Assignment Revision What is the title of your assessment. It should be about exploring approaches that international firms utilise within their operations for products or services and how creativity and innovation can be used to improve the overall business performance. Tip – please do not plagiarise the above but construct your own. Your title can be much shorter and encapsulate the above description and (Apple) case study company. Contents structure Your table of contents to reflect a suitable structure, keeping focus on learning outcomes, module summary and marking criteria. See below. Introduction/Background/Context Opening paragraph – statements that reflects the module, title of your report and chosen case study. Tip - You are applying the theories, models, strategies and concepts you have learnt in class and via blended learning and your own studying to the case study rather than the other way round. So, next paragraph – mention a trend e.g. globalisation, internationalisation or pattern explaining strategic issues , and some critical concepts and how it related to your case study. Next paragraph outline different companies use different international operations strategies and the need for leadership and management when introducing change initiatives. Ehat is the current strategy of case company. Next paragraph how innovation has helped and can help companies achieve sustainable competitive advantages elsewhere. Has it helped your case company if yes can it help further or if no how can it help your case company. Final paragraph summarise what you are going to do in the remainder report. Tip – you need to align your structure to the learning outcomes. You need to apply the learning outcomes below to your case study e.g. evaluating current approaches of international company (Coca Cola) utilising within their operations for products or services… The same go for other learning outcomes below. (Please do not write about your case company directly or disregard the learning outcome which defines your structure and focus of your report. · Evaluation of current approaches international firms utilise within their operations for products or services using your case study. · What are the key issues, problems and practices that characterise international operations management. Be critical! · Critically evaluate how the role of can creativity and innovation can be used to improve the overall business performance in different national and cultural settings. · Critically assess approaches that can be identified for developing a culture of creativity and innovation in your case study. · Conclusion and Recommendations (Action Plan) Tip – this pretty much defines the Content starting with Introduction/background or context….. conclusion, recommendation (Action Plan). Of course you can vary this but DO NOT move away from this requirement, otherwise you will drift away from the central objective. Tips – I provide additional information approach.

1. Assignment Revision
What is the title of your assessment.
It should be about exploring approaches that international firms
utilise within their operations for products or services and how
creativity and innovation can be used to improve the overall
business performance.
Tip – please do not plagiarise the above but construct your own.
Your title can be much shorter and encapsulate the above
description and (Apple) case study company.
Contents structure
Your table of contents to reflect a suitable structure, keeping
focus on learning outcomes, module summary and marking
criteria. See below.
Introduction/Background/Context
Opening paragraph – statements that reflects the module, title of
your report and chosen case study.
Tip - You are applying the theories, models, strategies and
concepts you have learnt in class and via blended learning and
your own studying to the case study rather than the other way
round.
So, next paragraph – mention a trend e.g. globalisation,
internationalisation or pattern explaining strategic issues , and
some critical concepts and how it related to your case study.
Next paragraph outline different companies use different
international operations strategies and the need for leadership
and management when introducing change initiatives. Ehat is
the current strategy of case company.
Next paragraph how innovation has helped and can help
companies achieve sustainable competitive advantages
elsewhere. Has it helped your case company if yes can it help
further or if no how can it help your case company.
Final paragraph summarise what you are going to do in the

2. remainder report.
Tip – you need to align your structure to the learning outcomes.
You need to apply the learning outcomes below to your case
study e.g. evaluating current approaches of international
company (Coca Cola) utilising within their operations for
products or services…
The same go for other learning outcomes below. (Please do not
write about your case company directly or disregard the
learning outcome which defines your structure and focus of
your report.
· Evaluation of current approaches international firms utilise
within their operations for products or services using your case
study.
· What are the key issues, problems and practices that
characterise international operations management. Be critical!
· Critically evaluate how the role of can creativity and
innovation can be used to improve the overall business
performance in different national and cultural settings.
· Critically assess approaches that can be identified for
developing a culture of creativity and innovation in your case
study.
· Conclusion and Recommendations (Action Plan)
Tip – this pretty much defines the Content starting with
Introduction/background or context….. conclusion,
recommendation (Action Plan). Of course you can vary this but
DO NOT move away from this requirement, otherwise you will
drift away from the central objective.
Tips – I provide additional information approaches international
firms utilise within their operations for products or services.
This is one example and you need to do something similar for
the rest of the learning outcomes.

3. Attachments
Assessment Plan and Structure including a list the organisations
you should consider. PPT slides
wk1_introduction_to_international_operations. PPT slides.
Coronavirus Interim-Economic-Assessment-2-March-2020. This
is a contemporary issues which has an impact at a global level.
Report.
Framework_of_a_global_company. Journal article.
How creativity and innovation can be used to improve the
overall business performance. Notes.
The marking criteria that you need to self-assess against
ensuring you have covered key requirement for the grade you
are seeking to achieve.
Please diagrams, charts, graphical output/tables etc to support
your argument and points.
Guide to case study analysis. Guidance document.
Marking Criteria

4. Approaches that international firms utilise within their
operations for products or services
International Business Strategies
Globalization continues to influence world economies, as
reduced tariffs, enhanced communications, and increased capital
mobility have allowed companies to connect to global financial
markets and expand their businesses internationally. However,
successful expansion into new foreign markets demands that
companies adopt international business strategies that best fit
their needs and capabilities. International business involves
dealing with foreign stakeholders, employees, consumers, and
governments, and therefore, business managers need to consider
many factors when conducting business in global markets, such
as competition, supply chain management and pricing strategy.
In order to successfully expand their consumer base and
increase profitability through internationalization, companies
need to spend the necessary time and resources to understand
global market opportunities and choose the proper international
business strategies.Four Types of International Business
StrategiesInternational
Using an international strategy means focusing on exporting
products and services to foreign markets, or conversely,
importing goods and resources from other countries for
domestic use. Companies that employ such strategy are often
headquartered exclusively in their country of origin, allowing
them to circumvent the need to invest in staff and facilities
overseas. Businesses that follow these strategies often include
small local manufacturers that export key resources to larger
companies in neighboring countries. However, this model is not
without significant business challenges, like legally establishing
local sales and administrative offices in major cities
internationally; managing global logistics involving the import,
export, and manufacture of products; and ensuring compliance

5. with foreign manufacturing and trade regulations.
Despite its relative challenges, the international strategy may be
the most common, because on average, it requires the least
amount of overhead. Companies striving to expand
internationally may try a combination of strategies to see which
works the best for them in terms of logistics and profits. For
example, a company may start off using the international
strategy—exporting its products overseas as a way to test the
international market—and gauge how successfully its products
sell. Subsequently, the company may need to adjust its strategy
and create a multi-domestic platform through which it can
manufacture and sell its goods more efficiently.Multi-domestic
In order for a business to adopt a multi-domestic business
strategy, it must invest in establishing its presence in a foreign
market and tailor its products or services to the local customer
base. As opposed to marketing foreign products to customers
who may not initially recognize or understand them, companies
modify their offerings and reposition their marketing strategies
to engage with foreign customs, cultural traits, and traditions.
Multi-domestic businesses often keep
their company headquarters in their country of origin, but they
usually establish overseas headquarters, called subsidiaries,
which are better equipped to offer foreign consumers region-
specific versions of their products and services. These
companies also frequently lease buildings abroad to serve as
sales offices, manufacturing facilities or storage for housing
service operations.
Multi-domestic strategies are largely adopted by food and
beverage companies. For example, the Kraft Heinz Company
makes a specialized version of its ketchup for customers in
India—featuring a different blend of spices—to help match the
nation’s culinary preferences. However, these adjustments are
often expensive and can incur a certain level of financial risk
when launching unproven products in a new market. As such,
companies usually only utilize this expansion strategy in a
limited number of countries.Global

6. In an effort to expand their customer base and sell products in
more foreign markets, companies following a global strategy
leverage economies of scale as much as possible to boost their
reach and revenue. Global companies attempt to homogenize
their products and services in order to minimize costs and reach
as broad an international audience as possible. These companies
tend to maintain a central office or headquarters, usually in
their country of origin, while also establishing dozens of
operations in countries all over the world.
Even when keeping essential aspects of their goods and services
intact, companies adhering to the global strategy typically have
to make some practical small-scale adjustments in order to
break into international markets. For example, software
companies need to adjust the language used in their products,
while fast-food companies may add, remove or change the name
of certain menu items in order to better suit local markets while
keeping their core items and global message
intact.Transnational
The transnational business strategy is one of the most intricate
methods that businesses can employ when expanding
internationally, and can be seen as a combination of the global
and multi-domestic strategies. While this strategy keeps a
business’s headquarters and core technologies in its country of
origin, it also allows a company to establish full-scale
operations in foreign markets. The decision-making, production,
and sales responsibilities are evenly distributed to individual
facilities in these different markets, allowing companies to have
separate marketing, research and development departments
aimed at responding to the needs of the local consumers.
A company that employs this strategy has the challenge of
identifying the best management tactics for achieving positive
economies of scale and increased efficiency. Having many
inter-organizational entities collaborating in dozens of foreign
markets requires a significant startup investment. Costs are
driven by foreign legal and regulatory concerns, hiring new
employees and buying or renting offices and production spaces.

7. Therefore, this strategy is more complex than others because
pressures to reduce costs are combined with establishing value-
added activities to optimize adjustments that are necessary to
gain leverage and be competitive in each local market. Given
these challenges, larger corporations—such as General Electric
and Toyota—typically employ a transnational strategy as they
are able to invest in research and development in foreign
markets, as well as establish production, manufacturing, sales
and marketing divisions in these regions.
The challenges of managing a company, whether domestic or
international, can be more efficiently controlled by those who
have an understanding of core business concepts and a
comprehensive repertoire of analytical skills. Earning a Master
of Business Administration (MBA) degree can equip
professionals with the skills necessary for handling the rigors
and complexities of today’s global economy. MBA coursework
helps provide a framework for understanding theories and
concepts on the globalization of business, along with the tools
needed for leading organizational strategies in international
markets.
Trends in globalization continue to have an impact on
businesses in every region of the world. As organizations see
more opportunities to gain foreign customers, they must be
familiar with different types of international business strategies.
By evaluating their organizations’ respective capabilities and
the foreign markets they wish to enter, business managers can
adopt strategies to help increase profits and take their
organization to the next level.

8. Global Business Strategies for Responding to Cultural
Differences
LEARNING OUTCOMES
· Explain export strategies for global management.
· Explain standardization strategies for global management.
· Explain multidomestic strategies for global management.
· Explain transnational strategies for global management.
Global Business Strategies
A major concern for managers deciding on a global business
strategy is the tradeoff between global integration and local
responsiveness. Global integration is the degree to which the
company is able to use the same products and methods in other
countries. Local responsiveness is the degree to which the
company must customize their products and methods to meet
conditions in other countries. The two dimensions result in four
basic global business strategies: export, standardization,
multidomestic, and transnational. These are shown in th
Standardisation strategy. Export strategy. Transnational
strategy. Multi-domestic strategy.
International business strategies must balance local
responsiveness and global integration
Export Strategy
An export strategy is used when a company is primarily focused
on its domestic operations. It does not intend to expand globally
but does export some products to take advantage of
international opportunities. It does not attempt to customize its
products for international markets. It is not interested in either
responding to unique conditions in other countries or in creating
an integrated global strategy.
PRACTICE QUESTION
Standardization Strategy
A standardization strategy is used when a company treats the
whole world as one market with little meaningful variation. The
assumption is that one product can meet the needs of people
everywhere. Many business-to-business companies can use a

9. standardization strategy. Machines tools and equipment or
information technologies are universal and need little
customization for local conditions. CEMEX, the Mexico-based
cement and building materials company, was able to expand
globally using a standardization strategy. Apple uses a
standardization strategy because its products do not have to be
customized for local users. An iPod will look the same wherever
you buy it. Domino’s Pizza also uses a standardization strategy.
Although toppings may vary to meet local tastes, the basic
recipes are the same and the store model of carryout or
delivered pizza is the same everywhere. A standardization
strategy produces efficiencies by centralizing many common
activities, such as product design, gaining scale economies in
manufacturing, simplifying the supply chain, and reducing
marketing costs.
Multidomestic Strategy
A multidomestic strategy customizes products or processes to
the specific conditions in each country. In the opening example,
Lincoln Electric should have used a multidomestic strategy to
customize its manufacturing methods to the conditions in each
country where it built factories. Retailers often use
multidomestic strategies because they must meet local customer
tastes. 7-Eleven is an example of a company using a
multidomestic strategy. It tailors the product selection, payment
methods, and marketing to the values and regulations in each
country where it operates. For example, in Japan, 7-Eleven
allows customers to pay their utility bills at the store. In a
company with a multidomestic strategy, overall management is
centralized in the home country but country managers are given
latitude to make adaptations. Companies sacrifice scale
efficiencies for responsiveness to local conditions. Companies
benefit from a multidomestic strategy because country managers
understand local laws, customs, and tastes and can decide how
to best meet them.
Transnational Strategy
A transnational strategy combines a standardization strategy and

10. a multidomestic strategy. It is used when a company faces
significant cost pressure from international competitors but
must also offer products that meet local customer needs. A
transnational strategy is very difficult to maintain because the
company needs to achieve economies of scale through
standardization but also be flexible to respond to local
conditions. Ford Motor Company is adopting a transnational
strategy. Ford is producing a “world car” that has many
common platform elements that accommodate a range of add-
ons. That way Ford benefits from the standardization of costly
elements that the consumer does not see but can add custom
elements to meet country laws, can customize marketing to local
standards, and can provide unique products to meet local tastes.
PRACTICE QUESTIONS
Key Points
In today’s economy almost all companies must consider the
opportunities presented by globalization, but global operations
also present significant risks. Companies must research and plan
thoroughly before engaging in international operations. And
they must choose a strategy that matches their capabilities and
objectives. The economies of standardization and the
responsiveness of customization are competing pressures
companies must resolve. The appropriate strategic choice is
essential for a company to make the right choices.Global
Marketing Strategy: Perspectives and Approaches
Part 6. International Marketing
Susan P. Douglas and C. Samuel Craig
First published:15 December 2010
Abstract
Global marketing strategy involves formulating marketing
strategy across a range of countries. A number of different
approaches have been taken in studying global marketing
strategy, including the transaction cost perspective,
standardization/adaptation, configuration/coordination
perspective, global integration perspective, and the evolutionary

11. perspective. Typically, each focuses on different decisions or
aspects of global marketing strategy and corresponds in many
respects to differences in the experience of the firm in
international markets. Depending on the degree of experience in
international markets, the firm must deal with issues related to
beginning operations in global markets, refining and developing
global marketing strategy, or consolidating/integrating global
strategy. In beginning global market operations, the firm needs
to decide which international markets to enter and how they
should be entered, as well as the timing and sequencing of
international market entry. As the firm expands within
international markets, attention shifts to deciding how far to
tailor various elements of the marketing mix to local market
characteristics. Attention is then required to coordinate and
integrate marketing strategy across countries and regions. The
design of global marketing strategy is thus a continually
evolving and adaptive process requiring an ability to respond to
new demand and competitive factors as well as changing global
environmental conditions and pressures.
1 Introduction
Markets worldwide are becoming increasingly integrated across
national borders at a macroeconomic, competitive, and product
market level. Firms of all sizes, and in almost all industries, are
increasingly conceptualizing their strategy on a global basis. As
a result, increasing interest in studying this trend and in
understanding its key characteristics has developed. As noted by
Zou and Cavusgil 2002 a number of different approaches have
been adopted, which vary in terms of their theoretical or
conceptual underpinnings, and focus on different facets of
marketing strategy as well as their definition of terms such as
global and marketing strategy (seeGlobal Marketing Strategy).
This has resulted in the absence of a generally accepted
conceptualization of global marketing strategy, and hence, an
ability to generalize findings from different research studies and
more broadly improve understanding with regard to the impact

12. of globalization on the firm's competitive position.
In this article, a framework is presented that aims to provide a
clear understanding of global marketing strategy and at the
same time allows incorporation of other perspectives. First, the
different terms that are used in the present article are explained.
Next, the dominant approaches to studying international/global
marketing and the theoretical perspectives that underlie these
approaches are briefly reviewed and the key topics covered. The
various issues confronting the firm as it develops a global
marketing strategy are then discussed, starting with the initial
development of the strategy, followed by the ongoing process of
refining and developing that strategy and consolidating the
strategy to improve efficiency and competitiveness in global
markets.1.1 Key Concepts1.1.1 Global
The term global is used to define the geographic scope of the
firm's operations and strategy development. A firm is
considered to have a global marketing strategy if it is involved
in marketing its products and services in most geographic
regions and areas in the world, has established a clear strategy
as to how these operations are managed in each of these areas,
and retains control over how these operations are managed and
evaluated (seeGlobal Marketing Strategy: Perspectives and
Approaches). This does not necessarily imply that these
operations are globally integrated or standardized on a
worldwide basis. The term global will be used broadly to refer
to any involvement outside the firm's home market, as global
strategy must start somewhere.1.1.2 Marketing Strategy
A marketing strategy is defined as a strategy that is based not
only on identifying target customer needs and interests in a
clearly defined product market in order to develop customer
value creation but also in clearly identifying the firm's
distinctive skills and capabilities relative to those of other
competitors in the marketplace (seeCompetitive Advantage: Its
Sources and the Search for Value). This results in the
development of a marketing strategy based on the firm's
competitive advantage and skills in relation not only to

13. marketing activities such as new product development, pricing,
advertising, and distribution, but also to other elements of the
value chain, both upstream and downstream such as design,
production, sourcing, and logistics.
2 Alternative Approaches and Perspectives to Global Marketing
Strategy
In studying global marketing strategy, a number of different
approaches have been adopted ranging from the transaction cost
perspective to the evolutionary and global integration
perspective. Typically, each focuses on different decisions or
aspects of global marketing strategy and corresponds in many
respects to differences in the experience of the firm in
international markets.2.1 The Transaction Cost Approach
One of the earliest approaches adopted in studying the
development of global marketing strategy was transaction cost
analysis (Anderson and Gatignon, 1986). This focused on the
appropriate choice of mode of entry into international markets
and viewed such decisions as a trade‐off between control and
the cost of resource commitments, and was grounded in
Williamson's 1981 transaction cost economics. While control
enables the firm to coordinate actions, execute and revise
strategies, and thus obtain a higher return, it also entails
commitment of resources and hence exposure to risk in an
uncertain environment. This perspective has subsequently been
widely used in assessing mode of entry decisions (Erramilli and
Rao, 1983), notably for exporters and service firms.2.2 The
Standardization/Adaptation Perspective
The standardization/adaptation issue
(seeStandardization/Adaptation of International Marketing
Strategy) was initially raised by Buzzell 1968, examining the
potential benefits of standardizing different elements of the
marketing mix as opposed to adopting localized strategies. This
became a central debate characterizing the marketing literature
following Levitt's controversial article “The Globalization of
Markets” Levitt 1983, which argued that multinational firms

14. would only be successful if they marketed standardized products
worldwide, taking advantage of potential economies of scale in
production, distribution, marketing, and management. This
debate has been widely pursued not only in relation to
marketing strategy in general (Douglas and Wind, 1987) but
also in relation to the benefits and feasibility of standardization
relative to different elements of the marketing mix, products,
and target segments (Jain, 1989).2.3 The Global
Configuration/Coordination Perspective
This perspective emphasizes the importance of configuring and
coordinating the firm's activities at different stages in the value
chain across different countries so as to improve efficiency and
gain the maximum competitive advantage (Craig and
Douglas, 2000; Takeuchi and Porter, 1986; Roth, 1992).
Activities at the upper end of the value chain such as sourcing,
design, and engineering should, for example, be concentrated in
countries where they can be performed most effectively and cost
efficiently. At the same time, activities should be both
vertically and horizontally coordinated at different stages in the
value chain and across countries to optimize cost efficiency and
maximize speed of response to changes in demand or competitor
moves.2.4 The Global Integration Perspective
Another perspective is the global integration approach
(Yip, 1995; Zou and Cavusgil, 2002). World markets are viewed
as an integrated whole, and emphasis is placed on the
importance of conducting operations in all major markets
worldwide, and integrating strategy development and execution
across these markets (seeForces Affecting Global Integration
and Global Marketing). Similarly, resources may be shifted
from one market to another in order to compete more
effectively. For example, competitive attacks in one market may
be met by counterattacks in a competitor's home market or other
key markets. In addition, emphasis is placed on developing a
strategy for the standardization of product, promotion, and
distribution activities across world markets.

15. 2.5 The Evolutionary Perspective
The most comprehensive perspective is to view the firm's
operations as evolving over time as the firm gains experience
and expands in international markets. The “stages” theory of
internationalization developed by Johansson and Vahlne 1977,
based on a study of the pattern of internationalization of
Swedish firms, argues that the perceived risk associated with
international expansion leads firms to enter proximate, more
familiar markets first, gradually expanding into more distant
market as experience is gained in operating in international
markets. Similarly, Douglas and Craig 1989, 1995 suggest that
international market expansion can be viewed as a sequential
decision‐making process starting with decisions relating to
entry into international markets, standardization versus
adaptation of international marketing mix decisions to different
environmental conditions, and subsequently focusing on
coordination and integration of these decisions across national
markets.
More recently, it has been pointed out that some firms are “born
global” (Knight and Cavusgil, 1996, seeBorn Global). In
essence, such firms immediately adopt a global perspective in
initial market entry, and target customers worldwide. Typically,
these firms target “niche” markets where customers in different
countries have similar needs and interests, for example, medical
equipment and computer software. The growth of the
international communications infrastructure, particularly, the
Internet, often facilitates identification of these opportunities
and establishment of relations with customers, ensuring that
customer needs are met and satisfied on an ongoing basis.
Since the evolutionary framework also provides the broadest
perspective and can also incorporate the other perspectives, this
article also focuses on the specific decisions that a firm needs
to make as it develops experience in international markets.
3 Beginning Global Market Operations
While not all firms expand operations to the point where they

16. can be considered global, all begin by entering a country or
countries outside their home market. In initially entering into
global markets, a firm needs to make three key decisions:
· which countries to enter;
· what modes of operation to adopt; and
· the timing and sequencing of entry.
These decisions need to be considered in the light of the firm's
objectives with regard to global markets, particularly with
regard to the desired degree of involvement, and amount of
resources (human and financial) a firm is willing to devote to
developing operations in international markets, as well as the
level of risk – macroeconomic, competitive, and policy – that it
is willing to consider in going international.3.1 Selecting
Countries to Enter
In deciding which countries to enter (seeMarket Entry and
Expansion), the firm needs to first evaluate opportunities on a
worldwide basis, assessing in each country the macroeconomic
environmental factors, such as population size and growth, the
level of GNI (Gross National Income) and rate of economic
growth, the degree of urbanization, the rate of inflation, the
level of corruption, political risk, financial risk, trade barriers,
and market regulation. In addition, opportunities and risk at the
product market level need to be assessed. Here, the firm needs
to consider the absolute size of the product market and its rate
of growth, as well as per capita consumption and growth. If a
product is not currently marketed in a country, surrogate
indicators of demand need to be used. The level of competition
also needs to be considered as also the presence and strength of
other global, regional, and local competitors. Markets that are
large may appear attractive, but if the rate of growth is low this
may signal that the market is saturated. Similarly, the market
may have a high rate of growth, but if there is a substantial
degree of competition, the firm may prefer to focus on
developing operations and stimulating primary demand in a less
competitive market. In conducting this analysis, a hierarchical
screening process based on secondary data can be used to assess

17. opportunities worldwide in order to reduce and expedite the
assessment of opportunities and risk.3.2 Mode of Operation
Once having assessed opportunities and determined which
countries to enter or consider entering, the firm needs to
consider the mode of operation, that is, whether to enter via
exporting (seeExport Performance), a contractual agreement
with another firm such as licensing or franchising, contract
manufacturing, or joint venture, or alternatively, to set up a
wholly owned subsidiary either on a greenfield basis or via
acquisition. Here, a key factor is the degree of control a firm
wishes to exercise over operations in international markets as
well as the importance of local input and experience in
managing and developing operations, and the resources a firm is
willing to devote to international expansion. Some firms, for
example, wine or agricultural producers, have no choice but to
export if they wish to enter international markets. Similarly,
service operations, for example, fast food, hotel chains, and car
hire typically expand via franchising to avoid the cost of
acquiring local facilities and to ensure input of local
management capabilities and experience (seeInternational
Franchising). This, however, typically requires extensive
systems of control and training on a global or regional basis to
ensure that franchisees in all markets provide a consistent
service experience and reinforce the firm's brand image
internationally.3.3 Timing and Sequencing of Global Market
Entry
The firm also needs to decide the timing of its entry into
different international markets, that is, whether to be a first
mover and enter a country ahead of competition, or alternatively
be a fast follower (seeInternational Product Diffusion). Being a
first mover enables the firm to establish its brands and develop
customer and distributor loyalty ahead of competition as well as
to monopolize key resources such as strategic locations, key
distribution channels, thus erecting entry barriers for
competition. On the other hand, being a first mover also entails
substantial risks as the firm needs to expend resources to

18. stimulate primary demand and in some cases, develop the
market infrastructure besides convincing distributors to stock
the product. Similarly, there is substantial uncertainty as to
whether potential demand will develop or whether
environmental conditions will change, for example, the
imposition of product regulations. Similarly, competitors can
learn from the firm's mistakes and “leapfrog” the learning
curve, entering later with a more desirable product or effective
marketing strategy.
Another aspect is the sequencing of market entry. A firm may
decide to enter international markets sequentially, adopting, for
example, a “rehearsal” strategy, entering one country in a
region first to gain experience in that market, then rolling out
into other countries. For example, a US firm entering the
European market might decide to enter the Netherlands first,
and use that experience to develop strategies for entering other
large markets in Europe, for example, France, Germany, and the
United Kingdom. A variant of this strategy is to enter a single
country in each region first and use this as a base for
developing operations and strategy in other markets in the
region. For example, McDonalds first entered into the United
Kingdom, and then expanded into the rest of Europe, and used
Australia as a basis for developing operations in Southeast Asia.
A key factor driving strategy in initial entry is the desire to
achieve economies of scale. Typically, a firm will use the same
marketing strategy, particularly in terms of products, product
positioning, and branding in international markets as in
domestic markets so as to achieve tangible and
intangible economies of scale. Tangible economies typically
arise from production economies of scale or spreading R&D and
other investment costs, for example, in developing advertising
themes and copy, over a larger volume of
sales. Intangible economies may be less apparent, arising from
use of the brand or corporate image on an international basis,
thus enhancing its visibility and value to customers. Other
intangible economies may include specialized management

19. skills and know‐how, for example, in the management of
franchise operations or the development of creative product and
marketing ideas as in Apple's product design capabilities, or
Bic's skill in developing disposable products.
While many firms, both large and small, have already entered
international markets, typical firms that are still in the early
stages of entering international markets are
· entrepreneurial firms (seeInternational Entrepreneurship),
often targeting niche markets worldwide, for example, firms
selling specialized medical equipment, export services, or new
product variants such as soft serve ice cream;
· large emerging market multinationals that often enter markets
in developed countries with a low cost positioning based on
resource cost in their home market, for example, Haier, a
Chinese consumer electronics firm; or Embraer, a Brazilian
manufacturer of small jet aircraft; or Mahindra and Mahindra,
an Indian manufacturer of agricultural equipment.
4 Refining and Developing Global Marketing Strategy
Typically, once firms have entered a number of countries, they
begin to expand within these markets. This is stimulated in part
by concern with meeting local competition and meeting specific
local needs and interests. This is further reinforced by local
management attitudes and initiatives that typically reflect a
belief that local market characteristics and demand conditions
are different and require adaptation of products and marketing
strategy. An important concern is also more effective utilization
of local knowledge and assets resulting in product line
extension or development of new products that can make use of
existing channels of distribution. Constraints imposed by
national market barriers, for example, tariff barriers, quotas,
import duties, and local product regulation, may also encourage
local production.
In entering and expanding within countries that the firm has
decided to enter, the following three decisions are of paramount
importance:

20. · how far to market standardized products worldwide or adapt to
differing conditions in different countries
(seeStandardization/Adaptation of International Marketing
Strategy), and similarly, whether to adopt the same marketing
strategy, that is, pricing, promotion, and distribution strategy or
to adapt locally;
· whether to extend the product line to include local variants
adapted to local customer demand and market conditions;
· whether to develop new products to meet specific local needs,
for example, in emerging markets or markets with different
climatic conditions (seeInternational Pricing Objectives and
Strategies; Designing a Global Supply Chain: Opportunities and
Challenges).
In considering whether or not to standardize or adapt different
elements of the marketing mix, the firm needs to consider a
number of different factors. While there are a number of
benefits from standardization, there are also barriers to
standardization and advantages to adapting, and these need to
be weighed relative to each element of the marketing mix. Some
mix elements such as product and how it is positioned may be
more readily standardized than other elements such as pricing
(seeInternational Pricing Objectives and Strategies) or
distribution (seeDesigning a Global Supply Chain:
Opportunities and Challenges). Similarly, the degree of
modification may vary ranging from minor modifications such
as adjusting to voltage, size or color preferences, to major
differences such as taste and technological complexity.
One of the primary benefits of standardization is that firms are
able to achieve economies of scale in R&D and production.
Product standardization in international markets enables a firm
to reduce the number of models worldwide and hence reduce
development costs in addition to enabling them to afford a
higher level of design expertise. Similarly, pharmaceutical
companies are able to spread the high cost of developing new
drugs, and consumer goods companies the costs of advertising
(seeInternational Advertising – is there Still a Standardization

21. Versus Local Adaptation Debate?) development across a higher
sales volume. Standardization also enables firms to transfer
ideas, experience, and knowledge developed in one market to
other markets, for example, the concept of disposable products,
or experience in developing environmentally friendly products
and packaging (seeGlobal Consumerism and Consumption).
Standardized products also facilitate the development of a
uniform image of quality and service and the ability to develop
a strong corporate or brand image worldwide. Standardization
also facilitates coordination and control of operations in
different country markets as uniform performance standards can
be established and performance more readily compared across
countries.
On the other hand, there are a number of barriers to
standardization. Differences in customer characteristics and
response patterns caused by different sociocultural values and
lifestyles, climatic or usage conditions, or perceptions and
associations with different images, may generate need for
different products, or promotional and distribution strategies.
Similarly, government regulations and restrictions relating
particularly to product and promotional decisions, or campaigns
to buy local products, may result in the need to adapt product
positioning and promotional strategy. Likewise, differences in
the marketing infrastructure, for example, the availability, cost,
and effectiveness of different media such as TV, radio, and
print as well as nontraditional media, such as the Internet or
viral marketing have to be accounted for. Similarly, the
organization of the distribution infrastructure and the
importance of large‐scale distribution organizations versus
small Mom and Pop stores may vary considerably from one
country to another, or the presence of international or regional
retailers may vary considerably, facilitating or hindering local
brands and products. Similarly, the extent of and strength of
local or regional competitors may vary. Typically, the presence
of strong local competition will create pressures to adapt either
in terms or product, promotion, or pricing strategy. In addition,

22. local managers are typically opposed to standardized products
as these reduce their control over marketing strategy, as
marketing policy and guidelines are likely to be established at
regional or corporate headquarters.
Such differences in market and demand conditions in different
countries and regions, typically lead the firm to extend the
product line adding new product variants that are adapted to
specific needs and tastes (seeManaging the Global Product
Portfolio). This may include adding product versions with new
flavors or scents, or different types of soft drinks, or bottled
waters. This typically helps to generate additional sales, fills
out the firm's product line, and enables the firm to tap a broader
range of customers as well as compete more effectively in the
local marketplace.
At the same time, the firm may also develop new
products tailored to specific local market needs
(seeInternational Product Innovation and Development). For
example, in emerging markets the firm may develop simple
functional products, for example, mobile phones targeted to
low‐income consumers who are unable to afford more complex
high‐end products marketed in developed countries. Similarly,
computers that uses icons may be designed for illiterate
consumers, and solar‐powered equipment created for consumers
with no or unreliable access to electricity. Again, this will help
the firm's sales growth in a given market and tap a broader base
of customers.
In extending the product line and developing new products
within a given country, a key priority is to leverage economies
of scope, adding products and product variants that can be
distributed through existing channels of distribution or
produced at existing production facilities. This enables the firm
to spread overhead costs over a higher volume of products. At
the same time, it utilizes experience and knowledge of market
conditions in a given country, and investment in research to
identify and understand customer needs. Similarly, where the
same channels of distribution are used, relations developed with

23. distributors or sources of supply may be further reinforced. In
essence therefore, a key aim is building the firm's operations in
a given market, and particularly in building the scale and scope
of operations so as to compete more effectively in local
markets.
Firms focusing on refining and developing their international
marketing strategy, are typically firms competing predominantly
on a regional basis, for example, companies such as Henkel, the
German‐based manufacturer of detergents and other household
products, as well as products targeted to handymen such as
glue, paint, and solvents. Similarly, Kao, the Japanese detergent
and personal products manufacturer, is focusing on growth in
Southeast Asian markets. Other companies are transitioning
from developing their strategy to consolidating their positioning
and strategy across regional and global markets. McDonald's,
for example, has rolled out local variants such as shrimp
burgers and fried rice patties developed in Japan to other
countries in Asia and McArabia flat bread in Europe. Similarly,
in Europe many facilities are being upgraded so that customers
come not only for fast service and inexpensive food, but also to
enjoy a comfortable and clean environment. Other service ideas,
such as home delivery started in Cairo, Egypt, are being added
in other busy city centers.
5 Consolidating/Integrating Global Strategy
A number of factors act as triggers to consolidate and
rationalize operations across different markets (seeForces
Affecting Global Integration and Global Marketing). These
include, for example, cost inefficiencies and duplication of
effort across different country markets, particularly those that
are similar in terms of demand characteristics or are
geographically proximate. Similarly, opportunities may occur
for the transfer of products and brands developed in one country
market to other country markets, targeting similar market
segments, for example, high‐income consumers, younger
consumers, in business‐to‐business markets, or global

24. customers. Similarly, the emergence of competition on a global
scale is facilitated by improved linkages between national
market infrastructures, for example, retailing or advertising
media.
Such factors lead firms to pay increased attention to
consolidating operations in global markets, and improving the
coordination and integration of operations at different levels of
the value chain, such as promotional efforts through greater use
of regional or global media and positioning strategies or the
establishment of global and regional product development
centers. Similarly, sourcing or production strategies may be
coordinated or configured at a global level. Here, however it is
important to note that global configuration of sourcing and
production strategies are dependent on standardization at the
product design level.
A key element of the firm's strategy at this point is therefore to
establish a global portfolio of countries, products, and target
segments in order to establish direction for future efforts
(seeManaging the Global Product Portfolio). Then, it needs to
establish global strategy based on the market scope and target
market of its various product business, which may be focused
on a specific target segment worldwide, or alternatively be
broad based, targeting the mass market in different countries, or
hybrid, that is, some combination of both. Finally, the firm will
need to consider improved integration and coordination of
operations both upstream and downstream in the value‐chain as
well as horizontally across geographic regions and product
businesses.
In establishing the geographic scope of the global portfolio, the
firm should maintain a balance between mature markets, such as
the United States, Western Europe, and Japan, while targeting
emerging growth markets such as China, India, Brazil, Thailand,
or Colombia. The mature markets provide low growth, but also
lower risk and require little additional investment to develop
and build demand. The emerging markets, on the other hand,
offer high growth potential, but require greater investment to

25. understand customer demand, evaluate the nature of local
competition, and build the market infrastructure, particularly in
underdeveloped regions. At the same time, the degree of
integration across markets, for example, in Europe, South
America, or the Indian subcontinent needs to be considered, in
order to effectively allocate investment efforts within a region,
as well as diversify across different regions of the world.
Once the firm has established the countries and regions to
target, the next step is to establish the firm's Global Marketing
Strategy. Here, an important issue is how far this is integrated
across different countries and regions of the world. This is
likely to depend, to a substantial degree, on the scope of the
product market. Where the firms adopt a focused strategy
targeting a specific market segment, such as high‐income
consumers, or young adults, they are likely to integrate strategy
across markets, adopting the same positioning, the same or
similar product line and pricing, promotional copy and media,
and distribution strategy. This may result in the use of global or
regional media and, similarly, global or regional retailers who
are able to provide coverage matching the geographic scope of
the firm's operations and hence, improve marketing efficiencies.
If, on the other hand, the firm targets a broad‐based mass
market, considerably greater difficulties may be encountered in
integrating strategy across markets. While increasingly, many
firms are adopting global branding strategies, the extent of the
product line may vary from one region to another or even by
country. Similarly, while advertising themes may be uniform
across countries and regions, their execution may vary and
distribution strategies may similarly need to be adapted to
differences in the structure of the distribution system and the
availability and reach of organized distribution, for example,
supermarkets, mass‐market retailers, and department stores.
In integrating and consolidating strategy across countries and
regions, a primary concern, as in initially entering international
markets, is to achieve both tangible and intangible scale
efficiencies, particularly with regard to the management of

26. marketing and service operations. At the same
time, synergies may arise from coordinating and integrating
strategy and operations, especially across proximate markets, or
in integrating communications efforts at a regional or global
level. Similarly, the transfer of best practices is critical, that is,
ideas for products, promotional or distribution strategies across
countries and regions, as well as experience and know‐how in
effectively managing marketing operations in different
environmental conditions.
Many large US and European multinationals are in the process
of consolidating operations across world markets. Many
consumer goods firms, who previously had local or regional
brands are focusing on building a global branding strategy, at
the corporate, product business, and product level. In some
cases, this leads to the development of tiered branding
strategies where the product level brand is endorsed by the
corporate brand as well as a family or house brand. Attention is
also paid to building a global information system, particularly
at the firm level so that production and distribution logistics can
be better coordinated and integrated across countries and
regions as well as across product businesses. Increasing
emphasis is also paid to the transfer of management across
geographic regions in order to enable them to develop
experience in working in different environmental contexts, and
hence develop and train a multicultural global workforce of
managers capable of operating in a variety of different contexts.
At the same time, they are able to bring their experience
working in other countries and regions to deal with similar
problems and situations in a given country or context.
6 Issues in the Continuing Evolution of Global Marketing
Strategy
The global marketing strategy of firms continues to evolve in
response to a changing environment and new challenges. Three
of the most pressing issues are (i) the increasing complexity of
managing operations on a global scale; (ii) coping with

27. the increasing intensity of competition not only from
established multinationals but also from new competitors from
emerging markets; and (iii) exploiting opportunities in emerging
markets. The role of each of these in shaping the evolution of
global marketing strategy is further elaborated.6.1 Complexity
of Managing International Operations
As international operations grow in importance and complexity,
management has to direct, coordinate, and control operations on
a much broader and more diverse scale and scope (seeMarketing
Strategy Implementation). This may entail decisions relating to
the reconfiguration of the geographic organization of operations
at different stages in the value chain, for example, developing
global production platforms, or centers of product innovation,
or improving vertical and horizontal coordination at different
stages of the value chain as well as developing external
communication linkages with customers, developing global
account management systems, improved supplier linkages, and
organizational restructuring to improve coordination and
communication links across countries and regions. In addition,
establishment of a global information system, and of a global
management workforce, consisting of managers able to operate
in different countries and cultural contexts are essential to
operate effectively in increasingly culturally diverse and
far‐flung world markets.6.2 Increasing Intensity of Competition
Firms have also to cope with the increasing intensity of
competition as well as the emergence of new sources of
competition. As growth slows in many markets in developed
countries, such as the United States, Western Europe, and
Japan, competition between established multinationals in these
markets has become increasingly severe. This has been
exacerbated by the entry of firms from emerging markets such
as China, India, or Brazil. These firms are able not only to
leverage the advantages of a low‐cost resource base to build
their position in global markets and enter developed markets but
are also learning to adopt the technologies and management
skills of firms in developed countries and in some cases surpass

28. them in terms of innovative skills. Typically, these firms enter
developed markets with a low‐price positioning. However,
often, as they establish a market position and effective
distribution channels, they begin to move upward, adding
higher‐priced products and developing their brand image. This
poses an increasing challenge to established multinationals in
developed countries.6.3 Exploiting Opportunities in Emerging
Markets
Slower growth in developed markets has prompted firms to look
to emerging markets for growth opportunities. Although current
income levels in these countries are low relative to developed
countries, ranging from $4460 in Russia to $730 in India, the
growth rates and economic fundamentals in these countries
suggest immense future market potential (seeEmerging
Markets). Both India and China have sizable and relatively
affluent middle classes which constitute a large market for
goods and service as well as vast markets of rural poor and an
increasing number of highly successful entrepreneurs. Here, an
important decision for developed market firms is whether to
focus on the affluent urban middle class in these countries,
leveraging existing products and global brands, with limited
adaptation of the marketing mix, or alternatively, target lower
income consumers, typically in rural areas. Targeting lower
income consumers, however, typically requires the development
of radically new marketing strategies, including the
development of new low‐cost functional products and
improvement of distribution access and efficiency in rural areas.
In addition, creative ways to enhance the ability of consumers
to afford products need to be developed. While requiring
substantial effort and ingenuity, the size and potential of the
emerging markets, not only in India and China but also other
continents such as South America and Africa, offers tremendous
opportunities for future growth.
7 Conclusion
The crafting of global marketing strategy is a dynamic ongoing

29. process, continually evolving as the firm expands into new
countries and markets, requiring adaptation to new market
conditions and demand factors, competitive forces, as well as
internal pressures within the firm. Also, the fundamental nature
of global marketing strategy changes as the firm's involvement
in global markets increases. To succeed, the firm must become
an organism that continually evolves, adapts, and responds to
the changing realities of the global marketplace. Firms that are
able to do so will prosper; those that do not will wither.