MGNT 4670 CHAPTER 13 Strategy in Intl Bus. 2013

S style high pressure type of selling acceptance of

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Unformatted text preview: n industries of standardized, commodity type product that serve universal needs Meaningful differentiation on non­price factors is difficult Major competitors are based in low­cost locations Consumers are powerful and face low switching costs Liberalization of world trade and investment environment Examples of industries with cost pressures Commodity­type products which usually serve universal needs e.g.. Bulk chemicals, petroleum, steel, semi­conductor chips Industries which locate in low­cost locations e.g. tire industry PRESSURES TO BUILDING AN PRESSURES TO BUILDING AN INTERNATIONAL STRATEGY ►PRESSURES FOR LOCAL RESPONSIVENESS Differences in consumer tastes & preferences ► North American families like pickup trucks while in Europe they North are viewed as a utility vehicle for firms are Differences in infrastructure & traditional practices ► Consumer electrical system in North America is based on 110 Consumer volts; in Europe on 240 volts volts; Differences in distribution channels ► Pharmaceutical sales in Japan and Britain are radically different Pharmaceutical than the U.S. style “high pressure” type of selling; acceptance of the “supermarket” varies considerably from country to country the Host­Government demands ► Health care system differences between countries require Health pharmaceutical firms to change operating procedures pharmaceutical LOCAL RESPONSIVENESS vs. LOCAL RESPONSIVENESS vs. STANDARDIZED PRODUCTS Theodore Levitt: (“The Globalization of Markets,” HBR May/June 1983) ► ► ► Globalization and technology have b...
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This document was uploaded on 02/26/2014.

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