2. Coca Cola 16000 beverages consumed every…… Soda fountain drink in 1886 Bottling in 1894 Canada and Mexico in 1897 Bottling plant in Panama in 1906 Marketed in 76 countries by 1929 Build 63 international bottling plants during WW-II 100 countries in 1957
3. Four international franchises account for 40% of world wide sales Coca Cola HBC in Greece, has operating rights in 28 countries Coca Cola has ownership stakes in them JV with Inca Kola in Peru Georgia from Coca Cola Japan Orange drink from China now in Thailand and India JV with Nestle for tea products
4. Vizio Founded by William Wang Among the top three sellers of flat TVs in US Employee count of around 100 and sales of $2 billion Very close relationship with suppliers from Taiwan, China Korea and Japan Assembly operations in Mexico too Storage and transportation by 3rd party logistics providers
5. Boeing 30% of the Boeing 777 is made by foreign companies Includes 8 from Japan and 3 from Italy 65% of the Boeing 787 will be outsourced to foreign companies 35% will go to 3 Japanese firms
6. Level of Internationalization Telephone calls – 2% Immigrants – 2% University students – 5% Management research – 6% Private charity – 7% Tourist arrivals – 9% Patents – 14% Stock investments – 15% Trade (to GDP) – 27%
7. Google in Russia Reach is 28% Yandex - 64% Rambler – 54% Linguistic differences Adaptation to local payment mechanism Grew only after it set up a physical presence in 2003
8. Google in China Pullout imminent Censorship and hacker attacks Launched self-censored google.cn in 2006 Youtube, Blogger, Picasa already blocked Twitter and Facebook
9. Coca Cola 80 to 96 Growth fever Economies of scale Statelessness Ubiquity Centralization and standardization From $4 bil to $140 bil in 16 years
10. Coca Cola 96 -- Economic nosedive in Brazil and Japan Asian currency crisis Russia and East Europe Think Local, Act Local 6000 layoffs
12. Hofstede Individualism and collectivism Power distance Uncertainty avoidance Masculinity and femininity Time orientation
13. Trompenaar Universalism and particularism Individualism and collectivism Neutral and affective relationships Specific and diffuse relationships Achievement and ascription Relationship to time Relationship to nature
17. Cost Pressures and Pressures for Local Responsiveness Firms that compete in the global marketplace typically face two types of competitive pressures pressures for cost reductions pressures to be locally responsive These pressures place conflicting demands on the firm
18. Pressures for Local Responsiveness Pressures for local responsiveness arise from differences in consumer tastes and preferences differences in traditional practices and infrastructure differences in distribution channels host government demands Firms facing these pressures need to differentiate their products and marketing strategy in each country
19. Choosing a Strategy There are four basic strategies to compete in the international environment global standardization localization transnational international
20. Making Alliances Work Many international strategic alliances run into problems The success of an alliance seems to be a function of three main factors partner selection alliance structure the manner in which the alliance is managed
21. Basic Entry Decisions A firm expanding internationally must decide which markets to enter when to enter them on what scale how to enter them (the choice of entry mode)
22. Dabur Large population Long term GDP growth Should not be margin-dilutive Between China and Nigeria. If not: Is it a developed market Is there a high cost of operation Acquisition of brands can be considered Technology to be compatible Keep “herbal” platform
23. Foreign Entry Firms can enter foreign markets through Exporting Countertrade Turnkey projects Contract manufacturing Licensing or franchising Ajoint venture with a host country firm Awholly owned subsidiary
