A MNC approach to expand globally and toapproach with a standardise or adapted strategy

1. Emmanuel Ahoulou
Vineet Kumar Tyagi
Tatiana Serrano
Xingang Yu

3. RELATIONSHIP BETWEEN PRODUCT
QUALITY, PROFITABILITY AND MARKET
SHARE.
How quality is defined?
1.Greater conformance to product
specifications-----high market
share.
2.Superior or more expensive
features-----low market share.

4. THE IMPACT OF PRODUCT LINE BREADTH
ON MARKET SHARE AND PROFITABILITY
•A broad product line
can reduce the
chances of market
share erosion.
•The relationship
between product line
breadth and profit is
equivocal.

5. VERTICAL INTEGRATION
Is a firm’s acquisition of the control of the different stages of production
process from the earliest processes of raw materials to the distribution of
the final products.
There are two types of vertical integration:
• Forward
• Backward integration.
Expenditures can be referred to the cost of
companies for acquiring the inputs and
manufacturing a product.

6. EXPENDITURE AND
COMMUNICATION ELEMENTS
The marketing communication elements are a specific mix of advertising, personal
selling, sales promotion, public relations and direct marketing, a company uses to
pursue its marketing objectives.
Advertising refers to any form of
paid of non-personal presentation
of ideas, goods or service by an
identified sponsor. Personal selling refers to the
presentation by the firm’s sales force
for the purpose of making sales and
Sales promotion refers to the short- building customer relationships.
term incentives to encourage the
purchase or sale of a product or service
and others.

7. NEW PRODUCTS
• Favorable effect on market share to • New products cannibalizes the
the extend that they satisfy customer sales of existing products and
needs better than the existing goods consume the marketing
and prevent competitors from taking resources that would otherwise
away business's customs with their go to them.
own new products.
• There is evidence to suggest that
• New products and profits are new product introductions could
positively related in the long term. hurt business profits in the short
run.
• New products and profits are
positively related when consumers • They require large investments in
are willing to pay a price premium for R&D, plant, equipment,
superior new products that cannot be advertising, promotion and
readily duplicated by competitors. investigation.

8. RESEARCH AND DEVELOPMENT
EXPENDITURES
This field, is concern with product innovation and process innovation,
trying to endow the business with competitive advantages.
Innovative new products and
improvements in existing products
resulting from R&D are less likely
to be vulnerable to price wars and
more likely to command a price
premium.
It has a long run results.

10. The question is addressed by
examining whether
standardization is better than
adaptation in a company.

12. PRODUCT
• Production economies of scale. • Meet differences at the stage of
• Economies in research and development, consumer differences in
development. taste, needs, wants, socio cultural
• Stock cost reduction. differences, lifestyle, consumer
• Consumer mobility. perception, beliefs and consumer
• Create world wide uniformity. practices, physical environment, etc.
• Psychological meaning. • Meet differences in technology.
• Consistency with customers. • Psychological meaning and the effect
• Improved planning and control. on the consumer.
• Synergetic effects. • Meet standards required.

14. PRICE
• Meet development stage
• Better control. differences.
• Price uniformity and • Meet exchange rate fluctuation.
consumer mobility. • Market demand rate.
• Meet competition and competitive
practices.
• Meet differences in the product life
cycle.
• Meet legal and political restriction.

16. PLACE
• Transfer of experience and • Meet different development stage and
efficiency. consumer buying behavior patterns.
• Economies of scale. • Meet differences in the physical environment.
• Number and size of intermediaries involved.
• Meet market size requirements.
• Specialization among channels of distribution.
• Differences in distribution structures and
patterns.
• Meet legal, political and technological
restriction.
• Difference in logistical decisions.
• Difference in the product lifecycle.
• Meets competition and competitive products.

18. PROMOTION
• Economies of scale. • Meet differences in the physical
• Consumer mobility and environment.
consistency with customer. • Meet legal and political restrictions,
• Create world-wide uniformity. • Meet development stage differences.
• Synergetic effects. • Meet exchange rate fluctuation.
• Psychological meaning. • Market demand rate.
• Meet competition and competitive
practices.
• Meet differences in the product life
cycle.
• Meet legal and political restriction.

19. PEOPLE, PROCESS AND PHYSICAL
• Achieve consistency with • Motivate and empower employees.
customers. • Allow flexibility in meeting consumer
• Offer universal appeal message non-identical needs and
and image. requirements.
• Achieve a strong corporate • Meet local competitive practices.
identity.
• Allow better identification by
customer.

22. Reasons for adapting and their level of
Importance UK
http://www.businessperspectives.org/journals_free/im/2007/im_en_2007_04_Vrontis.pdf