Eprg Framework

1382 Words6 Pages
EPRG Framework A firm needs to an appropriate orientation for the world market. While looking for orientation, it is important to understand the EPRG framework. Ethnocentric (E) orientation refers to home country organization. Here the firm 's reference point is the home market. Generally, when the firm is ethnocentric, it looks for foreign markets to sell its currents products and surpluses. There is hardly any or minimal product adaptation for the foreign markets. Maybe some minor changes are made to suit hot or importing country 's legal requirements, like in packaging; the firm may have to comply with statutory declarations. [pic] As one can make out, this orientation leads to exporting the product. Hence the most common market…show more content…
Hence, for them, market entry strategy is a choice among the myriad ones. Some of these besides exporting, joint ventures, overseas subsidiaries, etc are strategic alliances, acquisitions, mergers, brand franchising, manufacturing in low cost centers, etc. This is the firm which is a global firm. Global marketing now takes birth. The erstwhile multinational firms have now realized that they cannot survive in the world market if they do not change their orientation and objectives. Until recently multinational firms had looked at Asian, African, Latin American and other markets only from the point of view of selling their products and brands. They did not consider these economies worthy of investment. Their prime goal has been to earn as much profits with least investment in these economies. The board of most transnational companies continued to be dominated by the home country citizens. A global firm has a global board that gives adequate representation to the local aspirations. Its the local or country managers who provide the local perspective to the firm 's strategy and hence, to an extent, let us take the example of Coke. In 1977, Coke left India when asked to dilute its equity. It felt that it could not risk losing the Cola formula that made Coke "the real thing". Besides, at that time it had not accepted anywhere in the world the idea of joint ventureship or minority role in a firm. It had hundred per cent
Open Document