international marketing management session 3: establishing initial entry objectives: developing...
TRANSCRIPT
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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
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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.”
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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
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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
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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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