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Global Market Strategies

The Internationalization of U.S. Business


Many U.S. Companies are now foreign owned.

Companies with only domestic markets have
found it difficult to sustain customary rates of
growth.

Many companies are increasingly seeking foreign
markets.
Buy American Quiz
Saks Fifth Avenue
Burger King
Michelin
Shell
Seagrams
Bonwit Teller
Hardees
Firestone
BP
Jack Daniels
Foodline
BiLo
Foreign Acquisitions of U.S. Companies
U.S. Companies Foreign Owner
Bestfoods (foods) U.K.
Ben & Jerrys (ice cream) U.K.
Alpo (pet food) Swiss
Pillsbury (food) U.K.
Burger King (fast food) U.K.
Random House (publishing) Germany
Chrysler (autos) Germany
TV Guide (magazine) Australia
New York Post (newspaper) Australia
LA Dodgers (sports) Australia
Arco (gasoline) U.K.
CompUSA (retailing) Mexico
Seagram (alcoholic beverages) France
SOURCE: Adapted from Kuri Badenhausen. Name Game, Forbes. Jul 24, 2000

Top 10 U.S. Players in the Global Game
Company
Foreign
Revenues
($ Mil)

Foreign
Revenues
(% of Total)
Foreign
Profits
(% of Total)


SOURCE: Adapted from Brian Zajac, Global Giants. Forbes, July 24, 2000

Irwin/McGraw-Hill
1-4
Foreign
Assets
(% of Total)
ExxonMobil
IBM
Ford Motor
General Motors
General Electric
Texaco
Citigroup
Hewlett-Packard
Wal-Mart Stores
Compaq Computer
115,464
50,377
50,138
46,485
35,350
32,700
28,749
23,398
22,728
21,174

71.8
57.5
30.8
26.3
31.7
77.1
35.1
55.2
13.8
55.0

62.7
49.6
N/A
55.3
22.8
54.1
N/A
58.0
8.2
101.4

63.9
43.7
44.2
38.0
47.4
45.2
41.0
51.5
36.0
28.2

International Marketing Defined
International Marketing is the performance of
business activities that direct the flow of a
companys goods and services to consumers or
users in more than one nation for a profit.

Marketing concepts and principles stay the same,
but the environment changes.
7
The International Marketing Task
Political/legal
forces
Economic
forces
1
2
Environmental
uncontrollables
country market A
Environmental
uncontrollables
country
market B
Environmental
uncontrollables
country
market C
Competitive
structure Competitive
Forces
Level of
Technology
Price Product
Promotion
Channels of
distribution
Geography
and
Infrastructure
Foreign environment
(uncontrollable)
Structure of
distribution
Economic climate
Cultural
forces
3
4
5
6
7
Political/
legal
forces
Domestic environment
(uncontrollable)
(controllable)
Environmental Adaptation
Adjusting to a countrys culture (uncontrollable
environment) is critical.

Consider and adjust your frame of reference (self-
reference criterion).

Avoid cultural errors by being aware of cultural
relativism--marketing strategies and judgments are
based on experience, and experience is interpreted
by each marketer in terms of his/her own culture.
Being Globally Aware
To be Globally Aware is to be:
Objective
Tolerant of Cultural Differences
Knowledgeable of:
Cultures
History
World Market Potentials
Global Economic and Social Trends
Entry Strategies
Exporting

The Internet

Contractual Agreements

Joint Ventures

Direct Foreign Investment

Strategic International Alliances
Trends in Global Business
Internationalization of U.S. Markets
Internationalization of U.S. Business
Growth of Regional Trade Areas
Move toward free market system by countries in Latin America,
Asia, Eastern Europe
Large Emerging Markets such as Argentina, China, South Korea,
Poland, India
Evolving global middle income households
GATT and World Trade Organization

Possible Regional Trade Groups in the 21st Century
Western Hemisphere Free Trade Areas (WHFTA)
Canada to Argentina

Asia-Pacific Economic Cooperation (APEC)
Pacific Rim Countries including U.S.

U.S./Canada/Mexico/Japan

South American Free Trade Area (SAFTA)
Andean Pact and Mercosur

Chinese Economic Area (CEA)
Hong Kong, Taiwan, Coastal Provinces of So. China

U.S./European Union

Many possibilities of Republics of Russia, Baltic States