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(BQ) Part 2 book “Global marketing” has contents: Export modes, intermediate entry modes, hierarchical modes, international sourcing decisions and the role of the sub-supplier, product decisions, distribution decisions, communication decisions, pricing decisions and terms of doing business,… and other contents.
M08_HOLL6227_05_SE_C08.qxd 5/21/10 11:22 AM Page 309 Find more at www.downloadslide.com CASE STUDY II.4 Skagen Designs: becoming an international player in designed watches Towards the end of 2006 Charlotte and Henrik Jorst can look back at 15 hectic but successful years Their company was founded in an apartment in New York, from where its first marketing efforts took place The two entrepreneurs started selling relatively expensive watches bearing a logo that American companies might use as company presents During the Gulf Crisis however it was very difficult to sell watches in that price range In 1990 Charlotte and Henrik visited a watch fair in Basel in order to find a manufacturer who was able to produce the watches at a lower cost price They found a Danish-owned company, Comtech Watches, with headquarters in Aarhus and a clock and watch factory in Hong Kong In 1992 Charlotte and Henrik had an annual turnover of US$800,000, primarily through an advertisement on the back page of a big mail-order catalogue for Father’s Day Since then events followed each other in quick succession In 1995 the chain store Bloomingdale’s included the Skagen Design watches in its assortment and other retail chains like Macy’s, Nordstrom and Watch World have followed In addition, the watches are sold in big gift and design shops In 1998 Skagen Designs had an annual turnover of almost US$30 million; in 2005 turnover had increased to approximately US$70 million Skagen designs – the story in brief 1986 Party at Carlsberg Even if Henrik Jorst has brought his girlfriend, he manages to make Charlotte Kjølbye his neighbour at dinner, and they fall head over heels in love Shortly after the party Carlsberg sends Henrik to New York From New York Henrik manages Carlsberg’s USA sales Charlotte stays on for a year and a half in Denmark keeping in close contact with Henrik on the phone 1986 Charlotte joins Henrik in the United States and reigns as Miss Carlsberg for the summer and fall months After a Danish colleague sends them a few of his sample corporate watches to sell in the United States, Charlotte and Henrik embark on their dream of starting their own business and begin working in the world of watches They are married in May Charlotte and Henrik Jorst Skagen Designs 1990 Henrik quits his job at Carlsberg Charlotte walks New York trying to sell the Danish Jacob Jensen watches to watchmakers They have hardly any money Charlotte gives birth to their daughter Christine 1991 The Jorsts design a few sample corporate watches and exhibit them at the New York Premium and Incentive Show in the Spring At this fair, several retailers notice the watches and wonder why the two Danes present them as corporate watches and not branded goods The retailers state that if the watches were available without the corporate logos they would purchase them for their stores During the summer they produce 800 copies of four different watches with the name Skagen Denmark A few months later all watches are sold out and an additional amount was produced 1992 Sitting at the dinner table Henrik and Charlotte design 30 different models, all labelled ‘Skagen M08_HOLL6227_05_SE_C08.qxd 5/21/10 11:22 AM Page 310 Find more at www.downloadslide.com 310 PART II DECIDING WHICH MARKETS TO ENTER Denmark’ In a New York street Charlotte meets one of the managers from the mail order giant ‘The Sharper Image’ She takes a chance, and yes, he features the Skagen watches on the back page of the Father’s Day catalogue Everything is sold out From the apartment in New York Henrik and Charlotte have a turnover of US$800,000 1993 There are not many states in the United States where business taxes are almost equal to zero In Florida and Nevada this is, however, the case One day they fly to Incline Village at Lake Tahoe – one of the world’s best ski resorts They lose their hearts and buy a house that is much too expensive, but big The company moves into every room from kitchen cupboards to garage They still it all by themselves Charlotte gives birth to their daughter Camilla 1995 Five years after starting the company Now, it becomes really big Bloomingdale’s takes the watches on trial Sold out – on one single day They engage employees in a small, rented office not far from their home at the lake After a year the office is too small, and after another year the same happens again 1998 The magazine Inc puts Skagen Designs on the list of the 250 fastest growing, privately owned companies During five years the turnover has increased by almost 1,200 per cent Finally, the rest of the company moves out of the villa at Lake Tahoe New headquarters are opened in Reno, Nevada An office is opened in Denmark to handle European distribution and an additional 80 stores throughout Denmark begin selling the Skagen Denmark line 1999 The number of employees is approaching 100 Inc magazine’s ‘Inc 500’ lists the company as one of the fastest-growing companies in the United States Henrik gives Charlotte a horse as present for their tenyear wedding anniversary The family moves from Lake Tahoe to a large house of 650 square metres on the outskirts of Reno It is situated on the top of a hill with a beautiful view of the Sierra Nevada Mountains Skagen begins its ongoing presence in major magazines such as InStyle and GQ Distribution begins in the United Kingdom 2000 Distribution begins in Germany and the Netherlands 2001 Skagen Designs exhibits for the first time at BaselWorld – The Watch and Jewellery Show in Basel, Switzerland 2002 Distribution begins in additional countries including Finland, Iceland, Ukraine and Kuwait 2003 More countries join the Skagen Designs team and distribution begins in Belgium, Serbia, Montenegro, United Arab Emirates, Norway, France and Italy 2004 To handle increasing growth, the European HQ office in Copenhagen moves to a larger facility The European HQ targets large department stores in Germany and France 2005 The former Director of Sales and Product Development, Scott Szybala is appointed as President Scott’s responsibilities are to oversee the daily operations as well as the strategic direction for Skagen Designs, reporting directly to Charlotte and Henrik, who continue to be closely involved in the company’s product development and sales 2006 Skagen Designs becomes an official sponsor of Team CSC, one of the best teams in professional cycling, with a record-breaking number of victories Today, Henrik and Charlotte still approve all products that Skagen designs 2009 Skagen continues its expansion into product ( jewellery and sunglasses) and geographical markets, for example in Eastern Europe and the Far East Internal policies Skagen Designs has its name from the Danish fishing village of Skagen; a popular retreat for artists from around the world Many say this place has the perfect source of natural light and those who visit find its unique charm to be a mix between nature-given and man-made romanticism This region has inspired not only the brand name, but also the Jorst design philosophy The colours, shapes and simplicity inspire the design team The design team is on the pulse of current fashions, with regular visits to design centres around the world including Switzerland, Italy, France, New York and Hong Kong Skagen Designs tries to stay true to its classic design philosophy and is never content to follow established trends The Skagen Designs’ logo symbolizes the meeting of the Skagerak and the Kattegat seas that surround the village of Skagen Charlotte and Henrik have divided the work between them Charlotte is primarily in charge of sales and marketing, while Henrik is in charge of the company’s finance and administration In the United States the watches are sold at very competitive prices compared with other design watches: typically at a level of US$100–120 The core competences of Skagen Designs are assessed as follows: Development of new watch concepts following the fashion trend with ‘the finger on the pulse’ Human resource policy – both Charlotte and Henrik spend a lot of time walking around and communicating with employees and to let them feel that Skagen Designs is one big team with the same family-oriented values in all parts of the worldwide organization M08_HOLL6227_05_SE_C08.qxd 5/21/10 11:22 AM Page 311 Find more at www.downloadslide.com CASE STUDY II.4 SKAGEN DESIGNS 311 and phone kiosks to support peak selling periods such as spring fashion, Mother’s Day, Father’s day, autumn fashion and Christmas In 2006 Skagen Designs became an official sponsor of the professional cycling team CSC Skagen Denmark’s Team CSC watch collection was comprised of six new styles of performance-inspired, Swiss-made watches featuring ultra lightweight and durable titanium cases and water-resistant leather straps The Skagen sponsorship of the CSC team ended after the 2006 season Competitors As a fashion company Skagen Designs is competing with all the major international companies designing watches – for example, Calvin Klein, Coach, Guess, Gucci, Swatch, Alfex and Jacob Jensen Most of these companies possess a financial strength many times larger than Skagen Designs QUESTIONS The Skagen Royal Nights watch Skagen Designs Quick and flexible management decisions New products are introduced five times a year (November, January, March, May and August) providing retailers with seasonal updates and giving consumers the opportunity to update the style for each season Well-developed partnerships with the ‘upstream’ specialists in the Far East who are in charge of the production at competitive prices Marketing the watches In the United States Skagen Design products are launched through fashion papers like Vogue, InStyle and Accessories TV shows like Jeopardy and Wheel of Fortune have been sponsored as well as actors in the series Ally McBeal and The Practice The company’s national advertising is also placed in major industry publications as well as out-of-home advertising opportunities including billboards, buses As an expert in international marketing Charlotte and Henrik have called you in to get valuable input in connection with the international expansion of Skagen Designs Therefore, you need to answer the following questions If necessary, make your own conditions and remember to state the reasons for your answers What screening criteria should Skagen Designs use in connection with its choice of new markets for its watch collection? Make a specific choice of new markets for Skagen Designs Table and Table can be used to support your argument Which ‘market entry mode’ should Skagen Designs use on the chosen markets? Skagen Designs has launched other product lines (e.g sunglasses, branded items for the home) with varying success What should be the guidelines for including other product lines in the Skagen Designs collection? Which criteria should Skagen Designs use for its selection of future sponsor partners? Skagen Designs is considering online sale of its watches What problems and possibilities you see for the company in this area? On this basis what are your conclusions? M08_HOLL6227_05_SE_C08.qxd 5/21/10 11:22 AM Page 312 Find more at www.downloadslide.com 312 PART II DECIDING WHICH MARKETS TO ENTER Table Volume of different watch markets, 2008 2003 2004 2005 2006 2007 2008 624.98 515.02 714.37 739.44 778.06 819.53 France 5,035.20 4,913.47 4,987.27 4,837.80 4,827.73 4,825.53 Germany 7,501.72 7,452.94 8,217.55 10,284.34 10,918.50 9,859.88 Italy 5,712.08 5,482.23 5,366.33 5,874.31 6,525.52 6,893.24 Retail volume in thousands of units Belgium Netherlands Spain Sweden 5,613.00 5,850.00 5,931.00 6,073.00 6,200.00 6,414.00 12,299.70 12,018.98 11,810.19 11,533.47 11,308.69 10,989.01 2,491.00 2,565.00 2,641.00 2,719.50 2,800.00 2,884.00 17,800.00 17,900.00 18,100.00 18,400.00 16,000.00 15,500.00 1,106.19 1,113.93 1,126.19 1,134.07 1,140.87 1,150.00 USA 63,954.47 55,441.04 50,370.68 48,500.85 51,593.56 53,037.50 Mexico 35,690.68 38,721.57 34,946.59 47,598.71 46,780.14 47,851.56 China 57,500.00 60,000.00 61,000.00 61,900.00 59,725.00 64,000.00 India 33,469.00 35,876.98 38,829.72 41,778.67 47,232.00 52,324.80 Japan 9,864.95 9,751.41 9,615.49 9,530.93 9,431.18 9,333.77 United Kingdom Hungary Australia South Africa 3,189.74 3,505.84 3,604.25 3,817.23 3,920.20 4,001.79 23,117.73 21,081.80 26,000.23 15,925.30 18,117.89 16,348.31 Number of watches per 1,000 people Belgium 61.04 50.18 69.29 71.41 74.86 78.62 France 85.71 83.22 84.04 81.09 80.49 80.04 Germany 91.30 90.60 99.68 124.59 132.13 119.21 Italy 99.03 94.78 92.51 101.03 112.03 118.17 Netherlands 353.82 365.92 368.26 375.06 380.97 392.24 Spain 309.56 299.56 292.26 284.13 277.52 268.82 Sweden 281.11 288.76 296.44 304.19 312.12 320.36 United Kingdom 303.53 303.13 305.59 309.62 268.40 259.19 Hungary 108.22 109.21 110.68 111.82 112.85 114.08 USA 232.45 199.78 180.02 171.95 181.46 185.06 Mexico 452.90 363.59 388.41 345.29 463.43 448.98 China 45.69 47.31 47.79 48.15 46.11 49.07 India 33.19 35.00 37.28 39.51 44.00 48.05 Japan 77.72 76.61 75.45 74.70 73.83 73.00 Australia 166.54 180.59 183.30 192.60 195.87 198.05 South Africa 527.18 470.37 569.51 343.00 381.02 336.62 Source: adapted from Euromonitor and trade sources/national statistics M08_HOLL6227_05_SE_C08.qxd 5/21/10 11:22 AM Page 313 Find more at www.downloadslide.com CASE STUDY II.4 SKAGEN DESIGNS Table Value of different watch markets, 2008 (US$ million) 2003 Belgium France Germany 313 2004 2005 2006 2007 2008 23.91 17.06 20.50 26.20 29.51 30.34 934.22 910.42 945.84 1,097.25 1,205.66 1,205.42 1,429.95 1,519.96 1,762.75 2,699.99 2,846.60 2,954.50 Italy 951.62 918.02 934.11 1,103.06 1,215.72 1,311.61 Netherlands 189.50 191.64 204.00 250.15 275.03 284.86 Spain 804.77 792.48 849.75 1,027.89 1,141.35 1,155.92 Sweden 214.69 198.02 218.48 273.54 312.97 318.41 United Kingdom 960.77 942.91 1,064.11 1,225.10 1,328.51 1,359.78 19.56 19.50 21.98 25.40 28.33 29.09 7,477.65 6,486.85 6,321.98 6,426.05 7,118.52 7,206.49 Hungary USA Mexico 200.44 246.59 274.57 303.69 353.17 434.30 China 405.27 500.66 518.67 544.28 604.10 655.09 India 191.37 232.18 288.58 416.40 675.55 975.02 Japan 4,560.11 4,109.99 4,077.30 4,493.29 4,916.32 4,901.23 Australia 171.92 168.72 181.51 226.99 264.75 281.81 South Africa 245.67 221.85 235.62 228.68 323.93 451.58 US$ per capita Belgium 2.34 1.66 1.99 2.53 2.84 2.91 France 15.90 15.42 15.94 18.39 20.10 19.99 Germany 17.40 18.48 21.38 32.71 34.45 35.72 Italy 16.50 15.87 16.10 18.97 20.87 22.49 Netherlands 11.95 11.99 12.67 15.45 16.90 17.42 Spain 20.25 19.75 21.03 25.32 28.01 28.28 Sweden 24.23 22.29 24.52 30.60 34.89 35.37 United Kingdom 16.38 15.97 17.97 20.62 22.29 22.74 Hungary 1.91 1.91 2.16 2.50 2.80 2.89 27.18 23.38 22.59 22.78 25.04 25.15 Mexico 2.04 2.47 2.71 2.96 3.39 4.11 China 0.32 0.39 0.41 0.42 0.47 0.50 India 0.19 0.23 0.28 0.39 0.63 0.90 Japan 35.93 32.29 32.00 35.22 38.49 38.33 Australia 8.98 8.69 9.23 11.45 13.23 13.95 South Africa 5.60 4.95 5.16 4.93 6.81 9.30 USA Source: adapted from Euromonitor and trade sources/national statistics M09_HOLL6227_05_SE_C09.qxd 5/20/10 4:11 PM Page 314 Find more at www.downloadslide.com PART IV PART II Deciding which markets to enter Chs 5–8 PART I PART III Designing the global marketing programme The decision whether to internationalize PART V Chs 14–17 Market entry strategies Chs 9–13 Chs 1–4 Implementing and coordinating the global marketing programme Chs 18–19 Part III Contents Some approaches to the choice of entry mode 10 Export modes 11 Intermediate entry modes 12 Hierarchical modes 13 International sourcing decisions and the role of the sub-supplier Part III Case studies III.1 Raleigh bicycles: does the iconic bicycle brand still have a chance on the world market? III.2 IKEA: expanding through franchising to the South American market? III.3 Autoliv airbags: transforming Autoliv into a global company III.4 IMAX Corporation: globalization of the film business M09_HOLL6227_05_SE_C09.qxd 5/20/10 4:11 PM Page 315 Find more at www.downloadslide.com PART III Market entry strategies Introduction to Part III Once the firm has chosen target markets abroad (see Part II) the question arises as to the best way to enter those markets In Part III we will consider the major market entry modes and criteria for selecting them An international market entry mode is an institutional arrangement necessary for the entry of a company’s products, technology and human capital into a foreign country or market To separate Part III from later chapters, look at Figure III.1, which shows the classical distribution systems in a national consumer market In this context the chosen market entry mode (here, own sales subsidiary) can be regarded as the first decision level in the vertical chain that will provide marketing and distribution to the next actors in the vertical chain In Chapter 17 we will take a closer look at the choice between alternative distribution systems at the single national level Some firms have discovered that an ill-judged market entry selection in the initial stages of its internationalization can threaten its future market entry and expansion activities Since it is common for firms to have their initial mode choice institutionalized over time, as new products are sold through the same established channels and new markets are entered using the same entry method, a problematic initial entry mode choice can survive through the institutionalization of this mode Inertia in the shift process of entry modes delays the transition to a new entry mode The reluctance of firms to change entry modes once they are in place, and the difficulty involved in so doing, makes the mode of entry decision a key strategic issue for firms operating in today’s rapidly internationalizing marketplace (Hollensen, 1991) For most SMEs the market entry represents a critical first step, but for established companies the problem is not how to enter new emerging markets, rather how to exploit opportunities more effectively within the context of their existing network of international operations M09_HOLL6227_05_SE_C09.qxd 5/20/10 4:11 PM Page 316 Find more at www.downloadslide.com 316 PART III MARKET ENTRY STRATEGIES Figure III.1 Examples of different market entry modes and the distribution decision There is, however, no ideal market entry strategy, and different market entry methods might be adopted by different firms entering the same market and/or by the same firm in different markets Petersen and Welch (2002) found that a firm often combines modes to enter or develop a specific foreign market Such ‘mode packages’ may take the form of concerted use of several operation modes in an integrated, complementary way In some cases a firm uses a combination of modes that compete with each other Sometimes this occurs when a firm attempts a hostile takeover of an export market The existing local distributor might be able to resist giving up the market, depending on the nature of existing obligations, but the exporter nevertheless may establish a wholly owned sales subsidiary As shown in Figure III.2, three broad groupings emerge when one looks at the assortment of entry modes available to the firm when entering international markets There are different degrees of control, risk and flexibility associated with each of these different market entry modes For example, the use of hierarchical modes (investment modes) gives the firm ownership and thereby high control, but committing heavy resources to foreign markets also represents a higher potential risk At the same time heavy resource commitment creates exit barriers, which diminish the firm’s ability to change the chosen entry mode in a quick and easy way So the entry mode decision involves trade-offs, as the firm cannot have both high control and high flexibility Figure III.3 shows three examples representing the main types of market entry mode By using hierarchical modes, transactions between independent actors are substituted by intra-firm transactions, and market prices are substituted by internal transfer prices Many factors should be considered in deciding on the appropriate market entry mode These factors (criteria) vary with the market situation and the firm in question Chapter will examine the different decision criteria and how they influence the choice among the three main groupings of market entry modes Chapter 10 (Export modes), Chapter 11 (Intermediate modes) and Chapter 12 (Hierarchical modes) will discuss in more detail the three main types of entry mode A special issue for SMEs is M09_HOLL6227_05_SE_C09.qxd 5/20/10 4:11 PM Page 317 Find more at www.downloadslide.com PART III MARKET ENTRY STRATEGIES Figure III.2 Classification of market entry modes Figure III.3 Examples of the different market entry modes in the consumer market 317 how their internationalization process is related to their much bigger customers and their sourcing and entry mode decisions This will be discussed further in Chapter 13 The simple version of the value chain (see Figure 1.10) will be used to structure the different entry modes in Chapters 10, 11 and 12 References Hollensen, S (1991) ‘Shift of market servicing organization in international markets: a Danish case study’, in Vestergaard, H (ed.), An Enlarged Europe in the Global Economy, EIBA’s 17th Annual Conference, Copenhagen, EIBA Petersen, B and Welch, L.S (2002), ‘Foreign operation mode combinations and internationalization’, Journal of Business Research, 55, pp 157–162 M09_HOLL6227_05_SE_C09.qxd 5/20/10 4:11 PM Page 318 Find more at www.downloadslide.com Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 742 Find more at www.downloadslide.com 742 INDEX contracts distributors 559–61 with intermediaries 346 joint ventures 368, 372, 375 logistics 568 termination of 348 contribution margins 709 control distribution channels 556 distributors 561 global marketing programmes 11, 702–3 annual plan control 707–8 behavioural controls 703, 706 budgets 708–11 case studies 712–16 design of control systems 703–6 early performance indicators 706 environments and 706 feed forward control 706 key areas for control 707–8 locating responsibility 704 output control 703 performance measurement 705 profit control 707, 708 joint ventures 374, 375 of subsidiaries 386 convergent forces 195–6 cooperative export modes 335, 336, 348–9 coordination of marketing activities 20 coordination of worldwide activities 31–2 Copenhagen criteria 219 co-promotion 593 core competences 119–20, 122 corporate competences 119 corporate culture 666–9, 703 corporate social responsibilities (CSR) 123–6 corruption 212 cost and freight (CFR) 537, 538 cost, insurance and freight (CIF) 537, 538 cost plus transfers 535 cost transfers 535 costs CSR 125–6 decreases, CSR-induced 125 distribution channel control 556 licensing 360 reducing 37 savings 389 structure of 110 switching 110, 112, 692 transaction cost analysis see transaction cost analysis in value chains 118 counter-trade 340, 543–4 counterfeiting brands 507 country-based subsidiaries 688–9 country-of-origin effects 478–9 country risks 324, 396 Courvoisier advertising 607–8 CPT (carriage paid to) 537 CPV (customer-perceived value) 91, 114–15 Crayola 491 creative strategy, advertising 592 credit insurance 542 credit policies 206 critical success factors 122 crop protection 421–4 cross-border retailing 575 cross-cultural learning 673 cross-cultural sales negotiations 10, 657–9 bargaining 662 case studies 678–81 competences 670–1 concession making and agreement 662–3 different organizational models 665 expatriates 670–2 gap model 665–9 impression formation accuracy 660–1 information exchange 662 instrumental strategies 662 intercultural preparation 669–70 interpersonal attraction 661 knowledge management 672–6 negotiating strategies 669 non-task related interaction 660–1 outcomes 663 persuasion 662 process 660–3 relationship cultures 659 representational strategies 662 rule-based cultures 659 status distinction 660 task-related interactions 662–3 training salespeople 667 transnational bribery 676–7 Cryos International Sperm Bank 96–9 CSR (corporate social responsibilities) 123–6 cultural adaptation 92, 93 cultural differences 397 awareness of 669 branding and 31 joint ventures 374 managing 248–9 market responsiveness and 23 narrowing of 242 negotiations see cross-cultural sales negotiations professional service firms 464 services 92–3 cultural distance 73, 77, 261, 397, 660, 661, 665, 666–7 cultural sensitivity training 675 culture advertising and 588 Arab countries 237, 240–1, 242 basic assumptions 234, 235 buyer–seller interaction and 411 convergence 242, 249–50 corporate 666–9, 703 daily behaviour 234, 235 definitions 234 divergence 249–50 elements of 237–45 ethical decision-making 250–2 high-context 235, 237, 253 Hofstede’s model 245–7, 663–5 language and 239–41, 265 layers of 236–7 low-context 235, 237, 253 market segmentation and 266–7 national 236, 665–6 norms 588 organizational 236–7, 666–9 research and 189, 190 self-reference criterion 249 social morals 234, 235 values 234, 235 youth culture 249–50 see also cross-cultural; sociocultural environment currencies devaluation 213–14, 521, 535–6 export pricing and 535–6 purchasing-power parity 214–16 revaluation 213, 214, 521 see also exchange rates customer-perceived value (CPV) 91, 114–15 customers building relationships with 212–13 co-creation 126 global 20, 22 Internet collaboration with 495–501 needs 20 relations 252 Internet and 500, 501 response to pricing policy 522 sales force organization by 604 satisfaction 37 segmentation 575 service, logistics and 566 as unit of focus 708 value nets 126, 127 customization mass 500 products and services 496–9 customs unions 218 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 743 Find more at www.downloadslide.com INDEX Daewoo 373–4 DAF (delivered at frontier) 537 daily behaviour 234, 235 DaimlerChrysler 395 Danish Klassic cheese 508–11 data collection and analysis 189 mining 34 retrieval 182–3 secondary research 177–81 databases of online customers 92 privacy laws and 178 DDP (delivered duty paid) 538 DDU (delivered duty unpaid) 537 De Beers 577–9 decentralized local–local negotiation model 699, 701 decisions brands 481–90, 508 communication 585–625 distribution see distribution making entrepreneurial 14–15 ethical 250–2 internationalization 3–169 formation 12–15 marketing research linking to 175–7 markets for entry 171–313 pricing see prices products see products support systems (DSS) 174, 178 deglobalization 23 de-internationalization 62–3 Del Monte 572 delivered at frontier (DAF) 537 delivered duty paid (DDP) 538 delivered duty unpaid (DDU) 537 delivered ex-quay (DEQ) 537, 538 delivered ex-ship (DES) 537 delivery terms 537–8 Dell 279, 496–7 Delphi studies 193–4 Delta Kogyo 418–19 demand chains 500 conditions, Porter diamond 106–7 market 59 seasonality in 55 uncertainty 324 demographics 86, 265 Denmark Danish Klassic cheese 508–11 hearing aid producers 108 DEQ (delivered ex-quay) 537, 538 deregulation 22 DES (delivered ex-ship) 537 design of products, Internet and 499 designing global marketing programmes 10, 453–8 case studies 626–52 communication decisions 585–625 distribution decisions 550–84 pricing decisions 517–37 product decisions 459–516 terms of business 537–49 devaluation of currencies 213–14, 521, 535–6 developing countries 216 development of international competitiveness see international competitiveness DHL 583 Diageo Plc 633–40 diamond industry 577–9 differentiation 110 diffusions of innovations 23 direct entry 94 direct export mode 335, 336, 341 advantages and disadvantages 350 agents 342 distributors 341–2 evaluating partners 437–8 intermediaries, choice 342–7 services 94 termination of contracts 348 direct mail 601–2 direct marketing 589, 601–2 direct trade barriers 325 directories, advertising in 589 Disney 14, 378 Disneyland Paris 93, 464, 667–8 dissolution phase, relationships 415 distribution channels conflicts 568, 569, 575 control 556, 557–62 decisions 551–4 degree of integration 556–7 demand nature of 552 legal regulations 553–4 length 554–6 local business practices 553–4 location, nature of 552 management 551, 557–62, 572, 574 market coverage 554, 555 power 572 relationships 574 structure 554–7 width 554, 555 competition 553 customer characteristics 552 decisions 550–2 case studies 577–83 channel decisions 551–4 grey marketing 575–7 Internet implications 568–9 743 logistics management 562–8 managing and controlling channels 557–62 evaluating international partners 437–8 external determinants of channel decisions 552–4 LDCs and advanced countries 217 nature of products 552 performance measurement 705 physical 562 systems 315–16 see also logistics distributors agreements 559–61 control 561 evaluation criteria 558–9 exports 341–2 motivation 561 relationships with 557–8 screening and selecting 558–9 terminating relationships 562 divergent forces 195–6 diversification alliances 13 diversification versus concentration 280–2 diversity, cognitive 675–6 dock receipts 563 documentary credits see letters of credit documents, export 563–4 documents against payment and acceptance 540–1 dogs 469 Dolby 487 Dole 572 domestic-based sales representatives 386, 387, 398 domestic markets, size and saturation 54 domestication 208 dominant control, joint ventures 375 double management, joint ventures 374 Douwe Egberts 139–42 Drakkar Noir 240–1 DSS (decision support systems) 174, 178 Ducati motorcycles 497–8, 648–50 Dunkin’ Donuts 681 Dunning’s eclectic approach to internationalization 73 DuPont’s Teflon 487 Durex 330–2, 402 dynamic customization 499 Dyson vacuum cleaner 641–7 e-commerce 23, 90, 568, 576 see also Internet early starters 82–3 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 744 Find more at www.downloadslide.com 744 INDEX Eastern Europe bottom of the pyramid (BOP) market 225 Eaton Corporation 427 ecolabels 505 economic development 213 levels of 216–17 market segmentation and 265 economic differences, communication 588 economic environment 203–4, 213 Big Mac Index 214–16 case studies 229–31 classification by income 216–17 EU enlargement 219 exchange rate influences 213–14 per capita income 222–3 poverty as market opportunity 224–7 purchasing-power parity 214–16 regional integration 217–19, 220–4 structure of consumption 224 see also legal environment; political environment economic performance 396 economic relations 250 economic unions 218–19 economies of scale characteristics of LSEs and SMEs 12, 15–17 entry barriers 111 experience curve and 117 export modes and 335 internationalization and 52–3 national competitiveness 106–7 mass production 72 outsourcing and 407 pricing structure and 528 economies of scope 12, 16–17 Economist Intelligence Unit 267 EDF (Environmental Defense Fund) 506 EDI (electronic data interchange) 90 education 242–3 market segmentation and 266 EEA (European Economic Area) 217 efficiency control 707 EFTA (European Free Trade Area) 217 Electrolux 644–5 electronic data interchange (EDI) 90 electronic marketing 94–5 Elvis Presley Enterprises Inc 68 embargoes 211 EMC (export management companies) 335, 339 emergent strategies 13 employee relations 213, 252 EMU (European Economic and Monetary Union) 219–21, 228 enforcement costs 79 Entertainment Rights 99–100 entrepreneurial decision-making 14–15 entrepreneurial organizations 85, 86 entrepreneurs bottom of the pyramid (BOP) market 226 entrepreneurship subsidiaries 390–1 entry barriers 111–12 entry modes 9, 319–20 case studies 325–6, 327–8 control 326 external factors 324–5 flexibility 326 influencing factors 321–7 intensity of competition 325 internal factors 322–4 pricing policy and 520 relevant intermediaries and 325 rules 320 trade barriers 325 transaction cost approach 320–1 transaction-specific factors 326–7 see also market entry strategies Environmental Defense Fund (EDF) 506 environmental degradation 126 environmental factors, pricing 519, 521 environmental management in value chain perspective 503–5 environmental stability 396 environmental movements 502–6 EPRG framework 19 equity investments 326 estimation by analogy 180–1 ethics business 250–2, 253 decision-making 250–2 ethnocentric orientation 19, 387 euro 219–20, 535, 536–7 Eurobrands 488 Euromoney 268 Europe retailing 570 European Economic and Monetary Union (EMU) 219–21, 228 European Economic Area (EEA) 217 European Free Trade Area (EFTA) 217 European pricing strategy 533–4 European Union 217, 218–19 agents directive 348 enlargement of 219 euro 219–20, 535, 536–7 GNI and population 222 local-content requirements 208 statistics 223 ex ante costs 78, 79 ex post costs 78, 79 ex-works (EXW) 537 excess capacity 54 exchange controls 208 exchange rates business activities, influences on 213–14 EMU 220 outsourcing and 409 pricing policies and 521 risks 324 see also currencies exhibitions 206, 605–6 exit barriers 110, 316 exit from foreign markets 394–5 attractiveness of current operations 396 environmental stability 396 governance issues 397–8 strategic fit 396 expanded subcontracting 410 expansion phase, relationships 415 expatriate salespersons 604–5, 670–2 expenses, budgets and 709 experience exit from foreign markets 398 international 323 experience curve 117 pricing 525–6 experiential knowledge 323 experimental research 185 explicit knowledge 673–4 exploration phase, relationships 414 exports agents 60 brokers 338–9 buying agents 338 commission houses 338 controls 521 credit insurance 206, 542 declarations 564 documents 563–4 financing 542–4 houses 339 intermediaries 320–1, 325 management companies 335, 339 marketing groups 348–9 modes of entry 9, 316–17, 334–5 advantages and disadvantages 350 case studies 350–3 cooperative export 335, 336, 348–9 direct export see direct export mode indirect export 335, 336, 337–41 partner mindshare 335–7 promotion programmes 55, 205 quotas 210–11 subsidies 205 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 745 Find more at www.downloadslide.com INDEX expropriation 208 external validity 192 externalization 73, 79 EXW (ex-works) 537 Exxon 475 Facebook 616 factor conditions, Porter diamond 106 factoring 542–3 FarmMountain 726 FAS (free alongside ship) 537 fashion 146–51, 325–6 fast food industry franchising 363 FCA (free carrier) 537 feed forward control 706 female condom market 300–3 Female Health Company (FHC) 300–3 feminine cultures 246, 663–4 Ferrari 487, 571 Fiat 286 fighting brands 526 finance 75 exports 542–4 financial resources Firestone Tyres 155–61 firm size and entry mode choice 322–3 firm strategy, structure and rivalry, Porter diamond 108 first movers 118, 279 five forces model 104, 105, 110, 112–13 five sources model 112–13 flexibility entry mode choice 326 organizations 12, 15 SMEs/born globals 90 FOB (free on board) 537, 538 focus-group interviewing 186 food consumption and market segmentation 267 foreign orders, unsolicited see unsolicited foreign orders foreign sales branches 386, 387–9, 398 Foreign Sales Corporation (FSC), USA 53 foreign sales subsidiaries 386, 387–9, 398 forfeiting 543 Formule Hotels 129–30 founders 86 France, retailing 570 franchising 58, 326, 357, 361 advantages and disadvantages 377 business format package 361–4 conflicts, handling 365–6 innovation 365 international expansion of 364–5 licensing and, differences between 364 managing franchisee relationships 365–6 product and trade name 361 services 94 standardization 365 free alongside ship (FAS) 537 free on board (FOB) 537, 538 free carrier (FCA) 537 free trade areas 217, 218 freight forwarders 565 Friendster 616 FSC (Foreign Sales Corporation), USA 53 functional structures 686 Fyffes 572, 573 G-20 and the economic and financial crises 229–30 GAM see global account management games console market 132–6 Gammel Dansk advertising 609 Gap 149 gap model in international negotiation 665–9 GDP (gross domestic product) 216, 228 General Electric 292, 501 General Mills 162–9 General Motors 373, 501, 588 geocentric orientation 19, 387 geographic distance 261 geographic location of markets 264 geographic sales force organization 604 geographical structures 687–8 German Telecom 121 Germany Wal-Mart withdrawal from 397 gift giving 253, 658 Gillette 526, 527, 546, 615, 728, 729 global account management (GAM) 531, 690–1 analysing global accounts 692 balanced negotiation model 698, 699 bow-tie type development 694–5, 696 central HQ–HQ negotiation model 698, 699 company and individual level benefits 693 decentralized local–local negotiation model 699, 701 developing operational level capabilities 692–3 diamond type development 694, 696 dyadic development of 694–8 goal congruence of parties 692 identifying global accounts 691 implementation of 691–3 Millman–Wilson model 694–8 745 relationship histories 692 selecting strategies 692 suppliers’ advantages 697 suppliers’ disadvantages 697–8 global accounts 22 management see global account management global brands 483 global coordination 22–3 global corporate portfolio 284, 286 global culture 237 global industries 18 global integration 21, 22–3 global marketing activities 685 country-based subsidiaries 688–9 functional structures 686 geographical structures 687–8 international divisional structures 686 matrix structures 689–90 product divisional structures 686–7 regional management centres 688 services 462 budgets 708–11 definition 19, 38 development of concept 19–21 in the firm 5–6 case studies 39–47 comparison of marketing and management style of SMEs and LSEs 7–17 developing global marketing plans 6–7, 8–12 forces for global integration 21–2 forces for market responsiveness 23–5 staying at home or going abroad 17–19 value chains and international competitive advantage 25–32 major decisions 175 plans 709 development of 6–7, 8–12, 711 programmes control of 684–5, 702–8 implementation and coordination 655–738 organization 684–702 research 173–4 ad hoc 193 case studies 199–201 changing role of international researchers 174 continuous 194 custom-designed studies 193 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 746 Find more at www.downloadslide.com 746 INDEX global marketing (continued) external data 176, 179 internal data 176, 178 linking to decision-making process 175–7 multi-client studies 193 primary see primary research qualitative/quantitative 181–3 sales forecasting 194–5 scenario planning 194–5 secondary see secondary research setting up an international MIS 197–8 global networks 90 global price followers 530, 531 global price leaders 530, 531–2 global-pricing contracts (GPC) 532–3 global project groups 673, 674–6 global purchasing, pooling 16 global sourcing activities 88 global village 23 global world, communicating in 258 globalization 6, 20–1 adaptation 455–7 debate on 231 protests 229–30 standardization 455–8 glocalization 20–1 GNI (gross national income) 222, 223 GNP (gross national product) 216, 228 goals congruence, global account management 692 growth 51 Goodyear tyres 155, 157, 158, 160 Google 251 Gordon’s Gin 490–1 governance 79 exit from foreign markets 397–8 governments 60 building relationships with 212 change of party 208 institutions as buyers 420 Porter diamond and 108 GPC (global-pricing contracts) 532–3 Grameen Danone Foods 227 green marketing strategies 502–3, 508 alliances with environmental groups 506 consumer preferences and 505 credibility and 505 education of consumers 505, 506 strategic options 503 greenfield investments 393, 394, 399 Greenpeace 506 greenwashing 505 grey marketing 529, 533, 575–7 gross domestic product (GDP) 216, 228 gross national income (GNI) 222, 223 gross national product (GNP) 216, 228 gross rating points (GRP) 593 group interviewing 186 Group SEB 645–6 groups, strategic 112 growth exit from foreign markets 396 goals 51 Guinness 633–40 Gund 128 H&M 149 haggling 267 Haier Group 56 hamburger standard 214–16 hard services 323 Harley-Davidson 34, 545, 591, 648–52 Hasbro 14, 294 Heineken 614, 636 Hello Kitty 379–81 Helly Hansen 619–20 Henderson, Bruce 117 Henkel 713–15 Hennessy Cognac 492 Hero Honda Motors 299 heterogeneity of services 461 hierarchical modes of entry 9, 316–17, 323, 326, 385–7 advantages and disadvantages 398–9 assembly operations 389–90 case studies 399–403 domestic-based sales representatives 386, 387, 398 foreign branches 386, 387–9, 398 foreign divestment 394–8 HQ location or relocation 394–5 region centres 386, 391–2, 398 resident sales representatives 387–9 sales and production subsidiaries 386, 387–9, 398 subsidiary growth strategies 390–1 transnational organizations 386, 392–3, 398 in value chain perspective 386–7 wholly owned subsidiaries 393–4 high-context cultures 235, 237, 253 Hinduism 244 historical development of internationalization 72–3 Hofstede, G 245–7, 253, 663–5, 666 home country environment 204–7 export facilitating activities 206 financial activities 205–6 information services 206 private organization promotion 207 promotional activities 205 state trading 207 Honest Tea 353 horizontal collaborations 113 horizontal integration, distribution channels 556 hospitality industry 93, 462 host country environment 207 political risks 207–8 salespersons 605 Hotmail 612 HP business model 496–7 HQ location selection 394–5 human nature 79–80 human resource management 27 human resources and global accounts 693 IKEA 126, 256–7, 356, 361, 417, 435–41, 570, 698 image 117 IMAX Corporation 447–51 IMC (integrated marketing communications) 616–18 IMF (International Monetary Fund) 205 imperfect competition 522 implementing and coordinating global marketing programme 655 case studies 718–38 cross-cultural sales negotiations 657–83 organization and control of global marketing programme 684–738 imports brokers 338–9 controls 207–8, 521 quotas 210 parallel importing 529, 533, 575–7 impression formation accuracy 660–1 IMS see international markets: selection inbound logistics 26 income, variations in per capita 222–3 Incoterms 537–8 incremental versus simultaneous entry 277–80 incrementalism, logical 13, 52 independent internationalization 418 independent research studies 193 India Bajaj Auto 283, 296–9 female condoms 302 market research 190 McDonald’s in 24 nepotism 242 software industry 106, 107–8, 109 Tata Nano 286–91 indirect entry 94 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 747 Find more at www.downloadslide.com INDEX indirect export mode 335, 336, 337–8 brokers 338–9 carriers 340–1 export buying agents 338 export management company 339 piggybacking 340–1 riders 341 trading companies 339–40 indirect trade barriers 325 Inditex 146–51, 325–6 individual behaviours 237 individual interviewing 186 individualism 664–5 individualist societies 246 industrial relations 252 industrial structure and market segmentation 265 industries competition analysis in industries 109–13, 131 culture 236 definition 109 globalisation 18, 455 levels 110 information environmental 506 exchange cross-cultural sales negotiations 662 GAM and 693 networks to external partners 390 search 60–1 for services 462 sources 12, 17 translation 60–1 information-based services 463, 464 information business and virtual value chains 36–8 information technologies 90, 92 infrastructure of organization 27 ingredient branding 483, 484, 486, 487 innovation diffusions of 23 franchising 365 implications of Internet 499–501 information use 37 products 88 subcontractors and 409 subsidiaries 391 transfers 393 value 128–30 innovativeness 86 inseparability of services 462 institutional factors 118 instrumental strategies, cross-cultural sales negotiations 662 insurance certificates 563 export credit 542 intangibility of services 461 integrated marketing communications (IMC) 616–18 integration 118 distribution channels 556–7 integrative environmental management 504 Intel 487 intellectual property rights 494 intelligence 499 intended strategies 13 intermediaries, exports 342–7 see also distributors intermediate modes of entry 9, 316–17, 326, 355–6 case studies 379–83 contract manufacturing 356–8, 376 franchising 357, 361–6, 377 hierarchical modes 385–404 joint ventures 357, 366–75 licensing 357, 358–61, 376 management contracting 375–8 strategic alliances 357, 366–75 X coalitions 357, 367 Y coalitions 357, 367 internal validity 192 internalization 73, 78–9 international competitiveness blue ocean strategy 126–8 case studies 129–30, 132–43 competition analysis in industries 109–13, 131 corporate social responsibilities 124–6 development of 103–69 model of 104–5 value chain analysis 104, 105, 114–23, 131–2 value innovation 128–30 value nets 126, 127 international divisional structures 686 international marketing information systems 197–8 international marketing management programmes 250 see also global marketing international markets definitions 263 screening criteria 264 fine-grained 267, 268–70 general characteristics 264–6 Konica case study 275–7 markets/countries screening 267–70 model 263–77 preliminary screening 267–8 shift-share approach 268 specific characteristics 266–8 747 segmentation 263 accessibility 264 actionability 264 criteria for 264, 284 culture and 266–7 measurability 264 micromarket segmentation 272–3 PEST approach 264 proactive and systematic approach 273 profitability 264 subsegments in and across countries 270–7 substantiality 264 selection 260–1 case studies 286–94 expansion strategy for SMEs 280 global product/market portfolio 284, 286 market expansion strategies 277–83 models 262–77 SMEs versus LSEs 261–2 synergy with the firm 273 International Monetary Fund (IMF) 205 international networks 81, 82 international new ventures see born globals international product life cycles (IPLC) 278, 390 international retailing 569–75 internationalization barriers 61–5 cooperation with domestic or foreign system suppliers 417–18 decision-making 3–169 dimensions of 75, 76 following domestic customers 417 historical development 72–3 independent 418 information search and 60–1 initiation of 49–50 barriers 61–5 case studies 65–9 internationalization motives 50–6 risks 64–5 triggers 57–61 inward 58, 59 motives for 50–6 nine strategic windows 8, 18 outward 58, 59 preparation 87 preparedness for 18–19, 529, 530 risks 64–5 routes 417–18 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 748 Find more at www.downloadslide.com 748 INDEX internationalization (continued) as sum of target country patterns 77 theories 71–2 born globals 87–90, 96 case studies 96–100 Dunning’s eclectic approach 73 historical development 72–3 internationalization of services 90–5 internationalization of SMEs 84–7, 96 network model 80–4, 95 transaction cost analysis model 72–3, 77–80, 95 Uppsala model see Uppsala model through supply chains of MNCs 417 triggers 57–61 internationals among others 83–4 Internet 23 born globals 90 brand development 501 collaboration with customers 495–501 communication decisions 611–18 customers’ buying process role 611 customization and customer relationships 496–9 databases of customers 92 distribution decisions and 568–9 future product innovation and 499–501 information services 206 international pricing implications 536–7 as internationalizing strategy 94–5 long tail strategies 501–2 manufacturers, leaving business to 569 marketing 602 opening business to everybody 569 price sensitivity of consumers 537 product information 568 resellers, leaving business to 568–9 service organizations 92 social networking 616–18 start-ups 90 surveys 185–6 viral marketing 612–15 Internet Service Providers (ISP) 536 interrelationships 118 interviews 186–7 inventories 565–6 invoices 563, 564 inward internationalization 58, 59, 85 IPLC (international product life cycles) 278, 390 Ireland mineral water case study 304–8 Islam 243–4 Islamic countries advertising in 588 culture 243–5, 664 marketing 266 cola 678–9 Muhammad cartoons 511, 679 ISP (Internet Service Providers) 536 Italy gold and silver jewellery 107 retailing 570 Jaguar 286 Japan car industry network sourcing 418–19 condom market 402 culture 242, 245, 247, 248–9, 664 distribution system 521, 553–4 electronics industry 107 giving gifts 658 Hello Kitty 379–81 McDonald’s in 24 motorcycle industry 107, 649–50 network sourcing 418–19 penetration pricing 53, 523 retailing 570 TOTO toilets 680–1 trading companies 339 Jarlsberg cheese 327–8, 610 Johanson, J 74, 261, 323 joint ventures 73, 317, 325–6, 357, 366–7 advantages and disadvantages 377 average lifespan of 372 business plans 368, 371 change stimuli 372–4 changes in bargaining power 372 conflicts 372–4 contract writing 368, 372 control 374, 375 cost–benefit analysis 368, 369 diverging goals 372–4 dominant control 375 double management 374 exit 375, 398 managing 372 negotiation of agreements 368, 371 objectives 368–9 performance evaluation 368, 372 profits 374 selecting partners 368, 369–71 shared equity 374 split control 375 stages in formation 368–72 trust 374 X coalitions 357, 367 Y coalitions 357, 367 Joplin, Janis 594 journals, advertising in 589 JVC 468 Ka-Boo-Ki 382–3 keiretsu 419, 554 Kellogg 162, 166, 168, 476, 485, 491, 506 KFC Fried Chicken 492 know-how 20, 327, 358, 420 knowledge experiential 323 explicit 673–4 information translation into 60–1 management 21, 672–6 tacit 327, 391, 673–4 transfer 20 known market spaces 131 Konica Minolta 275–7 Korea 661 Kraft Foods 489, 501 L/C see letters of credit labour restrictions 208 Land Rover 286 language advertising and 588 culture and 239–41, 265 differences 235, 588 joint ventures and 374 major languages/number of speakers 240 market screening and 265 non-verbal 240–1 research and 189, 190 verbal 239–40 large scale enterprises (LSE) characteristics 12 definition international market selection 261–2 late starters 83 learning from SMEs 21 late starters 83 Latin America bottom of the pyramid (BOP) market 225 culture 242 personality traits 267 law of one price 214, 219 LDC (less developed countries) 72, 216–17 lead country concept 392–3 lead–lag analysis 180 leadership, internationalization of 395 leapfrogging 75–7, 117–18 learning across borders 20, 672–6 learning curves 52–3 leasing 543 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 749 Find more at www.downloadslide.com INDEX legal environment 204 trade barriers 209–12 home country environment 204–7 host country environment 207–8 political risk-analysis procedure 212–13 see also economic environment; political environment legal conditions, communication 588–9 legal contracts 78 LEGO co-branding with Shell 487 Free Style advertising 609–11 Ka-Boo-Ki and 382–3 strategic drift 14 less developed countries (LDC) 72, 216–17 letters of credit (L/C) 539–40, 562, 564 Levi Strauss 501 licensing 72–3, 94, 357, 358 advantages and disadvantages 376 agreements 358–9 celebrities 493–5 franchising and, differences between 364 in 359–61 life cycle benefits 360 out 359 licensing plus licensing agreements 358 Lidl 574 Lifan Group 254–6 life cycle concept for international trade 72 lifestyles and market segmentation 267 Linie Aquavit 350–2 linkages 118 literacy levels 266 LM Glasfiber A/S 425–6 lobbying 212 local brands 483 local communities, relationships with 213 local-content requirements 208, 211 local price followers 530–1 local production 18, 389–90 localization 20–1 location advantages 73 costs and 118 factors influencing 106–7 logical incrementalism 13, 52 logistics environmental management and 504–5 inbound 26 Internet and 500 management 562 export documents 563–4 freight forwarders 565 inventories 565–6 materials management 562 order handling 562–3 packaging 567–8 physical distribution 562 storage in foreign markets 566 third-party logistics 568 transportation 564–5 warehousing in foreign markets 566 meaning 562 outbound 26 reverse 504–5 see also distribution; distributors lonely internationals 83 long-range plans 709 long tail strategies 501–2 long-term orientation (LTO) 247 longitudinal studies 194 low-context cultures 235, 237, 253 low income market 224–7 LSE see large scale enterprises LTO (long-term orientation) 247 lubrication payments 676 Lush cosmetics 491 Lysholm Linie Aquavit 350–2 Madame Tussauds Group 479–80 magazine advertising 589, 594 Maggi 489 mail surveys 185–6 management contracts 94, 375–8 of distribution channels 551, 557–62, 572, 574 of logistics 562–8 perceptive 57 management know-how 420 managerial levels of firms 28–9 managers future role of 690 urge for internationalization 51 Manchester United 152–4 manners and customs 242 manufacturers brands and 485 Internet business 568–9 own brands 483, 484, 485–6 manufacturing activities 213 market attractiveness/competitive strength matrix 269–71 market commitment 74 market competitors 110, 113 market control 208 market coverage 554, 555 market demand 59 749 market diversification/concentration 280–2 market entry strategies 9, 315–17 case studies 429–51 choice of entry mode see entry modes export modes see exports: modes of entry hierarchical modes see hierarchical modes of entry intermediate modes see intermediate modes of entry own sales subsidiary 315–16 sourcing decisions and role of sub-suppliers 405–51 market exchange understanding 412 market expansion strategies 277–83 market factors, pricing 519, 521–2 market forecasting 194 market growth rate 110 market information 52 market opportunities 52 market potential data 176 market pricing 522, 523 market research 120–1, 416 market responsiveness 17, 23–5 market risks 64 market size 269–70, 324–5 market spaces 127, 131 marketing 26 adaptation 455–7 profitability measures 709 SMART objectives trade 572–5 viral 612–15 marketing contribution margins 709 marketing information systems (MIS) 174, 197–8 marketing knowledge 52 marketing mix 10, 116–17 4Ps mix 453 7Ps mix 453–4 adaption 455–7 B2B marketing 453 bottom of the pyramid (BOP) market 226 standardization 455–8 marketing myopia 110 marketing research see also global marketing: research markets 75 definition 109 globalization of 455 levels 110 worldwide 23 see also international markets Marks & Spencer 484 marriage metaphor 414–15 Marriott 246, 383 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 750 Find more at www.downloadslide.com 750 INDEX Mars Inc 712–13 masculine cultures 246, 663–4 Maslow’s hierarchy of needs 225–6 mass customization 500 materials management 562 matrix structures 689–90 Matsushita 703 Mattel 14 Mazda cars 418–19 McDonald’s 24–5, 242, 249, 363, 378, 506, 570, 716 McDonaldization 23 measurability, international market segmentation 264 Mecca Cola 678–9 mechanical observations 184 media selection for advertising 592–5 Mercedes-Benz 491, 504 mergers 395 message decisions, advertising 592 Michelin tyres 155, 157–8, 160 micro finance 224, 228 micro-segmentation 272–3 Microsoft Xbox 132, 134, 135, 136 Miele 645 Millman–Wilson GAM model 694–8 mineral water market case study 304–8 MIS (marketing information systems) 174, 197–8 mixed martial arts (MMA) 598–600 MMA (mixed martial arts) 598–600 MNC see multinational corporations mobile phones 527 modularity 499 monitoring costs 79 monopolies 522 Monsanto 488 morals, social 234, 235 Morgan Motor Company 621–4 motivation, distributors 561 motives for internationalization 50–6 motorcycle industry China 254–6 Ducati 497–8 India 283, 296–9 Japan 107 Triumph 648–52 world market 254–6, 648–52 Motorola 581–2 Muhammad cartoons 511, 679 multi-client studies 193 multilateral organizations 420 multilocal price setters 530, 531 multinational corporations (MNC) subsidiary growth strategies 390–1 multiple brands 483 Murphy’s 636 music industry CD production 720–1 Internet impact 500 Sony Music Entertainment 718–22 MySpace 616 NAFTA (North American Free Trade Area) 217, 223, 391 naive rule of market entry 320 national culture 236, 665–6 national sovereignty and EU 221 nationalization 208 NEC faked company 507 needs, Maslow’s hierarchy of 225–6 negotiations cross-cultural see cross-cultural sales negotiations language and 660 non-verbal language differences 241, 242 nepotism 242 Nestlé 123, 162–9, 204, 489, 617–18 network model 73, 80–4 networking 237 networks global 90 organization 22 partners 59 personal 57 sourcing 418–19 theory 61 new entrants 111–12, 113 newly industrialized countries (NIC) 217 newspaper advertising 589, 593–4 NIC (newly industrialized countries) 217 niche markets 89 Nike 143, 493, 496, 501 nine strategic windows model 8, 18 Nintendo 14, 16 Wii 132–6 Nivea 47 no brands, brands versus 483 Noboa 572, 573 Nokia phones 491 in US market 580–2 non-probability sampling 187 non-tariff barriers 210–11, 521 non-task-related interactions cross-cultural sales negotiations 660–1 non-verbal language 240–1 Norseland Inc 328 North American Free Trade Area (NAFTA) 217, 223, 391 Norwegian cheese 327–8 NutraSweet 487 objective and task budgeting approach 592 observational research 184 OE (operational effectiveness) 120 OEM (original equipment manufacturers) 406, 487 OLI (ownership-locationinternalization) 73 omnibus studies 193 One Laptop per Child 279 one-time CSR costs 125 OneCafé 723–6 online see Internet Opel 373–4 open account 541 operating risks 207 operational effectiveness (OE) 120 operational levels of firms 28–9 operations 26 operations methods 75 opportunistic behaviour 78, 320–1 Oracle 337 orders cycles 564 time 566 foreign, unsolicited 54, 335 handling 562–3 making 387 taking 387, 462 organization 499 organization of global marketing programmes 684–90 budgets 708–11 case studies 712–16 global marketing plans 8–11, 711 organizational culture 236–7, 666–9 organizational models 665 organizational relations 250 organizational structures 75, 685–90, 693 organizations 12, 15 original equipment manufacturers (OEM) 406, 487 OSRAM 292 outbound logistics 26 outcome consumption 92 outdoor advertising 589, 595 output control 703 production costs and 52 outsourcing 406, 410 general cost efficiency 408 production costs and 407 outward internationalization 58, 59, 85 overproduction 54 owners 86 ownership advantages 73 internationalization of 395 risks 207 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 751 Find more at www.downloadslide.com INDEX ownership-location-internalization (OLI) 73 packaging 567–8 Panasonic shavers 729, 730 parallel importing 529, 533, 575–7 Parle Products 352–3 participants in service delivery 454 partner mindshare 335–7 partnering, selective 113 partners, value nets 126, 127 partnership-based subcontracting 410 partnership-GAM stage of GAM model 694–5 patents 358 payment for services 463 penetration pricing 522, 523 Penrose, E 72 people 116–17 people processing 463, 464 Pepsi 53, 168, 361, 480, 678 perceived value advantage 116–17 customers 91, 114–15 definition 114, 115 percentage of sales budgeting method 590–1 perceptions 86 perceptual mapping 477–8 performance economic 396 measurement 11, 705 perishability of services 461 personal competences 119 personal factors 86–7 personal interviews 186–7 personal selling 589, 602–5 personality and market segmentation 267 personnel 75, 117 persuasion, cross-cultural sales negotiations 662 PEST approach 264 pharmaceutical companies 59, 108, 497 Philips CD development 469 Electronics 395 Lighting 291–3 Quintippio viral ad campaign 615 Senseo coffee pod system 137, 139–42 shavers 727–34 physical aspects 117 physical distribution 562 physical evidence and service delivery 454 Pierre Cardin 358 piggybacking 340–1 Pink 718–20 Pirelli tyres 157, 160 Pizza Hut 363, 570 place 119 plans, global marketing see global marketing Playstation 132, 134, 135, 136 PLC (product life cycles) see products: life cycles Pocari Sweat 248 Pocoyo 30–1 Polaroid 245, 527 policy decisions 118 political cooperation 221 political environment 203–4, 228 case studies 229–31 economic environment 213–19 home country environment 204–7 host country environment 207–8 legal and political environment 204–13 political risk analysis 212–13 poverty as market opportunity 224–7 trade barriers 209–12 see also economic environment; legal environment political factors and market segmentation 265 political relations 252 political risks 64–5, 207–8, 542 analysis 212–13, 228 pollution prevention strategies 503, 504 Polo Ralph Lauren 399–401 polycentric orientation 19, 387 Pontiac 373–4 Porter diamond 104–9 Porter, Michael E competitive advantage 127, 128 costs in value chains 118 diamond 104–9 five forces model 104, 105, 110, 112–13 operational effectiveness 120 value chain model 26, 27, 33, 38 possession processing 463, 464 Postman Pat 99–100 poverty 126 as market opportunity 224–7 power, distribution channels 572 power distance 245, 664 PPP (purchasing-power parity) 214–16, 228 pragmatic rule of market entry 320 Prahalad, C.K 224–5 pre-internationalization process 50, 61 press releases 589, 597 pretesting, primary research 189 prices 116, 119 751 changes 524–5 controls 208 corridors 533 differentiation 528, 529 escalation 520–1 sensitivity 522, 537 standardization 528–9 transparency, Internet and 569 decisions on pricing 517–18 case studies 545–7 choice of entry modes and 520 customer response 522 export financing 542–4 factors influencing 518–19 international versus domestic pricing strategies 518 terms of payment 538–42 international pricing framework environmental factors 519, 521 firm-level factors 519–20 market factors 519, 521–2 product factors 519, 520–1 international pricing strategies currency issues 535–6 domestic pricing strategies versus 518 European pricing strategy 533–4 experience curve pricing 525–6 global price followers 530, 531 global price leaders 530, 531–2 global-pricing contracts 532–3 Internet implications 536–7 international pricing taxonomy 529–32 local price followers 530–1 market pricing 522, 523 multilocal price setters 530, 531 penetration pricing 522, 523 price changes 524–5 product line pricing 526–7 product-service bundle pricing 527–8 skimming 522, 523 standardization versus differentiation 528–9 transfer pricing 534–6 performance measurement 705 primary economic activities 213 primary research experiments 185 interviews 186–7 language barriers 191 non-response 191 observation 184 pretesting 189 primary data 176, 177–8 problems with 191 qualitative and quantitative 181–3 questionnaires 185–6, 188–9 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 752 Find more at www.downloadslide.com 752 INDEX primary research (continued) reliability 192–3 research design 183–93 research problem/objectives 183 sampling 187–8 surveys 185–7 triangulation 183 validity 192 Prince cigarette advertising 608 private branding 484–5, 508, 575 private labelling 483, 484–5 proactive motives for internationalization 50, 51–3, 56 proactiveness 86 probability sampling 187 process 117 process consumption 92 process of service delivery 454 Procter & Gamble 456, 489, 501 procurement 27 producers, opportunistic behaviour from 321 production capital requirements 112 costs 80 output and 52 local 389–90 nets 82 technological advances 89 products advantages 52 communication mix 474 dual adaptation 475–7 product adaptation 475 product invention 477 promotion adaptation 475 straight extension 474 customization 496–9 cycle hypothesis 72 decisions 459–60 brand equity 480–1 branding decisions 481–90 case studies 508–13 cutting time to market 471–2 developing international service strategies 460–4 developing new products 471–2 dimensions of international product offer 460 green marketing strategies 502–6 Internet collaboration with customers 495–501 long tail strategies 501–2 new products for international market 471–7 product life cycles 465–71 quality deployment function 473 scale of elemental dominance 461 degrees of newness 473 development collaboration with customers 497 global accounts and 692–3 innovative 500 new 471–2 divisional structures 686–7 dynamic customization 499 entry mode choice and 323–4 innovation, Internet impact 499–501 innovative 88 life cycles (PLC) 465–6 across countries 470–1 for different countries 470–1 for different products of firms 469–70 fads and 466 industry price experience curve and 526 international 470 levels of 468 limitations of 466–9 technological life cycle 468–9, 471 unpredictability 468 line pricing 526–7 nature 388 distribution channels and 552 new 37 offering 37 performance measurement 705 placement 591 positioning 477–80 pricing factors 519, 520–1 sales force organization by 604 seasonal, extending sales 55 standardizing 460 three levels of 460 value chains 35–6 professional service firms 464 profitability international market segmentation 264 measures 709 profits control 707, 708 goals 51 joint ventures 374 margins 709 project export (turnkey contracts) 419–20 project groups, global 673, 674–6 project know-how 420 promotion mix 586 promotion strategies 585–625 protectionism 23, 222 proxy indicators 179 psychic distance 73, 74, 261, 413, 414 psychological distance 55 public relations 589, 597–600 publishers, changing business platform 497 pull strategies 487 punctuality 248 purchasing, global, pooling 16 purchasing-power parity (PPP) 214–16, 228 Puroland 380 Quaker Oats 162, 168, 489 qualitative research 181–3 quality deployment function (QDF) 473 quantitative research 181–3 question marks 469 questionnaires 182, 185, 188–9, 191 quotas 210–11, 521 R&D see research and development radio advertising 589, 593 rail transportation 565 Raleigh bicycles 429–34 reactive motives for internationalization 50, 53–6 reactiveness 86 recycling 505 Reebok 100 red oceans 126–7, 134 reference groups 242 regiocentric orientation 19, 387 region centres 386, 391–2, 398 regional economic integration 217–19 regional integration 217–19, 220–4 regional management centres 688 regionalism 23 regulatory conditions, communication 588–9 related diversification alliances 13 related industries, Porter diamond 107–8 relationships development of 413–15 histories, global account management 692 management 22 negotiation cultures 659 relative cost advantage 117–18 religion 243–5 market segmentation and 266 Remington shavers 729, 730 Renault 287, 417 repatriation of expatriate sales persons 672 representational strategies cross-cultural sales negotiations 662 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 753 Find more at www.downloadslide.com INDEX research primary see primary research qualitative and quantitative 181–3 secondary see secondary research see also global marketing: research research and development (R&D) exit from foreign markets 396 resellers, Internet business 568–9 resident sales representatives 386, 387–9 resources 118–19 SMEs and LSEs 7, 12 retailer panels 194 retailing brands 484, 508 cross-border alliances 575 Europe 570 international 569–75 manufacturers’ support package 575 multinational 571 own-labels 484 transnational 571–2 United States 570 return on assets (ROA) 709 return on investments (ROI) 709 reuse 505 revaluation of currencies 213, 214, 521 revenue increases, CSR-induced 124 reverse logistics 504–5 reverse marketing 415–16 Rhapsody.com 502 riders, exports 341 risks aversion 15, 246, 326, 664 commercial 542 country 324, 396 exchange rates 324 management 37 strategies 64 political see political risks taking 12, 15, 86 rivalry, Porter diamond 108 ROA (return on assets) 709 road transportation 564 ROI (return on investments) 709 Rolls Royce 491 Roundup 488 royalties 358–9 rule-based negotiation cultures 659 rules of thumb 188 SAB Miller 636 safeguards 78 Sainsbury’s 574 branding 484 sales 26 forecasting 194–5 increases, CSR-induced 124 information 178 objects 75 terms of sale 537–8 see also cross-cultural sales negotiations sales forces assessing effectiveness of 603–4 cultural diversity training 667 international 604–5 records and reports 178 sales promotion 589, 600–1 sampling 187–8, 191 Sanex case study 278–9 Sanrio 379–81 Sara Lee Corporation 137, 139–42, 278 satellite television 95, 249 Saudi Arabia culture 240–1 Danish cheese launch 508–11 protecting agents 348 religion 244 Sauer-Danfoss 230–1, 698, 700 scale economies see economies of scale scenario planning 194–5 scope, economies of 12, 16–17 Scotch whisky 235 screening distributors 558–9 international markets see international markets search costs 79 seasonality in demand 55 secondary data 176, 177–8 secondary economic activities 213 secondary research 176 advantages 177 availability of data 178 chain ratio method 179 comparability of data 177–8 disadvantages of 177–8 estimating market potential 179–81 estimation by analogy 180–1 external data sources 179 internal data sources 178 lead-lag analysis 180 proxy indicators 179 reliability of data 177 SEGA 14 segmentation 8–9 see also international markets selective partnering 113 self-analysis, relationships 414 self-reference criterion (SRC) 249 semiconductors 107 Senseo coffee pods 137–42 sensory branding 490–3 service, after-sales 26 service and support via Internet 499 services 213 7Ps marketing mix 453–4 in B2B markets 464 753 categories of 462–4 characteristics of 91–2, 461–2 customization 93, 464, 496–9 development, global accounts and 692–3 direct export 94 dynamic customization 499 entry mode choice and 323 hard 323 heterogeneity of 461 information-based 463, 464 inseparability of 462 intangibility of 461 internationalization of 90–5 location issues 93 offering 37 perishability of 461 pricing 528 process nature of 91–2 soft 323 standardization 93, 464 strategies 93–5, 460–4 supplementary 462–5 value chains 33–6 SGVC (sustainable global value chains) 123, 124 shaver market 727–34 Shell 487, 488 shock effects 55 short-term orientation 247 sight, branding 490–1, 492 sight drafts 540 simple subcontracting 410 simultaneous versus incremental entry 277–80 Singapore Airlines 491, 492 single brands 483 Skagen Designs 309–13 skimming 522, 523 Skoda cars 481 small and medium-sized enterprises (SME) appropriate expansion strategy 280 characteristics 12 defined international market selection 261–2 internationalization of 19, 84–7, 95 late starters 83 learning from LSEs 21 LSEs and, global marketing and management style comparisons 7–17 network model relevance 84 as subcontractors 84 SMART objectives SME see small and medium-sized enterprises smell, branding 491, 492 Smirnoff Ice 491 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 754 Find more at www.downloadslide.com 754 INDEX social institutions 242 social marketing 252–3 social morals 234, 235 social networking 616–18 social organization 266 sociocultural distance and entry mode 324 sociocultural environment 233–5 aesthetics 243 attitudes 243 case studies 254–8 culture 248–52 differences 588 education 242–3 elements of culture 237–45 Hofstede’s + dimensions model 245–7, 253 language 239–41 layers of culture 236–7 manners and customs 242 religion 243–5 social institutions 242 social marketing 252–3 technology and material culture 242 values 243 socioeconomic groups and market segmentation 266 soft services 323 Solberg, C.A 17–19, 237, 529–30, 532 Sony Betamax 468 CD development 469 games consoles 132, 134, 135, 136 Sony Music Entertainment 718–22 Sony Ericsson 380 sound, branding 491, 492 source reduction 505 sourcing decisions and roles of sub-suppliers buyer–seller interaction 410–13 case studies 421–7 development of relationships 413–15 internationalization of subcontractors 416–19 partner selection criteria 414–15 project export (turnkey contracts) 419–20 reasons for international sourcing 407–9 reverse marketing 415–16 total cost/value hierarchy model 408 typology of subcontracting 409–10 South African political environment 204 South Korean bribery case 677 specialist expertise sperm banks 96–9 split control, joint ventures 375 sponsorship 589, 597, 598–600 Sports Sponsorship 598–600 SRC (self-reference criterion) 249 SSL International 330–2, 402 stage model 72, 74–5 stand-alone licensing agreements 358 standard subcontracting 410 standardization franchising 365 of marketing 455–8, 508 advertising 592, 606–7 product offer 460 pricing 528–9 services 93, 464 Starbucks 403 stars 469 start-ups 87 Internet 90 state trading 207 statistical techniques 188 status distinction in negotiations 660 stereotyping cultural differences and 658, 669 national 272 storage in export markets 566 store checks 184 strategic alliances 59, 357, 366–75, 417 with environmental organizations 506 strategic control 707 strategic development subcontracting 410 strategic drift 13–14 strategic fit 396 strategic groups 112 strategic levels of firms 28–9 strategic renewal 395 strategic thinking 500 strategy development, subsidiaries 391 strategy rules of market entry 320 strategy formation 12–15 structure analysis 110 structures, Porter diamond 108 StudiVZ 616 subcomponents 500 subcontracting 406, 421 buyer–seller interaction 410–13 fluctuating demand 409 innovation 409 internationalization of 416–19 by SMEs 84 typology of 409–10 subgroups, sample sizes and 188 subsidiaries 94 autonomy 390 control 386 country-based 688–9 entrepreneurship 390–1 foreign sales 386, 387–9, 398 information networks to external partners 390 own sales 315–16 strategy development 391 subsidies 205 substantiality, international market segmentation 264 substitute products 111, 113 substitution 505 supplementary services 462–5 suppliers 113 bargaining power of 110–11 development strategies 416 global account management and 697–8 value chains 29 value nets 126, 127 supply chains 500 supporting industries, Porter diamond 107–8 surveys 185–6 sustainable global value chains (SGVC) 123, 124 Sweden 107 Swiss Army 513 switching costs 110, 112, 692 SWOT analysis synergistic-GAM stage of GAM model 694–6 Syngenta AG 421–4 tacit knowledge 327, 391, 673–4 target markets 9, 22, 273, 274, 614 tariff barriers 209, 228, 521 task-related interactions cross-cultural sales negotiations 662–3 taste, branding 492 Tata Nano 286–91 tax benefits 53 tax controls 208 TCA (transaction cost analysis) model 77–80 Tchibo 200–1 team leadership, global project groups 675 technological life cycles (TLC) 468–9 technology acquisition 86 advantages 52 coordination 107 culture and 242 development 27 globalization of 90 joint ventures and 369 know-how 420 market segmentation and 265–6 products 468–9, 471 standardized worldwide 22 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 755 Find more at www.downloadslide.com INDEX Teepak GmbH 199 Teflon 487 telephone interviews 186 television advertising 589, 593 terms of business 519 payments 538–42 sale and delivery 537–8 tertiary economic activities 213 Tesco 574 third-country nationals as salespersons 605 time drafts 541 time orientation 247 time–space compression phenomenon 87 time to market (TTM) 465–6 timing 118 Tipperary Mineral Water Company 304–8 TLC (technological life cycles) 468–9 toilet market 680–1 TOMS Shoes 69 TOTO toilet manufacture 680–1 touch, branding 491 Toyo Seat Company 418–19 Toyota Motor Corp 417 Toys ‘r’ Us 570, 571 trade barriers 22, 209–12, 228, 325 trade creation 220 trade diversion 221 trade fairs 206, 605–6 trade mark licensing 358 trade marketing 572–5 trade missions 206 trade promotion organizations 207 trade terms 537–8 trading blocs 23, 221, 222–4 trading companies, exports 339–40 traditional statistical techniques 188 training 667, 671, 675 transaction cost analysis (TCA) model 77–80 transaction cost approach 72–3, 320–1 transfer pricing 534–6 transfer risks 207, 208 translation of information into knowledge 60–1 transnational model 690 transnational organizations 386, 398 transportation documents 563 methods 564–5 see also distribution; distributors; logistics trend forecasting 194–5 triangulation 183 trickle-up strategies 279 triggers of export initiation 57–61 Triumph Motorcycles Ltd 648–52 TTM (time to market) 465–6 turnkey contracts 419–20 Twitter 616 tyre market in Europe 155–61 Uganda Original 723 uncertainty avoidance 245–6, 664 Unilever 393, 420 brands 489 global portfolio 284, 285 Lux soap 475 Organics Shampoo 474–5 Snuggle fabric softener 482 unique selling propositions (USP) 592 United Biscuits 352–3 United Kingdom retailing 570 United States cheese market 328 culture 248 Foreign Sales Corporation 53 motorcycle market 651–2 retailing 570 sales promotion 600 toilet market 680–1 unknown market spaces 131 unrelated diversification alliances 13 unsolicited foreign orders 54, 335 Uppsala model 72, 74–7, 88, 95, 416, 571 USP (unique selling propositions) 592 vacuum cleaner market 641–7 Vahlne, J.E 74, 261, 323 value added, CSR drivers 125 value-based pricing 528 value chains 25–6 analysis competitive advantage 114–23 competitive benchmarking 120–3 competitive triangle 115 costs 118 customer perceived value 114–15 perceived value advantage 116–17 relative cost advantage 117–18 sources of competitive advantage 118–20 combining product and service value chains 35–6 external linkages 28, 29 information business and virtual value chains 36–8 internal linkages 28–9 755 international competitive advantage 25–32 internationalizing 31–2 joint venture partnerships 367 Porter’s model 33 primary activities 25–6 service 33–6 strategic pyramid and 29 support activities 25–6, 27–8 sustainable global (SGVC) 123, 124 virtual 36–8 value innovation 128–30 value networks 33–5 value shops 33–6 values, cultural 234, 235, 243 Vaseline 546–7 VCR formats 468 VER (voluntary export restraints) 210 Vernon, R 72, 278, 470 vertical collaborations 113 vertical integration, distribution channels 556–7 Vestergaard-Frandsen 65–7 video case studies BMW Motorcycles 624 Chinese market, entry modes 332 communicating in the global world 258 debate on globalization 231 DHL 583 Dunkin’ Donuts 681 Eaton Corporation 427 Hasbro 294 Honest Tea 353 Mariott 383 McDonald’s 716 Nike 143 Nivea 47 Reebok 100 Starbucks 403 Swiss Army 513 TOMS Shoes 69 Vaseline 546–7 Ziba 201 video game market 132–6 Vipp AS 735–8 viral marketing 612–15 virtual value chains 36–8 VKontakte 616 vodka market 626–32 voluntary export restraints (VER) 210 Volvo 417 wage costs 407 Wal-Mart 397, 502, 715 warehousing 566 watch markets 312–13 water-borne diseases 65 Z01_HOLL6227_05_SE_IDX.qxd 5/21/10 5:32 PM Page 756 Find more at www.downloadslide.com 756 INDEX water transportation 565 web see Internet Weetabix 168 Whirlpool 646 Wiedersheim-Paul, F 74 Wii 132–6 Williamson, O.E 78, 79, 80 wind turbine industry 425–6 World Bank 205 World Trade Organization (WTO) 53, 211, 221, 237 Y coalitions 357, 367 youth culture 249–50 YouTube 616 X coalitions 357, 367 Xbox 132, 134, 135, 136 XO Laptop 279 Zam Zam Cola 678–9 Zara 146–51, 325–6 Ziba 201 Zippo lighters 512–13 ... Sweden 24 .23 22 .29 24 . 52 30.60 34.89 35.37 United Kingdom 16.38 15.97 17.97 20 . 62 22. 29 22 .74 Hungary 1.91 1.91 2. 16 2. 50 2. 80 2. 89 27 .18 23 .38 22 .59 22 .78 25 .04 25 .15 Mexico 2. 04 2. 47 2. 71 2. 96... markets, 20 08 (US$ million) 20 03 Belgium France Germany 313 20 04 20 05 20 06 20 07 20 08 23 .91 17.06 20 .50 26 .20 29 .51 30.34 934 .22 910. 42 945.84 1,097 .25 1 ,20 5.66 1 ,20 5. 42 1, 429 .95 1,519.96 1,7 62. 75 2, 699.99... 124 .59 1 32. 13 119 .21 Italy 99.03 94.78 92. 51 101.03 1 12. 03 118.17 Netherlands 353. 82 365. 92 368 .26 375.06 380.97 3 92. 24 Spain 309.56 29 9.56 29 2 .26 28 4.13 27 7. 52 268. 82 Sweden 28 1.11 28 8.76 29 6.44