Chapter global marketing strategies. What you should learn from chapter 8: The four heritages of today’s legal systems, the important factors in the jurisdiction of legal disputes, the various methods of dispute resolution, the unique problems of protecting intellectual property rights internationally, how to protect against piracy and counterfeiting,...
GLOBAL MARKETING MANAGEMENT Seventh Edition MASAAKI KOTABKE | KRISTIAAN HELSEN Chapter PowerPoint Global Marketing Strategies Chapter Overview Information Technology and Global Competition Global Strategy Global Marketing Strategy R&D, Operations, Marketing Interfaces Regionalization of Global Marketing Strategy Competitive Analysis Chapter Copyright © 2017 John Wiley & Sons, Inc Introduction • On a political map, country borders are clear as ever But on a competitive map, financial, trading, and industrial activities across national boundaries have rendered those political borders increasingly irrelevant • Not only firms that compete internationally but also those whose primary market is considered domestic will be affected by competition from around the world Chapter Copyright © 2017 John Wiley & Sons, Inc Information Technology and Global Competition • The development of transportation technology and the explosion of information technology has changed the nature of competition • Real-Time Management • Online Communication • E-Commerce • E-Company • Faster Product Diffusion Global Citizenship Chapter Copyright â 2017 John Wiley & Sons, Inc Global Strategy • Global strategy consists of five conceptualizations: Chapter Global industry Competitive industry Competitive advantage Hypercompetition Interdependency Copyright © 2017 John Wiley & Sons, Inc Global Strategy Global Industry: – Those industries where a firm’s competitive position in one country is affected by its position in other countries – The first question that faces managers is the extent of globalization of their industry – Every industry has global or potentially global aspects Chapter Copyright © 2017 John Wiley & Sons, Inc Global Strategy Industry Globalization Forces (Exhibit 8-1): Four forces interact to determine the potential of industry globalization Market forces Cost forces Government forces Competition forces Chapter Copyright © 2017 John Wiley & Sons, Inc Exhibit 8-1: Industry Globalization Drivers Chapter Copyright © 2017 John Wiley & Sons, Inc Global Strategy Market Forces Per capita income convergence Rich consumers in emerging markets Convergence of lifestyles and tastes Revolution in communication technology Knowledgeable global consumers Organizations behaving as global customers Growth of global and regional channels Establishment of world brands Spread of global and regional media Chapter Copyright © 2017 John Wiley & Sons, Inc Global Strategy Cost Forces Global economies of scale and scope Accelerating technological innovations Advances in transportation Newly industrializing countries with low-cost labor High product development costs Chapter Copyright © 2017 John Wiley & Sons, Inc 10 Global Strategy Government Forces Reduction of tariff and nontariff barriers Trade blocs Deregulation of industries Privatization of economies Open-market economies Chapter Copyright © 2017 John Wiley & Sons, Inc 11 Global Strategy Competitive Forces Increase of world trade More key competitive battlegrounds 3.Foreign ownership of corporations 4.Globalization of financial markets 5.New global competitors 6.Global internet and other companies 7.Geocentric, not ethnocentric, companies 8.Global alliances Chapter Copyright © 2017 John Wiley & Sons, Inc 12 Global Strategy Competitive Structure – – – – Cost leadership Product differentiation Niche strategy Nature of Competitive Industry Structure (Exhibit 8-2): »Industry competitors »Potential entrants »Bargaining power of suppliers »Bargaining power of buyers »Threats of substitute products or services Chapter Copyright © 2017 John Wiley & Sons, Inc 13 Exhibit 8-2: Nature of Competitive Industry Structure Chapter Copyright © 2017 John Wiley & Sons, Inc 14 Global Strategy • Gaining Competitive Advantage – First-mover advantage versus first-mover disadvantage – Technology-driven approach – Competitor-focused approach – Customer-focused approach Chapter Copyright © 2017 John Wiley & Sons, Inc 15 Global Strategy • Hypercompetition • Interdependency: – Interdependency of modern companies – Example: Smartphone industry – Governments also play a larger role, affecting parts of the firm’s strategy Chapter Copyright © 2017 John Wiley & Sons, Inc 16 Global Marketing Strategy • Benefits of Global Marketing: – – – – Cost Reduction Improved Products and Program Effectiveness Enhanced Customer Preference Increased Competitive Advantage • Limits to Global Marketing: – – – – Chapter Standardization vs adaptation issues Globalization vs localization Global integration vs local responsiveness Scale vs sensitivity Copyright © 2017 John Wiley & Sons, Inc 17 Global Marketing Strategy • Not every element need be standardized to the same degree (Exhibit 8-3) • Degree of product standardization varies widely based on many factors (Exhibit 8-4) Chapter Copyright © 2017 John Wiley & Sons, Inc 18 Exhibit 8-3: Variation in Content and Coverage of Global Marketing Chapter Copyright © 2017 John Wiley & Sons, Inc 19 Exhibit 8-4: Degree of Standardizability of Products in World Markets Chapter Copyright © 2017 John Wiley & Sons, Inc 20 R&D, Operations and Marketing Interfaces • R&D/Operations Interface • Operations/Marketing Interface – – – – Core Components Standardization Product Design Families Universal Products with all Features Universal Product with Different Positioning • Marketing/R&D Interface Chapter Copyright © 2017 John Wiley & Sons, Inc 21 Exhibit 8-5: Interfaces among R&D, Operations, and Marketing Chapter Copyright © 2017 John Wiley & Sons, Inc 22 Regionalization of Global Marketing Strategy • Regional strategies are the cross-subsidization of market share battles in pursuit of regional production, branding, and distribution advantages – Issues in regionalization of global marketing strategy: • • • • Chapter Cross-Subsidization of Markets Identification of Weak Market Segments Use of “Lead Market” Concept Marketing Strategies for Emerging Markets Copyright © 2017 John Wiley & Sons, Inc 23 Competitive Analysis • SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis (See Exhibit 8-6.) – A SWOT analysis divides the information into two main categories: internal and external factors – Based on SWOT analysis, marketing executives can construct alternative strategies – The aim of any SWOT analysis should be to isolate the key issues that will be important to the future of the firm and that will be addressed by subsequent marketing strategy Chapter Copyright © 2017 John Wiley & Sons, Inc 24 Exhibit 8-6: SWOT Analysis Chapter Copyright © 2017 John Wiley & Sons, Inc 25 ... 18 Exhibit 8- 3: Variation in Content and Coverage of Global Marketing Chapter Copyright © 2017 John Wiley & Sons, Inc 19 Exhibit 8- 4: Degree of Standardizability of Products in World Markets Chapter. .. • Real-Time Management • Online Communication • E-Commerce • E-Company • Faster Product Diffusion • Global Citizenship Chapter Copyright © 2017 John Wiley & Sons, Inc Global Strategy • Global. . .Chapter Overview Information Technology and Global Competition Global Strategy Global Marketing Strategy R&D, Operations, Marketing Interfaces Regionalization of Global Marketing Strategy