Global Marketing Cases PDF

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This is a summary of the cases discussed in class....

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Global Marketing Cases 1. Lancer Gallery Case  Most critical problem: Strategic Direction for the firm (artifacts/replicas) & repeating the market planning process in an innovative way  Distinctive competency: Determining Authenticity  Four Alternatives:  Continue with the same strategy without making changes (competition will continue to eat into margins, situation will worsen)  Stay in artifacts but pursue new markets (need new markets if wish to stay in artifacts!)  Concentrate solely or principally on replicas (key problem: different customers, different product specifications and expertise, different distribution channels)  Continue in artifacts and expand into replicas (dual branding strategy, each brand requires different competencies; needs a lot of management depth)  Recommendation: Stick to distinctive competency and find new markets, stick with what works

2. Walmart in Europe Case  Key issues:  Core competencies: customer service, supply chain economies, distribution, low prices  Environmental scanning: government regulatory policies…  Issue of service culture : Germany vs. US  Issue of carefully planning out market entry strategy based on overall mission, environmental scanning, and core competencies (In this case, Walmart has clearly not conducted a comprehensive international planning; they did not map out Germany against their core competencies)  Globalization = Diversity carried to economic necessity  German diligence, attitudes toward business, zoning laws, unionization, retailing hours in Germany, labor market  German shopping experience is different  Key: Germany doesn’t have to make an adjustment to Walmart, but Walmart has to make an adjustment in business strategy to the German environment  Question: Did the customers like it? NO!  Firm specific advantages – Get translated to target environment!!!  What could they have done?  Improve  Leave  Continue  Solution: You’re not going to change their mindset  Leave and come back (to other countries) better prepared  Walmart failed for two reasons:  Flawed entry analysis and strategy: Misjudged German consumer experience, competition, regulation etc.  Cultural arrogance (assumed that their model and core competencies would work everywhere)

3. Chick-fil-A:  Critical problem:  Should they go abroad?  Will core competencies carry over to other markets?  Alternatives:  Keep growing in America

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 Go overseas and re-brand or purchase local brands  Aggressively move overseas into areas that KFC and MCD are already at  Move into Western countries very similar to the U.S. Maybe market is not saturated  Although the American market seems to be saturated, there is evidence to suggest that American urban areas offer a huge opportunity for expansion While Christian values have not caused major issues so far, this is a risk factor! Maybe they need to find good franchise owners  one of the inhibiting factors in the expansion of Chick-fil-A is the ability to find franchise owners who meet their strict standards; However, in the case of the US and Canada, this factor may slow but not prevent growth Franchise model as solution  Canada (similar culture!) Most of the key success variables seem to have high transferability into the Canadian environment and entry into this market seems to have high potential Cultural distance may likely be a factor not because of the Christian values but because of their operating standards There is a need to constantly balance expected returns from new markets in the US versus the potential problems in other cultures

4. Ruth’s Chris  Issue: Transferability of Core Competencies (What markets should be entered?) AND which mode of entry?  Problem: Many potential investors couldn’t qualify to buy into the franchise with the strict company policies  Complicating factor: restrictions on the export of beef to certain areas in the world (because of the supposed lower standards against mad cow disease)  Core competencies: commitment to customer satisfaction; USDA Prime grade steaks  Method chosen: Market development (more of the same restaurants in new markets)  Number of variables plays into the decision (Key success factors/market selection criteria): - Beef eaters - Legal to import US beef (political and variable and thus could chance quickly) - Population/high urbanization areas - High disposable income - People do go out to eat - Affinity for US brands  Key question: Relationship between market selection and mode of entry  Additional factors to consider: home/country similarities, existing countries, ease of entry, inquiries from the country, opportunity, cost of studies, and managerial preferences  SWOT analysis  Quantitative approach: Eliminated those countries that did not allow the importation of US beef and countries with low per capita incomes and/or small populations  The three best prospects were selected and the ultimate list was based, in the end, on instinct and receptivity to a US fine dining experience  Important observations: - Important to recognize that sometimes organizations do not do a good job in trying to establish the relationship between successfulness and overseas markets and the quantitative measures which have led to that success - Concept of finding the right distribution channels or franchises with which to pursue the market opportunity...