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Bundling in a semi‐global economy

Pavlos Mourdoukoutas (Polytechnic University, Melville, New York, USA)
Panos Mourdoukoutas (Long Island University, Brookville, New York, USA)

European Business Review

ISSN: 0955-534X

Article publication date: 1 October 2004



Crosscurrents between globalization and localization have created two world industry segments, an open highly competitive global industry, and a closed highly localized industry. Searching for competitive advantage in this new market environment, global manufacturers are becoming more like local service providers by executing a dual strategy: a global cost leadership strategy and a local product differentiation strategy. To achieve global cost leadership, manufacturers cooperate with their competitors to reach economies of scale and reduce costs. To achieve local product differentiation, manufacturers compete with their global partners by cooperating with local service providers to differentiate their offerings. This trend is analyzed to suggest two interdependent mechanisms for building successful bundling strategies. The competitiveness of a bundle that brings together global products and local services depends upon the degree of bundle localization. Sustainable bundling strategies should be treated as bundles of international business relationships.



Mourdoukoutas, P. and Mourdoukoutas, P. (2004), "Bundling in a semi‐global economy", European Business Review, Vol. 16 No. 5, pp. 522-530.



Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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