Subscribe to:
Post Comments (Atom)
About us...in the Sicilian newspaper
Man6636 - Summer A, 2008 - The class
.jpg)
Groups of students in class
Man6636 - Summer A, 2008 - The class again!
.jpg)
Thank you Maurizio
.jpg)
Etna Valley and Etna HiTech
.jpg)
Professor Faraci doing a lecture
.jpg)
Back to back - The class of Man6636 on SummerB 2007
Back to back - The class of Man6636 on SummerA 2006
Back to back - The class of Man6636 on SummerB 2005
Back to back - The class of Man6724 on SummerB 2005
University of Catania (Italy)
The School of Business Economics and Management
5 comments:
International strategies:(Indian market)
While pursuing growth strategies in developing countries lot firms forget about the cultural differences in this market. Pepsi and Coca- cola had suffered losses despite their huge investment in advertising campaigns because tendency of Indian people to relie on natural resources like water, coconut water and homemade lemonade. Pepsi and Coca- cola are favourite targets for anti-western people. Coca-cola was banned 1977 as it refused to disclose the ingredients to Government. Also their are restrictions on Foreign direct investment to form completely owned subsidiaries, So International firms needs to form alliance with local partner. Fiat always struggled to get stronghold. It tried collaborating with Premier Automobiles, after that failed attempt Now they have alliaz with Tata Motors. I believe good understanding new market is immensely important before venturing into it. Tata motors had alliance with MG rover group to sell Tata motors low cost car under brand name of MG rover, so they learned significantly from MG rover and then decided to acquire Land Rover brand. Which is smart move. Tata group being conglomerate,They have decentralise approach of running business and so they are good in implementing multi domestic strategies which is need of hour for Tata's while managing low cost product portfolio in India and Luxury Car portfolio like land rover and Jaguar in Europe and America.
By Varun Sugandhi
Regionalization and Determinants of National advantage:
Unlike European Union or NAFTA, In Asia free trade treaties never worked because of mistrust among countries. There is South Asia free trade agreement(SAFTA) but its not effective.Functional free trade agreements in Asia can give significant advantage in order to attract foreign investment in Asia with respect to other low cost destination like Mexico and Brazil and Members of old Russian federation. As if there is Free trade agreement firm can produce in one country and it can easily access other markets in the region without trade barriers.
Developing world is striving hard to build National advantage to attract investment which can boost their economy and thus create employment. If you are firm and you have to start manufacturing or service back office, you have resources to invest in only developing country where would you invest ?
China:
High domestic demand
Cheap labour
Strong infrastructure-& clusters
Less labour laws
Strong manufacturing expertise
Strong supporting industry for semiconductors
Weak Banking sector
Weak implementation of Intellectual property rights
Authoritarian governments
language barrier
India:
High domestic demand
Abundant Technical manpower
English speaking manpower
Democratic country
Strong automobile and Pharmaceutical clusters
Strong Information technology and service expertise
Weak Infrastructure
stringent labour laws-can't do hire and fire
-By Varun Sugandhi
As Chapter 8 emphasizes, a global strategy requires standardization of a product across all markets. This is beneficial because of economy of scale, but can limit growth in foreign markets which may not value the same attributes of a product as the home market. In this way, a global strategy is not responsive to local markets and has even lead to the failure of some large corporations - for example eBay and Carrefour in Japan. What is interesting though is the success of fast food chains in foreign markets. McDonald's has survived just about everywhere and Starbucks is on a path of successful entry to multiple foreign markets. Last year I traveled to Beijing and was comforted by the familiar environment and products of Starbucks in a foreign city. So how are these brands more successful than others in entering foreign markets? Starbucks did not change its product or experience (i.e. the environment of the store was the same down to the elevator music and big cushy chairs) in its cafes in Beijing. And McDonalds always had a line going out the door for the same happy meals, which always mystified me. So why are these products surviving without having to change to be accepted into foreign markets? Is it possible that some things are "global" and meet the demands of (generally) all consumers worldwide?
After the Soviet Union fell, KODAK sprung on the opportunity of introducing personal cameras to Russians (global expansion). The entry mode they chose was greenfield venture. Since Russians had not been introduced to cameras before KODAK realized the demand for cameras may not be strong. Thus, in order to build demand they began a massive ad campaign. KODAK also set up stores across Russia and trained employees to use and 'love' cameras, which strengthened demand. Since Russians did not have knowledge of cameras, KODAK also was able to cut costs by introducing cheap cameras (instead of expensive ones in the USA) KODAK had great foresight when they realized that Russia would be a great global market for their products. KODAK's entry was successful. - Vanessa Dakin
Looking for the global market is an important duty for many companies; especially they want to increase their profit.
However, there are also many barriers. Language is usually the first challenge. I read a case before about the Pepsi Co.'s strategy in China. China is a big consuming market
to them and they decide to own their corn farm in China. It will help them save a lot of cost. In the beginning, they don't have any people who has good language skill and expertise simunatelly to help them manage. Besides, the government rule is also another challenge. They have some lawyers in America but they are not familiar with China. And in China, it’s not easy for them to find a lawyer who has good English communication ability. Overcoming these situation is the first duty if they want to success in global market.
There is not much discussion about the global human resource but I think it’s an important factor in developing global market.
Post a Comment