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Globalization in a marketing strategy
Global market entry strategies
Globalization strategy
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Throughout its history, Buick has had a series of regional strategies. Like the case explains, for decades Buick made cars for the U.S market and then exported them to countries such as Japan and Great Britain with the idea that what worked in the United States would apply successfully in a global market. In addition, Buick has taken cars designed by General Motors, such as the Opel Astra and Holden, meant for the European and Australian market, and labeled them as Buicks.
However, we should note that Buick attempted a global strategy when it chose PATAC to redesign the current Buick LaCrosse. Buick made a bold move when it chose a team of Non Americans to design a vehicle that “would sell in all of Buick’s market” instead of going with U.S
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GM has had manufacturing facilities as well design centers throughout the world; however, this hasn’t been a global strategy because those facilities have been manufacturing similar cars for diverse markets but under different brands, such as the Opel and Holden. In addition, the PATAC center, at least in the LaCrosse example, focused mainly on targeting the regional market of Chinese buyers. Even though their design was introduced in the American market as well, their original target was the mid-30s, fashionable buyers of China.
3- Some of Buick’s early communications strategies in China included communication adaptation with advertisements that were targeted to the Chinese consumers such as “Buick owners are mostly the leading men in China”. However, the company case doesn’t mention more recent global communications strategies for Buick, so we can’t assume that they are still following the same tactic.
In product strategies, Buick is using a product adaptation, at least in the Chinese market. We can say that they changed the Buick LaCrosse to appeal to the demographic profile of Chinese consumers. However, they didn’t redesign it for the American market, thus also showing some traits of straight product extension. Buick also used the aforementioned strategy when they used to sell the same left-hand driven cars in right-hand driven countries. In conclusion, Buick is in between
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They have dominated the Chinese market since the early 1900s, and as of 2011 they were the number one automaker in the country. They have brand familiarity and brand loyalty from their consumers. They are still seen as an elite brand with an impeccable image of luxury and glamor, which definitely attracts the status-conscious Chinese consumers. They are ahead of the competitors because they are in tune with their costumers wants and produce cars that are relevant and appeal to them. If Buick continues with the same strategy they should stay ahead of the game. However, they have to be aware of the threat of other companies trying to win over the Chinese market. If, in the future, one of Buick’s competitors is able to satisfy the needs of the Chinese consumers better than Buick, then the company could be in
The Ford Motor Company (FMC) was founded in Detroit in 1903 and began shortly thereafter exporting cars to European branches. Cross-border assembly started in Canada in 1904 and was later implemented in the European markets. The first European plant was established in 1911 in England, and this was followed with other lower volume assembly plants across the European continent. All the plants and branches assembled and sold the Model T, using American methods and practices. This proved to be a success in the beginning, but in the long run, “(…) this proved a costly and unsuccessful strategy in Europe’s diverse markets” (Bonin et al., p. 15). By the late 1920s most of its European subsidiaries were struggling and Ford had to change his approach to the European market.
General Motors (GM) has been a staple of American culture since 1908. GM represents the best of American ingenuity, with brand names such as GMC, Cadillac, and Chevrolet. According to GM, “Our unyielding mission to earn customers for life has led to a healthy balance sheet and world-class products that are wining in the marketplace” (GM, 2015). At GM’s height, the company was the largest employer in the world. In addition, GM has been an integral company during the wartime efforts, and has capitalized on the American spirit. GM is of the longest tenured American brands.
Asian products have less advertising and are villanized in Gran Torino. This strategy strengthens the power of the American products in promoting the “old school” Americanism theme. Cars the fi...
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
GM should continue to use its technological advantages to create innovative automobiles, but do so cautiously. GM should follow the direction of today’s environmentally conscious consumers who want less expensive, economical automobiles. GM should primarily utilize a cooperative game-theory approach in its sales and marketing strategies in order to stay in sync with the current automotive industry needs.
With BMW celebrating its one hundredth birthday this year it’s one of the oldest and most respected automobile manufacturers in the world. However, this wasn’t always the case. To understand why BMW fits so well into the discourse of modern globalization and, at the same time, is an exception, one must understand its history and core values. The company’s path to globalization began after World War II and in the beginning of the state led era of globalization. The time after the war was volatile and the company didn’t gain a solid footing and achieve the global status it holds today until the 1970s. It was during this time of globalization that the company developed the principles that it stands for today and began the creation of a global
General Motors Company (GM) is an American multinational corporation that manufactures, designs, markets and distributes vehicles and vehicle parts, and sells financial services. GM produces vehicles in 37 countries, selling and servicing them through thirteen brands such as Alpheon, Chevrolet, Cadillac, Holden and Wuling (Our Company, 2014). GM is among the world 's largest automakers by vehicle unit sales. It employs about 212,000 people working in 396 facilities touching six continents and has 21,000 dealers around the world (Our Company, 2014).
Strategy implementation involves establishing programs and tactics to create a series of new organizational activities, budgets to allocate funds to the new activities, and procedures to handle the day-to-day details (Wheelen, Hunger, Hoffman, & Bamford, 2015). Essentially, after a company determines the direction of their program, it is the how that particular direction will be accomplished. It also answers the question of what resources must be moved or sold to meet the allocated budget. For example, Ford Motor Company set up a program with the sole purpose of discovering alternatives to the foam that was being used in the manufacturing of car seats (Ford Motor Company, n.d.). While this program has a great deal of potential, there are different aspects that would have to be measured and verified before it can be considered a successful course of action by the company.
The adaptation of the major business strategy to all the markets where the company’s products are presented.
Avon is the United States oldest beauty company which has grown from its humble beginnings as a perfume line being sold door-to-door into one of the largest brand of cosmetic products. It has expanded its products in 143 countries and with roughly around four million representatives world-wide. Their global strategy has faced mounting pressures from competitors, overseas economies, and governments to change and adapt to their strategy to maintaining growth. This article will discuss the changes in a corporation global strategy and why it is important to adapt and what can be learned from changing strategy as new technologies emerge and markets mature.
Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
This paper examines the expansion of General Motors overseas in its various phases, as well as triggers for internationalization and the problems faced during the process. The paper also considers what benefits have been achieved through international growth, and how the company can be classified with regards to Bartlett and Ghosal’s 4 typologies. Finally, the paper discusses the concept of a “world car,” meeting the demands of customers across the globe.
Within this essay, I will discuss Toyota’s generic strategies, which include cost leadership and differentiation. I will then discuss their diversification strategies, in which they have ventured outside of the automotive
...ing in unique outcomes in different geographic areas” (Guo, 2013). Guo gives an example of Starbucks in China (2013). In China, Starbucks stores have incorporated Chinese cultural design elements despite the corporations branding is based on Americana (Guo, 2013).
BMW soon realized that many threats impacted its market share in U.S. The Japanese auto manufacturers started building plants in the U.S. to deal with the increased U.S. demand at a lower cost than importing their cars. BMW's U.S. export situation was made even worse by the appreciation of German mark and additionally the higher German labor costs. As a result, the decision was made in 1991 to bui...