Addressing a CII meet on Globalization in New Delhi recently, Tarun Khanna, Strategy Professor at the Harvard Business School, said, Indian companies shouldnt follow a GE or a Nokia. They need not copy globalization strategy from any of the established global players. Instead, they should create their own model. He added, to be a global company, you have to bring something new to the party.
Tarun Khanna is the Jorge Paulo Lemann Professor at Harvard Business School, where he has been a member of the Strategy Group since 1993. He heads the Required Strategy course in the Harvard MBA program and the Strategy, Leadership & Governance Executive Education program, and lectures and consults to companies and governments worldwide.
MBAUniverse asked Prof Khanna a few pertinent questions. Excerpts:
Q: How should Indian companies aspiring to be global players strategize? Is there a global strategy mantra?
A: No. There is no one mantra. Indian companies shouldnt follow what a GE or a Nokia has done. They need not copy globalization strategy from any of the established global players. The world moves on and you need new approaches. Indian companies aspiring to be global players should create their own model. To be a global company, you have to bring something new to the party, not merely follow what other successful firms have done.
Q: You have been doing research on how companies in emerging markets can become global players. Please share some insights.
A: As part of the Emerging Giants project, we are seeking to understand how to build world-class companies in emerging markets worldwide. A related project, The Dragon and the Elephant, zeroes in on China and India, and identifies best practices for local entrepreneurs and multinationals operating in each of these two countries.
Q: So what is the biggest learning
A: The need to tailor company strategy to local context.
Q: What is your advice to Indian companies who want to become global players?
A: Three steps: Leverage the home base; embrace neighbors; and borrow strategically. Indian companies need to use their home advantage or their local strengths, and then look at entering markets which are similar to the home turf.
Q: Can you share a learning from a company that managed to do this?
A: SAB Miller, the South African beer company, is a good example. They probed their own market and discovered that they best understand the distribution process of chilled beer in small cans. So they entered markets similar to the South African market and then used their distribution strengths to win them over.
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Addressing a CII meet on Globalization in New Delhi recently, Tarun Khanna, Strategy Professor at the Harvard Business School, said, Indian companies shouldnt follow a GE or a Nokia. They need not copy globalization strategy from any of the established global players. Instead, they should create their own model. He added, to be a global company, you have to bring something new to the party.
Tarun Khanna is the Jorge Paulo Lemann Professor at Harvard Business School, where he has been a member of the Strategy Group since 1993. He heads the Required Strategy course in the Harvard MBA program and the Strategy, Leadership & Governance Executive Education program, and lectures and consults to companies and governments worldwide.
MBAUniverse asked Prof Khanna a few pertinent questions. Excerpts:
Q: How should Indian companies aspiring to be global players strategize? Is there a global strategy mantra?
A: No. There is no one mantra. Indian companies shouldnt follow what a GE or a Nokia has done. They need not copy globalization strategy from any of the established global players. The world moves on and you need new approaches. Indian companies aspiring to be global players should create their own model. To be a global company, you have to bring something new to the party, not merely follow what other successful firms have done.
Q: You have been doing research on how companies in emerging markets can become global players. Please share some insights.
A: As part of the Emerging Giants project, we are seeking to understand how to build world-class companies in emerging markets worldwide. A related project, The Dragon and the Elephant, zeroes in on China and India, and identifies best practices for local entrepreneurs and multinationals operating in each of these two countries.
Q: So what is the biggest learning
A: The need to tailor company strategy to local context.
Q: What is your advice to Indian companies who want to become global players?
A: Three steps: Leverage the home base; embrace neighbors; and borrow strategically. Indian companies need to use their home advantage or their local strengths, and then look at entering markets which are similar to the home turf.
Q: Can you share a learning from a company that managed to do this?
A: SAB Miller, the South African beer company, is a good example. They probed their own market and discovered that they best understand the distribution process of chilled beer in small cans. So they entered markets similar to the South African market and then used their distribution strengths to win them over.
| Check Top MBA Colleges in India by Cities | | |
| Also Read Important Articles on MBA Admission | ||
| Top MBA Colleges in India | MBA Admission | MBA Entrance Exam |
| MBA Placements | MBA Ranking In India | GD Topics |
As Indian economy gains momentum and Indian MNCs become a reality, Indian companies are advised to create their own DNA rather than follow established global leaders.