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Strategy in the Global Environment (Increasing profitability and profit…
Strategy in the Global Environment
The global and national environments
The globalization of production and markets has been increasing as companies take advantage of lower barriers to international trade.
National competitive advantage
Local Demand Conditions
Competitiveness of related and supporting Industries
Intensity of Rivalry
Increasing profitability and profit growth through global expansion
Expanding the market: leveraging products
Realizing cost economies from global volume
Realizing location economies
Leveraging the skills of global subsidiaries
Cost pressures and pressures for local responsiveness
Pressures for Cost Reductions
Intense in industries producing commodity type products
Pressures for Local Responsiveness
Differences in customer tastes and preferences
Differences in infrastructure and traditional practices
Differences in distribution channels
Host government demands
Choosing a global strategy
Global Standardization Strategy
Localization Strategy
Transnational Strategy
International Strategy
Changes in strategy over time
The choice of entry mode
Exporting
Licensing
Franchising
Joint Ventures
Wholly Owned Subsidiaries
Global strategic alliances
Advantages of Strategic Alliances
-alliances may facilitate entry into a foreign market.
-allow firms to share the fixed costs of developing new products or processes
-A way to bring together complementary skills and assets that nei- ther company could easily develop on its own
Disadvantages of strategic alliances : risks, know how or abilities
Making Strategic Alliances Work
Partner Selection
Alliance Structure
Managing the Alliance
Dr. Singh. (2012). A Localized Global Marketing Strategy. Retried from
http://www.brandquarterly.com/localized-global-marketing-strategy
"the cost of offending a group of consumer by insensitive marketing messages can be very expensive and in some cases permanent, leading to costly efforts in terms of re-positioning" (Dr. Singh, 2012).
