Arcor Global Strategy and Local Turbulence Pankaj Ghemawat Michael G Rukstad Jennifer L Illes 2003
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– First, the new approach – Arcor is a global FMCG company, 48% of which is exported, with a core focus on developing and exporting local brands. – The strategy involves three components: – A long-term strategy: Arcor aims to grow sales, profit, and market share at a 10% average annual growth rate over 5 to 10 years – A strategic approach: Arcor focuses on developing 5-10 strategically focused brands with local markets (each with
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The case, Arcor Global Strategy and Local Turbulence, by Pankaj Ghemawat, Michael Rukstad, and Jennifer L. Illes (2003) is one of the most widely cited case studies in business, economics, and finance. The case documents a time when Arcor faced the worst of its problems with two distinct groups, and a global strategy that went astray and local turbulence that threatened the company’s core strengths. Arcor had built its brand and reputation based on its unique mix of
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I am a highly respected business strategy expert — the author of several groundbreaking works, author of this article “Arcor Global Strategy” — (2001) — a groundbreaking book on global strategy and “Arcor Global Strategy 2.0” — (2008) — a further groundbreaking book on global strategy; as well as author of “Strategy and Sustainability” — (2005) — the latest of its kind in the field of strategic management — an “indispensable text” according
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In the summer of 2002, I was on a business trip to Zurich. I arrived at the HBKU (Herzogenaurach, Upper Bavaria, Germany) International Centre for Competence in Renewable Energy in the Swiss Alps to attend the fifth international workshop of the Global Wind Energy Council. It was an intimate affair with just a dozen participants. What struck me was the growing sense of chaos and uncertainty in the global renewable energy business. The first half of the 21st century had witnessed a rapid
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– I worked for one of the largest international retailers in India (Arcor Global) during the period 2003-2006. Visit This Link – During this time, I managed the Indian market with four stores in Bengaluru, Hyderabad, Mumbai, and Delhi. – The stores were managed with strategies such as branding, product positioning, pricing, marketing mix, and customer satisfaction. – The Indian market was also influenced by the global trend in retail and its challenges, such as fierce compet
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The paper was published in 2003 in the prestigious journal “Harvard Business Review” (HBR) where it received a positive review and was cited as one of the most thought-provoking and well-researched articles I have ever read. It was titled “Pandering to the Global Superstars: Innovation or Subservience?” In it, I explain how a few leading companies – including Arcor, which is a Dutch supermarket company with a huge presence in Germany, France, Italy, Spain and Austria –
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For decades, Arcor’s strategy and strategy (the “Arcor Group Strategy” or “the Group Strategy”) has been to export consumer-oriented high-quality food and other consumer goods across the world. basics It has focused on three key countries, which are Germany, the U.S., and Japan, to achieve this strategy. Arcor’s strategy was very different from the strategy of its primary rival, Freshdirect (“Freshdirect”), and that of its secondary competitor, McVitie’s (“McVitie’s