international marketing management session 14: developing global marketing strategy: focused...
TRANSCRIPT
INTERNATIONAL MARKETING MANAGEMENT
SESSION 14:
DEVELOPING GLOBAL MARKETING STRATEGY: FOCUSED STRATEGIES
1
A FRAMEWORK FOR GLOBAL STRATEGY
Global Strategy
Geographic Scope
Market Scope (Segmentation)
Product Lines
Degree of Strategy IntegrationIndustry Globalization
Drivers
Market Economic Environment Competitive
Position and Resources of Business andParent Company
Organization’sAbility to
Implement aGlobal Strategy
Benefits/Costs ofGlobally
IntegratedStrategy
2
EXTERNAL DRIVERS OF INDUSTRY POTENTIAL FOR GLOBALIZATION
3
Homogeneous market needs Global customers Shortening product lifecycle Transferable brands and
advertising Internationalizing distribution
channels
Market Factors
Competitive interdependence among countries
Global moves of competitor Opportunity to preempt a
competitor’s global moves
Competitive Factors
Potential Potential for Global for Global StrategyStrategy
Environmental Factors
Worldwide economies of scale in manufacturing or distribution
Steep learning curve Worldwide sourcing efficiencies Significant differences in
country costs Rising product development
costs
Economic Factors
Falling transportation costs Improving communications Government policies Technology change
ACHIEVING GLOBAL SYNERGIES
LEVERAGING ASSETS
AND POSITION
Scale Efficiencies
Coordination and Integration
Transfer of Ideas, Experience and Know-how
Scale Efficiencies
Coordination and Integration
Transfer of Ideas, Experience and Know-how
Global Strategy
STRATEGIC
FLEXIBILITY
Production Shifting
Multiple Sourcing
Transfer Pricing
Managing Cash Flow
Production Shifting
Multiple Sourcing
Transfer Pricing
Managing Cash Flow
4
COMPETITIVE STRATEGIES IN A GLOBAL INDUSTRYCOMPETITIVE STRATEGIES IN A GLOBAL INDUSTRY
LocallyResponsive
LocallyResponsive
Country R
egion
Broad-Based
Focused
MARKETSCOPE
MARKETSCOPE
GloballyIntegratedGlobally
Integrated
Global SegmentGlobal
SegmentNational
NicheNational
Niche
HYBRID
Degree of Integration
5
THE GEOGRAPHIC SCOPE OF THE MARKET
REGION
Regional-Urban
RestrictedMulti-Domestic
Regional
WORLD
International-Urban
Multi-Domestic
Multi-Region
Global
COUNTRY
Multi-Urban
Domestic
CITY
UrbanCITY
COUNTRY
REGION
WORLD
Geographic CoverageGeographic Coverage
Lev
el o
f M
arke
t In
teg
rati
on
Lev
el o
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arke
t In
teg
rati
on
6
FOCUSED SEGMENT STRATEGIES
GlobalSegmentGlobal
Segment
e.g. Rolex, Benettone.g. Schweppes
7
Multiple Global Segments
Multiple Global Segments
National Niche Strategies
National Niche Strategies
e.g. L’Oreal
FOCUSED STRATEGIES
ADVANTAGES Customer Focused Clearly Defined Position Limited Resource Needs
CHALLENGES How to Grow Remaining Focused Responding to Market Changes
8
IMPLICATIONS
Need to determine market scope and degree of strategy integration
Global focused strategies provide clear direction but pose growth issues
Broad-based strategies typically more complex and pose integration challenges
9