Geographical markets

CSR operationalization is not a simple task a global pharmaceutical company may employ over 50,000 people in as many as 100 countries. To move this workforce spread across operating units of the firm throughout many diverse geographic markets requires a multi-year commitment of the corporate board to implement it. It is partially for this research that the industry s efforts to act more responsibly are largely unknown outside the firm. Added to this problem of visibility is that individual companies have little identity per se - their products may be known but very little corporate visibility exists with patients and other stakeholders. 

With more than 70,000 product lines and dozens of geographic markets, the chemical industry of today is deeply complex. So many strategies - or combinations of strategies - have been developed over the years for so many markets that industry analysts and executives struggle to understand what really creates shareholder value. 

In the 1990s, there were two distinct periods for specialty companies 1990 to 1997 was a time of good performance and significant expectations on value creation after 1997, valuations fell sharply (Fig. 3.5). Despite continuing evidence of an industry slump, however, specialty companies have ample opportunities to create value in the thousands of product and geographic markets in which they compete. 

A number of tools have been developed to test the scope of the relevant market. However, it has not been necessary to use these tools in undertaking this study since, in all cases, an appropriate market had already been defined in competition law investigations at both the UK and the EU level. The products chosen within these sectors, and associated geographical markets as established in competition cases, are set out in Table 1. Since all these decisions were arrived at recently, there is little reason to believe that the nature of the markets will have changed substantially since then. 

When the geographic market is wider than the UK, the impact of the output reduction within the market can be asymmetric across locations of companies. Most clearly, for the market in which there is non-EU production (steel), despite the overall fall in market output, the non-EU companies are predicted to see their output increase. In the case of newsprint in one scenario, the change in output is actually predicted to be positive, because there is an implied reduction in the marginal cost of production as a result of improved energy efficiency. 

It is recognised that greatest return may not be the only criterion, or even the most important, in making a decision on a new plant it may be necessary to fight competitors or to take a share in a new geographical market. But greatest return is the usual wish.)... 

Loose-fill is either bagged or shipped in bulk truck to the customer. Bags vary in size from 10 to 20 ft3, depending on the customer need and the particular geographic market. Bulk systems are popular with companies that use large quantities of loose-fill and have many packaging stations. The trucks used to transport the loose-fill are specially equipped with flexible duct that connects to the duct and bagging system at the customer. This way, 2500-3000 ft3 of loose-fill can be shipped to the customer at short notice and unloaded with a minimal amount of manpower involved. 

The ensuing mergers, however, more directly reflected the technological and competitive challenges of the era. Most had three goals in mind to combine strengths in different geographical markets, to expand the number and... 

Retailers exist when they provide convenient product assortment, avaflabflity, price, and image within the geographic market served. The degree of customer preference (loyalty dtre to customer service and price/value performance) that a retailer enjoys in a spedfic area directly affects its abUity to negotiate supply chain relationships. The retailer s financial capahUity and size also determine its degree of influence over other supply chain members. 

Market power analysis typically involves three steps 1) identification of the products and services 2) identification of the geographic market in which the product competes and 3) evaluation of market concentration in that geographic market, using an index such as the Herfindahl-Hirschman index (Scherer, 1980). 

The aluminum market is still the largest market for metallurgical silicon. In 2000, consumption reached 573 000 Mt, whereas the chemical market accounted for 401 000 Mt and the electronics market for 42 000 Mt (Fig.l). The largest geographical markets are the EU (355 000 Mt), Japan (187 000 Mt) and the USA (290 000 Mt). The supply side is characterized by a few big suppliers (Elkem, Invensil) and many small ones (China, US, Brazil etc.). Norway, China, Brazil, and the USA are the four countries with the highest silicon production. 

Product tree A graphical representation of the product and its SKUs. The tree can also show manufacturing locations and multiple geographic markets for the same or similar SKU. 

Ahn et al. (2002) X Price discrimination and access to a distinct geographic market Not addressed... 

Vertical/horizontal integration Geographical market coverage Market segments Number of owners Organization size Utilization of capacity Cost structure Distribution channels Marketing activities Product variety Product quality Process technology R D abilities... 

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