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Presentation for international marketing


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Presentation for international marketing

  1. 1. Presentation ForInternational Marketing Presented By Pravin Rathod
  2. 2.  A domestic company will be a company that is within the country of its own origin. or... Domestic organizations are company who travel within their current country for e.g. Rail gives a travel service within the UK. It reaches to most destinations dedicated to their passenger needs, coaches is also another example because it reaches numerous amounts of destinations within the UKDomestic Company
  3. 3.  operates beyond national borders and in more than one country, sees the globe as one single market without borders, and earns profits in a global basis. It pursues integrated activities on a worldwide scale, sees the whole globe as one market and moves products, manufacturing, capital and even personnel wherever they can gain advantages. They operate with resolute consistency with relative price as if the whole world or large areas are single ones. They sell the commodity the same way everywhere, that is a standardized commodity. They usually have strong base on economic regions such as the Pacific Rim, NAFTA, and EU. Products are developed for the entire globe market and the company gives changes in order to be able to move from regional to product line based on profits. Centers and senior executives are from different countries. For example; GE, Texas Instruments, Hitachi, ICI British Chemical, Daewoo, and Hyundai.Global Companies
  4. 4.  In the multi-domestic company the subsidiaries in different countries operate the entire value chain including purchasing, production, marketing, sales activities and R&D. The integration between activities across subsidiaries and country borders are limited. Export to neighbor countries may occur, but typically the multi-domestic company concentrates on the local business. Subsidiaries interactions across borders mainly concern administration and finances, rather than production and services. Multi-domestic companies often exploit a firm-specific advantage abroad, which focuses on local responsiveness. The reasons for that are differences in markets, cost of transportation and importance of a close link to specific customers etc.Multidomestic Comany
  5. 5.  The multi-domestic company becomes international because of the companies it owns in several countries, rather than due to cross-border operations. The dominant form of internationalisation for the multi-domestic company is foreign acquisitions. In the multi- domestic company the operations of the different subsidiaries are adapted to the different host-markets, and their operations are relatively independent of the parent company. The strategic role of the subsidiary is the role of a local innovator.Contd
  6. 6.  is a firm having operations in more than one country, international sales and a multinational mix of managers and owners. (e.g., Ford, Toyota, GE, IBM, Intel, Sony with headquarters both in N.Y. and Tokyo). Some MNC have more than a hundred subsidiaries and follow absolute and comparative advantages policies. MNC also have different number of foreign production sites and thus different numbers of international markets. This company earns profits in different markets and not only operates in different countries but, owns alliances in other countries and has no allegiance to a particular country. MNC are based and owned in one country with manufacturing facilities in two or more countries in which profits are not invested. The company is owned by stockholders in several countries and is based in two or more countries.MNC
  7. 7.  is any business which has productive activities in two or more countries and manufactures and markets products and services in different countries. MNE is an efficient agent for transferring capital, managerial skills, culture, technology, industrial know how, product design, line and brand name, and goods and services across countries. MNE also transfers information such as its superior information gathering ability, headquarter’s discoveries, and exploit opportunities beyond the domestic market. MNE can bear the risks of ventures great size and financial strengths better than the domestic company can do. In the 1980s, there was a rise of non U.S. MNEs and the growth of the mini multinationals in the 1990s. United States. MNEs account for 2/3 of all direct investment, but in 2000, of the 260 largest MNE, only 48.5% were U.S. owned multinationals; Great Britain had 18.8%; Japan had 3.5%, and Latin America had 5%. Other countries with MNEs are: France, Germany, Canada, Sweden, Netherlands, Switzerland, Hong Kong, Singapore. Countries with mini multinationals in 2000s are Israel, Germany, United States, Australia, Italy, Brazil and Mexico with medium to small size companies such as Lubricating Systems of Kent, Ohio, Swan Optical and Cardiac Science.MNE
  8. 8. TNC are corporations owned and managed by the United States in different countries. Transnational corporations also tend to view the world as one giant market for purpose of business. TNCs combine elements of function, product, and geographic designs, while relying on network arrangements to link worldwide subsidiaries. Advantages of MNE: 1. Advance Technology: It has better access to advance technological levels which makes them extremely competitive when entering new foreign markets. 2. Learning Curve: Productivity of the MNE in manufacturing industries increases through the experience production. 3. Product Development: It can capitalize in development of products in one market, and; if successful, uses that success to exploit other foreign markets.
  9. 9.  4. Financial Strength: Because of its sheer size, MNEs can be larger than governments of countries in which they operate. (g. GM is larger than fifty countries. They are able to capitalize easier, at a lower costs, than local foreign companies. The issue of control is important. 5. Management: Being large organizations, MNEs have depth in management ranks. MNCs can afford to employ individuals with specialized business skills to enhance company’s profits and/or effectiveness. 6. Reduction of Political Risk: Because there are different political and economic systems in existence there is more risk involve for the MNCs, but MNEs do business in many different sovereignties and therefore, they are able to spread the risk over many other locations. a 7. Rationalized Production and Global Sourcing: MNEs are able to produce different components in different markets and sell their products in different markets. 8. Less Interdependence: Because of regionalization and because of realignments at the macro and micro levels.Cond
  10. 10. Thank You