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Unformatted text preview: arketing strategies may be influenced by differences in distribution channels between countries.
4. Host Government Demands Economic and political demands imposed by host country governments may necessitate a degree of local responsiveness. 25 of 40 Take a 10‐minute break
Be back on time. 26 of 40 Choosing a Strategy
Question: How do the pressures for cost reductions and local responsiveness influence a firm’s choice of strategy?
There are four basic strategies to compete in the international environment
1. global standardization
4. international 27 of 40 Global Standardization Strategy
Question: When does a global standardization strategy make sense?
A global standardization strategy focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies.
• The strategic goal is to pursue a low‐cost strategy on a global scale.
This strategy makes sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal.
28 of 40 Localization Strategy
Question: When does a localization strategy make sense?
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This document was uploaded on 03/05/2014.
- Spring '14