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4 - Market access and technology in durable consumer goods

Published online by Cambridge University Press:  05 June 2012

Mauro F. Guillén
Affiliation:
Wharton School, University of Pennsylvania
Esteban García-Canal
Affiliation:
Universidad de Oviedo, Spain
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Summary

The fact that a number of companies (such as Wal-Mart, Zara, Dell and Toyota) have managed to record extraordinary success while doing quite ordinary things (such as running supermarkets, selling clothes or making computers or cars) has made managers more fully aware that what their organizations produce can matter a lot less than the way that they produce it.

The Economist (April 6, 2009)

We can make any style at any price for any market.

Sever García, Sales Director, Pronovias USA

Competition in durable consumer goods – clothing, appliances, electronics, and so on – is driven by technology, design, economies of scale, and brands. Until recently, firms from the richest countries dominated the landscape. According to Interbrand (2009), all but three of the 100 most valuable brands in the world as of 2009 were from such rich industrialized countries as the United States, Japan, the United Kingdom, France, Germany, Italy, Canada, Finland, the Netherlands, Sweden, and Switzerland. The three exceptions are Samsung (ranked no. 19 in terms of value) and Hyundai (no. 69), both of South Korea, and Zara (no. 50) of Spain. Although emerging economies represent an increasing share of the global economy, their brands are still not well-known around the world. In its list of the 100 “global challengers” from emerging economies, the Boston Consulting Group identified only twelve companies in durable consumer goods, including clothing, appliances, and electronics (BCG 2009).

Type
Chapter
Information
The New Multinationals
Spanish Firms in a Global Context
, pp. 76 - 98
Publisher: Cambridge University Press
Print publication year: 2010

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