Swot Analysis : Global Marketing

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1. Introduction Global competition causes shortened life cycle for most products and companies can no longer take the polycentric approach to international business. If a company takes the polycentric approach to a foreign market, a globally oriented competitor will overcome their initial competitive advantages by blanketing the global markets with similar product in a short period of time. It is imperative for companies to acquire capabilities to generate sustainable competitive advantages over their competitors. How to source globally is a critical strategic plan influenced by the need to compete. In highly competitive markets, manufacturers either produce in low-cost locations or outsource their components from low-cost producers on…show more content…
Close coordination between R&D, manufacturing, and marketing activities across national boundaries is a requirement for global sourcing strategy (Kotabe & Helsen, 2004, Chap. 10). However there are always conflicts due to different objectives between R&D, manufacturing, and marketing. Excessive product modification for the ever-changing customer needs will forsake manufacturing efficiency and have negative cost effects, except for perfectly flexible computer aided design and computer aided manufacturing facilities. CAD and CAM has improved tremendously in recent years but the full benefit of flexible manufacturing still have a long way to go. However in the case of excessive product standardization in order to lower manufacturing cost will have negative effects on customer satisfaction. Innovative product designs and feature desired by customer maybe a technological feat but might not be conducive to manufacturing. Product design for manufacturability and product standardization has become important strategic issues. It is imperative for companies to develop a sound sourcing strategy in order to exploit efficient R&D, manufacturing, and marketing on global basis. Product designers, engineers, product managers, purchasing manager, among others play important roles in corporate strategy development. As for car manufacturing, Toyota’s global sourcing
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