Toy R Us: A Case Study Of Global Marketing Components

1458 Words3 Pages
bulb-icon

Recommended: Global and domestic marketing

Global marketing refers to the worldwide ‘the firm’s commitment to coordinate its marketing activities across national boundaries in order to find and satisfy global customer needs better then competition’ (Hollensen, 2014). Satisfying those customers needs was previously seen a a ‘global dilemma’ (Mukoyama, 1996) between standardisation and adaptation. Yet, a third option has emerged: the glocalisation approach. Glocalisation emphasises the need to adapt to country-specific characteristics as well as the standardisation of parts of a firm’s activities to sustain global competitive advantage (Hollensen, 2011; Sharma, 2009). The sources used for this essay comprise academic articles, case studies and the use of global marketing textbooks.

In order to fully appreciated the issues and opportunities of global …show more content…

The need for adaptation due to cultural factors has been demonstrated by Baek (2005) in a case study about Carrefour’s and Toy “R” Us entry in Japan. As Japan is a high-context culture and a highly masculine country (Geert-hofstede.com, 2015) the ethnocentric approach used by Toy “R” Us was extremely detrimental to their activities by reveal a need for a polycentric approach.

The technological aspect and the opportunity for adaptation is illustrated by Coe and Lee’s 2006 study of the Samsung-Tesco in South Korea. Moreover, as South Korean are extremely technology savvy (Cbre.com.hk, 2015) Tesco Homeplus adapted its promotion and place strategy by displaying advertisements in the Seoul underground where commuters could do their shopping by using QR-Codes (Tesco Plc, 2012).

The adaptation approach has its opportunities as described above but also lacks the standardisation’s systematic approach benefits such as economies of scale and economies of

Show More
Related

  • Dr Thunder: Advertising Scheme

    1235 Words  | 3 Pages

    Kotabe, M., & Helsen, K. (1998). Global marketing management. Temple University. New York: John Wiley & Sons.

    Read More

  • The Impact of Globalization on Qantas Airlines Marketing Strategy

    1776 Words  | 4 Pages

    Globalisation is having a significant impact on marketing. This is because a business, by distributing itself across international borders makes its product more readily available to international customers and creates employment opportunities in the country it has moved to. To understand the impacts, globalisation, marketing (particularly market segmentation), global marketing strategies and general history of Qantas need to be examined.

    Read More

  • PEST-C Variables; Push, Pull, and Convergence Marketing Strategies

    1900 Words  | 4 Pages

    Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.

    Read More

  • External Environment in AT&T

    1814 Words  | 4 Pages

    Global segment include relevant new global markets, existing market that are changing, important international political events, and critical cultural and institutional characteristic of global market. When company entering the global, it automatically can increasing number of people believe or consumer in the multiple nation and this si...

    Read More

  • Innocent Smoothies Are Coming to Japan

    2912 Words  | 6 Pages

    However, entering into a market as different as Japan is not without its risks, and must be ensured to be successful, with the help of market research, marketing, and operational theories, lest the new venture become a very costly mistake. Target Consumer Market When moving to a market with a consumer culture so different from the home market, a company must be careful to analyse its target audience in detail, to avoid costly cultural faux pas. To get a good feel for the Japanese culture, a good place to start would be the experts in the cultural studies field. Hofstede’s cultural dimensions, created during his in-depth GLOBE study of the cultures of the world, gives a good comparison between the priority differences between Japanese and English culture. A detailed analysis of the cultural differences will be given in the ‘Marketing Issues’ section of the report.

    Read More

  • Analysis Of Theodore Levitt The Globalization Of Markets

    1168 Words  | 3 Pages

    Today, many companies enter the global market, and some companies have become extremely successful in the global marketplace and others still struggling. In Theodore Levitt’s article “The Globalization of Markets”, he states that a well managed corporation focuses on selling standardized products with high quality and low priced instead of focuses on selling on customized products with high cost. Levitt defines the differences between multinational corporation and global corporation, and adopts many specific examples to proves his view. He defines the multinational corporation who operates in many countries and adjust its product based on the taste of specific region. This will result in a high cost to produce the product because company have to input more resource into each individual product. However, global corporation sells similar product worldwide at relative low cost. According to Levitt, the cultural differences are becoming more and more “homogenized”; therefore, becoming a global corporation will lead to the successful of the company in the global market.

    Read More

  • Home Depot's Failure in Chile

    1372 Words  | 3 Pages

    Each country has its own culture, with subcultures inside the dominant culture (Schaefer, 2009, p.69). “Culture is the totality of learned, socially transmitted custom, knowledge, material objects, and behavior” (Schaefer, 2009, p.57). Values, artifacts, and ideas are also part of culture (p57). With globalization there is the integration of these cultural aspects, as well as language, social movements, and ideas throughout the world (Schaefer, 2009, p.20). Internationalization helps with this integration. Internationalization is the process of planning and implementing products and services so that they can easily be adapted to specific local languages and cultures (Linfo, 2006). Numerous American retail firms have expanded to other countries. Many have been quite successful due to their internationalization. However, failure to study the culture, retail practices, and consumer market of the country they intend to expand to can be quite costly. Although Home Depot is one of the world’s largest home improvement stores, their expansion to Chile cost them enormous financial loss, resulting in their divestment (Bianchi & Ostale, 2006, section 1, para3). This paper will look at successful international expansion of Home Depot stores, analyze what mistakes were made in Chile, and make suggestions of what could have been done differently.

    Read More

  • Hong Kong Disneyland Case Study

    1721 Words  | 4 Pages

    Although from an outside perspective many cases of globalisation may simply seem to increase cultural homogeneity, one culture can alter different parts of a global culture and incorporate them into their own and create cultural heterogeneity. In simpler terms, homogenisation and heterogenisation are both features of modern globalisation. Evidence for the contended statements above will be provided through the evaluation of case studies regarding global companies such as Starbucks and Disneyland Parks adapting to the local cultures of the areas to which they have spread to within the Asia-Pacific region. Not only global brands highlight the interconnectedness of homogenised and heterogenised cultures, but the glocalisation of traditional rites

    Read More

  • Critical Analysis of Standardization and Adaptation in International Marketing

    2453 Words  | 5 Pages

    In internationalization, the most challenging decision faced by the company to choose between standardization and adaptation in its operations, products or services. It has been one of the important and most popular research topics since 1960s to understand whether standardization is better or adaptation for marketing mix in international marketing. The increasing role of international expansion of business across the borders has also increased the focus of companies towards the international marketing strategies. It is also a biggest challenge for companies to better understand the different needs and choice of customers due to the huge differences among the cultures from various nationalities. This leads to the dilemma in the mind of marketers to understand which strategy is effective and good - standardization or adaptation. There is a significant impact of standardization or adaptation on all avenues of business such as research & development, structure, marketing mix, production, finance and marketing mix. The attitude of a company towards the culture of a particular country in which it is going to enter or start its operations decides to choose between standardization and adaptation. Consider the different views and arguments for each standardization and adaptation, this essay critically analyze which strategy is better to choose for international marketing.

    Read More

  • The Importance of Branding in the Marketing Mix

    2033 Words  | 5 Pages

    Global brand is another term marketer’s use. Global brand is the name of the product that has worldwide recognition. It also has been referred to brands where at least 20 percent of the product is sold outside the region and the home country. Marketers have to make sure that there is nothing offensive in terms of the name or packaging in the different cu...

    Read More

  • Marketing Assignment: Charles & Keith Footwear

    1061 Words  | 3 Pages

    ...enture into overseas market comes with expectations as well as uncertainties due to unfamiliarity. Charles and Keith, the fashion retailer, has to understand clearly that what appeals in one market might not be accepted in the others and this is almost the same for all industries. Thus, a thorough research on cultural background has to be done before entering an unfamiliar ground.

    Read More

  • National Culture Influences on International Management

    2527 Words  | 6 Pages

    Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.

    Read More

  • Business Failure Due to Cultural Differences

    1011 Words  | 3 Pages

    The differences in other cultures vary from beliefs to ways of life, or norms, of the different societies. The importance of understanding and sensitivity to other countries’ differences is crucial to a business’ success. “Lack of familiarity with the business practices, social customs, and etiquette of a country can weaken a co...

    Read More

  • Impact of Globalization on Marketing Strategy

    1546 Words  | 4 Pages

    In week five we learn about the importance of globalization and how it can help your company’s profits grow. There are many things to look at when selling globally as different cultures need to be looked at differently when making a marketing strategy. If you understand how to market your products to different cultures in different countries you can take advantage of the profits that can be made through globalization.

    Read More

  • The Challenges Of International Marketing

    1184 Words  | 3 Pages

    Regardless of the success of your company on a national scale, to engage yourself in a successful venture outside of your borders requires several critical elements that one must acknowledge and apply with great care. One of those requirements would be to thoroughly research the cultural environment in which you wish to launch your product no matter how popular and indispensable you believe it might be. In the past, many national giants have hit the wall when introducing a foreign market or launching a new marketing campaign because of the cultural gap they encountered on the other side of their borders. Another way of preventing a flop on an international market is to carefully study the economical past of this country, which might differ quite a bit from the one the company flourished in. In addition to the previous precautions, it Would be advise to make sure that your product will blend seamlessly within the spending habits of the consumers. Overall, meticulous market studies and patience often constitute the way to success on a foreign soil.

    Read More

More about Toy R Us: A Case Study Of Global Marketing Components

Open Document