INTERNATIONAL MARKETING MANAGEMENT

SESSION 3:

ESTABLISHING INITIAL ENTRY OBJECTIVES: DEVELOPING COMPETITIVE ADVANTAGE

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ESTABLISHING INITIAL ENTRY OBJECTIVES

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THE CORPORATE MISSION STATEMENT

ESTABLISHING STRATEGIC GOALS AND OBJECTIVES

CHOICE OF COUNTRY(IES) AND ENTRY STRATEGY

DEFINING COMPETITIVE ADVANTAGE

THE CORPORATE MISSION STATEMENT

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G.M. is committed:

“to being a global corporation, in every way, in planning, technology, sourcing and manufacturing processes, financing and marketing strategies, and in the products themselves…

…to a cleaner environment throughout the world, and is diligently working to ensure that its plants and products contribute to a better environment everywhere.”

Unilever:

“People – and our understanding of how they’re different, as well as what they have in common, what they need now and what they may want in the future – are at the heart of everything we do. And because we’ve been in so many places for so long, we can truly say we are the multi-local multinational.”

NATIONAL DETERMINANTS OF COMPETITIVE ADVANTAGE

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Firm strategy, structure, rivalry

Related and supporting industries

Demand conditions

Factor conditions- basic resources

- advanced resources

macro perspective

ESTABLISHING GOALS AND OBJECTIVES

DEGREE OF INVOLVEMENT IN INTERNATIONAL MARKETS

Company Resources

Role of Management Attitudes

Industry Structure

LEVEL OF RISK

Macro-Economic Risk

Competitive Risks

Policy Risk

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COMPETITIVE ADVANTAGE

micro perspective

MARKETSCOPE

MARKETSCOPE

Niche: Cost FocusNiche: Cost Focus Focused SegmentFocused Segment

DifferentiationDifferentiationCost LeadershipCost Leadership

Product/Service OfferingR&D

Production

Marketing

Broad-Based

Segment

SKILLS ANDCAPABILITIESSKILLS AND

CAPABILITIES

COST-BASED COMPETITION

LEVERAGES

Operating Efficiencies

Cost Advantages

VULNERABILITIES

Change in Costs

Currency Swings

Competition

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DIFFERENTIATION-BASED COMPETITION

LEVERAGES:Strong Brand ImageQualityInnovation

VULNERABILITIESChanges in Customer TastesCompeting Products and

Services

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BROAD-BASED

ADVANTAGES:Targets Large MarketEconomies of Scale and SlopeMeets Competition

LIMITATIONSSpreads ResourcesLess Focused

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FOCUSED

ADVANTAGES:Targeted EffortClearly Defined Image

LIMITATIONS:Limited Market CoverageRisk Not Diversified

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SKILLS AND CAPABILITIES

BASIS FOR LONG-RUN SUSTAINABLE COMPETITIVE ADVANTAGE

R&DProductionMarketingLogistics

- Adapt to Market Dynamics and Strategy

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SUMMARY

Importance of establishing objectives to guide allocation of resources and effort to international markets

Role of risk in establishing objectives

Competitive advantage based on resources, skills and capabilities

Initially try to leverage domestic advantage in international markets

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