Global Marketing: Matthyssens, Prove d'esame di International Management

Scarica Global Marketing: Matthyssens e più Prove d'esame in PDF di International Management solo su Docsity! 1. A collaborative entry mode is second choice compared to go-it-alone entry modes There are various ways to enter a new country (or market) and each of these has pros and cons (export, intermediate modes and hierarchical modes) and a collaborative entry mode is not always a second choice compared to a go-it-alone strategy. Collaborative modes of entry consist of close relationships with partners abroad. There are different typologies, from less to more bounding: - Contract manufacturing - Licensing - Franchising - Strategic alliances and Joint Ventures These involve less commitment compared to acquisition or greenfield investments and they’re less risky, but they also offer less profits. 2. What are the key perspectives/arguments in the debate between hard and soft globalizers? The debate between hard and soft globalizers revolves around contrasting perspectives and arguments regarding the most effective approach to international expansion. ● Hard Globalizers: they advocate for an aggressive, rapid entry into multiple markets to gain significant market share swiftly. They argue that this approach brings about economies of scale, enabling cost efficiencies and fostering global brand recognition. Hard globalizers believe that the markets are global, and there’s no need for local adaptation. ● Soft Globalizers: instead, they favor a more cautious and incremental strategy. They emphasize the importance of risk mitigation, asserting that a gradual expansion allows for better adaptation to local markets, reducing financial and operational risks associated with international endeavors. This approach places significant importance on local adaptation and cultural sensitivity. By taking the time to understand and adapt to local market nuances, businesses can build strong relationships with consumers and avoid potential cultural misunderstandings. This approach also emphasizes the need for compliance with local regulations, reducing the risk of legal challenges. Ultimately, the choice between hard and soft globalizing depends on the company's industry, resources, risk tolerance, and long-term strategic goals. Some companies may adopt a hybrid strategy, combining elements of both approaches based on specific market conditions and opportunities. The ongoing debate reflects the dynamic nature of the global business environment and the need for companies to carefully consider their unique circumstances when pursuing international expansion. 3. How does Solberg measure International maturity/preparedness for internationalization and industry globality? Solber matrix has two dimensions: - international maturity → internal dimension that depends on the firm ability to carry out strategies and activities in the international market. This can be measured using the international sales ratio (comparing sales abroad to total sales), assessing the firm’s presence in key markets, looking at the modes of operation abroad (what is the level of control and involvement?) - industry globality → external dimension that doesn't depend on the firm and cannot be influenced. The higher the level of industry globality, the higher the interdependence among markets. This dimension can be measured looking at concentration and homogeneity of cross border demand. 4. A company needs to excel on the three A’s in order to be named a global company. The three A’s are adaptation, aggregation and arbitrage: ● Adaptation involves customizing and adapting products, services and strategies to meet the specific needs of a market ● Aggregation means to reach economies of scale and scope to reduce costs, by standardizing parts of the value proposition across different markets. ● Arbitrage involves focusing on exploiting differences across market (i.e exploiting differences in labor cost, raw materials or currencies) A global company is one that not only recognizes the importance of adaptation, aggregation, and arbitrage but excels in strategically implementing these approaches. By doing so, companies can navigate the complexities of diverse international markets, capitalize on opportunities, and build a sustainable and successful global presence. 5. International purchasing maturity determines the degree of purchasing/sourcing internationalization. International purchasing maturity refers to the level of development that a firm has achieved in its ability to effectively manage and optimize its global sourcing activities. It involves various aspects, including organizational structure, processes, strategies, and the overall capability to navigate the complexities of international markets. The procurement maturity model measures a company's ability to optimize its procurement function, understand the current practices and controls for procure-to-pay and implement digital technologies. Procurement increases in maturity when it is integrated with both suppliers (to increase creativity) and with other firm’s internal functions (finance, marketing, etc). Levels of value added from procurement: - Antagonistic (i.e competitive suppliers) → price negotiations, short term, focus on prices - Internally integrated (performance partnerships) → global synergies and involvement in strategy and innovation - Cooperative (strategic partnerships) → joint vision and planning, externally integrated and value orientation. Shared risk and reward mechanisms, fostering mutual success. The progression from antagonistic to cooperative reflects a strategic shift in procurement philosophy, moving beyond mere cost savings to value creation. Strategic partnerships require a high level of trust, transparency, and shared goals between the procurement function and suppliers. Internally integrated procurement aligns the function with the broader organizational strategy, ensuring that procurement is not isolated but embedded in decision-making processes. 6. Inbound marketing can replace traditional outbound marketing. Inbound marketing makes internationalization easier. - Outbound marketing, instead, is an old typology of marketing that sends unidirectional communications to a broad target, waiting for feedback and responses, but without providing any added value. - Inbound marketing emphasizes creating valuable content to attract and engage potential customers. It relies on sending messages to a target that has already shown its interest. This typology of marketing is two way and uses any marketing tactics that can help to earn people’s interest. It uses marketing, social media, SEO, and other strategies to pull customers in and to educate customers.