Global Marketing
Essay by Veerle • October 29, 2013 • Book/Movie Report • 3,427 Words (14 Pages) • 1,474 Views
Chapter 1 :
Globalization:
The trend of firms buying, developing, producing and selling products and services in most countries and regions of the world.
Internationalization:
Doing business in many countries of the world buyt usually limited to a certain region e.g Europe.
LSE's:
Large Scale Enterprises; firms with over 250 employees.
SME's:
Small and Medium Scale Enterprices;
Small: firms with less then 50 employess.
Medium: Firms with less then 250 employees.
Characteristics of LSE's and SME's:
LSE SME
1. Resources * Many resources
*Internationalization of resources
* Coordination of:
- personnel
- financing
- marketing knowledge etc. * Limited resources
* Externalization of resources (outsourcing)
2. Formation of strategy/decision making process * Deliberate strategy formation
* Adaptive decision making model in small incremental steps * Emergent startegy formation
* The entreprenuerial decision making model
* The owner/manager is directly involved and will dominate the decision making through-out the enterprise.
3. Organization *Formal/hierarchical
* Independent of one person * Informal
* The owner/ entrepreneur usually has the power/ charisma to inspire/control a total organization
4. Risk-taking * Mainly risk-averse
* Focus on long term opportunities
* Sometimes risk-taking, sometimes risk- averse
* Focus on short term opportunities
5. Flexibility Low High
6. Take advantage of economies of scale & scope Yes Only limited
7. Use of info. sources Usedof advanced techniques:
- databases
- external consultancy
- Internet Info. gathering in an informal and inexpensive way:
- Internal sources
- Face-to-Face communication
Economies of scale:
Accumulated volume of production, resulting in lower cost price per unit.
Economies of scope:
Reusing a resource from one business/country in additional business/countries.
Glocalization:
The development and selling of products or services intended for the global market but adapted to suite the culture and behavior. 'Think globally, act locally.'
The nine strategic windows:
Chapter 2 :
Major motives for starting export:
Proactive:
* Profit and growth goals
* Managerial urge
* Technology competence
* Foreign market opportunities
* Economies of scale
* Tax benefits
Reactive:
* Competitive pressures
* Domestic market
* Overproduction
* Unsolicited foreign orders
* Extend sales of seasonal products
* Proximity to international customers
Barriers hindering internationalization:
* Insufficient finances
* Insufficient knowledge
* Lack of foreign market connections
* Lack of export commitment
* Lack of capital
* Lack of productive capacity
* Lack of foreign channels of distribution
* Management emphasis on developing domestic markets
Cost escalation
Chapter 4:
Porter's Diamond:
The characteristics of the home-base play a central role in explaining the international competitiveness of the firm. The explaining elements consist of factor conditions, demand conditions, related and supporting industries, and firm strategy- structure and rivalry, chance and government.
Factor conditions in Porter's diamond:
* Climate
* Physical infrastructure
* Natural resources
* Educational system
* Human resources
* Technological infrastructure
* Capital
Demand conditions in Porter's diamond:
* Nature of home demand
* Size of home demand
* Economies of scale
* Transportation costs
* Buyer sophistication
Porter's five-forcesmodel:
The
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