, 1
International Strategy
Introduction
What is strategy?
- A method or plan chosen to bring about a desired future, such as
achievement of a goal or solution to a problem.
What is a business strategy?
- Where to compete (1/4 dimensions)
o The product-market investment decision.
- How to compete (3/4 dimensions)
o Value proposition.
o Assets & competencies.
o Function area strategies and programs.
Global Strategy is just one part of the larger subject of strategic management
Differences domestic versus global
- Domestic marketing (management):
o Management process responsible for identifying, anticipating and
satisfying customer requirements profitably.
- International marketing (management):
o In principle exactly the same, but increasing complexity
3 levels of international (marketing) strategy: (1 -> 3 increasing complexity)
- International strategy: marketing of goods and services across national
boundaries
o Involves the company in making one or more marketing mix decisions
across national borders (simplest level -> export).
- Multinational strategy: marketing includes activities, interests or operations in
more than one country, with at least some influence or control of marketing
activities.
- Global strategy: the whole organization focuses on the selection and
exploitation of global marketing opportunities around the globe with the
objective of achieving a global competitive advantage.
o Involves the firm in establishing manufacturing facilities overseas and
coordinating marketing strategies across the globe (most complex
level).
Environmental influences on international marketing:
- Adaptation by experiencing:
o Social/cultural
- Adaptation by learning:
o Legal
o Political
o Technological
o Economic
International Strategy March 2016
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Components of culture
- Religion
- Values and attitudes
- Education
- Social organizations
- Technology and material culture
- Law and politics
- Aesthetics
- Language
Website
Website: http://www.global-strategy.net/what-is-global-strategy/
Global strategy
What is it? (again)
- 3 levels of international (marketing) strategy: (1 -> 3 increasing complexity)
o International strategy: marketing of goods and services across national
boundaries
o Multinational strategy: marketing includes activities, interests or
operations in more than one country, with at least some influence or
control of marketing activities.
o Global strategy: the whole organization focuses on the selection and
exploitation of global marketing opportunities around the globe with
the objective of achieving a global competitive advantage.
Why is it important?
- Provides opportunities for new sales and profits
- Resource seeking, efficiency seeking, strategic seeking.
- Lead to lower prices (customer perspective).
- Bring down to trade barriers (perspective of internal government
organizations).
- Criticism by internal non-government organizations because of ‘exploitation’.
- Benefits
o Economies of scope and scale, brand recognition, customer
satisfaction, lowest labor and other input costs, spreading R&D costs,
emergence of new markets.
- Costs
o Lack of sensitivity to local demand, transport/logistics costs, hard to
cash economies of scale in practice, communication costs higher,
management coordination, trade barriers, costs related to protection.
International Strategy March 2016
International Strategy
Introduction
What is strategy?
- A method or plan chosen to bring about a desired future, such as
achievement of a goal or solution to a problem.
What is a business strategy?
- Where to compete (1/4 dimensions)
o The product-market investment decision.
- How to compete (3/4 dimensions)
o Value proposition.
o Assets & competencies.
o Function area strategies and programs.
Global Strategy is just one part of the larger subject of strategic management
Differences domestic versus global
- Domestic marketing (management):
o Management process responsible for identifying, anticipating and
satisfying customer requirements profitably.
- International marketing (management):
o In principle exactly the same, but increasing complexity
3 levels of international (marketing) strategy: (1 -> 3 increasing complexity)
- International strategy: marketing of goods and services across national
boundaries
o Involves the company in making one or more marketing mix decisions
across national borders (simplest level -> export).
- Multinational strategy: marketing includes activities, interests or operations in
more than one country, with at least some influence or control of marketing
activities.
- Global strategy: the whole organization focuses on the selection and
exploitation of global marketing opportunities around the globe with the
objective of achieving a global competitive advantage.
o Involves the firm in establishing manufacturing facilities overseas and
coordinating marketing strategies across the globe (most complex
level).
Environmental influences on international marketing:
- Adaptation by experiencing:
o Social/cultural
- Adaptation by learning:
o Legal
o Political
o Technological
o Economic
International Strategy March 2016
, 2
Components of culture
- Religion
- Values and attitudes
- Education
- Social organizations
- Technology and material culture
- Law and politics
- Aesthetics
- Language
Website
Website: http://www.global-strategy.net/what-is-global-strategy/
Global strategy
What is it? (again)
- 3 levels of international (marketing) strategy: (1 -> 3 increasing complexity)
o International strategy: marketing of goods and services across national
boundaries
o Multinational strategy: marketing includes activities, interests or
operations in more than one country, with at least some influence or
control of marketing activities.
o Global strategy: the whole organization focuses on the selection and
exploitation of global marketing opportunities around the globe with
the objective of achieving a global competitive advantage.
Why is it important?
- Provides opportunities for new sales and profits
- Resource seeking, efficiency seeking, strategic seeking.
- Lead to lower prices (customer perspective).
- Bring down to trade barriers (perspective of internal government
organizations).
- Criticism by internal non-government organizations because of ‘exploitation’.
- Benefits
o Economies of scope and scale, brand recognition, customer
satisfaction, lowest labor and other input costs, spreading R&D costs,
emergence of new markets.
- Costs
o Lack of sensitivity to local demand, transport/logistics costs, hard to
cash economies of scale in practice, communication costs higher,
management coordination, trade barriers, costs related to protection.
International Strategy March 2016
