International Business--Strategy

Definition :: Efforts or inputs put up by the company to achieve the objectives through the actions of the company.

1.Regional Strategy: An International Company when it wants to put up a strategy for a particular Region the following points are considered.

i.Government regulations
ii.Cultural Factors
iii.Economic and Legal implications
iv.Buying  Patterns

2.Global Strategy: Defined as strategy drawn  by an International Company to suit its objectives accomplishments which is a broad strategy across the global operations. (To become  one of the top 5 companies ) and following points are considered.

i.Market Potential ( Population,Income )
ii.Profits ( ROI/ROS )
iii.Cost ( Raw material,Wages,benefits )
iv.Economies of scale ( Mass production )
v.Growth ( Survival , Image)

International Business

International Business – Definition


    All  transactions  that involve Sales,Investments & Transports Private and Government for Profit and Political reasons.Is a field of study and practice that encompasses the persons or institutions of more than one country – Robinson (1978)

Importance:Because IB comprises of large and growing portion of World Business in total. And affect peoples economic well being,political status,skills or knowledge's and covers a broad spectrum of business activities that transcends across the globe

Study of IB:Competition  in IB requires managements to approach their strategies from International standpoint.Govt regulations effect profits,employment,security,wages,etc

International Trade:The companies export their products to neighboring countries ex:India to Bangladesh,Srilanka,Nepal etc

 

Products:Jute,Cotton,Steel

 

International Marketing:The Companies locating their manufacturing plants in their home and foreign countries  for production and marketing of the products in other countries ex:Uniliver case

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United States Financial Services===Merrill Lynch

Merrill Lynch is in the unenviable position of being among the worst hit by the credit-crisis. Without a retail side to their business to help support and balance the business, they’ve been left struggling with the reality of colossal losses. A brand which has traditionally thrived on a reputation for not being a risk taker, has seen its involvement in packaging sub-prime US homeowner securities spectacularly backfire.

Sweden Home Furnishings===Ikea 

One of the most stable brands in the world, its products are consistently innovative, stylish, and a great value – an unbeatable mix in times like these.Ikea continues to focus on global expansion with new stores opening in 11 countries.  Hoping to appeal to a new demographic of young people and to expand its brand recognition in new markets, Ikea reached a deal with Electronic Arts to create a special ad-on pack for the popular Sims 2 computer game featuring a wide range of Ikea products to decorate people’s virtual homes.

Japan Computer Hardware===Canon



Canon is opening stores targeting both businesses and consumers and marketing aggressively to reposition Canon as a lifestyle brand.Traditionally known as a consumer brand, Canon is not as well positioned as some of its rivals to make a real impact on the business-to-business market despite attempts to refocus its activity. Advances in mobile phone technology continue to threaten sales of digital cameras, as consumers are increasingly happy to capture and send pictures via their phones. Canon has done well within the environmental agenda, launching an innovative calculator partly made from recycled Canon photocopiers. It has also demonstrated good growth potential in emerging markets. In India,

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Germany Computer Software===SAP 

SAP has continued to broaden its offering through key acquisitions, most notably that of Business Objects. The “Best Run Businesses” campaign has been successful in increasing the familiarity of the brand to different audiences, including small- and medium-sized businesses, which remain a strategic focus. This effort helps position SAP as more than just a software brand and paves the way for diversification further down the line.

United States Computer Hardware===Dell

Despite sustained growth, Dell’s direct sales strategy has been suffering. The increasing importance of design and aesthetic appeal in personal computing means there’s been a greater shift to in-store purchase, where customers can see, feel and try things out before buying. This has changed the way Dell sells computers.  To get PCs in front of people, Dell has partnered big retail brands like Walmart in the US, Bic Camera in Japan, and Carphone Warehouse in the UK, which has offered great exposure, but has limited the control Dell has over the way its products are presented and explained.

United States Alcohol===Budweiser

While still the beer of choice in the US, the King of Beers needs to ensure its personality to drinkers shines through in other countries if it’s to keep its crown. Non-beer alternatives have gained popularity in recent years, broadening consumer tastes. Following its recent takeover by In Bev, the Budweiser brand should prosper given its flagship role within such a large international portfolio and the access it will gain to new markets.

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Switzerland Beverages====Nescafe

Nescafe has benefited from the increase in demand for premium coffees, with its “Connoisseur Coffee” range and café style coffees performing particularly well. It has taken on the role of educating the public on the health benefits of coffee and is beginning to engage and expand its customer base with online media.

United States Sporting Goods===Nike

Despite increased competition from Adidas, Nike remains the world’s #1 sports brand. Smart partnerships are never far away from Nike. It teamed up with Apple to launch an innovative MP3 player/sneaker for runners and it’s making further inroads with emerging markets – helped, no doubt, by its sponsorship of China in the Beijing Olympics. Along with the successful launch of women’s innerware, Nike has been expanding its direct-to-consumer business, which it believes will continue to grow. Also online, the brand launched interactive consumer concepts like Nike ID and Nike + , creating an online buzz about the brand and new ways for fans to interact with it.

United States Transportation===UPS


Responding to the downturn in the US economy, UPS expanded its online, supply chain, and freight services. International markets are playing an increased role, with UPS focusing on building strategic assets in China and India. The most profitable company in its sector, it is continuing to gain ground through aggressive marketing such as sponsorship of the Beijing Olympics and some major US ad campaigns