MKT 310 Lecture Notes - Lecture 9: Experience Curve Effects
Document Summary
Formal credit: when they investigate you before giving you approval, your ability to repay. Informal credit: based on social obligation to pay. Exporting: often the first method firms use to enter a foreign market, attractive because: Firms can experience curve economics: not attractive when: Foreig(cid:374) age(cid:374)ts fail to i(cid:374) the exporter"s best i(cid:374)terest. Four types of retail internationalization: global strategic, multinational strategic, acquisition opportunistic, pure financing opportunistic. Global retailers: standard retail format, centralized management, often vertically integrated backwards, extensive use of private level, generally small-medium size. Multinational (localized) retailers: decentralized, concentrate expansion within a geographic area, change retail offering based on customer and cultural differences, generally large sized retailers such as hypermarkets, cash and carry, examples: walmart in shanghai. Locational advantages: cultural proximity, market size, co(cid:373)petitors" (cid:373)oves, geographic proximity, low cost land and labor iclicker questions, multinational retailers focus on locational advantages, global retailers have a franchise alternative.
