International Marketing
International Marketing
AD655 International Business, Economics, and Cultures
Introduction
The last two decades, probably after World War II the economic growth have speeded up by multinational enterprise. In the 1990s foreign direct investment made by these firms grew as faster arte than both international trade and GDP (Cieslik & Ryan, 2011). The foreign direct investment already created lots of fortune for world economy; however, it is not luck to each international firm. Some of them also faced huge risk, even failure.
Throughout history, it seems like it is not easy for companies to entry foreign markets. Some of firms were very successful in the their home countries; however, they were failed in foreign markets. Those corporations adopted the same marketing strategies that they used in their home countries because they thought using the same methods would bring much profit in the foreign countries. However, the results were not they expected before. Why?
The main reason is that the foreign market environment is not the same with their home countries. There are many different conditions in foreign, and those differences would make international companies rearrange strategies for new markets. Such as, culture, geography, religion, politics, etc. Among those differences, the most important is culture difference. Culture is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living--where values are abstract ideas about what a group believes is good, right, and desirable, and norms are the social rules and guidelines that prescribe appropriate behavior in particular situations. Therefore, international firms cannot use the same marketing strategies that they used before to apply different foreign markets.
In addition to strategy difference, in the past, standard products were popular by international enterprises since they can operate multinational supply chains by standard
AD655 International Business, Economics, and Cultures
Introduction
The last two decades, probably after World War II the economic growth have speeded up by multinational enterprise. In the 1990s foreign direct investment made by these firms grew as faster arte than both international trade and GDP (Cieslik & Ryan, 2011). The foreign direct investment already created lots of fortune for world economy; however, it is not luck to each international firm. Some of them also faced huge risk, even failure.
Throughout history, it seems like it is not easy for companies to entry foreign markets. Some of firms were very successful in the their home countries; however, they were failed in foreign markets. Those corporations adopted the same marketing strategies that they used in their home countries because they thought using the same methods would bring much profit in the foreign countries. However, the results were not they expected before. Why?
The main reason is that the foreign market environment is not the same with their home countries. There are many different conditions in foreign, and those differences would make international companies rearrange strategies for new markets. Such as, culture, geography, religion, politics, etc. Among those differences, the most important is culture difference. Culture is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living--where values are abstract ideas about what a group believes is good, right, and desirable, and norms are the social rules and guidelines that prescribe appropriate behavior in particular situations. Therefore, international firms cannot use the same marketing strategies that they used before to apply different foreign markets.
In addition to strategy difference, in the past, standard products were popular by international enterprises since they can operate multinational supply chains by standard