BUS350 - Ch.11

2differencesininfrastructureandtraditionalpractices

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Unformatted text preview: n major competitors are based in low cost locations • where there is persistent excess capacity • where consumers are powerful and face low switching costs To respond to these pressures, firms need to lower the costs of value creation. 22 of 40 Pressures for Local Responsiveness Pressures for local responsiveness arise from 1. differences in consumer tastes and preferences 2. differences in traditional practices and infrastructure 3. differences in distribution channels 4. host government demands Firms facing these pressures need to differentiate their products and marketing strategy in each country 23 of 40 Pressures for Local Responsiveness 1. Differences in Consumer Tastes and Preferences When consumer tastes and preferences differ significantly between countries, firms face strong pressures for local responsiveness. 2. Differences in Infrastructure and Traditional Practices When there are differences in infrastructure and/or traditional practices between countries, pressures for local responsiveness emerge. 24 of 40 Pressures for Local Responsiveness 3. Differences in Distribution Channels A firm’s m...
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This document was uploaded on 03/05/2014.

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