Chapter 4 Developing a Global Vision

1
Chapter 4Developing a Global Vision
2
Global Vision

• Recognize and react to internationalmarketing
  opportunities
• Be aware of threats from foreign competitors
• Use international distribution networks

3
Importance of Global Marketing

• U.S. exports a fifth of industrial production and
  one-third of its farm products
• One of every sixteen jobs in U.S. is supported
  by exports

4
The Negatives of Global Trade

• Millions of Americans have lost jobs
• Millions fear losing jobs
• Workers face pay-cut demands
• Service and white-collar jobs are vulnerable to
  operations move

5
The Advantages of Global Trade

• Rise from poverty for foreign nations
• Per capita income increases
• Productivity and living standard increase
• Inflation not as threatening
• Open economy spurs innovation
• Export jobs may pay more

6
Multinational Advantage

• Overcome trade problems
• Sidestep regulatory problems
• Shift production from one plant to another
• Tap new technology from around the world
• Save in labor costs

7
Global Marketing Standardization

• World markets are becoming more alike
• Standardized products can be sold the same way
  worldwide
• Successful companies may vary products for global
  markets

8
The External Environment
9
Culture

• Language
• Religion
• Superstitions
• Etiquette
• Customs
• Traditions
• Notion of time

10
Economic and Technological Development
11
Legal Considerations
12
Political and Legal Considerations
13
Risk Levels for Global Entry
High risk/ high return
Risk
Direct Invest- ment
Joint Venture
Contract Manu- facturing
Licensing
Export
Low risk/ low return
Return
14
Entering the Global Marketplace
15
Porters Diamond of National Competitive
Advantage

Company Strategy,
Structure and
Rivalry
Intensity of Competition
Factor Conditions
Demand Conditions
Natural Resources
Size of Market
Education
Consumer Sophistication

Related and
Supporting industries

Suppler Clusters