global management and global marketing di Paul.Preparazione per esame orale., Dispense di Marketing

Scarica global management and global marketing di Paul.Preparazione per esame orale. e più Dispense in PDF di Marketing solo su Docsity! GLOBAL MARKETING & GLOBAL STRATEGY A definition of global business An organization that engages in global business focuses its resources and competencies on global market & sourcing opportunities and threats. A fundamental difference between regular business and global business is the scope of activities. A company that engages in global marketing conducts important business activities outside the home-country market. Four main motives /WHY BUSINESS GO GLOBAL 1. Market-seeking: companies go abroad to find new customers.(Companies use this strategy to tap into larger markets. By entering new markets, businesses aim to increase their customer base and boost sales, leading to potential revenue growth.) 2. Efficiency-seeking: companies go abroad to lower the costs associated with performing economic activities and/or with the aim of rationalizing their already existing operations in various locations. 3. Resource-seeking: companies venture abroad to access resources that are not readily available at home or that can be obtained at a lower cost abroad. 4. Strategic asset-seeking: companies go abroad to obtain strategic assets (tangible or intangible), which may be critical to their long-term strategy but that are not available at home. (Barriers 1. Culture 2. Market factors 3. Financial factors 4. Organizational factors 5. Bureaucratic barriers) Dimensions of internationalization The dimensions of internationalization include various key aspects: Foreign Operation Methods: Involves utilizing diverse strategies like agents, subsidiaries, licensing, franchising, and management contracts to establish a presence in international markets. Market Entry: states the critical decision-making process of selecting target markets based on considerations related to political, cultural, and physical differences. Sales Objects: Involves offering a range of products and services, including goods, services, systems, and know-how, in order to meet the needs of diverse international markets. Organizational Capacity: a. Organizational Structure: Developing a structure equipped for international operations, potentially with specialized departments. b. Financial Management: Involves effectively managing financial aspects, including addressing foreign exchange risks. c. Personnel with International Skills: Requires recruiting and training personnel with international expertise, experience, and continuous training to navigate global complexities. Linked to internationalization theories Life Cycle Model: Uppsala Model: Transaction Cost Analysis (TCA) Model: Eclectic Theory (OLI Model): Born Globals: Network Model: Life Cycle Model: Explanation: This theory suggests that companies go through distinct stages in their international development, starting with exporting, then growth, and finally reaching a mature global stage. Uppsala Model: Explanation: this model proposes that firms expand gradually, starting from markets with lower psychic distance and moving to more distant ones over time. Transaction Cost Analysis (TCA) Model: Explanation: TCA focuses on minimizing transaction costs, suggesting that firms choose internationalization methods that reduce the costs associated with coordinating and controlling activities across borders. Eclectic Theory (OLI Model): Explanation: This theory, represented by the OLI framework (Ownership, Location, Internalization), posits that the success of internationalization depends on a firm's ownership advantages, the location advantages of the host country, and the benefits of internalizing operations. Born Globals: Explanation: Contrary to traditional internationalization models, Born Globals are companies that start operating globally from their inception, often leveraging advanced technologies and global networks. Network Model: Explanation: This model emphasizes the importance of relationships and networks in internationalization, suggesting that firms benefit from strong connections with other businesses, institutions, and stakeholders in the global market. Organizational processes: require aligning Compensation, promotion, training etc. Organizational culture: Cultivating a culture of global awareness and shared values is crucial in fostering unity and adaptability (Four risks of International/global business- Cross-Cultural Risk- Country risk- Commercial Risk- Currency (Financial) Risk) (A stepwise approach to global business 1.decision whether to internationalize 2.which markets to enter 3.market entry strategies 4.designing global marketing programme 5.implementing marketing programme 4 strategies emerging from The Integration Responsiveness Framework suggests four strategies for companies seeking to balance global integration and local responsiveness: Global strategy (Standardization) : Prioritize standardized products and processes for cost efficiency.economies of scaleIn this case, the corporate headquarter controls the operation .example Apple applies this strategy to its iPhones and iPads. Design, production and marketing are controlled by one single unit worldwide. Market-specific adjustments are usually limited  (Multi-Domestic):localization Strong decentralization with significant product adaptations In this strategy business models and products are strongly adapted to local consumer needs. Country units operate largely independently. Economies of scale are neglected in order to achieve a higher acceptance in local markets example kfs tailors its menus to local tastes Tailor products and operations to meet specific local market needs. Transnational ): Combine global efficiency with local responsiveness through integrated and coordinated activities.a balance .a strategy to appeal to both,local markets and international markets example Ikea aims to offer a unique global shopping experience that defines its brand. While it has a standardized product range, Ikea makes local adjustments, such as selling harder, cheaper mattresses in China. Home replication strategy: This strategy aims to open up additional international markets without major adaptations for products primarily developed for domestic consumers. In the long run, however, this strategy includes the risk of loosing competitiveness. Example Starbucks in Australia Starbucks initially applied its American coffee shop model directly to Australia, focusing on its familiar store layout and menu. However, it failed to connect with the established local coffee culture and competitive market. This lack of adaptation led to store closures and a reduced presence. presure l 1 3 storng For l global l integration l 4 2 weak l-------------------------------------------- weak strong pressure for local responsivness Glocalization is a business strategy that combines elements of both globalization and localization. It involves tailoring global products or services to meet the specific needs and preferences of local markets. The term is a blend of "global" and "local," emphasizing the integration of global and local considerations in a business approach. Glocalization allows companies to maintain a global presence while adapting to the diverse cultural, economic, and regulatory aspects of different regions. globalization-standartization ---global low cost production and selling ,global roll out of concepts/high speed,low complexity. localization-differentation-culturally close to costumer,flexible response to local costumer needs,regional and local market penetration. International competitiveness -the porter diamond -poeter’s 5 forces -value chain analysis -benchmarking-competence profile International business competence: • Experience • Maturity • Know-how • Transferability and viability of business mode• Differential advantage/Differentiation on KSF• Relational skills (International Competitiveness: International competitiveness refers to a nation's or a firm's ability to compete effectively in the global marketplace. It involves various factors such as cost efficiency, innovation, quality, and responsiveness to market demands. Porter Diamond: The Porter Diamond, developed by Michael Porter, is a framework that explains the sources of competitive advantage for countries or regions. It includes factors like factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. Porter’s Five Forces: Porter's Five Forces is a model used to analyze the competitive forces within an industry. The five forces include the threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products or services, and intensity of competitive rivalry. Value Chain Analysis: Value Chain Analysis is a strategic management tool that helps identify the activities within an organization that contribute to its competitive advantage. It involves breaking down the production process i nto primary and support activities , examining each for cost efficiency and differentiation. Benchmarking-Competence Profile: Benchmarking involves comparing a company's processes and performance metrics to industry best practices or competitors . The competence profile assesses a company's strengths and weaknesses in key competencies relevant to its industry, helping identify areas for improvement. International Business Competence: International business competence involves various factors crucial for success in global markets. ) Porter's Competitive Advantage of Nations model assesses a country's ability to excel in certain industries through four key determinants: Factor Conditions: Examining whether a country has an excess or shortage of critical production factors and assessing the level of sophistication in these factors, ranging from basic to advanced. Demand Conditions: Evaluating the specificity and sophistication of domestic demand, influencing the need for innovation and product quality. Related and Supporting Industries: Analyzing the presence and strength of industries that support and are related to the focal industry, impacting overall competitiveness. Firm Strategy, Structure, and Rivalry: Assessing the effectiveness of business strategies, organizational structures, and the intensity of competition among domestic firms The identification of Key Success Factors (KSFs) involves understanding two crucial prerequisites for success: Customer Demand Analysis: a. Identify and analyze the target customers: Determine the specific demographic and psychographic characteristics of the customers you want to target. Understand their preferences, behaviors, and purchasing patterns. b. Understand what customers want and need: Conduct market research to identify the needs and wants of your target customers. This involves understanding their pain points, desires, and expectations. c. Explore the demands and preferences of the customer base: Investigate the current market trends and customer preferences. Stay updated on changing customer needs and adapt your products or services accordingly. Competition Analysis: a. Evaluate the competitive landscape: Identify existing and potential competitors in your industry. inclusiveness. STANDARD. COSTUMIZATION INDIVIDUALIZED INCLUSIVENES O OF TRANSACTION INCLU When crossing the equator from south to north, companies move from standalone, to comprehensive and integrative offerings with recurring transactions. When crossing the meridian from west to east, a firm enters market segments that do not allow for standardized, large-scale offerings but customers demand individualized products or services and are willing to pay for them. At its core, innovation must be the instantiation of every radical business model transformation to drive new revenue streams and to avoid transformations for the sake of transformation. Even after a successful transformation, it is key to keep rejuvenating the business model to stay competitive. Moving from West to East Customization; Individualization Moving form South to North-- Multi-sided markets through orchestrating & integrating ecosystem partners; Comprehensive offering; Creating continuous consumption; Co-creation & tailoring North-South Crossing are companies that are willing to Find new opportunities for existing products Develop new competencies for strengthening P & S Establish simpler pricing models East-west Crossing Come up with better standard solutions Manage fixed costs Modular, reusable approach South-North Crossing Comprehensive endto-end process Orchestrating & integrating a holistic solution Gain control over a leading platform; Create continuous consumption & revenue SOLUTION BM PROJECT BMPRODUCT BM West-East Crossing Create broad, flex, integrated customer-centric offering Improve capability to sense and implement customer requirements Engagement The four companies’ platform development trajectories Platform-based strategies for manufacturers Companies may develop different strategies step by step in a way so for ex they may start with g from offering standard products (PI Logic Digital production).Then with digitalization you can add value to your product because you can do more of a flexible production.plus you can add more value through digital commercialization.also from the flexible production you can add integrated personalized solution through a mass costumization. fq.21 ose Manufacturers using platform-based strategies focus on new value creation through both incremental and radical innovation. They leverage platforms to enhance production and transactions. the strategy first starts by offering standad products using the Digital production that incorporates technologies for precision and efficiency. Plus offering products, services that are specifically designed and tailored to meet the needs, preferences, and expectations of the customers we obtain the Flexible production that allows adaptability to changing market demands. Flexible production plus adding value service we obtain the Digital commercialization that involves utilizing platforms for marketing and sales. Flexible production plus integrated personalized solutions obtain Mass customization which is the strategy made to meet individual customer needs. The two VCC pathways involve actor engagement and client engagement in the context of Virtual Contact Centers: Actor Engagement Pathway: Focuses on optimizing internal processes and engaging employees within the virtual contact center ecosystem. Strategies include training programs, technology implementation, and fostering a positive work environment to enhance staff performance and satisfaction. Client Engagement Pathway: Concentrates on improving the customer experience and satisfaction with the virtual contact center's services. Involves implementing customer-centric technologies, personalization strategies, and multichannel support to ensure positive and seamless interactions with clients. Fq.23 Open innovation definition “The use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively.” The open innovation paradigm is a concept introduced by Henry Chesbrough, and it represents a shift in the traditional approach to innovation. In a traditional closed innovation model, companies rely primarily on internal resources and ideas to develop new products or services. In contrast, the open innovation paradigm suggests that firms should actively seek and incorporate external ideas, technologies, and collaborations into their innovation processes.It involves partnering with outside experts, organizations, or customers to share knowledge and create innovative products faster and more effectively. Degree of complexity depends on the scope fq.25 From innovation to institutional entrepreneurship Network mobilizers often face barriers: • Cognitive barriers: persistence, defensive routines, disbelief in partners’ willingness to cooperate, … • Normative barriers: conservative supply chain, lowly perceived network position, … • Institutional rigidity: payment routines, divergent control systems, compliance routines, … Institutionalized networks, facing discontinuous strategic change caused by a high institutional misfit and/or by business model innovation, needs to be unblocked through collective institutional entrepreneurship (CIE). “The process of overcoming collective inaction and achieving sustained collaboration among numerous dispersed actors to create new institutions or transform existing ones” CIE , a frame 1.aligment reistitutionalization 2.wise trades deinstitutionalization --- 3. Respecifying roles institution Innovation network configuration 1.business type effectiven 2.actor heterogeneity Collective Institutional Entrepreneurship (CIE) is a strategic process that involves navigating from deinstitutionalization to institutionalization. After challenging existing institutional structures, there is an alignment phase where new norms are established. Wise trades, involving strategic decision-making, and respecifying roles are crucial steps in adapting to these changes. The process includes configuring innovation networks, addressing business types and actor heterogeneity. Ultimately, institutionalization solidifies the changes, embedding them into organizational culture and practice Tool 1: Utility functions Stakeholder interests differ… Tool 2: Mental model maturity map Diverse levels of understanding organization (March, 1991). • O'Reilly and Tushman (2013: 324) define structural ambidexterity as “an organizational form that differentiates exploitation and exploration into separate units and integrates these at higher organizational levels”. • Contextual ambidexterity is defined as “the behavioral capacity to simultaneously demonstrate exploitation and exploration across an entire business unit” (Gibson and Birkinshaw, 2004: 209). • Jansen et al. (2015, p. 2) conceptualized team ambidexterity as “as the extent to which teams engage in exploratory and exploitative learning simultaneously, as their members search for, experiment with and develop new knowledge and skills while they concurrently refine, recombine and implement existing ones” Definitions PSS piramida pg.34 product ,customer process -input -performance -result A Product-Service System (PSS) is a business model that integrates both products and services to provide a comprehensive solution to customer needs. Instead of offering a standalone product, companies adopting a PSS approach combine tangible goods with related services to create a more complete and valuable offering. The product component in a PSS refers to the tangible, physical item that forms the core of the solution. It could be a machine, equipment. Services in a PSS refer to the additional support, assistance, or value-added offerings that accompany the product. These services enhance the overall customer experience. Service Strategies 3 strategies The strategy for moving from basic offerings to value-added solutions include: I Transition from standardized products to fully customized solutions. This strategy aims to increase the value proposition by providing precisely what each customer requires. II Begin with offering standard products, then introduce service concepts to enhance the customer experience,. Implement process management to support the delivery of value-added services. III Start with offering standard products , Transition to the role of a systems integrator,to offer a complete, turnkey solution to customers. This strategy states that a company can offer a one-stop solution that simplifies the customer's experience and provides a more holistic value proposition. Servitization types Servitization means businesses go beyond selling just products. There are two main types: Standardized 1. After-Sales Service: Post-purchase support (e.g., maintenance, repairs). 2. Service Partner: Standardized ongoing support (e.g., maintenance contracts). Customized 1. Value Partner: Tailored services adding specific value (e.g., custom training). 2. Solution Partner: Integrated solutions for unique needs (e.g., turnkey projects). Shife me shtu naj gja Digital servitization Digital servitization refers to the utilisation of digital technologies for the transformation whereby a company shifts from a product-centric to a service-centric business model. to deliver more personalized and innovative solutions.This approach is crucial for both commercial and industrial sectors, Commercial Servitization: Commercial servitization refers to the transition from selling traditional products to providing a combination of products and services. In this model, companies offer a broader range of solutions to meet customer needs. Industrial Servitization: Industrial servitization specifically applies to manufacturing and industrial sectors, where companies move beyond selling products to offering advanced services and solutions. DSI process and complexity framework Digital service innovation is complex due to technology changes, data management, user expectations, and various challenges.So as DSI matures,the complexity and complication increases and viceversa. The typology of data for market potential assessment involves internal and external data, as well as secondary and primary sources. Internal data consists of firm-generated information (size, product lines, financial situation) as secondary data, and strengths and weaknesses compared to competitors at various levels (corporate, product line, specific product) as primary data. External data includes macroeconomic data for the country (GNP, currency stability, inflation) and industry (growth patterns, import analysis, competition characteristics) as secondary data. Competitor strategies , end cu stomer behavio r, and intermediary information (purchasing behavior, financial capabilities, distribution channels) are considered as primary external data. and the problem which stays in the middle (is there a market for the firms product A in the country B?If yes how large is it and what is the possible market share? Designing a primary research study involves several key elements to ensure the collection of valid and reliable data. 1. Research Objectives: Clearly define the purpose of the study. What specific information are you trying to gather or what questions are you seeking to answer? 2. Research Methodology: Choose the most appropriate research methodology based on your objectives. Common methods include surveys, interviews, experiments, observations, and focus groups. 3. Contact Methods> Clearly outline how data will be communicated. Specify the mode of data communication (mail,internet, in-person, phone, etc. 4. Sampling Technique: Choose a sampling technique, such as random sampling, stratified sampling, or convenience sampling, based on the nature of your study. 5. Contact medium Develop the tools or instruments needed for data collection. This may include design or formulation of a questionnaire. 6. Data collection and data analysis Mind link to: - Equivalence - Qual-Quan - Lead-lag analysis - Triangulation - Market segmentation analysis Here are brief explanations and connections to your listed concepts: Equivalence: Equivalence in research means measuring things the same way for different groups, so differences observed are because of what's being studied, not how it's measured. Qual-Quan (Qualitative-Quantitative Research): Qualitative and quantitative research are two major research paradigms. Qualitative research focuses on exploring in-depth insights and understanding meanings, while quantitative research involves numerical data and statistical analyses . Combining both approaches (qual-quant) provides a comprehensive and balanced research perspective known as mixed methods research. Lead-Lag Analysis: Lead-lag analysis is a technique used to examine the relationship between variables -customer buying behaviour -channels + Targer markets priority listing entry strategy The model helps identify and prioritize target markets by rejecting those that don't align with the product or business strategy. The final step involves creating a priority list for target markets and developing an entry strategy Country portfolio MACS MATRIX,HOLLENSEN A MARKET ATTRACTIVENES B C COMPETITIVE STRENGTH The Market Attractiveness-Competitive Strength (MACS) Matrix is a strategic management tool that helps organizations analyze and prioritize different markets based on two key factors: market attractiveness and competitive strength. This matrix is particularly useful for businesses operating in multiple markets or considering entering new markets. Here's an explanation of the MACS Matrix: Market Attractiveness: Market attractiveness refers to the overall appeal and potential of a specific market. Factors influencing market attractiveness may include the size of the market, growth rate, profitability, customer needs, regulatory environment, and economic stability. Markets with higher attractiveness scores are generally more favorable for business expansion. Competitive Strength: Competitive strength evaluates the organization's ability to perform well i n a particular market relative to its competitors. Factors contributing to competitive strength may include the company's brand reputation, technological capabilities, distribution channels, cost structure, and existing market share. Markets where a company has a higher competitive strength score are those where it is better positioned to outperform rivals. Country A - Invest/Grow: High Market Attractiveness, High Competitive Strength (Upper-Right Quadrant): This represents a country where the market is highly attractive, and the company possesses a strong competitive position. Strategy: In this scenario, the company should consider investing and growing i ts operations. It might involve expanding product lines, increasing marketing efforts, or exploring new opportunities within the market. Country B is positioned in the diagonal, indicating both high and low levels of market attractiveness and competitive strength, and the strategic focus is on selectivity strategies in the center and dominate/digest joint venture in the low-low level, we can adjust the explanation accordingly: Country B - Selectivity Strategies and Dominate/Digest Joint Venture: Both High and Low Market Attractiveness, Both High and Low Competitive Strength (Diagonal Position) Strategies: Selectivity Strategies (Center): Given the mixed levels of attractiveness and competitive strength, the company adopts a selective approach. This might involve targeting specific segments or niches to capitalize on strengths while navigating weaknesses. Dominate/Digest Joint Venture : In situations where high attractiveness and competitive strength is low, the company might consider entering a joint venture. Since the competitive strength is low ,instead of going alone, the company opts for a joint venture. This involves partnering with a local entity to combine resources, and knowledge. Dominate: The goal is to eventually dominate the market jointly with the local partner, leveraging their understanding of the local business environment. Digest: After achieving dominance or a significant market share, the company may then consider fully digesting the joint venture, Country C - Harvest/Divest/Combine/License: Low Market Attractiveness (regardless of Competitive Strength): This includes both Lower-Right Quadrant (High Competitive Strength, Low Attractiveness) and Lower-Left Quadrant (Low Competitive Strength, Low Attractiveness). Strategies: Harvest: Maximize short-term profits with minimal investment. Divest: Sell or end unprofitable assets to minimize losses. Combine: Strengthen competitiveness through strategic alliances or mergers. License: Generate revenue by permitting others to use intellectual property or products. Internal/Autonomous growth vs. External growth Internal or autonomous growth refers to a company's strategy to expand and increase its performance using its own resources and capabilities, without relying on external sources. THE most common strategies : Research and Development: Product R&D: Developing new products or improving existing ones to meet market demands and stay competitive. Process R&D: Enhancing operational processes to increase efficiency, reduce costs, and improve overall performance. 3. Value trap business units are dangerous. They appear attractive because there are opportunities to add value but they are dangerous, because the parent’s lack of feel(high misfit) will result in more harm than good.The parent will need to acquire new capabilities if it is to be able to move value trap businesses into the heartland . 4. Alien business units are clear misfits. They offer little opportunity to add value and the parent does not understand them anyway. Exit is definitely the best strategy. Military analogy attack strategy In a military context, an attack strategy involves planning and executing offensive maneuvers to gain a tactical or strategic advantage over the enemy. Frontal Attack: Scenario: Attacker engages the defender directly , head-on. Tactics: Direct assault on the enemy's front line. Advantages: Simplicity and directness. Risks: High casualties due to enemy defenses . Flanking Attack: Scenario: Attacker seeks to outflank the defender, attacking from the sides or rear. Tactics: Divert attention from the front, move around enemy positions. Advantages: Exploits weak points, potentially surrounds the defender. Risks: Requires effective coordination to avoid exposing the attacker's flank. Bypass Attack THE SAME with flanking but (Using Guerrilla Warfare : Scenario: Attacker adopts unconventional, hit-and-run tactics.) Encirclement Attack: Scenario: Attacker surrounds the defender on multiple fronts. Tactics: Create a ring around the enemy to cut off retreat. Advantages: Isolate defender, diminish their ability to maneuver. Risks: Requires precise coordination to avoid friendly fire. factors affecting the foreign market entry mode decision asht nji table fq . 56 When making decisions about entering foreign markets, companies have the task of selecting an entry mode ranging from externalization to intermediate modes to internalization. Product considerations play a pivotal role in this decision-making process as well. The nature of the product, including its complexity and differentation, can significantly impact the chosen entry mode. Companies must assess whether their product necessitates local adaptation to meet specific market demands or can benefit from a standardized global approach. 1. Internal factors, such as the size and international experience of the company, further shape the decision-making landscape. Larger companies with ample resources may be inclined towards riskier modes of entry, leveraging their scale for competitive advantage. Simultaneously, the company's international experience provides valuable insights into navigating the complexities of foreign markets, influencing the choice of entry strategy. 2. External factors, including sociocultural differences, country risk, demand uncertainty, and market size and growth, contribute additional layers of complexity. Sociocultural disparities may necessitate tailored approaches, while a high level of risk or uncertainty may steer companies towards more conservative entry strategies. Direct and Indirect Trade Barriers, the Intensity of Competition, and the availability of intermediaries further shape the ease and viability of different entry modes. Trade barriers and competition levels can pose challenges, while the presence of suitable intermediaries can enhance the feasibility of certain entry strategies. 3. Companies also weigh Desired Mode Characteristics, considering factors like risk aversion, the need for control, and flexibility. These considerations align the chosen entry mode with the company's risk tolerance and strategic preferences, ensuring a harmonious fit. 4. Transaction Characteristics add another layer of complexity, taking into account the tacit nature of knowledge, the potential for opportunistic behavior, and associated transaction costs. These elements influence the choice of entry mode, guiding companies in effectively managing the intricacies of international business transactions. Export modes tabele fq 57 Direct Exporting: Definition: Direct exporting involves a company selling its products or services directly to customers in a foreign market without intermediaries. Description: In this mode, the exporting company assumes full control of its international operations. It manages various aspects, including R and D ,production,marketing.(the sale and distribution of the product to te customer is done in foreign market by agents,distributors) Direct exporting provides a high level of control over the entire export process but requires a significant investment of time, resources, and expertise in navigating the complexities of foreign markets. Indirect Exporting: Definition: Indirect exporting occurs when a company uses intermediaries, such as agents, distributors, or trading companies, to facilitate the export of its products to foreign markets. Description: Unlike direct exporting, indirect exporting involves collaborating with intermediaries who take on responsibilities such as marketing, selling, and distributing the products in the home market to export it then to a buying agent in the foreign market. Cooperative Export: Definition: Cooperative export refers to a collaborative effort between two or more companies to jointly export products to foreign markets. Description: In this mode, companies pool their resources, expertise, and market knowledge to engage in export activities collectively. It starts with 2 or more companies that do the R and D and production I the home country in collaboration and then the marketing and sales in the foreign market. Cooperative export are beneficial for companies that may lack the individual resources Intermediate modes Contract Manufacturing: Collaborate with a foreign partner to produce goods under a contract. This allows for cost efficiency.All the process is done in the home country ,but the production is done in the foreign market by the partner. Licensing: Research and development in the home market from the manufacturer which is the licensor and the rest of the process in the foreign market by the partner which in this case is the licensee. Franchising: Research and development and marketing in the home country from the franchisor and the production and sale in the foreign country from the franchisee to the customer. Joint venture: x coalition: research and development and production in the home market by an upstream specialist ,and then marketing and sales in the foreign market by a downstream specialist y coalition: 2 companies with a complete process, collaborating in the home country and from the collaboration is created a joined venture in the foreign market. Model of joint-venture activity? The Kraljic Matrix, also known as the Purchasing Portfolio Matrix or Supply Chain Portfolio Matrix, is a strategic tool used in supply chain management and procurement to categorize products or materials based on their impact on an organization's profit and their supply risk. The Kraljic Matrix typically categorizes products into four quadrants: 4. Strategic Items (Top Left Quadrant): High supply risk High profit impact These items are critical to the organization's success and often have limited alternative sources. The focus here is on building strong, collaborative relationships with suppliers to ensure a stable and reliable supply. Strategic partnerships and long-term agreements may be appropriate for these items. 3. Leverage Items (Top Right Quadrant): Low supply risk High profit impact These items are important, but there are multiple suppliers available, leading to a competitive market. The primary goal is to leverage the organization's buying power to negotiate favorable terms, such as lower prices and better conditions. The process of international purchasing The process of international purchasing involves various drivers, inhibitors, organizational pre-conditions, purchasing management thrusts, and measures of effectiveness. DRIVERS Existence of a global strategy ,Strong shared values ,Strong competitive pressure on cost ,Increased technological pressure, are Factors motivating international purchasing. INHIBATORS Cultural differences, extra costs and risks , supply structure challenges, communication difficulties, and limitations within the purchasing department can hinder (challenge)the process. 1.Organizational pre-conditions These include top management commitment , alignment with the company's strategy , employee training a nd empowerment, success stories for motivation, cultural empathy, and effective communication 2.Purchasing management thrusts(shtysat) Key actions include market and supplier research , knowledge sharing, developing specific supply structures, implementing transaction solutions, creating partnership blueprints, and emphasizing reliability. Measures of effectiveness Success is measured by improvements in total costs , international program adoption, product standardization, and quality/innovation enhancements Product positioning WHY FOR WHOOM WHEN AGAINST WHOOM Product positioning is a strategic marketing approach that aims to create a distinct identity for a product in the minds of target customers. WHY? This involves differentiation, emphasizing relevance, and clearly communicating the product's value proposition. WHO? It is crucial to identify the specific target audience, understanding their needs and preferences. WHEN? Timing is also important, considering market trends and the product's lifecycle stage. AGAINST WHOM ? Against competitors, a thorough competitive analysis helps identify key rivals, and positioning focuses on points of differentiation to highlight the product's superiority. Addressing competitors' weaknesses can further strengthen the product's position in the market. Aaker's model of brand equity consists of five key components: Brand Loyalty: The degree to which customers are committed to a brand and continue to choose it over competing brands. Brand Awareness: The extent to which consumers can recognize or are familiar with a brand.It helps to distinguish your product from competitors. Perceived Quality: The customer's perception of the overall quality or excellence of a brand compared to alternatives in the market giving a more reason to buy. Brand Associations: The mental connections and associations that consumers make with a brand. These can include attitudes,feelings,, values, and symbols associated with the brand. Proprietary Brand Assets This involves the proprietary brand assets that add value to the brand (like patents, trademarks, and channel relationships) increasing the competitive advantage. Specific branding strategies 1. No Brand (Generic Product): Definition: Offering a product with no specific brand identity, often sold as a generic or store brand. 2. Branded Product: a) Private Label Branding: Definition: Creating a brand exclusively for a specific retailer. Example: Kirkland Signature by Costco or AmazonBasics by Amazon. b) Co-Branding: Definition: Partnering with another brand to create a product that leverages both brand names. Example: Nike and Apple's collaboration on Nike+iPod products. c) Manufacturer's Own Brand: Definition: The manufacturer markets products under its own brand name. Example: Sony marketing products under the Sony brand. BRANDING DECISIONS BASED ON MARKETS: a) Single Market: Definition: Focusing on a specific market segment or geographic area.single brands or multiple brands. Singe brand multiple brand Example: A local bakery that caters primarily to its immediate community. b) Multiple Markets: Definition: Expanding operations and branding to target mutiple markets with local brands and global brands.Local,global brands Example: McDonald's, a global brand with a presence in various countries. International pricing table pg.69 Internal and external pricing factors play critical roles in determining the pricing strategy of a product or service in both domestic and international markets. Internal factors: 1 Firm factors (competitive strategy,firm positioning,market entry modes.) 2. product factors(product cost ,quality,product positioning.) External factors: 1. Environmental factors(inflations,taxes,currency fluctuations) 2. Market factors(Customrs needs,customers ability to pay,competitors strengths) Pricing strategies encompass various aspects: Price Level: Determining the initial price point for a product or service based on factors such as costs, market demand, and competition. Price Changes over Product Life Cycle (PLC): Adjusting prices as a product moves through its life cycle stages, such as introduction, growth, maturity, and decline. This may involve setting promotional pricing during the introduction phase and discounting during the decline phase. Pricing across Products: Employing differential pricing strategies based on the perceived value of different products within a product line. This may involve offering premium pricing for high-end products and budget pricing for basic versions. Pricing across Countries: Implementing international pricing strategies that consider factors such as currency exchange rates, local market conditions, regulatory requirements, and competitive landscapes in different countries. This could involve standardizing prices globally or adopting localized pricing approaches to reflect market differences. International pricing options When considering international pricing options, companies must decide between price differentiation and price standardization. International pricing refers to the process of determining the prices of goods or services offered by a company in markets outside its home country. This pricing strategy takes into account various factors unique to international markets, including currency exchange rates, local market conditions, competition , tariffs, taxes , transportation costs, and regulatory requirements . Companies typically adapt their pricing strategies to suit the specific characteristics of each market while ensuring profitability and competitiveness. International pricing can vary based on whether the company chooses a standardized pricing approach based on Internationalization of Competition, Homogenization of Competitive Structures, International Activities of Large Retail Organizations, Increased Danger of Cross-Border Arbitrage where prices are consistent across markets, or a differentiate pricing approach, where prices are adjusted to reflect local market conditions based on differences on Average Industry Prices, Price Segments, Methods and Importance of Special Offers, Importance of Own Brands, Strength of Local Competitors, (Fortune Criteria Innovation People management Use of assets Social responsibility Management quality Financial soundness Long term investment Product quality Global competitiveness EPRG Different stages of Internationalization and Globalization- EPRG stands for Ethnocentric, Polycentric, Regiocentric, and Geocentric, which are different stages of how companies approach internationalization and globalization 1.Ethnocentric: Home country is best, so they use local methods globally. Polycentric: Treat each country differently, adapting to local conditions. Regiocentric: Focus on regions (like Europe or Asia) for coordination. Geocentric: Think globally, adapt locally – balance global ideas with local adjustments. Internationalization refers to the tendency of companies to deepen their international business activities systematically. It has led to widespread diffusion of products, technology, and knowledge worldwide. CKR LSE-financial resources,professional training,worldwide network ,a new opp for the future SME-less buroceacy,less hierarchical ,the work is more visible-compensatin opp, A tale of strategy making: Deliberate vs. Emergent Deliberate Strategy: What is it? Planned and intentional strategy. How does it happen? Top leaders make a detailed plan for the future. Focus: Long-term goals with a clear roadmap. Attitude: Proactive, trying to shape the future. Emergent Strategy: What is it? Strategy that evolves naturally over time. How does it happen? People within the organization take adaptive actions based on changing situations. Focus: Flexible and adaptive to real-time feedback. Attitude: Open to change, learning from experiences. The Tale: Beginning: Start with a carefully planned deliberate strategy. Middle: Adapt and change as the business environment evolves, embracing emergent strategies. End: Successful organizations find a balance between planned and adaptive strategies, learning from their journey. )