...Global Marketing in the firm. Learning objectives: * Characterize & compare the management style in SMEs (small and medium-sized enterprise) and LSEs (Large –scale enterprises). * Identify drivers for ‘global integration’ and ‘market responsiveness’. * Explain the role of global marketing in the firm from a holistic perspective. * Describe & understand the concept of the value chain. * Identify & discuss different ways of internationalizing the value chain. International expansion: - provides new & potentially more profitable markets; - helps to increase the firm’s competiveness; - facilitates access to new product ideas, manufacturing innovations & the latest technology. !!Solberg: In order to expand to the int markets, firms should improve their position on the local market (strategy 1). If the firm finds itself immature in a global industry - the firm should seek ways to increase its net worth to attract partners for a future buyout bid (strategy 7). Global marketing consists of: * finding & satisfying global customer needs better than the competition; * coordinating marketing activities within the global environment. EPRG framework (the worldview of a firm’s business activities): * Ethnocentric: home country is a superior, the needs of home country are most relevant. * Polycentric (multidomestic): each country is unique and therefore each country should be targeted in a different way. * Regiocentric:...
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...Chapter 1: Global marketing in the firm I. Introduction to globalization Globalization: reflects the trend of firms buying, developing producing and selling products and service in most countries and regions of the world. Benefits for the firm which do an international expansion: * New and potentially more profitable markets * Increase the firm’s competitiveness * Facilitates access to new product ideas, manufacturing innovations and the latest technology Internalization: doing business in many country of the world, but often limited to a certain region (ex: Europe). A. Industry globalism The strategic behaviour of firms depends on the international competitive structure within in industry. In the case of high degree of industry globalism, there are many interdependencies between markets, customers and suppliers, and the industry is dominated by a few large powerful players (global). Example of global industries: PCs, IT, records, movies and aircrafts. The other land (local) represents a multidomestic market environment, where markets exist independently from one other. Example of local industries: hairdressing, foods and dairies. B. Preparedness for internationalization The degree of preparedness is dependent on the firm’s ability to carry out strategies in the international marketplace and the actual skills in international business operations. The well-prepared company has a good basis for dominating the international markets and consequently...
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...in that philanthropic activities ought to be self sustaining. One approach a firm can use to make high profits is to monopolize an industry, or produce & sell at extremely low prices, in order to make high sales revenues, take a larger portion of the market share or even push competitors out of the market. This in essence is a production strategy, and works very well for basic commodities such as food products. For example, Wal-Mart offers lower prices than its competitors and makes its profits through selling large volumes of products. However, in order for this approach to work, it has to rely on external environment conditions, such as import policies, industrial relations, tax policies and barriers to entry & exit, to be favorable. Also, all products have competition, since they are all fighting for a share of their customers. In short, the ability of these firms to operate profitably is not within their control. Another strategy a firm could employ is the product strategy. This would ordinarily entail taking advantage of a population growing in number and purchasing power. The firm in this case makes money by selling consumers high quality, durable products at slightly higher prices; the sales revenues will be slightly lower but good sales margins will ensure profitability. This model works especially well for clothes, electronics and other household goods. However, in order for a firm using this approach to remain profitable in the long run, the consumer base has...
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...Title of the article selected is “Entrepreneurial Orientation, Strategy, and Marketing Capabilities in the Performance of Born Global Firms” which published in International Business Research Teaching and Practice- The Journal of the AIB-SE Volume 2 Number 1 in year 2008, from page 12 to page 38. Samantha Hartsfield, Douglas Johansen and Gary Knight are the authors of this article. The primary objective of the article is to investigate the antecedents that affect the international performance of born global firms, companies that export 25% or more within the first three to six year of their foundation. From the framework of the study, it reveals that organizational culture, business strategy and business tactics are the three main factors contributing to the international performance of those born global firms. By looking in depth at these three main factors, it actually is a process on how a born global firm can gain competitive position in this intense business environment and thus succeed in the market. In the article, the authors do argue that born global internationalized rapidly as compared to traditional companies due to its smaller size, flexibility, proactive, innovative and risk taking characteristic. Besides, it has better development and management of knowledge in the early stage compared to traditional firm. As for traditional company, it needs to unlearn the routine and operation and learn new process for the new market. It is costly and time consuming and...
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... In this essay I will outline the importance of food marketing to food firms in competitive markets. I will also discuss the emerging trends which will influence the development of new products in the future. To begin I will define marketing and explain the impact a good marketing strategy can have on firms. I will discuss what influences consumers when they purchase new products and the integral role market research plays for companies in this regard. Food marketing obviously plays a vital role for companies in competitive markets but in this essay I will show that innovation is equally important for the overall success of a company. Throughout the essay I will use examples of companies who have used very successful marketing strategies and why they were successful, while on the other hand discussing the reasons why other firms failed with their approach to marketing. Marketing is defined as” Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large “. Food marketing therefore is the link that connects food producers to their consumers. Firms have to be careful when choosing their marketing strategy as choosing the wrong target market or the wrong method of marketing will in most cases lead to the failure of the product. Companies need to understand three main things when marketing their product: their customers, their competitors and...
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...Fernandes, Marcelle ID: 2775353 Marketing Mini- Project Principals of Marketing Chapter 5 pag.166 1- Choose one of the following companies. What colors does it use predominantly in its logo or packaging? How do these colors affect the perception of its products? Answer 1: I choose Wendy’s. Anwer 2: It uses the red color of predominantly color in logo or packaging. Answer 3: The perception of red color scheme subliminally encourages consumers to order and eat their food quickly, it is a whole idea of fast food. Scientists know that color literally affects the body and mind. Colors are associated with certain qualities or emotions, and red means excitement, strength, sex, passion, peed, danger. 2- Should a global firm like McDonald’s or General Mills change the colors of its logo or packaging depending on the country in which it is marketing? Why or why not ? How might this affect consumer attitudes toward the company and its products? Answer 1: I do not think that global firms like McDonald’s or General Mills should change the colors of the logo. Colors for global firms represent unique enterprise culture and brand. Although firms invest a lot of money to marketing do a great deal of research to determine greater color. Answer 2: Unified logo is necessary because it not only protects the brand, but prevents counterfeits. Also it helps company build their unified brand image in order to improve the popularity of an enterprise in costumer. As...
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...is widely used by firms in the Hospitality and Food and Beverages (F&B) industry as it is low-cost and has potentially many viewers. With the rising numbers of firms marketing on various platforms, this report aims to determine whether some social media platforms are being under-utilized and how firms can use these platforms to refine their marketing efforts. Research data was gathered through interviews of representatives working in the industry. Interviewees were asked questions relevant to their firm’s usage of social media and its importance to the firm. This report concludes that Twitter, Blogs, Pinterest and Foursquare are under-utilized among firms in the industry and Small-sized firms should focus on developing their profiles on twitter and foursquare, while Medium-sized or larger firms should focus on developing their profiles on Blogs and pinterest. Table of Contents 1 Introduction 1 1.1 Background 1 1.2 Purpose 1 1.3 Scope 1 1.4 Limitations 2 1.5 Sources and methods 2 2 Findings and discussion 2 2.1 Social media usage patterns in Hospitality and F&B industry 2 2.1.1 Social media usage patterns in Small-sized companies 3 2.1.2 Social Media usage patterns in Medium-sized companies and above 4 2.2 Firms’ specific interests in using social media 5 2.2.1 Middle sized companies and above 5 2.2.2 Small-sized companies 6 2.3 Discussion 7 3 Recommendations 8 3.1 Small-sized firm 8 3.2 Medium-sized firms 8 4 Conclusion 9 ...
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...Man 4633 ASSIGNMENT 3 1.Define arbitrage factor costs Arbitrage factor costs are costs that an MNE incurs when there is the inability for a firm to encourage for issues to be resolved without the need of arbitration. When arbitration is needed, a firm loses precious time and possibly funds to be able to settle a dispute among the different business units with a conflict. This may result in the loss of competitive advantage and/or the loss of actual funds. 2. “Today’s challenge is to build transnational organizations that can sense an emerging consumer trend in one country, link it to a new technology or capability it has in another, develop a creative new product or service in a third, then diffuse that innovation rapidly around the world”. With this in mind, identify a company who has demonstrated this ability including a brief description of each step they took. Boeing is a perfect example of a company that was able to link technology and capabilities from national suppliers which they call “partners”, and to decentralize their manufacturing functionality to develop the new 747 dreamliner. Boeing first began by identifying key geographical “partners” that had the resources and functional capability to manufacture specific sections of the airplane. After doing so, they decentralized their manufacturing capability and handed the responsibility to these “partners”. Finally, what Boeing was left with was a strategically dispersed manufacturing plant across the globe...
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...Puma is one of the key sportswear firms globally that is involved in segments like sports clothing, footwear, and lifestyle products, where its core capabilities are in the field of manufacturing, designing, marketing and distribution of its products. The company has evolved over number of years to become € 2,738.8 million turnover firm in 2008 (FAME, 2009), however its roots can be traced back to the modest beginnings in the firm Gebruder Dassler Schuhfabrik by Rudi and Adi Dassler created in 1924, which later split into Puma and Adidas in 1948 (Keynote, 2009). Porter’s Five Forces: Porter’s five forces have been identified as the key competitive forces that define industry structure that is relevant to the business of the firm and therefore is highlighted as micro business environment analysis of the firm (Lynch, 2003). The implementation of the tool has been undertaken for Puma as follows: • Bargaining Power of Suppliers is low as Puma is one of the vertically integrated firms therefore making its own departments suppliers and distributors of its products, while raw material producers offer low differentiation therefore also have very low bargaining power. • Bargaining Power of Buyers is medium to high as there are low switching costs between different brands therefore allowing opportunity to customers to try different firms for their wardrobe. However, the strong product portfolio and the price mix of Puma means that it enjoys a degree of customer loyalty which...
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...and successful strategy for the company. The case presented by Claire Mackey one of the division managers will be of great contribution to the strategy that the firm will use to rebuild its sales and profit margins. Mackey’s report focuses on the problems that Brannigan is facing currently and specifically the declining sales volume and lower profits that the company has been recording for the past three years. Mackey is confident that by handling the current customer desires for healthier and more convenient products, the company will be in a position to increase its sales volume. His report also focuses on how the company can manage to penetrate other markets, which it has not managed to do for the past three years as well as improve the performance of the low performing markets like Southeast Asia and China. Since the report focused on the actual challenges the firm is experiencing now, it will not only be a good consideration before making the final decision on the implementation but will also assist in making well thought and research decisions for the benefit of the firm. Mackey’s report focused on borrowing the ideas of successful firms in the industry to be able to improve the performance of Brannigan. Mackey provides a list of competitor firms whose their ideas will be of great benefit to firm. Since firms such as...
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...Study Questions 1. For supply chain leaders to focus more on maximizing firm sustainability rather than minimizing total cost the leaders must evaluate the entire firm as a whole and pick apart every aspect that could re veal flaws. The leaders must evaluate their financial status and their security and protection as a whole. However, those three categories fall only into the economic dimension. The three dimensions that supply chain leaders are supposed to consider when trying to improve overall sustainability are environmental, ethical, and economic. 2. The marketing and supply chain risks related to high product complexity consist of a higher total cost, lost sales, lowered ability to change or innovate, higher quality and reliability problems, less ability for adequate forecasting, and more extensive training for customer support. The benefits of high product complexity consist of increased revenue which may improve profitability and asset utilization. 3. Firms should always be adhering to public policy changes related to environmental initiatives because essentially one of the largest contributors to company sustainability is environmental compatibility. However, a company that is trying to minimalize cost could only follow the minimal requirement of certain environmental aspects such as recycling in certain places in the world. This factor alone could save companies expenses. 4. The roles that logistics and supply chain management should take to ensure the...
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...KINETIC AND POSITIONAL By: Ma, Hao; Business Horizons, Jan/Feb2000, Vol. 43 Issue 1, p53, 12p, 1 diagram Competitive advantage is considered the basis for superior company performance. To perform at such a level consistently, a firm often has to nurture an evolving system of competitive advantages to carry it through competition and over time. What are the various possible types of such advantages? How can a firm systematically analyze the multiple advantages it could possess and use them to achieve and maintain superior performance? Building on research in strategic management, answers to these questions and others can contribute to managers' knowledge about the nature and content of competitive advantage. Such knowledge can help managers nurture and renew their firms' advantages more effectively through time. The Dichotomy of Positional and Kinetic Advantages The essence of competitive advantage can be interpreted as the asymmetry or differential among firms along any comparable dimension that allows one firm to compete better than its rivals. Simply put, a competitive advantage can be one of two types: ° positional--a status-defining position that leads to better company performance; or ° kinetic--an action-oriented ability that allows a firm to function more effectively and efficiently. Positional advantage often derives from ownership or access-based sources. Specifically, it comes from a company's unique endowment of resources, market positions, established accesses...
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...therefore, with great anticipation that she looked forward to an interview with the one firm in which she most wanted to work, Apex Environmental. She had always had a strong interest in cleaning up the environment and firmly believed that the best use of her training and skills lay in working for a firm like Apex, where she thought she could have a successful career while making the world a better place. The interview, however, was a disaster. Maria walked into a room in which five men, including the president of the company, two vice presidents, the marketing director, and another engineer, began throwing questions at her that she felt were aimed primarily at tripping her up rather than finding out what she could offer through her engineering skills. The questions ranged from unnecessarily discourteous ("Why would you take a job as a waitress in college if you're such an intelligent person?) to irrelevant and sexist ("Are you planning on settling down and starting a family any lime soon?). Then, after the interview, she met with two of the gentlemen individually (including the president) and the discussions focused almost exclusively on her technical expertise. She thought that these later discussions went fairly well. However, given the apparent aimlessness and even mean-spiritedness of the panel interview, she was astonished when several days later she got a job offer from the firm. The offer forced her to consider several...
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...FIRST-MOVER ADVANTAGES Marvin B. Lieberman David B. Montgomery’ October 1987 Research Paper No. 969 //~‘L~ 1The authors are, respectively, Assistant Professor of Business Policy, and Robert A. Magowan Professor of Marketing, at the Stanford Business School. We thank Piet Vanden Abeele, Rajiv Lal, Mark Satterthwaite and Birger Wernerfelt for helpfiul discussions on earlier drafts. The Strategic Management Program at Stanford Business School provided financial support. / ~‘N ~ Abstract This article surveys the theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms. Major conceptual issues are addressed, and recommendations are given for future research. Managerial implications are also considered. INTRODUCTION What, exactly, are first-mover advantages? Under what conditions do they arise, and by what specific mechanisms? Do first-movers make aboveaverage profits? And when is it in a firm’s interest to pursue first-mover opportunities, as opposed to allowing rivals to make the pioneering investments? In this paper we examine these and other related questions. We categorize the mechanisms that confer advantages and disadvantages on first-mover firms, and critically assess the relevant theoretical and empirical literature. The recent burgeoning of theoretical work in industrial economics provides a rich set of models that help make our understanding of first-mover advantages more precise. There is...
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...resources necessary to run the business, high buyer power because customers can basically find an equal service from any firm in the industry, low substitution threat from other means of shipping transportation, and low threat of new entrants due to the high initial capital outlay and need of management experience. In this analysis, we will delve deeper into each of the dynamics within Porter’s 5 Forces to form an opinion of why the industry is attractive to be in and then discuss how competition greatly increased during 1988-1989. In the air express industry, where customers can ship their packages over long distances via airplane, there is high rivalry because the firms competing in the industry all do the same service. Since there is little differentiation between firms, each firm must battle for customers by either providing better or new services, integrating new competencies into their business processes, or doing business at a low price to create bigger economies to scale which will then cut down operating costs. Firms who want to compete provide aggressive products like next day delivery; integrate new business practices like owning and operating a fleet of jets with company employees; or undercut the competition in viscous price wars. Thus, rivalry with the industry is high. Supplier power is medium to high in the air express industry because firms in the air express industry require precious resources and rely on the...
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