INTERNATIONAL MARKETING MANAGEMENT

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INTERNATIONAL MARKETING MANAGEMENT
SESSION 3 ESTABLISHING INITIAL ENTRY OBJECTIVES
DEVELOPING COMPETITIVE ADVANTAGE
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ESTABLISHING INITIAL ENTRY OBJECTIVES
THE CORPORATE MISSION STATEMENT
ESTABLISHING STRATEGIC GOALS AND OBJECTIVES
DEFINING COMPETITIVE ADVANTAGE
CHOICE OF COUNTRY(IES) AND ENTRY STRATEGY
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THE CORPORATE MISSION STATEMENT
G.M. is committed to being a global
corporation, in every way, in planning,
technology, sourcing and manufacturing processes,
financing and marketing strategies, and in the
products themselves to a cleaner environment
throughout the world, and is diligently working
to ensure that its plants and products contribute
to a better environment everywhere. Unilever
People and our understanding of how theyre
different, as well as what they have in common,
what they need now and what they may want in the
future are at the heart of everything we do.
And because weve been in so many places for so
long, we can truly say we are the multi-local
multinational.
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NATIONAL DETERMINANTS OF COMPETITIVE ADVANTAGE
Firm strategy, structure, rivalry
Factor conditions- basic resources- advanced
resources
Demand conditions
Related and supporting industries
macro perspective
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ESTABLISHING GOALS AND OBJECTIVES

• DEGREE OF INVOLVEMENT IN INTERNATIONAL MARKETS
• Company Resources
• Role of Management Attitudes
• Industry Structure
• LEVEL OF RISK
• Macro-Economic Risk
• Competitive Risks
• Policy Risk

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COMPETITIVE ADVANTAGE
micro perspective
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COST-BASED COMPETITION

• LEVERAGES
• Operating Efficiencies
• Cost AdvantagesVULNERABILITIES
• Change in Costs
• Currency Swings
• Competition

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DIFFERENTIATION-BASED COMPETITION

• LEVERAGES
• Strong Brand Image
• Quality
• Innovation
• VULNERABILITIES
• Changes in Customer Tastes
• Competing Products and Services

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BROAD-BASED

• ADVANTAGES
• Targets Large Market
• Economies of Scale and Slope
• Meets Competition
• LIMITATIONS
• Spreads Resources
• Less Focused

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FOCUSED

• ADVANTAGES
• Targeted Effort
• Clearly Defined Image
• LIMITATIONS
• Limited Market Coverage
• Risk Not Diversified

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SKILLS AND CAPABILITIES

• BASIS FOR LONG-RUN SUSTAINABLE COMPETITIVE
  ADVANTAGE
• RD
• Production
• Marketing
• Logistics
• - Adapt to Market Dynamics and Strategy

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SUMMARY

• Importance of establishing objectives to guide
  allocation of resources and effort to
  international markets
• Role of risk in establishing objectives
• Competitive advantage based on resources, skills
  and capabilities
• Initially try to leverage domestic advantage in
  international markets

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