Business marketing strategies for global markets
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Business Marketing Strategies for Global Markets. Chapter 8. Capturing Global Advantage. What are RDEs? Why are they important?. Sources of Global Advantage. Three major types of advantages Cost advantages Market access advantages Capabilities advantages. Cost Advantages.

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Business marketing strategies for global markets

Business Marketing Strategies for Global Markets

Chapter 8


Capturing global advantage

Capturing Global Advantage

  • What are RDEs?

  • Why are they important?


Sources of global advantage

Sources of Global Advantage

  • Three major types of advantages

    • Cost advantages

    • Market access advantages

    • Capabilities advantages


Cost advantages

Cost Advantages

  • 20-40% savings in landed costs

    • What are landed costs?

  • Lower Operating Costs

    • Wage differences

    • Business process outsourcing

  • Lower Capital Costs

    • Capital and equipments costs

    • 30% savings

    • Hidden costs


Market access advantages

Market Access Advantages

  • Access to Growing Markets

    • China

  • Following customers


Capabilities advantage

Capabilities Advantage

  • Gain knowledge and skills

    • China and India

  • How does this help?

    • Improve R&D

    • Address unmet consumer needs

    • Tailor products to local market


To outsource or not to outsource

To Outsource or not to Outsource?

  • THAT is the question

  • To outsource:

  • To not outsource:


International market entry options

International Market Entry Options

  • Exporting

  • Contracting

  • Strategic Alliances

  • Joint Venture


Market entry options

Market Entry Options

  • Exporting

    • Goods are produced ___________

    • Sales are made through __________________

    • Lowest commitment and risk

    • Disadvantages


Market entry options1

Market Entry Options

  • Contracting

    • Two types

      • Licensing

        • What can be licensed?

        • Advantages

        • Disadvantages

      • Management contracts

        • Turnkey operations


Market entry options2

Market Entry Options

  • Strategic Alliances

    • “Collaborations among partners involving the commitment of capital and management resources with the objective of enhancing the partner’s competitive positions.”

    • Advantages

    • Disadvantages


Market entry options3

Market Entry Options

  • Joint Ventures

    • Why?

    • Advantages

    • Disadvantages

  • Choosing a Mode of Entry

    • Factors


Multidomestic v global

Multidomestic v. Global

  • Multimdomestic

  • Global


International strategy and the value chain

International Strategy and the Value Chain

  • Primary activities

    • Upstream

    • Downstream

  • Competitive Advantage

    • Downstream

    • Upstream

  • Coordination

  • Configuration


General framework

General Framework

  • Build a Unique Competitive Position

  • Emphasize a Consistent Positioning Strategy

  • Establish a Clear Home Base for Business

    • What’s a home base?

      • HP

  • Leverage Product Line Home Bases at Different Locations


  • General framework1

    General Framework

    • Disperse Activities to Extend Home Base Advantages

      • Purchase from cost-effective vendors

      • Improve market access

      • Tap competitive advantages in other places

  • Coordinate and Integrate Dispersed Activities

    • Establish clear global strategy

    • Develop info and accounting systems

    • Encourage personal relationships

    • Rely on incentive systems


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