1. HOME REPLICATION STRATEGY

2. Characteristics
Hanoi, Vietnam

3. 1. Characteristics
• Centralizes product development functions in
home country
• Developed products transferred to foreign
markets to capture additional value
• The company must posses a distinctive
competence that local companies lack
• Headquarters maintains tight control over
marketing & product strategy
• Subsidiaries leverage home country capabilities
Hanoi, Vietnam

4. Hanoi, Vietnam

5. Advantages:
• Cut the production cost down in the first stage
of investment
• Engage in the home replication strategy as it
initially expands into foreign markets
• In local market, not need to implement
manufacturing but importing finished goods
and apply marketing model
• For business, can be a competitive strength for
newcomers
• Can leverage home country-based advantages.
Hanoi, Vietnam

6. Disadvantages
Hanoi, Vietnam

7. Disadvantages:
• No integration economies
• A firm most often adjusts its structure to
include an international division.
• International division is separate from all other
divisions and oversees activities
(exporting, franchising, and licensing ) =>leads to critical
problems
• The primary drawback is its low dedication to
local responsiveness => alienation of foreign
customers
• Lack of local responsiveness
Hanoi, Vietnam

8. Case Study
Hanoi, Vietnam

9. Procter &
Gamble (P&G)
Hanoi, Vietnam

10. Procter & Gamble
• The large U.S. consumer products company - the
world’s best marketers
• A dominant global force in laundry
detergents, cleaning products , personal-care
products
• Expanded abroad in the post-World War II years
• The strategy was flawed began to emerge in the
1970s
• By 1985, after thirteen years in Japan, losing $40
million a year there
Hanoi, Vietnam

11. Procter & Gamble
• Since the late 1980s: Attempting to delegate far
more to its major firms in Japan & Europe
• Summer of 1991: Entered the Polish with Vidal
Sasson Wash & Go, a bestseller in the United
States & Europe
At first: captured more than 30% of the market
for shampoos in Poland.
Early 1992 sales suddenly plummeted. The
rumors—Wash& Go caused dandruff and hair loss
=> allegations P&G has strenuously denied.
Hanoi, Vietnam

12. Procter & Gamble
“I washed my car with Wash &
Go, and the tires went bald.”
Where did P&G go wrong?
Hanoi, Vietnam

13. Procter & Gamble
 Promoted Wash & Go too hard in a
country has little enthusiasm for brash
American-style advertising
 Some believe Wash& Go was
developed for U.S. consumers
 Marketing strategy wholesale from the
US to another country without
modification accommodate the tastes
and preferences of local consumers.
Hanoi, Vietnam

14. Hanoi, Vietnam