Figure 2 opposite maps the globalization drivers for two i ndustries - commercial aircraft and soft drinks. The commercial aircraft industry is global. YIPS-GLOBALIZATION-DRIVERS 1. 25 May 09 International Business - Yip's Globalisation Drivers 2. Yip’s Globalisation Drivers Team 6 Sachin Arun KA Balaji. 2 THE DRIVERS OF FINANCIAL GLOBALIZATION 331 Table 2?The Drivers of International Financial Integration (1) All countries FA. Yip’s version of the globalization drivers (market, cost, competition and government) - which is in the centre of attention in this work - summarizes all of the points presented above, in a similar differentiated manner: He argues that the more globalization drivers are obvious and effective for an industry the more a global strategy is.
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Yips Globalization Drivers For Macbook
We have followed George Yip’s famous globalization model (1992) to analyse the forces behind attractiveness of globalization for telecom firms in India and more specifically Bharti Airtel.
1. MARKET GLOBALIZATION FORCES
Every month about 8-10 million subscribers are being added in the Indian mobile database. India is likely to see ~80% teledensity (fixed +mobile users) by 2014 and is set to see waning demand there on. (source: Wikipedia.com)
Given the current level of saturation in urban market and cut throat competition among operators, the industry players are aiming to achieve the dual strategy of:
• Widening telecom footprint by acquiring new subscribers in semi urban/ rural India to take advantage of its high growth potential.
• Netting talkers in emerging markets is to replicate the Indian experience outside
2. COST GLOBALIZATION DRIVERS
The margins of the telecom industry as a whole have shrunk, even though subscriber base is growing owing to competition and lower “Average Revenue per User” (ARPU) primarily due to major growth drivers being from the bottom of the pyramid, for which rates have been drastically reduced to make them affordable to the masses. The tariff structure in India is among the lowest globally at Rs.0.5 - 1 per minute vis-a -vis to the tariff in USA and UK (around Rs.13 and Rs7-8 respectively) .The inevitable commoditization of voice calls and shrinking ARPU, the next challenge lies in to develop alternative revenue
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- The globalization drivers are related to these competitive forces by Porter, but they are different and work at a more superior and exponentiated level 42, which will be discussed later on. 2.3.Different theoretical approaches of globalization drivers.
- Yip identifies four sets of “industry globalization drivers”—underlying conditions in each industry that create the potential for that industry to become more global and, as a consequence, for the potential viability of a global approach to strategy. These drivers are market drivers, cost drivers, competitive drivers, and government drivers.