Internationalization Strategy & Standard VS Adapt

Question 1

There are how many decisions in order to enter international markets?

Answer 1

5

Question 2

Which are these decisions?

Answer 2

1. International market analysis
2. Selection of Markets and Foreign entry mode
3. Development of the marketing strategy
4. Design of the marketing program
5. Organization of the international marketing department

Question 3

Internationalization Strategy is based on what variables?

Answer 3

1. Strength of pressure for global integration
2. The pressures for local responsiveness

Question 4

1. Global Strategy (strong- weak)

Answer 4

• Focus on adopting standardized offering in different markets
• It allows cost reductions
• Global standardization strategy is aimed at satisfying universal needs.
  EX: luxury goods, technology, etc

Question 5

2. Transnational Strategy (Strong-strong)

Answer 5

*Firms try to simultaneously achieve low costs and differentiate their product offering across geographic markets to account for local difference at the same time

Ex: many food companies like Mcdonalds (adapt their products to local needs)

Question 6

3. Export Strategy ( Weak-Weak)

Answer 6

• Firms that adopt this strategy take products first produced for their domestic market and sell them internationally with only minimal local customization.
• Usually export strategy is pursued by small companies e.g., manufacturers of raw materials and basic product parts

EX: buttons, glass, etc

Question 7

4. Multidomestic ( Weak-Strong)

Answer 7

• Characterized by local product and market requirements. These differences create a strong need for customized products to meet local tastes and preferences.
• Because customization involves some duplication of functions and smaller production runs, it limits the ability of firm to capture the cost reductions associated with mass-producing a standardized product for global consumption

EX: laundry detergents, cosmetic, construction, furniture

Question 8

Standarization

Answer 8

• Economies of Scale
• Lower marketing costs
• Brand image consistency
• Uniform marketing practices

Question 9

Adaptation

Answer 9

• Different needs and consumption models
• Different competitive environments
• Different legal systems, market institutions and administrative practices

Question 10

Global products categories ( designed to be standard)

Answer 10

• High-tech products
• Luxury
• Radically innovative products
• items that reflect the taste and/or lifestyle of a certain country

Question 11

Country-Specific Products (meant to adapt)

Answer 11

• legislation on product safety and ingredients
• Differences in the consumer’s social environment
• Specific traditions, local consumption and usage habits

Question 12

Straight extension ?

Answer 12

When there is not a change in the product nor in the communications

Question 13

Communication adaptation ?

Answer 13

When the product is the same but the communications adapt

Question 14

Product adaptation?

Answer 14

The product adapts but the communication stays the same

Question 15

Dual adaptation?

Answer 15

When both the product and the communication adapt

Question 16

Product invention

Answer 16

When the firm develops a new product therefore it also develops a new communication strategy for it

Question 17

Glocalization (Robertson)

Answer 17

Glocalization is the adaptation of global and international products to the local contexts in which they are used and sold

Question 18

What is Ray Kroc’s Business Model?

Answer 18

The Three Legged Stool –> Owner/Operator, Suppliers and Employees

Just as all three legs of a stool need to be equal to support the weight.