functions or activities in different markets? Are product and cus- tomer insights from one market relevant and meaningful to other markets? Are speed-to-market and the ability to roll out products quickly across markets a key com- petitive advantage? If a company answers yes to these questions, then it will find significant value in coordinating brands and cat- egories across markets. For these companies, the question is often not “Should we set up a global management structure?” Rather, they need to ask, “Which parts of the value chain and which specific businesses should be managed
globally?” To answer this ques- tion, they must take into account considerations involving both the global portfolio and individual categories (see Exhibit 3).
Global Portfolio View—An Overarching Approach: The global brand portfolio is a primary driver of corporate growth and should be a major factor in determining priorities. It is important, then, to have a holistic understanding of how a company’s approach to portfolio management can support or undermine its overall strategy.
Exhibit 3 Global Brand Management Strategy: Key Building Blocks
Global Portfolio View
How can global brand management support the company’s overarching strategy?
Corporate growth strategy
Role of expansion into new markets
Role of new capability building
Management of organizational complexity
To what extent can each individual category benefit from global brand management?
Does the category show similarities across markets that can be leveraged?
Where in the value chain can it most benefit from global coordination?
What are the strategic priorities for the category?
Which level and type of global coordination do they call for?
Source: Booz & Company
First, companies must look at the role of growth in new markets: If this is a critical component of the enterprise strategy, then companies should choose an operating model that facilitates focus in these areas. A global operating model will allow for the rapid expansion of existing products, whereas a regional model will enable a highly customized and fast approach in individual growth markets.
Second, companies need to look at the capabilities that will be critical to support the global strategy they have selected. For
Global Brand Management Model
Which specific businesses should be managed globally?
Which parts of the value chain should be managed globally?
Booz & Company