Global Marketing Strategy

Strategic Planning “Strategy is a System of Improvisations. It is the ongoing evolution of the central idea under constant changing conditions, it is the art of acting under difficulties and pressure” Helmuth Karl Bernhard von Moltke

Basic Questions of Strategic Planning: 1. Where are We? 2. Where Do We Want to be? 3. How Do We Get There?

1. Where are We? Analysis of:  Present Environment - Industry Environment  Size, Growth, Maturity  Fragmented versus Concentrated  Profitability of Industry - Market Trends - Competitive Environment - Legal Environment - Political Environment - Socioeconomic Environment - Technical Environment  Technical Innovations  Technology driven versus Image and Service driven

1. Where are We? (cont..) Analysis of:  Company Resources - Financial - Human - R & D - Sources of Supply - Alliances and Strategic Networks - Synergies - Company specific Know How and Skills - Connections with Customers, Politicians, Governmental Agencies, Related Companies

1. Where are We? (cont..) Analysis of:  Core Competencies  Outsourcing versus Transaction Cost  Competitive Advantage  Cost Leadership  Differentiation  Strength and Weaknesses  Critical Factors of Success  Benchmarking  Product Life Cycle  Portfolio Theory  BCG Model  GE Model  SWOT Present Situation

Competence/Market Matrix 1. Where are We? (cont..) Competence/Market Matrix New Core Competence Existing Existing New Market

BCG Model Low Cash Cow Dog Market Attractiveness Star ? High High Low Relative Competitive Advantage Cash Cow = Invest to Keep Operation Running Dog = Divest Star = Invest to stay Market Leader ? = Either Divest or heavily Invest to become better Competitor

BCG Model Market Attractiveness Relative Competitive Advantage  Growth  Size  Competition  Environment  Legal  Political  Socioeconomic  Quality  Profitability  Fragmentation  Price Elasticity  Market Entry Barriers  Risk of Substitution  Negotiation Power  Risk of Unions  Sourcing Possibilities Relative Competitive Advantage  Market Share  Production Efficiency  Cost  Capacities  Accesses to Input Factors  Image  R&D Efficiency  Management Efficiency  Core Competencies  Alliances and Joint Ventures  Synergies

2. Were do We Want to be? Cont.. Company Vision

3. How do We Get There? Strategic Marketing/Business Plan Which Countries? Which Mode of Entry Which Strategy?  Domestic Market Extension Ethnocentric Management Orientation  Multinational Polycentric Management Orientation  Global Geocentric Management Orientation

3. How do We Get There? Strategic Marketing/Business Plan - Standardization versus Adaptation “Homogeneous Global Village” Theodore Levitt But Differences in: Laws and Regulations Culture and Ensuing Consumer Tastes and Preferences Economic Realities

3. How do We Get There? Strategic Marketing/Business Plan - Standardization versus Adaptation

3. How do We Get There? Strategic Marketing/Business Plan - Product Positioning/Promotion How is the Product Perceived Relative to Competitors’ Offerings? Company and Brand Image Country of Origin Effect? Price Pricing in Foreign Currency Price of Competitor’s Products Disposable Income of Target Market Placement Local Distribution Channel