One strategy to create competitive advantage involves localizing in global markets. Implementing simultaneous strategies of localization and globalization in global market returned Panasonic to a profitable growth path. In 2000, the company suffered its first loss due to Chinese competitors effectively exporting to the US, Europe and South Asia. In response, Panasonic shifted from a US-based to a global view. It set up a center focused both on local Chinese market needs and on globally available and soon-to-be available Panasonic products. The center uncovered a need for narrower refrigerators, allowing fridge sales to increase ten-fold in one year. It also found a need to sterilize laundry. Panasonic was the first major player to bring this capability to market. As a result, the front-loaded washer market share in China increased from 3% to 15%.1
Over a dozen more options for competitive advantage are discussed in the article “14 Sources of Competitive Advantage.” The article is not only based on extensive experience but also includes considerable research and data on each option.
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Tove Rasmussen, your partner in business growth @ Partners Creating Growth, offers business expertise worldwide to help organizations grow, and disadvantaged regions thrive. Tove@PartnersCreatingGrowth.com
Photo credit: By Sanwuisusp (Own work)
