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Kinh Doanh Marketing
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Lecture Global marketing: Contemporary theory, practice, and cases: Chapter 7 - Ilan Alon, Eugene Jaffe
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Lecture Global marketing: Contemporary theory, practice, and cases: Chapter 7 - Ilan Alon, Eugene Jaffe
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Chapter 7, selecting international markets. The main contents of this chapter include all of the following: Domestic vs. international expansion, ansoff and internationalization, motives to internationalize, internationalization/market entry theory, concentration vs. diversification. | Chapter 7 – Selecting International Markets “It was the best of times, it was the worst of times” Charles Dickens, A Tale of Two Cities McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline Domestic vs. International Expansion Ansoff and Internationalization Motives to Internationalize Internationalization/Market Entry Theory International Product Life Cycle Uppsala Model Born Global Transaction Cost Analysis OLI Market Expansion Screening Concentration v. Diversification Internationalization Internationalization occurs when a firm makes a strategic decision to enter foreign markets and adapts its operations to international environments. Decision to expand abroad Locate specific market opportunities Expansion strategy determined Concentrated Diversified Selection of entry mode Ansoff Expansion Model Ansoff suggests four ways in which firms can expand their operations: Figure 7-1 Present Markets/Present Products To gain higher market share in existing markets using existing products Resources are dedicated to more aggressive advertising, sales promotion and customer service and relationship enhancements Example: Fuller’s London Pride Of the four growth strategies, market penetration has the lowest risk Present Markets/New Products Offer new products to current markets Requires developing or acquiring new products, or line expansion Example: Mount Blanc New Markets/Present Products New markets may be solely domestic or both domestic and global Example: Tesco New Markets/New Products Offering new products to new markets Example: Apple Computers Originally marketed to the graphic design market Now marketed to the final consumer Expanded product offering Expanded globally Ansoff and Internationalization Internationalization has been defined as the process of adapting a firm’s operations to international environments Technically only market development fits this definition Successful global firms have expanded operations | Chapter 7 – Selecting International Markets “It was the best of times, it was the worst of times” Charles Dickens, A Tale of Two Cities McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline Domestic vs. International Expansion Ansoff and Internationalization Motives to Internationalize Internationalization/Market Entry Theory International Product Life Cycle Uppsala Model Born Global Transaction Cost Analysis OLI Market Expansion Screening Concentration v. Diversification Internationalization Internationalization occurs when a firm makes a strategic decision to enter foreign markets and adapts its operations to international environments. Decision to expand abroad Locate specific market opportunities Expansion strategy determined Concentrated Diversified Selection of entry mode Ansoff Expansion Model Ansoff suggests four ways in which firms can expand their operations: Figure 7-1 Present Markets/Present Products To gain higher market .
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