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International Marketing - The Global Marketplace - Coggle Diagram
International Marketing - The Global Marketplace
THE GLOBAL MARKETPLACE
transnational company (TNC)
sometimes called a multinational company (MNC)
'a firm that has the power to coordinate and control operations in more than one country, even if it does not own them'
global firm
a firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors'
'sees the world as one market'
there are risks involved...
trade barriers
diverse cultural preferences and practices
different legislative restrictions
economic and government instability
organisations need to analyse...
own weaknesses
opportunities faced
own strengths
threats faced
TRIGGERS FOR INTERNATIONAL EXPANSION
customer drivers
competitive forces
low-growth domestic markets
cost factors
small domestic markets
portfolio balance
saturated domestic markets
THE MACRO ENVIRONMENT
STEEPLE
plus some additional aspects that need to be considered in a global context
TRADING SYSTEMS
setting quotas on goods that can be imported
placing controls on currency exchange and regulations that place restrictions or requirements on foreign companies
imposing changes (tariffs or duties) on foreign companies
SOCIO-CULTURAL CONSIDERATIONS
easier to operate in countries that are socially and culturally similar to its domestic market
TECHNOLOGICAL CONSIDERATIONS
need efficiency for coordinating operations
ECONOMIC CONSIDERATIONS
income distribution
employment level
economic development
exchange rate differences and stability
transport and communication infrastructure
ETHICAL CONSIDERATIONS
pollution
less regulated safety conditions
poor working conditions
child labour
POLITICAL AND LEGAL CONSIDERATIONS
countries very their political stability and level of regulation, which can affect their attractiveness to companies considering trading in them
THE MICRO ENVIRONMENT
market attractiveness includes assessment of:
costs of serving the market
profit potential
competition
market access
the market's size and growth rate
the organisation's capabilities include:
resources
product adaption
skills
competitive advantage
