Map
Framework

Yip's four industry globalisation drivers

The question it answers

Before committing to a global strategy, the leadership of a multinational asks: do the market, cost, government and competitive conditions of this industry make a global approach worthwhile?

Origin
Yip, 2003
Diagram type
Hub diagram
Level of analysis
Industry
Topics
Strategy & leadership
Chess knight on a glass compass, icon for strategy and leadership

Diagram

Yip's four industry globalisation drivers

Industry globalisation potential
Market drivers (common customer needs, global customers)
Cost drivers (global scale economies, differences in country costs)
Government drivers (favourable trade policies, compatible technical standards)
Competitive drivers (high exports and imports, globalised competitors)

When to use it, and when not to

Use it when

Use it as the first diagnostic step for an industry, before deciding how far to standardise or adapt by country.

Pitfalls

Pitfall

Looking only at cost drivers such as scale and forgetting government drivers such as trade policy and national regulation. The four groups diagnose an industry's potential for globalisation; they do not by themselves say which strategy to pick, which is the job of the global strategy levers in Yip's wider framework.

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Yip, G.S. (1989) ‘Global strategy … in a world of nations?’, Sloan Management Review, 31(1), pp. 29–41.No DOIsloanreview.mit.eduCited in 1 article
  2. Yip, G.S. (2003) Total global strategy II: updated for the internet and service era. Upper Saddle River, NJ: Prentice Hall.No DOIopenlibrary.orgSource page