INTERNATIONAL MARKETING
MANAGEMENT
SESSION 14:
DEVELOPING GLOBAL
MARKETING STRATEGY:
FOCUSED STRATEGIES
1
A FRAMEWORK FOR GLOBAL STRATEGY
Position and Resources
of Business and
Parent Company
Global Strategy
Industry Globalization
Drivers




Market
Economic
Environment
Competitive

Geographic Scope

Market Scope (Segmentation)

Product Lines

Degree of Strategy Integration
Benefits/
Costs of
Globally
Integrated
Strategy
Organization’s
Ability to
Implement a
Global Strategy
2
EXTERNAL DRIVERS OF INDUSTRY POTENTIAL FOR GLOBALIZATION
Market Factors





Homogeneous market needs
Global customers
Shortening product lifecycle
Transferable brands and
advertising
Internationalizing distribution
channels
Economic Factors





Environmental Factors
Worldwide economies of scale
in manufacturing or distribution
Steep learning curve
Worldwide sourcing efficiencies
Significant differences in
country costs
Rising product development
costs
Potential
for Global
Strategy







Falling transportation costs
Improving communications
Government policies
Technology change
Competitive interdependence
among countries
Global moves of competitor
Opportunity to preempt a
competitor’s global moves
Competitive Factors
3
ACHIEVING GLOBAL SYNERGIES
LEVERAGING ASSETS
AND POSITION

Scale Efficiencies

Coordination and
Integration

Transfer of Ideas,
Experience and
Know-how
STRATEGIC
FLEXIBILITY
Global
Strategy

Production
Shifting

Multiple Sourcing

Transfer Pricing

Managing Cash
Flow
4
COMPETITIVE STRATEGIES IN A GLOBAL INDUSTRY
Degree of
Integration
HYBRID
BroadBased
Locally
Responsive
Globally
Integrated
National
Niche
Global
Segment
MARKET
SCOPE
Focused
5
THE GEOGRAPHIC SCOPE OF THE MARKET
Level of Market Integration
Geographic Coverage
CITY
COUNTRY
REGION
WORLD
CITY
COUNTRY
REGION
WORLD
Urban
Multi-Urban
RegionalUrban
InternationalUrban
Domestic
Restricted
Multi-Domestic
Multi-Domestic
Regional
Multi-Region
Global
6
FOCUSED SEGMENT STRATEGIES
National Niche
Strategies
Global
Segment
Multiple Global
Segments
e.g. Schweppes
e.g. Rolex, Benetton
e.g. L’Oreal
7
FOCUSED STRATEGIES
ADVANTAGES
 Customer Focused
 Clearly Defined Position
 Limited Resource Needs
CHALLENGES
 How to Grow
 Remaining Focused
 Responding to Market Changes
8
IMPLICATIONS

Need to determine market scope and
degree of strategy integration

Global focused strategies provide clear
direction but pose growth issues

Broad-based strategies typically more
complex and pose integration challenges
9