BUS350 - Ch.11

Thisstrategymakessensewhentherearestrongpressuresfor

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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 2. localization 3. transnational 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? A localization...
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This document was uploaded on 03/05/2014.

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