Amphi #3. Competing in International Markets 1
Amphi #3. Competing in International Markets 1
Amphi #3. Competing in International Markets 1
COMPETING IN
INTERNATIONAL
MARKETS
PART I
MARKET ENTRY
STRATEGIES
Intermediate
Intermediate •An organizational arrange s: shared
modes between different companies to control and risk,
split ownership
(contractual): explore new foreign market
Hierarchical: high
control, high risk, low
flexibility.
Hierarchical •the firm completely owns and
modes: controls the foreign entry mode
EXPORT MODES
Export
modes
21/01/2022 8
Direct export modes
• In this mode the company assumes
responsibility for the entire export
project. You can do that by using:
•For attendance
purposes:
1. Log using your Office365
Skema account
OR
2. Type your Skema e-mail
instead of your name
Intermediate entry
modes
Intermediate
entry modes
Contract Strategic
Licesing Franchising Joint Venture
manufacturing alliances
•For attendance
purposes:
1. Log using your Office365
Skema account
OR
2. Type your Skema e-mail
instead of your name
Hierarchical modes
21/01/2022 25
What is a Subsidiary and a
foreign Branch?
SUBSIDIARY
• is a local company owned and operated
by a foreign company under the laws and
taxation of the host country
FOREIGN BRANCH
• is an extension of and a legal part of the
manufacturer (often called a sales office).
Taxation of profits takes place in the
manufacturer’s country.
21/01/2022 Plínio Monteiro
26
Region centres
The regional HQ (‘lead country’) will usually play the
role of coordinating and stimulating sales in the whole
region.
Advantages Disadvantages
• Synergies on • Potential for
regional/global increased
scale bureaucracy
• Scale efficiency • Limited national
• Ability to leverage level responsiveness
learning on cross- • Missing
national scale communication
between head
office and centre
12-27
Methods of establishing a
wholly-owned subsidiary
• A entry mode that • When the company
enables rapid entry establish operations
providing in some cases from the ground and
customers and where no appropriate
managerial experience acquisition targets are
to make a bridge into available or they are
the market. too costly
Acquisition Greenfield
Disadvantages
Local contacts
Established brand
names
12-29
Summary of
greenfield investment Advantages Disadvantages
Optimum High
format investment
possible cost
12-30
Wooclap time
www.wooclap.com/KJHGHG
•For attendance
purposes:
1. Log using your Office365
Skema account
OR
2. Type your Skema e-mail
instead of your name
Part II
Global Branding and
marketing mix
decisions
Link to course materials:
bit.ly/im-sk
1/21/2022
Learning Objectives
• Debate on the benefits and drawbacks of
standardized and adapted marketing mix
decisions.
• Explain global product and branding decisions
• Explain how internal and external variables
influence international pricing decisions
• Explore the determinants of international channel
decisions
• Discuss the challenges and decisions on global
communications and sales
21/01/2022
mix
36
Product & Brand
Promotio
n
Price
Place
Product decisions
Straight Product
Standard
extension adaptation
Product
Promotion invention
Promotion Dual
Adapt
adaptation adaptation
•For attendance
purposes:
1. Log using your Office365
Skema account
OR
2. Type your Skema e-mail
instead of your name
Global brand
concepts
More details in “Global Branding decisions (33:46):”
https://web.microsoftstream.com/video/fd096f5d-0116-49d9-8502-
d1bb5d247c50
Package Labels
• Needs to met • may differ by
country standards. country regarding
• May require various products
adaptations
(format,
information and
processes)
Aesthetics Warranties
• Aesthetic need to • Need to fill country
fill country cultural specifications and
and social also could be a
particularities source of
competitive
advantage
Global Brand and product
Challenges
Does this strategy fit the company and/or
its markets?
•For attendance
purposes:
1. Log using your Office365
Skema account
OR
2. Type your Skema e-mail
instead of your name
END OF LECTURE
21/01/2022 59