilled Labor Force
• Goods Market Efficiency and Buyer Sophistication
G D P P e r C a p i t a 1 67 0 U S D
• Azerbaijan
GDP Growth Rate 4.98% • Bhutan
• Philippines
Population Growth 1.5% •
•
Sri Lanka
Iran
Median Age 27 years •
•
Algeria
Angola
Morocco
Av g . S c h o o l i n g 8 y e a r s •
Firm Infrastructure
HRM
Firm Technology
Procurement
Outbound Marketing
Inbound Logistics Operations Service
Logistics & Sales
30%
In Developing
Long-term
Countries
industrial
18%
In Developed Countries
Stronger GDP per
capita growth!
upgrading
Employment,
income and Global
development Integration
SFA
opportunities
ACBA, IBA
Basic Characteristics of GVCs
– The growing interconnectedness of economies
0 1 2 3 4
Exit Strategy
Entry Strategy Alternatives
Entry
Strategy
Foreign Production Decision Reentry Strategy
• Licensing
• Franchising
Entry Analysis
• Contract
• Sales
Manufacturing
• Costs
• Assembly
• Assets
• Fully Integrated
• Profitability
Production
• Risk Factors