xiii
List of Figures
Fig. 1.1 GDP of Japan, the US, China, and India (USD in billions) ... 4 Fig. 1.2 UN population estimates (in order of highest
population as of 2010) ... 5 Fig. 1.3 Global business strategy for developing nations ... 7 Fig. 1.4 Trends in exchange rates and overseas revenues ... 9
Fig. 1.5 Subsidiaries by country and year of establishment ... 10
Fig. 2.1 SWOT analysis ... 24
Fig. 2.2 Is China a market or a factory? ... 29
Fig. 2.3 AAA framework ... 31
Fig. 2.4 Porter’s value chain. The integration of procurement
and logistics, procurement, and logistics ... 32
Fig. 2.5 Activities of overseas entities by corporate function ... 34
Fig. 2.6 I-R Grid ... 35
Fig. 2.7 Comparison of corporations in Japan, the US,
and Europe in I-R grid ... 36
Fig. 3.1 Per capita GDP in U.S. dollars (developed countries) ... 42
Fig. 3.2 Per capita GDP in U.S. dollars (developing countries) ... 43
Fig. 3.3 Changes in shares of GDP (in nominal U.S. dollars) ... 46
Fig. 3.4 Changes in per capita GDP ... 48
Fig. 4.1 Per capita GDP of China and India ... 60
Fig. 4.2 Inward foreign direct investment of China
and India (billions of dollars) ... 61
Fig. 4.3 Share of value added by type of ownership
among Chinese manufacturers ... 69
Fig. 5.1 Product architectures and business models ... 85
Fig. 6.1 Map of Neemrana Industrial Park and surrounding area ... 94
Fig. 6.2 Map of DMIC and High-Speed Railway ... 97
Fig. 7.1 Comparison of business transaction types ... 111
Fig. 7.2 Structure of PPP (Public Private Partnership) ... 114
Fig. 7.3 Risk sharing between public and private entities ... 116
xiv
Fig. 8.1 Hydraulic excavator ... 124
Fig. 8.2 Structure of HCMC and its subsidiaries ... 129
Fig. 8.3 Global demand for hydraulic excavators (units: in thousands) ... 131
Fig. 8.4 Chinese demand for hydraulic excavators (units: in thousands) ... 132
Fig. 9.1 4Ps of Marketing ... 142
Fig. 9.2 Share of volume zone in China and India ... 146
Fig. 9.3 Disposable income distribution in China and India (2011) ... 148
Fig. 10.1 Structure of Shiseido group companies in China (as of 2012) ... 164
Fig. 11.1 Number of foreign subsidiaries and R&D facilities by year of establishment ... 174
Fig. 11.2 Types of R&D internationalization ... 176
Fig. 11.3 Typology of overseas R&D activities ... 181
Fig. 11.4 Sales destination of products designed in emerging nations ... 185
Fig. 12.1 Trend of R&D/Sales by ownership type ... 193
Fig. 12.2 External R&D expenditures/total R&D by ownership type ... 194
Fig. 12.3 External R&D expenditures/total R&D by home country ... 197
Fig. 12.4 Attractiveness of FDI destination by host country ... 199
Fig. 12.5 Evolutionary model of overseas R&D activities ... 205
Fig. 13.1 R&D/GDP by country (%) ... 219
Fig. 14.1 Locations of major car manufacturer in India ... 238
Fig. 14.2 Price range of car by model in India (As of 2010) ... 240
Fig. 15.1 Comparison of organization of global corporations ... 250
List of Figures
xv
List of Tables
Table 2.1 CAGE analysis: favorable conditions of China
and India for US fi rms ... 27
Table 3.1 IMD World Competitiveness Yearbook indices ... 51
Table 3.2 Rankings of Japan, the U.S., and China (2013) ... 52
Table 4.1 Major politics and economics events in China and India ... 62
Table 5.1 Comparison of product-centric and service-centric models ... 80
Table 8.1 Global construction machinery manufacturers’ revenue (fi scal year 2011) ... 122
Table 8.2 Hitachi Construction Machinery’s revenue by region ... 122
Table 8.3 Development of Hitachi Construction Machinery (China) ... 125
Table 9.1 Product and market matrix ... 139
Table 9.2 Example of market segmentation ... 140
Table 9.3 Matrix analysis of customer needs and technology competitiveness ... 149
Table 10.1 Development of Shiseido Company Ltd. ... 157
Table 10.2 Shiseido’s revenue by division and region (units: in JPY 100 million) ... 159
Table 10.3 Shiseido’s operating margin by division and region ... 159
Table 10.4 Shiseido’s major businesses and subsidiaries ... 159
Table 10.5 Development of Shiseido in China ... 163
Table 10.6 Shiseido’s brand in China by channel type (as of 2012) ... 165
Table 10.7 Prices of main products by Shiseido in China (as of 2009, in RMB) ... 166
Table 10.8 Profi tability of global cosmetics manufacturers (units: USD million) ... 168
Table 10.9 Shares of global cosmetic manufacturers in global market (%) ... 169
Table 10.10 Shares of global cosmetic manufacturers in Chinese market (%) ... 169
xvi
Table 11.1 Overseas R&D facilities by region and industry ... 176
Table 12.1 Comparison of R&D-related indices ... 195
Table 12.2 Number of patent applications by fi rms (USPTO patents) ... 200
Table 13.1 R&D share by sector (%) ... 219
Table 14.1 Suzuki overseas investments ... 225
Table 14.2 Financial performance of Suzuki Motors ... 226
Table 14.3 Number of passenger vehicle sales by region (units: in thousands) ... 227
Table 14.4 Financial performance of Maruti Suzuki ... 230
Table 14.5 Development of Maruti Suzuki ... 231
Table 14.6 Number of production and sales by Maruti Suzuki ... 232
Table 14.7 Market size of automotives by country (units: 10,000s of vehicles) ... 235
Table 14.8 Sales volume by car segment in India ... 236
Table 14.9 Sales volume by manufacturer in India ... 237
Table 15.1 Comparison of overseas subsidiary by type ... 247
List of Tables
