1. INTERNATIONAL MARKETING MANAGEMENT
SESSION 14:
DEVELOPING GLOBAL MARKETING STRATEGY: FOCUSED STRATEGIES 1

2. Position and Resources of Business and
A FRAMEWORK FOR GLOBAL STRATEGY
Position and Resources of Business and
Parent Company
Global Strategy
Geographic Scope
Market Scope (Segmentation)
Product Lines
Degree of Strategy Integration
Benefits/
Costs of
Globally Integrated
Strategy
Industry Globalization Drivers
Market
Economic
Environment
Competitive
Organization’s
Ability to
Implement a
Global Strategy 2

3. Environmental Factors Potential for Global Strategy
EXTERNAL DRIVERS OF INDUSTRY POTENTIAL FOR GLOBALIZATION
Homogeneous market needs
Global customers
Shortening product lifecycle
Transferable brands and advertising
Internationalizing distribution channels
Market Factors
Economic Factors
Environmental Factors
Worldwide economies of scale in manufacturing or distribution
Steep learning curve
Worldwide sourcing efficiencies
Significant differences in country costs
Rising product development costs
Falling transportation costs
Improving communications
Government policies
Technology change
Potential for Global Strategy
Competitive interdependence among countries
Global moves of competitor
Opportunity to preempt a competitor’s global moves 3
Competitive Factors

4. ACHIEVING GLOBAL SYNERGIES
LEVERAGING ASSETS
AND POSITION
STRATEGIC
FLEXIBILITY
Scale Efficiencies
Coordination and Integration
Transfer of Ideas, Experience and Know-how
Production Shifting
Multiple Sourcing
Transfer Pricing
Managing Cash Flow
Global Strategy 4

5. COMPETITIVE STRATEGIES IN A GLOBAL INDUSTRY
Locally
Responsive
Country Region
Broad-
Based
Focused
MARKET
SCOPE
Globally
Integrated
Global Segment
National
Niche
HYBRID
Degree of Integration 5

6. Level of Market Integration
THE GEOGRAPHIC SCOPE OF THE MARKET
Geographic Coverage
REGION
Regional-Urban
Restricted
Multi-Domestic
Regional
WORLD
International-Urban
Multi-Region
Global
COUNTRY
Multi-Urban
Domestic
CITY
Urban
Level of Market Integration 6

7. National Niche Strategies Multiple Global Segments
FOCUSED SEGMENT STRATEGIES
National Niche Strategies
Global
Segment
Multiple Global Segments
e.g. Schweppes
e.g. Rolex, Benetton
e.g. L’Oreal 7

8. Clearly Defined Position Limited Resource Needs CHALLENGES How to Grow
FOCUSED STRATEGIES
ADVANTAGES
Customer Focused
Clearly Defined Position
Limited Resource Needs
CHALLENGES
How to Grow
Remaining Focused
Responding to Market Changes 8

9. Need to determine market scope and degree of strategy integration
IMPLICATIONS
Need to determine market scope and degree of strategy integration
Global focused strategies provide clear direction but pose growth issues
Broad-based strategies typically more complex and pose integration challenges 9