Mission :
In one slide or two, you are invited to identify the international approach adopted by NBA.
Four International approaches
Ethnocentric | Polycentric | Geocentric | regiocentric |
Strategy: International strategy
STANDARDIZATION 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/ Multidomestic strategy ADAPTATION 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 Ex: Danone |
Strategy: Global strategy Meganational strategy STANDARDIZATION 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) Ford |
Strategy: Glocal strategy (the direct result of The world as a big village / social media)
Transnational strategy Ex: Starbuck 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 Example: McDonalds Starbuck |
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
Mission :
In two slides, you are invited to identify the international approach adopted by Tea collection (between the 4 international approcahes)
Case study: Tea collection (to read)
case study 2. Tea Collection (to watch)
The geocentric approach seeks the best people for key positions, regardless their nationality.
Case study
The factors that we look at when comparing companies:
Adaptation v/s Standardization
of:
1) Products/Services,
2) Organisation/Processus,
3) Marketing & communication tools.
Uppsala Theory
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)
Questions
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