Group 7 Exercises (suitable for use with the chapter relating to global competition and competing in foreign markets) 1. Is the international market arena in which your athletic footwear company competes characterized by multicountry competition or global competition? Explain why. We will say that it is global competition, because global competition refers to the situation when products and services requirements from country to country are similar and close. We will say that in this market they are pretty similar. Of course there is a need to adjust our prices in countries with lower purchasing power but demand is huge for same products as in other regions.
2. Is your company employing a global strategy in branded footwear or a strategy that varies significantly from geographic region to geographic region? If the latter, what are the specific strategy differences from region to region? Our company employs global strategy.
3. Is your company employing a global strategy in private-label footwear or a strategy that varies significantly from geographic region to geographic region? If the latter, what are the specific strategy differences from region to region? Same strategy in this market as well. Only price is a bit different. 4. To what extent, if any, have you and your co-managers adapted your company's strategy to take shifting exchange rates into account? In other words, have you undertaken any actions to try to (a) minimize the impact of adverse shifts in exchange rates or (b) capitalize on the impact of favorable exchange rate shifts? Why or why not? Unfortunately we don’t have production capacities in all regions and due to that fact it is impossible to completely minimize effect of exchange rates. We chose to maintain our production in current regions (NA and AP). Hence, we are trying to mitigate exchange rate effect if it is (by exporting from regions where currency depreciates to the regions where currency appreciate) possible if it is not we are...
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