introduction to global business
TRANSCRIPT
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Introduction to Global Business
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International Marketing
Philips Cateora and John M Hess
International Marketing is defined as
Performance of business activities that direct
the flow of a companys goods and services to
consumers and users in more than one nation.
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Nathalie Prime
Internationalmarketing consists in
identifying and satisfying consumer needs
abroad; better than the national and
international competitors, under the constraints
of the internationalization stage of the firm and
the global environment.
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Changing Business environment
1.Liberalisation
2.Privatisation
3.Globalisation
4.Technology
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Indian Economy
1.In the past one year, the Indian rupee has been loosing
momentum continuously .2. While a weak rupee may be good for certain sectors, it
certainly is bad for the Indian economy on the whole.
3. The rupee-dollar exchange ratetoday??
4. Rupee depreciation is making
a. Imports expensive
b. Not helping exports because of economic slow down.
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FACTORS AFFECTING THE RUPEE
MOVEMENT
1. Fiscal deficit of a country is an important factor
that drives the currency of that nation.
2. Dollar Demand-Supply
Rising oil prices mean more dollars are required by Indian
oil companies to import crude oil since oil price is quoted in
the US dollar in the international market.
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FACTORS AFFECTING THE RUPEE MOVEMENTcont.
3. Global Factors
The current crisis in the Euro zone triggered
-by political uncertainty in Greece- the recent election results in France and Germany are pointing
towards negative sentiments for austerity measures taken bythe government.
Overall, there may be more bad news coming from the Euro
zone. Hence, the dollar is getting stronger against othercurrencies, including the rupee
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1. Rise of Brazil, Russia,
India, Chinaand
S.Africa
(BRICS)
2. Euro zone Crisis
3.Strengthening of US Dollar
Global Perspective: Recent Events
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History of International Marketing
International Business in 3000BC in India.
Indian goods reached Egypt, Mesopotamia,
South East Asia.
Latter half of 20th century large US, European
and Japanese companies expanded their
markets as well as production facilities beyond
national borders.
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Factors for growth in International Markets
Profit
PLC Stage
Competition
Excess Capacity
Geographic Diversification
Increase in Market Size
ICT and transportation facilities
Income Growth
Lower trade barriers
Desire for new products (consumes) and new markets(marketers)
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Domestic Marketing
Market Focus Domestic
Orientation Ethnocentric
Marketing Mix Decisions Focused on Domestic
Customers
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Export Marketing
Market Focus
Market Focus Overseas (Targeting and Entering
Foreign Markets)
Orientation Ethnocentric
Marketing Mix Decisions Focused on Domestic Customers
Overseas Marketing-Generally
extension of Domestic MarketingDecisions made at Headquarters
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International Marketing
Market Focus Caters to specific needs of a
few overseas market
Orientation Polycentric Orientation
Marketing Mix Decisions Products manufactured in homecountry with separate product
adaptations for different markets
Product Decisions made by
individual subsidiaries
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Multinational Marketing
Market Focus DomesticMarket Focus Consolidation of operations onregional basis
Gains from Economies of Scale
Orientation Regiocentric
Marketing Mix Decisions Product Standardization withinregions but not beyond them
On regional basis
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Geocentric
Market Focus Consolidating firms operations on
Global Basis
Orientation Geocentric
Marketing Mix Decisions Globalization of marketing mixdecisions with local variations
Joint decision making across firms
global operations
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Global Retailing
Global Retail limited to luxury goods.
- Such as Gucci, Cartier
ORSpecialty firms
Ikea, Body Shop
RecentlyMass market retailers- WalMart, Carrefour.
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II. Competitive Structure
Porters Framework- competitive structure within the
industry
-Degree of rivalry among existing firms, a consequenceof
a. No. of Competitors
b. Industry Growthc. Product Differentiation
d. Exit Barriers
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Threat of new entrants
Some barriers make it difficult.
Economies of scaleLimited access to channels of distribution, high
switching cost, government policy.
Firms with favorable raw materials, technologybenefit, hence absolute cost advantage.
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Threat of Substitute Products
Bargaining power of buyers
Bargaining power of Suppliers
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Theory of Competitive Advantage(Competitive Advantage of Nations, Michael Porter)
Porters Diamond Model
-Factor Conditions (Input)
-Demand Conditions
-Related and Supporting Activities.(IT Hub
Bangalore, gems andjewellery (Jaipur), MetalHandicrafts- Moradabad)
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-Firm Strategy, Structure,Rivalry
2 other factors
-Chance- Govt.
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Thank You