Competitive Advantage from the Bottom of the Pyramid

LDRLB

Ajay is a technologist and business strategist who often obsesses over issues that range from the impact of technology on disruptive business models to entrepreneurship and impact investing. Glocalization” of products has made LG successful where other South Asian companies have struggled. [Editor''s Note: This is a guest post from Ajay Swamy.

Great Advertising Is Both Local and Global

Harvard Business Review

One solution to this tension is to pursue what we call glocal advertising strategy — locally adapting a universally embraced core idea that will resonate in any market anywhere in the world. By getting the glocal model right, Johnnie Walker reversed a continuing decline and more than doubled its global business in ten years. Coca-Cola has similarly embraced the glocal model.

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The $2,000 Car

Harvard Business Review

Other companies still subscribe to a "glocalization" strategy of adapting their Western products to meet local needs, and will have to step up their game to get more from their innovation efforts. Phase 2: Glocalization. Success in reverse innovation does not depend as much on technology or financial resources as it depends on crafting the right organization and cultivating the right mindset: Reverse innovation requires a decentralized, local-market focus.

P&G Innovates on Razor-Thin Margins

Harvard Business Review

But the vast majority of men below the pinnacle of the social pyramid, an estimated 400 million, still shaved with double-edge razors, a century-old technology that tends to cause far more cuts and bleeding. centric "glocalization" to India-centric local innovation. If you shaved today, either in the U.S. or in India, you probably used a Gillette razor. Gillette (now a brand of P&G), reportedly has had a U.S. market share of more than 80%, with Schick a distant second.

The Problem with Trend Tracking

Harvard Business Review

Both parties are to this extent "glocal" — global and local. Surely, it has something to do with new communications technology. I'm teaching a course this January on how to read cultural trends ( CMS.S62 in the nomenclature of MIT). You might like to join us if you're in Boston. The course is called "Time Machine: Building a Conceptual Model for Cultural Prediction.". Here's the kind of problem we will be wrestling with.