Published by:
Harvard Business Publishing
Length: 8 pages
Abstract
When Procter & Gamble launched Pampers in Europe, it directed the marketing strategy from European headquarters. The result: a big flop. In pushing new strategies successful MNCs diverge from traditional hierarchical structures in which the top formulates--and the national subsidiary simply implements--strategy and planning. By cooperating and co-opting capabilities, the parent''s sales and market share get a big boost from the country unit''s technical expertise, market knowledge, and competitive awareness--all without losing boundary-crossing benefits like scale economies.
About
Abstract
When Procter & Gamble launched Pampers in Europe, it directed the marketing strategy from European headquarters. The result: a big flop. In pushing new strategies successful MNCs diverge from traditional hierarchical structures in which the top formulates--and the national subsidiary simply implements--strategy and planning. By cooperating and co-opting capabilities, the parent''s sales and market share get a big boost from the country unit''s technical expertise, market knowledge, and competitive awareness--all without losing boundary-crossing benefits like scale economies.