In one slide or two, you are invited to identify the international approach adopted by NBA.
Four International approaches
Strategy: International strategy
Guided by domestic market extension concept
It started as a Domestic strategy
The local techniques and advantages are perceived as superior.
International markets will be interested by the local advantage, regarded primarily as outlets for surplus domestic production.
International marketing plans are developed in-house by the international division.
Example: NBA American SPORTSHOW
Strategy: Multinational strategy/
Guided by the multidomestic marketing concept
Focuses on the importance and uniqueness of each international market because of cultural differences
Firms establish independent businesses in each target country.
Fully decentralized, minimal coordination with headquarters.
Marketing strategies are specific to each country.
Outcomes: No or little economies of scale, no Duplicated functions, Higher final product costs
Strategy: Global strategy
Guided by the global marketing concept
Marketing strategies aimed at market segments, rather than geographic locations
Maximizes efficiencies worldwide and provides standardized product or service throughout the world
Outcomes: Economies of scale, Duplicated functions, Lower product costs
Example : Apple (Iphone)
Strategy: Glocal strategy (the direct result of The world as a big village / social media)
Combination of a standardized product/message adapted by region
Guided by a glocal marketing concept
Marketing strategies are based on slicing and dicing the market to adapt the standardized product/message to local cultural differences
The NBA: The ethnocentric approach to staffing fills key management positions with parent-country nationals.
Very popular in the past, but still holds on (P&G, Matsushita, Toyota, Samsung).
Session 2. Culture and International business
In two slides, you are invited to identify the international approach adopted by Tea collection (between the 4 international approcahes)
The geocentric approach seeks the best people for key positions, regardless their nationality.
The factors that we look at when comparing companies:
Adaptation v/s Standardization
3) Marketing & communication tools.
Many organization obtain a gradual international presence : • Geographic aspect close to home market and gradually expanding to the world market (increasing geographic diversification) • Move through sporadic export in the foreign market of foreign subsidiaries sharing an (increasing marketing commitment)
1. Based on the different theories of Global Development strategies, explain the international strategy of Nissan.
2. How Nissan adapted its organization in order to compete on the international level? How can we analyze the alliance between Nissan and Renault based on these previous explained theories?
To read for the final exam