Analyzing and serving the consumer
International marketing is an important factor in serving organizations to develop into becoming globally competitive. Companies who operate within domestic markets purely are having difficulties competing with a global organization. Therefore, what does it take to move an organization globally? According to Cateora, Gilly, and Graham (2013), “international marketing is the performance of business activities designed to plan, price, promote, and direct flow of the companies goods and services to consumers of users in more than one nation for profit” (p. 10). International marketing strategies and its effectiveness assists in the expansion of an organization. The development of global markets was established by the needs of the consumer. If a domestic nation cannot supply what the consumer wants, this gives opportunity to the nations with the supply of the goods wanted.
Additionally, global awareness has become an essential proficiency in international business. In order to become globally aware, the managers of firms must be accepting of cultural differences, understand the culture, have an understanding of global economics and recognize the political trends (Cateora et al., 2013). A majority of problems chanced upon are the outcome of the oddness of the surroundings the organization will be operating in the host country. Moreover, as described by Gupta and Govindarajan, “the success of companies in exploiting emerging opportunities and tackling their accompanying challenges relies heavily on how deeply they understand the dynamics of their operating environment” (as cited by Abebe, Elmuti, & Minnis, 2005, p. 1024). In this paper, serving the customer and cultural understanding was esse...
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... Auto and Tata Motors joint venture in India; Tata considering entry into China. (2006). Green Car Congress. Retrieved from http://www.greencarcongress.com/2006/12/fiat_auto_and_t.html
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In the observation of Sergio Marchionne and the Chrysler group there were many things that needed to change within the organization to make it survive not only the recession but the future in a competitive leading edge automobile industry. There were a couple of observable artifacts, and a Hieracicial framework that may have led Chrysler into bankruptcy. It is still not clear if Chrysler has changed the Vision statement for the organization, but after a review it is clear that it is customer focused. I found it interesting that Mr. Marchionne did not purchase Chrysler, it was a Government agreed merger with Fiat (“Fiat, Chrysler and Sergio Marchionne,” n.d.) Sergio Marchionne was able to change the culture and combine two companies in two countries and managed to boost sales and profit. (Clothier, n.d.)
Dash will receive the greatest benefit from this alliance. Dash Lab has already began what can turn out to be a very successful business. Having a product that is of value to a customer is one of the key components in business sustainability. When customers feel that the product is a necessity and there are limited alternatives to your product could give your organization a competitive advantage. Because Ford Motor Company is already a well-established company, they may feel that it is not beneficial enough to the company to join forces. As stated in the Holy Bible, Proverbs 19:20 reads, “Listen to advice and accept instruction, and in the end you will be
Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.
...ve industry in 2008, it seemed that Ford builders were employing Mazda as a support. Extra vitally, Ford’s shares of Mazda were one of the insufficient things Ford might yet vend afterward mortgaging nearly everything else to finance rearranging plan. Ford has decreased its 33.4 percent stake in Mazda to 13% in 2008 and cut it more down to a symbolic 3 percent in 2010. Firms in the Sumitomo Group and supplementary firms alongside that Mazda maintains close company ties were the buyers. The before amicable connection amid Ford and Mazda has swiftly coiled hostile afterward the early segment of shares has been transformed into cash considerably needed. If Ford heads wanted to attend an encounter at Mazda, matters debated ought to be prudently checked in advance and initialed in advance. Mazda, that has most of its creation in Japan, is worst-affected by very high yen.
Besides the dissimilarities in their situation though they form an unexpected collaboration that was formed on mutual interest in automotive and engineering. Surprisingly, their association continued for only six years, they formed a car acknowledged as the elite car in the world.
Nissan Company strategic alliance with French auto car manufacturer Renault was mutually beneficial for both companies, each of them expanding portfolio and becoming more competitive in the context of globalized mature automobile market.
Fiat specializes in the niche of cars that are small, efficient, and low-cost in a country where people embrace fuel guzzlers. However, some consumers perceive the brand to have been tainted by the associations with other companies, such as Daimler. Fiat Chrysler can expect to venture into the production of intelligent cars and thus should increase its spending on R&D to better serve its customers.
This case depicts about the success stories of the collaboration in the automobile industry by the Japanese and US firm though they were obviously competitors. One significant success story emerging from the alliance involves Ford probe and Mazda MX-6. There were swapping of resources and capabilities between the two firms. Mazda designers design the basic platform, engine and drive train for the cars. Mazda then design the outside of the MX-6 and Ford does same for the probe. Finally both cars are assembled at a factory owned by the two firms. Ford escort was another successful offspring of the alliance where again the Mazda engineers designed the car and Ford made it. But the alliance was not without spots. Mazda Navaho one of the offspring of the alliance which was basically build upon the on of the Ford popular product Ford explorer and build by the Ford makers. Ford made an opposite step by denying to provide the Japanese partners Navaho production to continue production of its own product line. The partner Mazda in addition fell into financial distress and Ford got the effective management control of Mazda and took some bold steps which eventually went against the collaboration.
Legislation and other government policies such as those dictating safety and checking against emissions deter many automobile companies from investing in the U.S. market. The lack of the ability of a company to distribute its finished goods can also discourage it from investing in a potentially viable market, as noted by Kharub and Sharma (2017). This explains why companies such as Alfa Romeo have been absent in the United States market since the 1990s. However, well-established companies with strong financial base have successfully ventured into potential markets through partnerships withother foreign based firms (Freedman, 2011). This makes it imperative for companies wanting to invest
This paper examines the expansion of General Motors overseas in its various phases, as well as triggers for internationalization and the problems faced during the process. The paper also considers what benefits have been achieved through international growth, and how the company can be classified with regards to Bartlett and Ghosal’s 4 typologies. Finally, the paper discusses the concept of a “world car,” meeting the demands of customers across the globe.
Our economic development will forever be defined as our ability to succeed internationally. PwC forecasts India’s real annual GDP growth until 2050 at 8.9 percent, Vietnam’s at 8.8 percent, and China’s at 5.9 percent. The list of fast-growing emerging markets goes on and on. The U.S. forecast is a meager 2.4 percent, comparable with most Western economies. The domestic companies that are likely to see incremental growth in the coming decades are those that are not only doing business internationally, but that are developing the strategic skill set to master doing business across cultures. Cross-cultural core competence is at the crux of today’s sustainable competitive advantage. For example, political environment will tell us, as to how and why political leaders control, whether and how of international business. Legal environment, both national and international will tell us about many kinds of laws by which business firms must work. The cultural environment will tell us about attitudes, beliefs and opinions important to business people. Economic environment will tell us about the economic system being followed by the host country, which may or may not be different from home country. It will also explain the variables such as level of development, human resources, Gross Domestic Per Capita and consumption patterns that determine a firm’s ability to do business. Geography will tell us about location, quantity, and quality of the world’s resources.
In the early stage, Bajaj Auto Finance was promoted by Bajaj Auto and Bajaj Auto Holdings. The groups flagship company, Bajaj auto is the fourth largest two wheeler and three wheeler manufacturers in the world. Bajaj Auto Holdings basically was an investment company. Later in 2010 the company was renamed as Bajaj Finance Limited.
In the last few decades, America’s automotive industry has been losing revenue, decline of market share, and employment reduction but international business in the auto industry has been the opposite. For instance, General Motors (GM) have been doing poor in the automotive business while Honda, a Japanese manufacture have been increasing their sales, market shares and employment.
Pope, B. (2008). Ford Advances Global Purchasing Strategy. Ward's Auto World, 44(7), 36-38. Retrieved from EBSCOhost.
International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...