Market Mix
Summary Global Marketing
A market-responsive approach
Svend Hollensen Second Edition 2001 ISBN 0-273-64644-3
-1-
PART 1 Chapter 1
THE DECISION WHETHER TO INTERNATIONALIZE
Global marketing in the firm
SME: small medium sized enterprises LSE: large scale enterprises Companies wit little international experience and a weak position in their home market have little reason to try to perform on global markets. Instead they should try to establish a stronger position on their home market. A firm that finds itself as a dwarf on the global market may seek ways to increase their net worth by seeking partners, suited for a buy-out on longterm. If a firm already has international competences, it can overcome some of it’s competitive disadvantages by going into alliances with companies representing complementary competences. If you are ready for global marketing or not is bases on two things: 1. The industry of your business (how global is / can it be) 2. The preparedness for internationalisation 1 can be divided into mature; adolescent; immature 2 can be divided in local; potentially global; global Given the character of a company in both segments, one of the nine possible strategies can be chosen. You can find these in figure 1.1 on page 4 of Global Marketing. Difference between management styles of LSE and SME: Many LSE have begun downsizing their companies operations, so in reality, many LSE act like a lot of small differ operations. It can be noted that SME are working more on long term strategies, while LSE’s are working les on it. The consequence of both movements is maybe an action orientated approach, where firms use the strength of both orientations. What are the differences in starting points? LSE have traditionally bases their strategy on taking advantage of “economies on scale” by launching standardized products on a worldwide basis. SME have always seen national markets as independent from each other. But as international competitiveness
A market-responsive approach
Svend Hollensen Second Edition 2001 ISBN 0-273-64644-3
-1-
PART 1 Chapter 1
THE DECISION WHETHER TO INTERNATIONALIZE
Global marketing in the firm
SME: small medium sized enterprises LSE: large scale enterprises Companies wit little international experience and a weak position in their home market have little reason to try to perform on global markets. Instead they should try to establish a stronger position on their home market. A firm that finds itself as a dwarf on the global market may seek ways to increase their net worth by seeking partners, suited for a buy-out on longterm. If a firm already has international competences, it can overcome some of it’s competitive disadvantages by going into alliances with companies representing complementary competences. If you are ready for global marketing or not is bases on two things: 1. The industry of your business (how global is / can it be) 2. The preparedness for internationalisation 1 can be divided into mature; adolescent; immature 2 can be divided in local; potentially global; global Given the character of a company in both segments, one of the nine possible strategies can be chosen. You can find these in figure 1.1 on page 4 of Global Marketing. Difference between management styles of LSE and SME: Many LSE have begun downsizing their companies operations, so in reality, many LSE act like a lot of small differ operations. It can be noted that SME are working more on long term strategies, while LSE’s are working les on it. The consequence of both movements is maybe an action orientated approach, where firms use the strength of both orientations. What are the differences in starting points? LSE have traditionally bases their strategy on taking advantage of “economies on scale” by launching standardized products on a worldwide basis. SME have always seen national markets as independent from each other. But as international competitiveness