Global Market Strategies
The Internationalization of U.S. Business

Many U.S. Companies are now foreign owned.
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Companies with only domestic markets have
found it difficult to sustain customary rates of
growth.

Many companies are increasingly seeking foreign
markets.
“Buy American” Quiz
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Sak’s Fifth Avenue
Burger King
Michelin
Shell
Seagrams
Bonwit Teller
Hardee’s
Firestone
BP
Jack Daniels
Foodline
BiLo
Foreign Acquisitions of U.S. Companies
U.S. Companies
Foreign Owner
Bestfoods (foods)
Ben & Jerry’s (ice cream)
Alpo (pet food)
Pillsbury (food)
Burger King (fast food)
Random House (publishing)
Chrysler (autos)
TV Guide (magazine)
New York Post (newspaper)
LA Dodgers (sports)
Arco (gasoline)
CompUSA (retailing)
Seagram (alcoholic beverages)
SOURCE: Adapted from Kuri Badenhausen. “Name Game”, Forbes. Jul 24, 2000
U.K.
U.K.
Swiss
U.K.
U.K.
Germany
Germany
Australia
Australia
Australia
U.K.
Mexico
France
Top 10 U.S. Players in the Global Game
Company
ExxonMobil
1-4
Foreign
Revenues
($ Mil)
Foreign
Foreign
Foreign
Revenues
Profits
Assets
(% of Total) (% of Total) (% of Total)
115,464
71.8
62.7
63.9
IBM
50,377
57.5
49.6
43.7
Ford Motor
50,138
30.8
N/A
44.2
General Motors
46,485
26.3
55.3
38.0
General Electric
35,350
31.7
22.8
47.4
Texaco
32,700
77.1
54.1
45.2
Citigroup
28,749
35.1
N/A
41.0
Hewlett-Packard
23,398
55.2
58.0
51.5
Wal-Mart Stores
22,728
13.8
8.2
36.0
Compaq Computer
21,174
55.0
101.4
28.2
Irwin/McGraw-Hill
SOURCE: Adapted from Brian Zajac, “Global Giants”. Forbes, July 24, 2000
International Marketing Defined

International Marketing is the performance of
business activities that direct the flow of a
company’s goods and services to consumers or
users in more than one nation for a profit.

Marketing concepts and principles stay the same,
but the environment changes.
The International Marketing Task
Foreign environment
(uncontrollable)
1
Political/legal
forces
7
Cultural
forces
Domestic environment
(uncontrollable)
Political/
legal
forces
(controllable)
Price
Promotion
6
Geography
and
Infrastructure
Economic
forces
2
Competitive
structure Competitive
Forces
Product
Channels of
distribution
7
Level of
Technology
Economic climate
5
4
Structure of
distribution
3
Environmental
uncontrollables
country market A
Environmental
uncontrollables
country
market B
Environmental
uncontrollables
country
market C
Environmental Adaptation

Adjusting to a country’s culture (uncontrollable
environment) is critical.

Consider and adjust your frame of reference (selfreference criterion).

Avoid cultural errors by being aware of cultural
relativism--marketing strategies and judgments are
based on experience, and experience is interpreted
by each marketer in terms of his/her own culture.
Being Globally Aware

To be Globally Aware is to be:
Objective
Tolerant of Cultural Differences
Knowledgeable of:
Cultures
History
World Market Potentials
Global Economic and Social Trends
Entry Strategies

Exporting

The Internet

Contractual Agreements

Joint Ventures

Direct Foreign Investment
Trends in Global Business
• Internationalization of U.S. Markets
• Internationalization of U.S. Business
• Growth of Regional Trade Areas
• Move toward free market system by countries in Latin America,
Asia, Eastern Europe
• Large Emerging Markets such as Argentina, China, South Korea,
Poland, India
• Evolving global middle income households
• GATT and World Trade Organization
Possible Regional Trade Groups in the 21st Century

Western Hemisphere Free Trade Areas (WHFTA)
Canada to Argentina

Asia-Pacific Economic Cooperation (APEC)
Pacific Rim Countries including U.S.

U.S./Canada/Mexico/Japan

South American Free Trade Area (SAFTA)
Andean Pact and Mercosur

Chinese Economic Area (CEA)
Hong Kong, Taiwan, Coastal Provinces of So. China

U.S./European Union

Many possibilities of Republics of Russia, Baltic States