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READING 20: INTERNATIONAL MARKETING - THE GLOBAL MARKET PLACE (Triggers…
READING 20: INTERNATIONAL MARKETING - THE GLOBAL MARKET PLACE
Globalisation
Risks
Different legislative restrictions
Trade barriers
Economic & government instability
Diverse cultural preferences & practices
Triggers for international expansion
Customer drivers
Competitive forces
Low-growth domestic markets
Economic recession
Cost factors
I.e., seeking lower labour costs
Small domestic markets
Industries with R&D costs require larger markets to cover costs
Portfolio balance
Diversity - not keeping all eggs in one basket
Saturated domestic markets
I.e., universities
PESTLE: Macro
Trading systems
Protection of domestic industries
Tariffs
Regulations
Import quotas
Currency exchange controls
Free trade bodies
World Trade Organisation
NAFTA
UNASUR
Reduction/removal of trade barriers
Socio-cultural
Easier to trade in countries that are socially and culturally similar to their domestic market
Geographically close = easier trade
Understanding of language, history & religion
Technological
Viability & efficiency
Economic considerations
Exchange rate differences and stability
Transport and communication infrastructure
Employment level
Income distribution
Economic development
Political & Legal
Political stability
Regulation
Attitude towards international trade
Ethical
Social media: damage to reputation & brand
Employee rights
Labour laws
Micro
Market attractiveness
Competition
Cost of servicing market
Market size & growth rate
Profit potential
Market access
Organisational capabilities
Competitive advantage
Product adaption
Resources
Skills
Disadvantages
Greater risks (organisation)
Erosion of culture (consumers)
Regulation (suppliers & marketing int.)
Erosion of national culture (publics)
Advantages
Profits (organisation)
Lower costs (consumers)
Work opportunities (marketing intermediaries)
Orders (suppliers)
Convergence of culture (publics)
Individuality (Competitors)
Jobber & Ellis-Chadwick (2013)