Rechtswissenschaften

+ firm can quickly build a global presence

+ the franchisor can avoid tarrifs and restrictions on foreign investment 

+ ensure consistent standards

+ guarantee the customer a uniform retail experience

- bc of distance hard to detect poor quality and thus brand damage

- can create a new competitor

a firm that is jointly owned by two  independent firms

+ firms benefit from a local parnters knowledge

+ cost and risks of opening a foreign market are shared

+ satisfy political consideration for market entry

- risks giving control of its technology to its partner

- not have the tight control to realized experience curve or location economies

- shared ownership can lead to conflicts and battles for control

+ enter market really quickly

+ preempt (zuvorkommen) competitors in rapidly globalizing markets

+ less risky than greenfield (Neugründung)

- complex task (involving lawyers, banks, etc)

- restrictions on foreign acquisitions in host countries

- acquiring forms often overpay for the assets

- clash (Zusammenprall) of culture

- integrating operations from both companies takes a long time

the firm owned 100% of the stock

usually service sector does it

countries with high per capita and strong GDP Growth

+ reduce risk of losing control over core competencies

+ control over operations

+ less risky than acquisitions - less potential for unpleasant suprises

- most costly

- bears full risk

- slower to establish

- preemption (zuvorkommen) by more aggressive global competitors

- analyze organizational readiness (organizational readiness)

- suitability of the firms products for foreign markets (product readiness)

-screen countries to dientify attractive target markets (market readiness)

-assess the industry potential

-choose qualified business partners

-estimate company sales potential

.

1. Patent (20 yrs)

2. Trademark (Md Donads golden arches)

3. Copyright (exclusive right to reproduce the work eg music)

4. Industrial design (futures of a prodcut eg Apple IPod)

5. trade secret (confidential expertise eg formula Cola)

6. Collective Mark (logo belonging to an organization eg DIN for home appliances in EU)

passive ownership wich stocks and bonds

international parnerships or

international strategic alliances

= collaborating firms pool their resources and share costs and risks

The Process of identifyin the goods and services that customers outside the home country want and then providing them at the right price and place.

1 Segmentation by income level, lifestyle, demographic profile

2 Segmentation by macro level variables (economic development, cultural dimensions, government ristrictions)

3 Global Market Segment: customer groups who share similar characteristics across many national markets

is a marketing strategy in which the firm develops both the product and its marketing to evoke (hervorrufen) a distinct impression in the customers mind, emphasizing diffeences from all competitors offerings. (eg Disney = family values)

--> reduces marketing costs

- similar market segments exist across countries

- customers seek similar features

- products have universal specifications

- business customers have converging expectations

--> eg aircraft, I Phone, Rolex

- cost reduction

- economies of s cale in design manufacturing, marketing

- improved planning & control (reduces complexity of planning & control of value chai nactivities, Marketing acitivities simplified

- ability to portray a consistens image and build global brands

- Differencies in national preferences (M Donalds burgers slightely adjusted)

- Laws & regulations (no adv. at children)

- Living standards and economic conditions (income --> adj. prices)

- national infrastructure

- meet needs of customers more precisely

- enjoy unique appeal

- comply (befolgen) with government regulations

- achieve greater success in combating (bekämpfen) customers resistance

--> sometimes adjusted products are such a success they can be launced in the own home country as a new product.

= Marketing Mix

- global branding

- product development

-international pricing

- international marketing communication

- international distribution

firm might offer a standardized product worldwide but modify its pricing or advertising for different markets. IKEA offers uniform products accross its markets while modifying the size of beds in individual countries.

- a key outcome of a global positioning strategy is the development of a global brand

 - consumer prefer globally branded products bc branding provides a sense of trust and confidence in their purchasing

- Brand equity (EK) measures the strength or market value of a global brand

- global brands have the benefits of a first mover

- stimulates brand loyalty

- allow the firm to charge premium prices

simultaneously (global products)

sequentially (locally adapted, country by country)

- prices tend to rise bc of tarrifs, hiher markups by foreign intermediaries

- penetration (cheap) or skimming (high then cheap)

- possible gray market bc of price variations among different markets

- lower incomes usually give pressure to adjust prices

- prices tend to grow

Parallel imports

- arbitrage = Ausnutzen von Preisunterschieden

- legal importation of genuine products into a country by intermediaries other than authorized disributors

- bc of exchange rate fluctuations

eg Pfizer reduced Liptor in Canada so US couldnt order it anymore

- tarnished (angeschlagen) brand image

- strained (angespannt) manufacturer-distributor relations

- disruption (Störung) in planning

- cutting prices in coutnries targeted by gray markets

- reducing the amount of shipment (Pfizer Canada)

1. Nature of the Market = income level, local regulation, climate, tariffs

2. Nature of the product or industry= specialisted goods give a company greater price flexibility (monopoly)

3. Type of distribution systems = Distributers, FDI

4. Location of the production facility = low-cost labor countries, echange rate fluctuations

1. Rigid cost-plus pricing = fix price + flat percentage to the domestic price (bc of shipment costs etc)

- fail to include local conditions (income etc)

2. Flexible cost-plus pricing = adjust to local markets (income, purchasing power)

+ can be competitive advantage

3. Incremental pricing = prices that cover only variable cost not fixed (assumes fix are already paid off)

+ competitive price but - when extreme might be dumping

Price Escalation = Steigerung

Refers to the problem of end-user prices get super high

- caused by multilayered distribution channels (intermediary margings, tariffs)

- might create disadvantage for exporter

1. Shorten distribution channel

2. Redesign product to remove costly features

3. ship products unassembled (nicht zusammengesetzt) which bringt lower import tarrifs and low cost labor puts it together

4. Re-classify ussing different tarrif (instead saying mobile phone its a electronic devise)

5. Move production or outsourcing

Also known as intra-corporate pricing

or the pricing of intermediate or finished products exchanged among the subsidiaries of the same corporationg located in different coutnries (Austausch Güter Tochtergesellschaften)

- may be used to bring the profits back from countries that restrict MNEs from taking their earnings out of the country

- may be used to bring the profit froma high tax country to a low tax country = increase company wide profits

Transfer Pricing, buy at or below costs

- lower corporate income tax rates

- favorable accounting rules

- political stability

- no restrictions on getting the money out of the country

- strategic imprtance to the MNE

Companies use marketing communications (=marketing promotion) to provide information to, and  communicate with, existing and potential customers

--> ultimate aim of stimulating demand