1. Global Marketing Strategy

2. 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

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

4. 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

5. 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

6. 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

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

8. 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

9. 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

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

11. 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

12. 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

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

14. 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