Global Marketing and Standardization

There are many businesses that have expanded their business internationally in order to benefit in some sort of way rather it revenue or a better market for their product. In this thesis, I will research a multination company and its international strategy over the last 10 years. I will elaborate on it international orientation and rather it etho-, poly-, or geocentric. I than explain why the company decided on expanding to the chosen locations. Then I will clarify if they had core capability to succeed in those markets, along with its

The first recommendation for this firm is to adopt a global policy and try and explore new markets so that market growth and market share can be expanded. In case of a firm entering an international market, it requires to analyze the nature of the market and suitably form its marketing strategies in alignment with its business strategy and decide whether it is more beneficial to adopt a global approach or use a strategy that is customized to suit the needs of the local customers.

An application into the case of Lincoln Electric shows that this company is correct in doing international expansions. Such actions are suitable for the market development strategy when the company wants to increase sales outside the domestic market. In addition, because of diversified markets during the global expansions, this company has customized products to fit for or developed new ones. Thus, it is changing towards diversification strategy. The both success and failures of Lincoln during the international expansions are helpful for other industries. Importantly, a thorough understanding of the local is a key for international expansions (E. Porter,

Each country is a different market, with its own language, buying habits, ways of living, mores, business methods, marketing traditions, and laws. So instead of trying to organize new agencies with American personnel, most U.S. agencies purchase a majority. However, U.S agencies are not locked into the differences, because through global marketing, all of people’s needs around the world will be same toward U.S products sold abroad. Global consumer culture also depends upon global media to create a sense of global identify and memory without which any cultural identity is incomplete (Smith 1991).

A company 's location strategy should conform with, and be part of, its overall corporate strategy. Hence, if a company

From a business stand point, first-degree price discrimination is more profitable because it obtains the maximum value of the item. However, from a consumer stand point second-degree price discrimination can offer more value to the customer. It allows customers to choose the pricing option that will work for them, based on their desires and requirements.

Firms internationalize for couple of reasons. Philips expands their overseas market because home market is limited and Matsushita expanded as efficient operation did not guarantee growth anymore. Basic strategies adopted by these two companies evolved during their process of internationalization. As competitions become brutal, firms need to change strategies to cope with T high pressure for cost reduction and strong pressure of local responsiveness. Transnational strategy is now a feasible approach. Companies reduce cost to be competitive and the same time modify products to satisfy local customer preferences. However, firms’ structures are very different. Philips has a decentralized structure as Matsushita’s operations are highly centralized. Strategic human resources are also vital so both companies send expatriate experts to offshore subsidiaries. Philips and Matsushita also form strategic alliance relationship with each other. Companies’ strategy is highly correlated to their basic strategy and the fit between strategies is vital to company’s

It may also be known as Market Extension. It includes the pursuit of more market segments or geographical regions. With existing products developing new markets, company should focus on different consumer’ demand who has the same kind of product demand in different markets. It can be possible through further market segmentation in order to help identify a new clientele base. It is necessary to adjust the product position, sales methods and promotion. For example, exporting the product to the new countries; changing new product dimensions or packaging way; innovating new distribution channels and the other innovation. Nonetheless, they do not need to change the core technology of the product itself. I would like to give an example; there are some leading cosmetics companies like Dior, Chanel, and Lancôme that have entered into international markets for expansion. And they do not end their steps to continue to expand their brands through new global markets. Certainly, facing the smaller enterprises, it is better to implement this strategy into another market where its product without currently

Companies entering a foreign market have to choose a strategy. The type of strategy chosen can be based on three

An added benefit of foreign direct investment is that it helps the balance of payments of both capital and current accounts of the host country.

It may also be known as Market Extension. It includes the pursuit of more market segments or geographical regions. With existing products developing new markets, company should focus on different consumer’ demand who has the same kind of product demand in different markets. It can be possible through further market segmentation in order to help identify a new clientele base. It is necessary to adjust the product position, sales methods and promotion. For example, exporting the product to the new countries; changing new product dimensions or packaging way; innovating new distribution channels and the other innovation. Nonetheless, they do not need to change the core technology of the product itself. I would like to give an example; there are some leading cosmetics companies like Dior, Chanel, and Lancôme that have entered into international markets for expansion. And they do not end their steps to continue to expand their brands through new global markets. Certainly, facing the smaller enterprises, it is better to implement this strategy into another market where its product without currently

When it comes to conducting international business, there are many additional factors that play a role that organizations need to take into consideration compared to how they conduct business in their local countries. Although the magnitude of the effects of these additional factors differ based on the products and/or services a given organization provides, it is almost always the case in which such organizations need to adapt to the local market, even if marginally so. That said, there are certain situations

The first topic to be discussed is the idea of globalization. Merriam Webster online defines globalizing as “to make worldwide in scope or application.” Globalization is an important aspect in expanding an organization. Swanson and Holton (2009) state “Multinational companies are taking advantage of economies of scale and scope, proximity to markets and suppliers, and differences in the natural, political, and human resource-related infrastructure in countries around the world in order to achieve and maintain competitive advantage” (p. 421). It is more beneficial for companies to expand globally than to try to continue increasing profits just within their country. Eventually, they will reach a maximum profit that they can make unless they decide to globalize their organization.

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

A fundamental strategic decision has to be made immediately as to whether to employ a uniform marketing mix as part of a global strategy “standardise” or whether to adjust the marketing mix to take account of the unique characteristics of each local market “adapt”. Standardisation involves the offering of identical product line at identical prices through identical distribution systems, supported by identical promotional programmes in several different countries.