Daffodil International University

Faculties and Departments => Business & Entrepreneurship => Business Administration => Topic started by: Shah Alam Kabir Pramanik on April 11, 2017, 10:01:08 AM

Title: Strategic Orietation of International Business
Post by: Shah Alam Kabir Pramanik on April 11, 2017, 10:01:08 AM
Strategic orientation means to select or to introduce a strategy or an idea or a concept to enter into the international market for earning profit and sustain in the business field for long time. The manager has to deliberate that which strategy will much match with the firm’s own capacity to enter into the foreign market. Companies use various concepts in various international marketing stages from casual exporting to global marketing. These concepts are expressed as “EPRG schema”. On the basis of international marketing commitment, the writer of schema divides the firms into four parts. Such as: Ethnocentric, Polycentric, Regiocentric, and Geocentric. These are broadly discussed below:

1. Domestic market extension: Under this concept, domestic firm tries to sell products in the foreign market which were actually produced for the domestic market. It may include in the second phases of international marketing. Primary objective of it is to sell the excess production of the firm after meeting up the domestic demand. Here mainly, the priority is given to the domestic market and sale in foreign market is treated as the profitable extension of domestic marketing activities. Although the foreign market is more profitable, the domestic market considered as the fundamental market. Under this concept, the product may be sold in any country; but no change will be brought into the marketing mix. Domestic marketing mix will be applied in the foreign market. The products are sold in those markets which are similar to the domestic market. According to this concept, it is profitable for both small and big firms. The firms adopting this concept or approach will include in the Ethnocentric group. Meter-Man Inc Company follows this approach.

2. Multidomestic Market Concept: When a company understands that domestic market and foreign market are different from each other and the effect of foreign business on their firm is more profitable, then its orientation towards international business may shift to multi domestic market strategy. The company uses different marketing programs for different countries to adapt their business with those countries. Advertising, product, and distribution channel are separately taken for each country. The firms do standardization of their marketing mix rather than finding similarity among the elements of marketing mix to adapt in the market. The company adopting this approach will include in the Polycentric. Feeders are that type of company.
3. Global Marketing Concept: A company guided by the global marketing orientation or philosophy is generally referred to as a global company. The marketing activities of the company will b e global and the whole world will be treated as one market to that company. The product will be standardized, qualitiful and that product will be sold at reasonable price. The main feature of global marketing concept is to meet up the needs and demands of the people in a similar way considering the whole world as one market. The company has to take some strategies which will be universally applicable. Considering the whole world as one market, the company develops a global marketing strategy. The company adopting this approach will include in the Regiocentric or Geocentric. Example: Coca-Cola, Intel, General Motors Company.

Following any one of the above concepts, a company can conduct its international marketing activities effectively and profitably.