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Competing in a global context - Coggle Diagram
Competing in a global context
Global trade environment
Understanding the situation
Challenges
The five forces of competition (Porter 1980)
Opportunities
The diamond model ( Porter 1990)
Theory of comparative advantage
Relative
Absolute
Foreign exchange market
currency exchange
Threat as company can make loss
strong / weak currencies
International regulation
Accounting
IFRS
IASB
Trade
WTO
EU
UNASUR
NAFTA
Marketing
Branding
Creating a brand
Kapferer´s brand identity prism
Brand name spectrum
Company as a brand name
Strong company endoresement
Weak company endoresement
Individual brand name
Going global
engage in cultural immersion
Finding and leveraging influencers
Using global frameworks with local relevance
Coca Cola is an example of being global with local needs
Micro environment
Market size and growth
competition
costs of serving the market
profit potential
market access
Macro environment
Trading system
Socio - cultural consideration
Technological consideration
Economic consideration
Political - legal consideration
Ethical consideration
Ethical issues when going global
Manufacturing in cheap labour countries
Using less developed countries for manufacture
Conflict with customers from the west
not ethical right
underpaid workers
no union to fight for their rights
no minimum wages
underage labourer
Different standards of consumer protection
Exporting consumerism - increase in cultural homogenisation
Target: lower class for marketing
Geographical segregration of business
Global culture
Divergence
Local needs
not always accepted by all consumers around the globe to accept the trend of one particular country as the company follows the origins country trend
Crossvergence
Compromise for convergencen and divergence
Expand global
Offer global products
Offer global products catered to local needs
Pizza Hut
Mc Donalds
KFC
Convergence
Thinking global
Acting global
Does not cater according to each countries culture and needs
Customer can not always identify