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Reading 20 - International marketing - the global marketplace - Coggle…
Reading 20 - International marketing - the global marketplace
The global marketplace
TNC's - has the power over firms globaly
impacted by globalisation - benefits + risks - economic and political instability, legislative restrictions trade barriers and diverse cultural differences
needs to valuate macro environment and global environment to decide which global market to enter
Triggers for international expansion
saturated domestic markets
small domestic markets
low growth domestic markets
customer drivers - expectation of customers for org to have global preasence
competitive forces
cost
portfolio balance - bad conditions in one country to be offset by another
The macro environment
Trading systems - global - try to control trade - tariffs, quotas, control currency exchange and regulations on foreign companies
others - encourage free trade - WTO, free trade areas - EU NA free trade agreement
Socio - ecnonomic considerations - easier to operate in countries that are culturally similar + geologically close
tech considerations - level of tech development can affect variability of operating
economic considerations - economic development , income distribution, employment level, employment level, exchange rate differences and transport and communication infustrucutre.
political and legal
vary in political stability - vary the attractiveness of country
countries seek to protect own economic interests
ethical - consider risk of ethical issues - news travels fast
macro environment - market attractivness
markets growth - rate
competition
cost of serving market - principle costs - distribution and control
profit potentual
market access - links between aspect of supply chain
organisation's capabilities
skills
revenues
product adaptation
competative advantages