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INTERNATIONAL MARKETING MANAGEMENT

INTERNATIONAL MARKETING MANAGEMENT. SESSION 3: ESTABLISHING INITIAL ENTRY OBJECTIVES: DEVELOPING COMPETITIVE ADVANTAGE. 1. ESTABLISHING INITIAL ENTRY OBJECTIVES. THE CORPORATE MISSION STATEMENT. ESTABLISHING STRATEGIC GOALS AND OBJECTIVES. DEFINING COMPETITIVE ADVANTAGE.

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INTERNATIONAL MARKETING MANAGEMENT

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  1. INTERNATIONAL MARKETING MANAGEMENT SESSION 3: ESTABLISHING INITIAL ENTRY OBJECTIVES: DEVELOPING COMPETITIVE ADVANTAGE 1

  2. ESTABLISHING INITIAL ENTRY OBJECTIVES THE CORPORATE MISSION STATEMENT ESTABLISHING STRATEGIC GOALS AND OBJECTIVES DEFINING COMPETITIVE ADVANTAGE CHOICE OF COUNTRY(IES) AND ENTRY STRATEGY 2

  3. THE CORPORATE MISSION STATEMENT G.M. is committed: “to being a global corporation, in every way, in planning, technology, sourcing and manufacturing processes, financing and marketing strategies, and in the products themselves… …to a cleaner environment throughout the world, and is diligently working to ensure that its plants and products contribute to a better environment everywhere.” Unilever: “People – and our understanding of how they’re different, as well as what they have in common, what they need now and what they may want in the future – are at the heart of everything we do. And because we’ve been in so many places for so long, we can truly say we are the multi-local multinational.” 3

  4. ESTABLISHING GOALS AND OBJECTIVES DEGREE OF INVOLVEMENT IN INTERNATIONAL MARKETS • Company Resources • Role of Management Attitudes • Industry Structure LEVEL OF RISK • Macro-Economic Risk • Competitive Risks • Policy Risk 4

  5. NATIONAL DETERMINANTS OF COMPETITIVE ADVANTAGE Firm strategy, structure, rivalry Factor conditions- basic resources- advanced resources Demand conditions Related and supporting industries macro perspective 5

  6. SOURCES OF COMPETITIVE ADVANTAGE broad-based Broad Market Coverage tailored Narrow segment focused “advanced” High Cost Leadership Playing the spread EMPHASIS ON COST SUPERIORITY Losing the game Differentiating “base” Low Low High 6 EMPHASIS ON SUPERIOR CUSTOMER VALUE

  7. COST-BASED COMPETITION LEVERAGES • Operating Efficiencies • Cost AdvantagesVULNERABILITIES • Change in Costs • Currency Swings • Competition 7

  8. DIFFERENTIATION-BASED COMPETITION LEVERAGES: • Strong Brand Image • Quality • Innovation VULNERABILITIES • Changes in Customer Tastes • Competing Products and Services 8

  9. BROAD-BASED ADVANTAGES: • Targets Large Market • Economies of Scale and Scope • Meets Competition LIMITATIONS • Spreads Resources • Less Focused 9

  10. FOCUSED ADVANTAGES: • Targeted Effort • Clearly Defined Image LIMITATIONS: • Limited Market Coverage • Risk Not Diversified 10

  11. SKILLS AND CAPABILITIES BASIS FOR LONG-RUN SUSTAINABLE COMPETITIVE ADVANTAGE • R&D • Production • Marketing • Logistics - Adapt to Market Dynamics and Strategy 11

  12. SUMMARY • Importance of establishing objectives to guide allocation of resources and effort to international markets • Role of risk in establishing objectives • Competitive advantage based on resources, skills and capabilities • Initially try to leverage domestic advantage in international markets 12

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