„Jürgen Schrempp’s Global Inc. failed“

BriefLetter - Issue 06/2004

In these days, this can be read in all the gazettes of the world. This man, who took off to build a Global Inc. Networks of production sites and sales organizations with a bouquet of brands in their supply. He was elated to build right outside of the gates of the city of Stuttgart a kind of Vatican. It all started in the year 2000 with the acquisition of the third largest American automotive manufacturer Chrysler, or, how the official version was titled, with the merger amongst equals. The introduction into the Mitsubishi Motor Company was supposed to crown the “round the world story”. In the meantime, at home in Germany, the corporation Mercedes-Benz lost a two-digit billion Euro amount on value.

At first, not a word of criticism was heard. Nobody seemed to ask themselves publicly, if this really all made sense and where the benefit and boon lie. Neither the media, nor economists specialists, market researchers or analysts or other experts seemed to entertain any doubt.

In the year 2001 in our 10th edition of Synesis regarding the subject Global Inc. we wrote the following in connection with the question, if there is such a thing as a global brand:

Just because a business is present with its products all around the world, its brands are not global brands, but British, American or Japanese. Just as there are no world citizens there is no Global Inc., a term which they are trying to get on its feet, in order to enthrone its founders as heroes of the global economy.

For us, the failure of the idea to create a Global Inc. is just a confirmation of what we already wrote in 2001. We are sorry for everyone who has lost money and hope that DaimlerChrysler is successful in as far, that they will keep others from doing what they did.

Successful globalization of business requires that companies never forget to preserve their identity and that of its products and brands. Nobody wants a global car, a global cola or global sushi. And nobody, no country and no continent wants to be pocketed by a global power. Neither from a political nor an economic power.

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