MGCR 352 Lecture Notes - Lecture 14: Joint Venture, Contract Manufacturer
15 Nov 2016
School
Department
Course
Professor
Lecture 15, Nov 15th
Why go global?
• Canada is a small market
• Developing and less developed countries are largely untapped and growing
o Fortune at the bottom of the pyramid and the potential to “fight poverty and
profitability”
• Rising globalization, lowered protectionism, and technology trends are making the world
a fair game for everyone
o If you don’t go there and beat them they will come here and beat you
Common factors to consider
• Demand
o Do foreign consumers need the product?
• Competitive environment
o Number of competitors in the country?
• Industry environment
o Are there enough suppliers/distributor?
• Economic environment
o What is the state of the country’s economy?
• Social-cultural environment
o How do cultural factors affect business?
• Political-legal environment
o Do any legal restrictions complicate entering the market
• Technological environment
o To what degree are technological innovations used by consumers in the market
DUE DILLIGENCE AND UNDERSTANDING IS A MUST TO SUCCEED
Customize vs. Standardize
• Customization: adjusting marketing mixes according to cultural, regional and national
differences
• Standardization: the development of marketing strategies that treat the entire world (or
its major regions) as a single entity
o Includes standardization of products, promotion campaigns, prices and
distribution channels
o Think globally act locally
find more resources at oneclass.com
find more resources at oneclass.com
