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Going from global to local - adapting the service offer in the delivery chain

Ekman, Johan and Ekman, Malin (2017) MIO920
Production Management
Abstract
One way for manufacturing companies to gain competitive advantage in
today’s business environment is to complement the product offering with
surrounding services that deliver superior value to the customer. Further, the
demand for these surrounding services is influenced by market-specific
customer requirements, surrounding competitive environment and local
prerequisites. Therefore, there is a need for local adaptation of companies’
global strategies before rolling out local service offerings.
This study investigates local adaptation of global strategies to local markets,
by focusing on logistics services in the delivery chain. The purpose of this
study is to describe and analyse how a market organisation within a
multinational... (More)
One way for manufacturing companies to gain competitive advantage in
today’s business environment is to complement the product offering with
surrounding services that deliver superior value to the customer. Further, the
demand for these surrounding services is influenced by market-specific
customer requirements, surrounding competitive environment and local
prerequisites. Therefore, there is a need for local adaptation of companies’
global strategies before rolling out local service offerings.
This study investigates local adaptation of global strategies to local markets,
by focusing on logistics services in the delivery chain. The purpose of this
study is to describe and analyse how a market organisation within a
multinational company can develop a competitive and customer-oriented
service offer in the delivery chain, through modifying and adapting global
strategy to local conditions to gain competitive advantage.
The purpose was investigated by conducting a case study in the Swedish
market organisation at the global manufacturing company Company X and
conducting a literature study. The study was limited to adapting the global
strategy to the local market based on customer needs and requirements.
Further three main theoretical concepts were applied. Porters ‘Value System’
was used to define the delivery chain and ‘where’ in the value chain the
study has it’s focus. Kotler’s ‘Three levels of a product’ was used to define
‘what’ was investigated; logistics services. Kotler’s ‘model of business buyer
behaviour’ was used to answer the question ‘how’, i.e. how to best
understand the customers to develop a competitive service offer.
It was found that when adapting a global strategy regarding services in the
delivery chain, companies need to determine the format of the local strategy,
understand what the delivery chain comprises and understand what exact
services are included in the strategy and how these relate to the complete
product offer. Then, local market conditions need to be understood,
including customer needs and preferences, competitive landscape and
feasibility of strategy implementation. Companies then need to decide who
(what customer segments) to target with the local strategy based on local
market goals and business logics. The service offer should then be developed
based on target customers, local market conditions for these and format of
global strategy.
In doing this companies can develop a competitive service offer in the
delivery chain both in line with organisational goals and that is tailored to
respective local market conditions. By doing that they can achieve a global (Less)
Please use this url to cite or link to this publication:
author
Ekman, Johan and Ekman, Malin
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
other publication id
17/5564
language
English
id
8903174
date added to LUP
2017-02-14 14:58:10
date last changed
2017-02-14 14:58:10
@misc{8903174,
  abstract     = {One way for manufacturing companies to gain competitive advantage in
today’s business environment is to complement the product offering with
surrounding services that deliver superior value to the customer. Further, the
demand for these surrounding services is influenced by market-specific
customer requirements, surrounding competitive environment and local
prerequisites. Therefore, there is a need for local adaptation of companies’
global strategies before rolling out local service offerings.
This study investigates local adaptation of global strategies to local markets,
by focusing on logistics services in the delivery chain. The purpose of this
study is to describe and analyse how a market organisation within a
multinational company can develop a competitive and customer-oriented
service offer in the delivery chain, through modifying and adapting global
strategy to local conditions to gain competitive advantage.
The purpose was investigated by conducting a case study in the Swedish
market organisation at the global manufacturing company Company X and
conducting a literature study. The study was limited to adapting the global
strategy to the local market based on customer needs and requirements.
Further three main theoretical concepts were applied. Porters ‘Value System’
was used to define the delivery chain and ‘where’ in the value chain the
study has it’s focus. Kotler’s ‘Three levels of a product’ was used to define
‘what’ was investigated; logistics services. Kotler’s ‘model of business buyer
behaviour’ was used to answer the question ‘how’, i.e. how to best
understand the customers to develop a competitive service offer.
It was found that when adapting a global strategy regarding services in the
delivery chain, companies need to determine the format of the local strategy,
understand what the delivery chain comprises and understand what exact
services are included in the strategy and how these relate to the complete
product offer. Then, local market conditions need to be understood,
including customer needs and preferences, competitive landscape and
feasibility of strategy implementation. Companies then need to decide who
(what customer segments) to target with the local strategy based on local
market goals and business logics. The service offer should then be developed
based on target customers, local market conditions for these and format of
global strategy.
In doing this companies can develop a competitive service offer in the
delivery chain both in line with organisational goals and that is tailored to
respective local market conditions. By doing that they can achieve a global},
  author       = {Ekman, Johan and Ekman, Malin},
  language     = {eng},
  note         = {Student Paper},
  title        = {Going from global to local - adapting the service offer in the delivery chain},
  year         = {2017},
}