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What international trade theory or theories best explain the rise of india as a major exporter of pharmaceuticals?


The correct answer is Porter’s Diamond theory.

Basically, India has an abundance of resources and of workforce. This enables them to have high quality workers who manufacture high quality products using high quality resources. Because of the state of the economy, you pay them very little meaning you get cheap and high quality work force.


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Free trade eliminates the exploitative nature of businesses coming in, buying a large quantity of goods for a very small price and then reselling them on the international market. A) True B) False


Free trade eliminates the exploitative nature of businesses coming in, buying a large quantity of goods for a very small price and then reselling them on the international market. A) True B) False


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How did the decline of the Ottoman Empire help cause World War I? A. The Germans' refusal to ally themselves with the weakening Ottoman Empire upset the balance of power. B. The weakening Ottoman presence in Iraq allowed foreign agents to start rebellions in the area. C. The Ottomans' increasing dependence on English military power led to international tensions. D. The end of centralized Ottoman control in the Balkans led to growing instability in the region.


How did the decline of the Ottoman Empire help cause World War I? A. The Germans’ refusal to ally themselves with the weakening Ottoman Empire upset the balance of power. B. The weakening Ottoman presence in Iraq allowed foreign agents to start rebellions in the area. C. The Ottomans’ increasing dependence on English military power led to international tensions. D. The end of centralized Ottoman control in the Balkans led to growing instability in the region.


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In 1928, the U.S. and 62 other nations signed an international treaty banning


In 1928, the U.S. and 62 other nations signed an international treaty banning


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In 1928, the U.S. and 62 other nations signed an international treaty banning


In 1928, the U.S. and 62 other nations signed an international treaty banning


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According to the 2012 budget, which two functions received the least spending? 1. international affairs 2. national defense 3. transportation 4. Social Security 5. income security


The correct answer are 1 and 3, as International Affairs and Transportation received the least spending in the 2012 United States federal budget.

Social Security received $773 billion, National Defense received $678 billion, Income Security was allowed to spend until $541 billion, Transportation received $91 billion, and International Affairs received only $47 billion.


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The passage of the Embargo Act A: authorized US ships to attack British ships. B: stopped all international trade to and from American ports. C: allowed the British to hurt the American economy. D: punished the French for impressing American sailors.



C) Nations begin to rely on each other for things they cannot produce themselves.


Globalization can lead to interdependence among nations. One of the most common ways in which this happens is through free trade. When two countries trade, they exchange goods and services. If the relationship is long and stable enough, the population can come to rely on the other country’s goods, which might not be produced in their country, or might be produced at a much higher price.


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Which of the following is not a type of political action committee? A. connected B. ideological C. international D. leadership


Here are the following effects of loose money and tight
money policies on the actions being listed.

A. A loose money policy
is usually implemented as an effort to encourage economic growth.
This can lead to inflation when uncontrolled. The effects are:

1. Borrowing becomes easy

2. Consumer buys more

3. Since more people are willing to buy,
businesses expand

4. Employment rate increases due to
expansion of businesses

5. Since more people are employed, thus
production also increases


B. A tight money policy is a course of action to restrict spending
in an economy that is growing too quickly or to hold back inflation when it is
rising too fast. This can lead to recession when uncontrolled. The
effects are:

1. Borrowing becomes difficult

2. Consumer buys less

3. Since people don’t have a lot of
money, business don’t expand

4. Unemployment rate increases due to businesses
slowing down

5. Production decreases



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What protects humanitarian aid workers during times of war? 1. Universal Declaration of human rights 2. International Criminal court 3. The world Health Organization 4. The Geneva Convention


1. We are all free and equal. We are all born free. We all have our own thoughts and ideas. We should all be treated in the same way.

2. Don’t discriminate. These rights belong to everybody, whatever our differences.

3. The right to life. We all have the right to life, and to live in freedom and safety.

4. No slavery – past, and present. Nobody has any right to make us a slave. We cannot make anyone our slave.

5. No Torture. Nobody has any right to hurt us or to torture us.

6. We all have the same right to use the law. I am a person just like you!

7. We are all protected by the law. The law is the same for everyone. It must treat us all fairly.

8. Fair treatment by fair courts. We can all ask for the law to help us when we are not treated fairly.

9. No unfair detainment. Nobody has the right to put us in prison without a good reason and keep us there or to send us away from our country.

10. The right to trial. If we are put on trial this should be in public. The people who try us should not let anyone tell them what to do.

11. Innocent until proven guilty. Nobody should be blamed for doing something until it is proven. When people say we did a bad thing we have the right to show it is not true.

12. The right to privacy. Nobody should try to harm our good name. Nobody has the right to come into our home, open our letters or bother us or our family without a good reason.

13. Freedom to move. We all have the right to go where we want in our own country and to travel as we wish.

14. The right to asylum. If we are frightened of being badly treated in our own country, we all have the right to run away to another country to be safe.

15. The right to a nationality. We all have the right to belong to a country.

16. Marriage and family. Every grown-up has the right to marry and have a family if they want to. Men and women have the same rights when they are married, and when they are separated.

17. Your own things. Everyone has the right to own things or share them. Nobody should take our things from us without a good reason.

18. Freedom of thought. We all have the right to believe in what we want to believe, to have a religion, or to change it if we want.

19. Free to say what you want. We all have the right to make up our own minds, to think what we like, to say what we think, and to share our ideas with other people.

20. Meet where you like. We all have the right to meet our friends and to work together in peace to defend our rights. Nobody can make us join a group if we don’t want to.

21. The right to democracy. We all have the right to take part in the government of our country. Every grown-up should be allowed to choose their own leaders.

22. The right to social security. We all have the right to affordable housing, medicine, education, and child care, enough money to live on and medical help if we are ill or old.

23. Workers’ rights. Every grown-up has the right to do a job, to a fair wage for their work, and to join a trade union.

24. The right to play. We all have the right to rest from work and to relax.

25. A bed and some food. We all have the right to a good life. Mothers and children, people who are old, unemployed or disabled, and all people have the right to be cared for.

26. The right to education. Education is a right. Primary school should be free. We should learn about the United Nations and how to get on with others. Our parents can choose what we learn.

27. Culture and copyright. Copyright is a special law that protects one’s own artistic creations and writings; others cannot make copies without permission. We all have the right to our own way of life and to enjoy the good things that “art,” science and learning bring.

28. A free and fair world. There must be proper order so we can all enjoy rights and freedoms in our own country and all over the world.

29. Our responsibilities. We have a duty to other people, and we should protect their rights and freedoms.

30. Nobody can take away these rights and freedoms from us.

I’m unsure of what you were asking for specifically.


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Why were pops singled out for regulation by the international community?



C. Classical Greece was organized into independent city-states, while Persia was ruled over by a single empire.


The classical greek empire was actually a compound of independent city states that had more or less the same political and social structure, te base of the social pyramid were the slaves and only male had citizenship and political status, while in the Persian empire there were no slaves, they were ruled by a centric fiure in the King and he appointed several governors to rule over little provinces so his influence and power could reach to the whole empire.


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Civics Assume the European Euro is increasing in exchange value compared to the U.S. dollar. Who will benefit most in this situation? A U.S. family traveling throughout Europe A European company that imports electronics from the U.S. A European company that imports Asian foods An international travel agency based in Florida


The Reformation actually started after Columbus’s landing in North America. 

Treaty of Tordesillas in 1494 was forced on Spain and Portugal by the Pope. The Pope basically said that all lands in the New World belonged to Spain and all new non-Christian lands in the Eastern Hemisphere belong to Portugal. No other Catholic countries can do anything in those areas without the approval of the owner. 

The pope basically drew two lines on the globe setting the border. The western line started at the north pole cut half way through Greenland and ended at the south pole. The new world was everything to the west. Problem is that it ran through a chunk of Brazil which is why Brazil is an ex-Portuguese colony. 

The Eastern line starts at the North Pole runs through siberia, through the pacific just west of Japan, and cuts Australia in half. Of course, Australia hadn’t been discovered yet. Everything to the the east of this line is the new world. 

Obviously, this treaty didn’t hold up well, but the reformation gave the protestant countries an excuse to explore the new world since they didn’t have to take orders from the Pope. Even so, France, a catholic country, ignored it too. 

Really, the only country that was effected by the reformation in the exploration of the Americas was England. All the other countries, changed their religion once and then went to war with the nearest catholic country. Sweden became Lutheran and stayed that way. The Dutch Republic became Calvinists and stayed that way. 

England kept switching. First it was Catholic. Then, Henry VIII made it protestant. Then, Henry’s daughter Mary I made it catholic again. Henry’s other daughter Elizabeth I (with the two hit movies) made it Protestant again. 

Years latter, Oliver Cromwell over through the monarchy, executed the King Charles I, and established a Protestant fundamentalist religious military dictatorship. He outlawed drinking,smoking, gambling, theater, dirty books, sports, prostitution, and anything generally fun. He would have made Saudi Arabia proud. Basically, all you could do is work, pray, and die. Sex was allowed for creating children, but you couldn’t enjoy it. 

When Cromwell died, the people of England said enough was enough and brought back the King. Charles II kicked out the fundamentalists and brought back drinking, smoking, gambling, dirty books, sports, prostitution, and having fun during sex. Incidentally, those were also all his hobbies. 

This brings us to the famous Pilgrims. They were part of Cromwell’s crowd. They kept agitating a return to the no-fun policy. They annoyed everybody. They weren’t persecuted for practicing their religion, they were persecuted because they kept trying to force their religion on everyone else. Sort of like Southern Baptists. 

Charles II was the most easy going monarch in British history. Do realize how annoying you have to be to get him to throw you out. 

Charles’s brother James II was obsessed with turning Great Britain catholic again. After four years of trying, they kicked him and his followers out. 


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True or false: when a country is too small to affect the world price, allowing free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.


Initial investment on Jan 1, 2013 = (500 shares)*($24 per share) = $12,000

Dividend collected at the end of 2013 = $2.50*500 = $1,250
Dividend collected at the end of 2014 = $4*500 = $2,000
Dividend collected at the end of 2015 = $3*500 = $1,500
Mony received from sellng the 500 shares at the end of 2015 = $20*500 = $10,000

Total returns at the end of 2015 = 1,250+2,000+1,500+10,000 = $14,750
Net gains = 14750 – 12000 = $2,750
Duration = 3 years
Realized total rate of return = 2750/12000 = 0.2292 = 22.9%

Answer: 22.9%


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Which of the following countries, according to Amnesty International, is responsible for executing 3,400 people (80 percent of all executions globally)? A. North Korea B. South Korea C. Japan D. China


Which of the following countries, according to Amnesty International, is responsible for executing 3,400 people (80 percent of all executions globally)? A. North Korea B. South Korea C. Japan D. China


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Coca-cola, gillette razors, and wrigley’s gum are virtually selling the same product in other countries. this is an example of which type of international product strategy?


The Contribution Margin per unit (CM) can be calculated
from the difference of Selling Price per unit (SP) and Total Expenses per unit


First, let’s calculate the value of SP:

SP = Sales / Units sold

SP = $1,043,400 / 22,200 units sold

SP = $47


Second, calculate all expenses:

Direct materials per unit = $234,948 / 27,970 units
manufactured = $8.4

Direct labor per unit = $131,459 / 27,970 units
manufactured = $4.7

Variable manufacturing overhead per unit = $240,542 / 27,970
units manufactured = $8.6

Variable selling expenses per unit = $113,220 / 22,200
units sold = $5.1

TE = $26.8


Therefore the CM is:

CM = SP – TE

CM = $47 – $26.8

CM = $20.2 per unit


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Until places like somalia are recognized by other states and international institutions such as the united nations, they will remain:



Americans will pay more for goods produced in Mexico in 2011.


This is a situation of devaluation of the dollar in relation to the Mexican peso. If in 2009 the dollar was worth 16 pesos, but in 2011 it is 14, it means that the purchasing power of the dollar in relation to the Mexican peso has decreased, although it is still high.

In that case, for an American to buy products produced in Mexico in 2011, he or she will spend a little more dollars than he or she would spend in 2009. This is common, since the currencies fluctuate according to the financial market . Thus, the dollar can be valued or devalued, as happened in this example.

If, for example, in 2015 the dollar will buy 20 pesos, it will mean that the dollar appreciated in relation to the peso, increasing the purchasing power of Americans for Mexican products.


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What was Great Britain’s role in banning the international slave trade?


What was Great Britain’s role in banning the international slave trade?


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Which five main colonies were involved in international expansion in the 1600 and 1700s?


Which five main colonies were involved in international expansion in the 1600 and 1700s?


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Much of Canada’s international policy has been based on _____.


The North American Union (NAU) is a theoretical economic and political union of Canada, Mexico, and the United States. The concept is loosely based on the European Union, occasionally including a common currency called the Amero or the North American Dollar. A union of the North American continent, sometimes extending to Central and South America, has been the subject of academic concepts for over a century, as well as becoming a common trope in science fiction. One reason for the difficulty in realizing the concept is that individual developments in each region have failed to prioritize a larger union.

Some form of union has been discussed or proposed in academic, business, and political circles for decades. However, government officials from all three nations say there are no plans to create a North American Union and that no agreement to do so has been signed. The formation of a North American Union has been the subject of various conspiracy theories


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Which factors influence changes in consumer demand? Check all that apply. market share elasticity international trade clearance sales income


The actual cash received from cash sales was $14,356 and the amount indicated by the cash register total was $14290

a.what is the amount deposited in the bank for the day’s sales?

Because this is the amount which is actually received by sales

b.What is amount recorded for the day’s sales?

Because this is the amount which has been recorded in the cash register.

c.How should the difference be recorded?

Dr Cash 14,356 
Cr Over/Short 66 
Cr Sales 14,290

d. If a cashier is consistently over or short what action should be taken?

First of all we need to find out that whether the cashier is genuinely making mistakes or there is a case of theft.There would be some close monitoring. If they are just mistakes, maybe some extra mentoring in cash handling would help.


Part a and b are informational and thus we dont have to do anything with them.

Part c and d are reconciling terms.

Parts e and f needs entries to adjust the company’s books. For e there needs to be a debit to cash for the incorrect amount and a credit for the correct amount. For f there needs to be a credit to cash.

(Dr) Cash in bank $540 
(Cr) Accounts payable $540
$710 – $170

(Dr) Bank charges $50 
(Cr) Cash in bank $50

Bank reconciliation:
Cash balance per book $24,010
Add: error $540 
Less: Debit memo $50
Adjusted book balance $24,500

Cash balance per bank $22,750
Add: Deposits in transit $9,100 
Less: Outstanding checks $7,350 
Adjusted bank balance $24,500

Hope you get it.

Get back to me in case you have any doubts.
I would be happy to help.


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Read a student’s reaction to a nonfiction article. Summary: I read an article by Alfred Jenson about oil spills. Jenson has crossed the Arctic Ocean many times on vessels designed for exploration and research. He believes oil spills can be prevented with stricter international regulations governing oil transport. Controlling Idea: The controlling idea of Jenson’s article is that many oil spills have occurred in recent years in the Arctic Ocean. What must the student add to make this controlling idea complete? a) Jenson’s viewpoint b) expert testimony c) Arctic Ocean statistics d) specific dates


The correct answer to this open question is the following.

Communication differences between men and women.

Men are very direct. They say what needs to be said and that’s it. No more. Straight to the point. Women are different When they communicate they openly express themselves ad tell their stories in full detail.

Men communicate to convey orders, directives, to order something that needs to be accomplished. Women communicate because they like to build relationships and understand other women or men. Men are not so expressive. They do not gesticulate much. They say what they have in mind, with no more gestures or expressions. Women are different, they seem like they are acting when they speak. They have gestures, they move their hands and arms, the entire body. They laugh. Women show emotion in their conversations. Men are straightforward and emotions are out of the question.


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6. Which city is farther nor h: International Falls, Minesota or Bar Harbor, Maine'?


6. Which city is farther nor h: International Falls, Minesota or Bar Harbor, Maine’?


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The primary purpose of the Bretton Woods Conference was to __________. A. find ways to help the poorest economies of the world B. create a world bank that individuals and companies around the world could utilize for global financial transactions C. form an international peace organization designed to prevent future conflict D. discuss the prevention of future global economic depressions, as well as strategies to rebuild Europe after WWII


The form of love that is likely to characterize a long, happy marriage is: consummate love

In consummate love, the couple will feel a series of passion, intimacy, and commitment toward one another. These feelings will make them to continuously create various effort to make each other happy and keep improving their relationship.


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Vodafone International Marketing Strategy Research Paper


Table of Contents

  • Introduction
  • Literature Review
    • International Marketing Strategy
    • Competitive Environment
    • Market Segmentation
    • Innovative Strategy
    • Acquisition, Collaboration and Merger Strategy
    • Cost Reduction Strategy
    • Branding Strategy
  • Statement of Research Problem and Proposed Research Method
    • Research Methods
    • Data Collection
  • Explanation of Research Process Undertaken and Description of Findings
  • Analysis of Findings
    • Analysis of Branding Strategy
    • Analysis of Cost Reduction Strategy
    • Analysis of Innovation Strategy
    • Analysis of Acquisition and Merger Strategy
  • Conclusion
  • References


This case research was ready to analyze Vodafone’s global marketing policies in various nations. Vodafone has introduced several marketing strategies in the international business setting to enhance its presence in the mobile communications sector. Vodafone realized the significant change factor in the company setting as the traditional mobile marketing scheme was turned into internet and other multimedia services from mere voice call and messaging services. This change had been initiated by changing customer choices, appearance of latest technologies, and growing price rivalry from both existing competitors as well as new entrants. To cope up with these changes, Vodafone had initiated brand awareness strategies, cost reduction strategies, innovative strategies and acquisition strategies. This case study will analyse the impact of the strategies on overall performance of Vodafone. This is a descriptive case study and qualitative approach has been followed. The data used in this case study is secondary in nature and it has been collected from internet sources, journal and books. This case study has prepared in the form of six chapters. The first chapter is the introduction where the basic information about the topic has been given. The second chapter is the literature review. This chapter describes the in-depth understanding of the research subject by the use of appropriate materials from secondary data sources. In the third chapter, the approaches followed in the case study and methods of collecting data have been described. The fourth section describes the study method, i.e. how the study will be performed and how the results will be fundamentally described. The fifth section describes the information collected through literature review and secondary method evaluation. This section will demonstrate whether or not the results of the studies match the evaluation of the literature. The final conclusion will be taken in the final section and debated on the basis of the research problem. The case study is based on the research goal of understanding and effect of Vodafone’s global marketing strategies.

Literature Review

Vodafone is a telecommunication company which operates their business worldwide. It is a UK based company which serves around 359 million people internationally and operates in over 30 countries in the world [2] (Vodafone Limited, 2010).

  • International Marketing Strategy

The principal approach to development of international marketing strategy can be done by three steps. First is the recognition of different marketing segments within the industry, second is clarifying the target customer segment and third is the improvement of products and services according to the needs and requirements of the particular segment. In order to be competitive in the international environment, Michael Porter had proposed three strategies which are cost leadership, focus and differentiation. Vodafone had implemented Porter’s generic strategies in the international business environment to remain competitive. Vodafone had focused on decreasing the cost of their services. In certain particular countries, Vodafone had implemented unique offers to dominate in the market segment.

Vodafone International Marketing Strategy Research Paper

The international telecommunication market is a rising market. There is sturdy competition in this market from main players. In this telecommunication market related environment, the sales and profit is in peak position. The character of competition has also altered in the market. For example, prior to 2007, the Indian telecommunication market was dominated by mainly Reliance, TATA, Airtel and Essar, but now the situation had changed when several global companies had entered into Indian market, for example Vodafone, MTS and Telenor. Thus, it is necessary for Vodafone to differentiate its products and constantly develop its services with the ongoing changes of people’s need (Scribd, 2010).

Major Telecommunication Companies in the Emerging Market of India in 2011

Vodafone International Marketing Strategy Research PaperSource: (Scribd, 2010).

Vodafone separates its market according to the customer behaviour and requirements. It helps to develop suitable market scheme. The segmentation of Vodafone has changed according to the business environment. For example, in the year 1996–1997, Vodafone’s market segmentation was focused on voice centric customer who used phone call quite frequently. In the year 1998– 2000, when the telecommunication market environment was in growth stage, Vodafone followed the CRM (Customer Relationship Management) market segmentation. This type of segmentation was based on customer value. After 2004, the telecommunication market became mature and the profit was in peak position. At present, Vodafone focuses on 360 degree market segmentation on the basis of customer behaviour, lifestyle preference and value (Leproux, 2004).

Market Segmentation of Vodafone

Vodafone International Marketing Strategy Research PaperSource: (Leproux, 2004).

The networking and telecommunication sector is continuously evolving and customers prefer to fulfil their communication requirement from one network provider. Vodafone had innovated ‘Total Communication’ benefits for customers that include voice mail, messaging, ‘fixed location service’, broadband facility and advertising. Due to increasing demand of internet and mobile services, Vodafone had experienced strong development by providing innovative features to customers. Vodafone had made alliance with major internet service companies and provides customers facility to use mobile handset as fixed line internet. Vodafone’s fixed location services attracted customers to substitute fixed line with mobile services for home as well as office use. This strategy also provides users to make call from mobile with similar rate as fixed line connection. Their broadband service is substitute of other mobile broadband services. Vodafone broadband allows users to use internet at home, offices or be in motion. The mobile advertising of Vodafone let advertisers as well as customers an opportunity to develop adverts. Thus, the total communication benefit provided by Vodafone was successful and it provided 13% of Vodafone’s revenue in the year 2009 and expected to increase in 2010 (Vodafone, 2008).

  • Acquisition, Collaboration and Merger Strategy

Vodafone uses aggressive growth strategy through acquisition, collaboration and merger. Vodafone wants to solidify their market position by the means of acquisition and alliance with other companies. The acquisition and technology contributes 65% of their growth. Vodafone assumes that accomplishing economies of scale is necessary to stay at a cost advantageous position in the market. The strong financial, managerial and human resources can help to achieve economies of scale and these resources can be accomplished quickly by merger and acquisition than establishing physical infrastructure. Vodafone possesses the capacity to merge and purchase other companies while maintaining low cost advantage. Vodafone had entered the international market by acquisition and collaboration. Acquisition helped Vodafone to maintain substantial earning with low chances of debt. In the year 2000, Vodafone had acquired Mannesmann to strengthen its cost leadership in Europe. It helped to access the new market of Europe (Huvard & Et. Al., 2006).

In the year 2007, Vodafone had attained 67% share of Hutchinson Essar by 11.1 billion USD. It had helped to keep the competitive position in Indian telecommunication market. The acquisition helped to establish brand presence in the fastest rising market of India. The innovative services of Hutch helped Vodafone to provide total communication benefit to the Indian customers (Singh, 2007).

Vodafone has been well-known for minimising their cost by dropping their operating expenses. Their cost reduction strategy helps to provide ‘scale benefits’ by optimising working and capital expenditure. Vodafone implements a series of cost programs which helps to minimise the operating costs. Their cost program helps to balance the cost inflation and facilitate them to increase the revenue [3] (Vodafone Limited, 2010).

Vodafone had implemented ‘Siemens top’ plan to employ cost optimisation and reduce the cost of various operations. This plan had successfully reduced cost by 10% per year. Through this plan, Vodafone had involved 500 procedures and freed over 4000 servers and 1000 Tera Byte storage space. Their maintenance cost was saved by 10% and consolidation services cost was saved by 25% (Siemens IT Solutions and Services GmbH, 2011).

In the year 2007, Vodafone had selected Sony Ericsson to supply and allocate the spare equipments for their network service in European countries such as Portugal, Spain and Germany. According to the deal with Sony Ericsson, the supply of spare parts included 2G, 3G and transmissions tools in Europe. This is a part of cost reduction strategy of Vodafone which could enable the company to minimise the average cost of management procedure of supply and develop the service level. Through this agreement, Vodafone can harmonise the spare component supply, provide better cost transparency for the provision of services and eliminate the extra investment for spare component inventory. This agreement is beneficial for Vodafone in the sense that it can save the cost by channelizing purchases in all countries by a single supplier (Vodafone Limited, 2007).

In 2007, Vodafone had determined to outsource the IT solutions from IBM which can decrease the cost of business and develop the customer service (Jones, 2007).

Brand positioning involves developing an image of the brand which makes it familiar towards people. Vodafone had developed brand value by providing superior, reliable and differentiated service and good customer experience. Vodafone frequently carry out tracking their brand strength to evaluate the performance of Vodafone brand in every country and handle the brand as efficiently as possible. According to the report of ‘Brand Finance’; Vodafone brand was recognised as 7th most precious brand in the world and it had been positioned as top ten brands with regard to brand equity [4] (Vodafone Limited, 2010)

In the year 2009, Vodafone had developed new branding strategy by creating ‘Zoo Zoo’ characters. The advertisements of Vodafone was used for ‘Value Added Services’ such as simple recharge, hello-tunes, internet browsing, online bill deposit, roaming services, SMS scheme, music packs and unnecessary call blockages. The innovative ‘Zoo Zoo’ characters had caught people’s attention and curiosity towards the brand and thus Vodafone achieved remarkable brand image. Overall, the brand positioning of Vodafone was successful in Indian market. Vodafone had also initiated their newest brand positioning strategy ‘Power to you’ promotion which provides the customer benefits by offering many services. This promotion provides the facility to easy email access from any place and any time by any mobile phone. It also rejuvenates the IVR services and enhanced customer experience (Scribd, 2011).

Statement of Research Problem and Proposed Research Method

This case study research is conducted to investigate the reason of Vodafone’s huge success in the telecommunication industry. It has been seen from literature review that Vodafone had spent huge effort on marketing activities. Vodafone had implemented different strategies in different countries to gain competitive advantage. The main research problem is that the analysis of the impact of different international strategy in the growth and revenue of Vodafone worldwide. They had implemented cost reduction strategy and proved to receive strong growth in upcoming markets. Vodafone develops new schemes and provides customers their communication need by conducting market research. It has become one of the major telecommunication operators in Europe, Africa and India by their international marketing strategy. Their Smartphone share had been increased by 20% in the year 2010 compared to 8% in the year 2006. Vodafone developed broad ranges of smartphone devices and increased varieties of applications. It had increased the customer expectation, network, internet speed, service quality and at present it has strong presence in many countries worldwide [5] (Vodafone Limited, 2010).

The study involves analytical research in the sense that the data which have been used in conducting the case study is already available and those data have been used to make critical evaluation of the case study topic. This research aims to quantify the impact of international marketing strategy over the success of Vodafone, thus analytical research methods have been used. This case study is unstructured in nature and qualitative research method had been followed in this research. The reason for using qualitative research is that it helps to generate ideas and obtain more realistic information. Qualitative method can provide comprehensive analysis of any incident under examination. It is a flexible approach of collecting data, analysis of data and understanding of collected information. It is a single case analysis and the population is the international telecommunication industry where Vodafone had been chosen as the sample. Vodafone had been chosen because it is one of the leading telecommunication service providers in the world and it has shown tremendous growth in recent years.

Secondary data will be used in this research. Secondary data will be appropriate to analyse the research problem because it is a small case study research project and secondary data will provide broad information. Further additional information can be collected for better understanding of the research problem. For collecting secondary data the following methods had been followed:

Internet: The secondary data had been collected by internet surveys because it can provide broad information and data regarding Vodafone’s international strategy will be available in their company’s website.

Journals: Journals have been used in qualitative research and the data has been collected by journals because it can provide reliable information about the subject and actual phenomenon of research problem. It is useful to arrive at conclusion quickly.

Library: Library is useful source of secondary research. It is useful to collect information from library as the accurate data regarding various international marketing strategies can easily be collected from library sources. Ranges of books, newspaper, magazines had been used for secondary data sources in this case study research.

Explanation of Research Process Undertaken and Description of Findings

In this case study, the literature review had been conducted to understand the impact of international marketing strategy of Vodafone. The secondary data had analysed by using broad approach. In this case study, every possible aspect of the research subjects has been considered to reach the conclusion. The secondary data collected through internet and books are analysed and presented in such a way that the reader will be clear about the entire process of the case study research. The data collected in the case study is all related to the research subjects. The finding is matched with the information of literature review. One of the major difficulties while conducting the case study was the resource allocation. The appropriate research material was limited to collecting from the internet. The lack of suitable data has made it difficult to analyse the impacts of international strategies on the performance of Vodafone.

Analysis of Findings

The data collected by secondary research is aimed towards analysing the findings of the research problem. Information from internet, journals and library sources are directed to analyse the research objective. In the international marketing environment, Vodafone had implemented the Ansoff Matrix to improve their earnings and profitability.

Vodafone International Marketing Strategy Research PaperSource: (McDonald & Meldrum, 2007).

  • Analysis of Branding Strategy

In the year 2009, Vodafone had developed ‘Zoo Zoo’ advertising in Indian market during the IPL session. The cost of making 30 advertisements of 20 – 30 seconds was almost   3crores. The reaction of the advertising campaign was huge. Over 4.68 million people had viewed the advertisement of Vodafone in YouTube and in ‘Facebook’ the ZooZoo have more than 350000 fans and above 2.6 million viewers. The ‘ZooZoo’ word became greatly popular and it was the third largest searching character on Google in the year May, 2009 (Global Mobile Association, 2010).

In Ireland, Vodafone had selected Xiam to manage the advertising of Vodafone. The advertising of Xiam’s cost was 10 times more than the cost of web banner advertising. The advertising was beneficial for Vodafone. Almost 16% users had viewed the advertising which was sufficient to bring brand awareness (Qualcomm Incorporated, 2011).

  • Analysis of Cost Reduction Strategy

Cost reduction is one of the international strategies of Vodafone. The primary objective of Vodafone is to decrease the operating cost which helps to maintain their competitiveness in international environment. Vodafone had undertaken many measures to decrease the cost. Significant attempts had been made by Vodafone in developing the infrastructure of network. Vodafone had successfully initiated many procedures to minimise the usage of power and energy. Vodafone had implemented cost reduction strategy in Europe. It had offered little cost for using Vodafone Smartphone in Europe. The new pricing strategy gave customer right to enjoy domestic data plan by only 2 Euro in a day. It was proved as 60% cost reduction than normal charge. Vodafone had implemented this strategy in the winter season as it was the holiday season and customer can enjoy the offer in European countries such as France, Switzerland, Austria and Belgium (Mansfield, 2010).

In 2010, the total Smartphone penetration of Europe was 10% and in the ‘first quarter of 2011’ it has increased to 16%. The sales of Smartphone were 20% in the year 2010 and in the first quarter of 2011, the Smartphone sales had raised to 32% [5] (Vodafone Limited, 2010).

Source: [5] (Vodafone Limited, 2010).

  • Analysis of Innovation Strategy

Vodafone seeks to increase the revenue by providing innovative offers to the customers. At present, customers want to access new technology, mobile devices and services. Thus, Vodafone developed strategies to provide customers unique services which they can enjoy at home or and office. Vodafone had innovated to provide total communication benefit for customers. It provides users variety of facilities such as voice mail, messaging, fixed location service, broadband service and advertising and high speed internet service. Vodafone’s internet service had shown tremendous growth and the earnings had improved by 40.6% i.e. almost €2.2 billion. The uses of business electronic message and ‘PC connectivity’ media of Vodafone had also increased twice which was accounted at 5.8 million. Vodafone had taken the opportunity of increasing trend of using internet and thus this strategy proves successful in international market. Their mobile internet subscribers had increased to 2 million. The international strategy of Vodafone is the source of strong development in rising market. They had successfully outperformed their competitors and accomplished their target (Vodafone Limited, 2008).

Source: (Vodafone Limited, 2008).

For customers’ need, Vodafone had introduced 66 new models of mobile handset in the year 2010. These handsets assist customers to access email, internet, free songs download and other facilities such as touch screen, data backup facility and wide ranges of applications with an affordable cost. Vodafone had also introduced new innovative product Vodafone 360 which provides the access to social networking and chats facilities. Almost 24% of Vodafone handsets were sold in Europe. Vodafone’s revenue from voice services had shown a growth of 11.4%, its messaging, data and other fixed services had also experienced tremendous growth from 2007 to 2009. Vodafone had innovated money transfer facilities in three countries i.e. Kenya, Afghanistan and Tanzania to provide customers an option to transfer money from the phone even if they don’t have any bank account. It was a huge success as the number of customers of Vodafone had increased to 13 million in the year 2010 compared to nine million in 2007 ([6] Vodafone Limited, 2010 & [1] Vodafone Limited, 2010).

Source: [1] (Vodafone Limited, 2010).

Chart showing the increase of total service revenue of Vodafone from 2007 – 2009:

Source: (Vodafone Limited, 2009)


  • Analysis of Acquisition and Merger Strategy

Acquisition and merger is one of the growth strategies of Vodafone. From late 1990s, Vodafone had made series of acquisitions and mergers to grow spontaneously in the international market. In the year 1999, Vodafone had acquired Air Touch Communication which had helped to get 35% share of Mannesmann. In September of 1999, Vodafone had combined itself with Bell Atlantic Corporation of U.S. In 2000, Vodafone purchased Mannesmann. In Ireland, Vodafone had purchased Eircell in the year 2001. In 2002, Vodafone had taken over the third biggest network service operator of Japan, J–Phone. In Europe, Vodafone had made agreement with many networks operators (Nemeton, 2003).

Table showing partnership with companies in Europe from 2002 – 2006:

Date Signed as partner Country (Europe)
2nd February 2002 Radiolinja               Finland
7th January 2003 Mobilcom               Austria
21st July 2003 Bite               Lithuania
16th February 2004 LuxGSM               Luxembourg
20th February 2004 Cyta               Cyprus
13th December 2005 Telsim               Turkey
22nd February 2006 Mobitel               Austria
11th April 2006 BITE Group               Latvia

Source: (Nemeton, 2003).

Table showing customer growth of Vodafone from 2003 to 2004:

Country Customer Growth (%) Prepaid Customer (%)
Northern Europe 9 51
Southern Europe 10 78

Source: (Vodafone Limited, 2004)

Through a number of acquisitions and business transactions, Vodafone had changed itself to be one of the top international mobile communication organisations. In the market of Asia-pacific, Vodafone had acquired and made joint ventures with many companies. In the year 1998, Vodafone took over BellSouth New Zealand. In October 2003, J-Phone fell one with Vodafone. It had transformed shortly into Vodafone Live. In Hong Kong, Vodafone was involved in joint partnership with SmartTone in 2005, and turned into ‘SmartTone-Vodafone’. In the year 2006, Vodafone was involved in mutual union with Telecom Malaysia and jointly entered the Indonesian and Malaysian market. In the year 2007, Vodafone made partnership with Samoa (Nemeton, 2003).

In Middle East and Africa, Vodafone had entered into telecommunication market by Vodafone Egypt in the year 1998. In 2002, Vodafone had made partnership deal with MTC in Kuwait. In the year 2003, Vodafone had increased the stake by 87.9% in Vodafone Hungary. In the year 2005, Vodafone had raised their stake in Vodacom Group. In the year 2006, Vodafone had made agreement with Telecom Egypt to further occupy the Egyptian Market. In India, Vodafone had obtained Bharti Enterprises in the year 2005. In 2006, Vodafone had taken over Venfin of South Africa. These successful acquisitions had raised the customer base and revenue in the Middle East, Asia Pacific and African Countries.

Table showing the registered proportionate customer increase in 2002, 2006 and 2009:

Registered Proportionate Customers
Country 2002 2006 2009
Germany 21434 29191 35471
Italy 13560 18490 22914
Spain 7241 13521 16910
Albania 130 772 1395
Australia 2050 3177 3970
Egypt 1031 3314 10405
Greece 1539 4471 5899
Hungary 330 2063 2562
Ireland 1704 2075 2175
Malta 122 175 201
Netherlands 2289 3909 4618
New Zealand 1095 2068 2502
Portugal 1445 4276 5639
United States 13081 23530 38948
UK 13186 16304 18716

Source: (Vodafone Limited, 2002); (Vodafone Limited, 2006) & (Vodafone Limited, 2009).

Increase in number of customer, market and revenue of Vodafone from 1998 to 2006:

Source: (Vodafone Limited, 2006).

From the above table, it has can be seen that the customer base of Vodafone in every country had increased since 1998 to 2009. Their international business operation and revenue had increased considerably. The international strategies of Vodafone were proved successful in the global market and it has successfully retained the leading position in telecommunication market.



From the evaluation of the results, it is evident that in multiple countries Vodafone has made excellent strides in achieving global strategy. Vodafone recognized people’s needs in distinct areas and made their strategic motion in distinct nations accordingly. Vodafone continued its service and product development and expanded its business portfolio. Vodafone’s proficiency in international strategies can been seen from the results of different counties.

Vodafone follows the acquisition strategy to enter new market in different countries which help to diversify the risk of new market. Their main strategy in international market is to develop the total communication benefit to customers. From the above analysis it has been seen that their total communication benefit had increased their revenues in the emerging markets. Vodafone understands the marketing needs of different countries and accordingly implements strategies.  In Europe, Vodafone focuses on cost reduction strategy and total communication benefit strategy. It helps to increase the revenue of Vodafone mobile services in Europe. The strategy of Vodafone had made it as one of the biggest players in Europe with 35 million data users. The mobile data market in Europe contributes almost 57 billion USD [1] (Vodafone Limited, 2010).

In Indian market, Vodafone started their operation by acquisition strategy. The acquisition of Hutchinson Essar was a wise move for Vodafone which had made Vodafone the second biggest mobile communication operator in India. Vodafone put much effort on brand awareness in India by advertising. Vodafone’s unique branding strategy of ‘ZooZoo’ campaign was also successful in Indian market to attract the attention of people. In Indian market, Vodafone had almost 5 million data customers and the total data market of Vodafone was accounted as 3 billion USD in the year 2010. It is being expected that the Indian mobile market will exceed the German mobile market which is one of the largest mobile market in Europe by number of users [1] (Vodafone Limited, 2010).

Providing innovative services is another international strategy of Vodafone. Vodafone knows the growing need of internet, email and multimedia of customers in every country and accordingly develops unique packages for customers. Thus, it had developed Smartphone and Vodafone 360 that provides extra services to users such as social networking, games, music and applications. Besides it also provides to select the channel which is most suitable for customer. The Smartphone acquired almost 15% of mobile industry in the year 2009 compared to 8% in the year 2006 and it is expected to increase more in future [1] (Vodafone Limited, 2010).

In Middle East and African market, Vodafone identified the need of easy money transfer, because the bank facility is rare in that region. People move money by using traditional system. Thus, Vodafone had taken this opportunity and introduced the unique money transfer facilities in the three countries of Middle East and Africa. It was a successful strategy in those countries as the number of customers had increased [1] (Vodafone Limited, 2010).

With the help of good international marketing strategy, Vodafone had enlarged its customer base from 2.7 billion in the year 2006 to 4.7 billion in 2010. In the most recent three years, Vodafone had developed its customer base by 20% and this development is concentrated on rising mobile markets such as China and India. However, there is enormous competition in telecommunication service industry because the customer’s choices have broadened as many new players are entering into the market. The competitors have wide ranges of products with exciting services. Though Vodafone had succeeded in many rising markets but their revenue had fallen in certain countries. In Turkey, the revenue had dropped by 2% because of low profitability and high concentration on brand visibility. In Europe, the service revenue had fallen to 3.5% because of low business activity of customers. Thus, Vodafone has to be cautious while implementing marketing strategies in international business environment. A proper marketing analysis must be done before introducing any new offer or service [1] (Vodafone Limited, 2010).



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International Marketing and Culture | Marketing Strategy


This essay is intended to investigate the links between global marketing and culture. It begins with defining both marketing and culture, presenting different forms and aspects of culture that affect global marketing.  It then moves on to consider the impact of culture on different aspects of marketing, including marketing strategy and the marketing mix (product, price, place and promotion). Finally, a summary of the findings is provided as a conclusion.

Definition of Terms

It is important to understand the different meanings ascribed to terms, to provide a common framework for the discussion. Thus the key terms used within this essay will be defined, with others being defined as they are introduced in the discussion.

Marketing has several definitions. Kotler and Armstrong (2010) provide a very simple definition of “managing profitable customer relationships” (p.28) and a more detailed one of “The process by which businesses generate client value and build powerful client relationships to capture client value in exchange” (p.29).  Both put the focus on relationships rather than transactions, and consider the relationship as providing value for both companies and customers. Global marketing is defined as “the commitment of organisational resources to pursuing global market opportunities and responding to environmental threats in the global marketplace” (Keegan and Green, 2011, p.587).

If marketing has several definitions, then so does culture, which has different meanings depending on the context within which the term is used. The Shorter Oxford English Dictionary (2002) lists seven meanings for the word culture (p.575), two of which are relevant here. The first is culture as “a specific form, phase, or type of intellectual growth or civilization in a community ; a society or group characterized by its unique customs, accomplishments, products, perspective, etc. ;” the second as “the unique customs, accomplishments, products, perspective, etc. of a society or group ; the manner of life of a community or group”.

When discussing culture within the context of marketing, the obvious one requiring consideration is national culture, especially as organisations now market their products internationally, even if only by having on online presence. However, other cultural implications for marketing arise from corporate cultures, sub-cultures and social representations of culture. Usunier and Lee (2009, p.8) identify ten sources of culture that affect individuals:

International Marketing and Culture

Figure 1: Sources of Culture (Source: Usunier and Lee 2009 p.8)

Mullins (2010, p.829) describes organizational culture as ‘ the set of traditional values, policies, beliefs and attitudes that forms a pervasive context for all we do and believe in an organization”. Johnson et al (2008, p.195) identify the idea of subcultures within organisations, that exist within the overall organisational culture, but have specific characteristics of their own. These can be based on functional, geographical or business structures, for example, where different approaches can be seen based on the discipline or location of the office or department.  On this basis, the marketing department of an organisation will not only exhibit the organisational culture, but also the marketing “department” sub-culture and the marketing “profession” subculture. Thus there are three organisational cultures affecting the department that deals with global marketing.

The primary focus of this analysis is the impact of national culture, however, consideration will also be given to the impact of organisational culture where that is relevant.

National Cultures and Marketing

One of the challenges for marketers when dealing with global marketing issues is that culture cannot be easily seen or identified. Children are brought up within the national culture, and absorb the national values without conscious awareness – they simply learn from, and imitate, their parents (Keegan and Green, 2011, p.141).  any study that sheds light on different national cultures helps the marketer to target their marketing more effectively.

Perhaps the best known study in this area is that of Hofstede (1988, in Keegan and Green, 2011, p.155) who identified five dimensions of culture that can be used to help marketers in deciding their strategy and promotional approach. These are:

  • Power distance – the distribution of power within a society and the degree to which this distribution is accepted by those with less power. Hofstede ranked the UK as having a ranking of 42-44 which means the UK is seen as having low power distance (ibid)
  • Individualism – reflects the degree of integration within societies. The UK is ranked at 3, a very high individualist culture.
  • Masculinity – indicates the roles assumed to be held by men and women in society and the degree to which they conform with the traditional view of the man as breadwinner and the woman as nurturer. The UK, ranked at 15, has relatively high masculinity.
  • Avoidance of uncertainty – the degree to which societies are at ease with ambiguity or prefer a scenario that is more “black and white.” The United Kingdom seems to be very confused, ranked 47-48.
  • Time duration orientation – whether society prefers immediate gratification or is prepared to wait. The UK clearly seeks immediate gratification with a ranking of 28-29.

(adapted from Keegan and Green, 2011, pp.155-156)

Keegan and Smith (2011) identify several learning points for marketers from Hofstede’s research. Where cultures are identified as having a longer term focus, for example, those cultures with a focus on the “now” will need to take a more relaxed approach to dealings. Uncertainty avoidance gives an insight into risk tolerance, with cultures having a low uncertainty avoidance threshold being more focused on brand names and brand loyalty than those with a high threshold focusing on guarantees and warranties. Power distance indicates the degree of trust – the higher the power distance, the lower the amount of trust. If setting up a business in an overseas territory, the UK would be comfortable using joint ventures, given its low power distance approach. Hard sell approaches would work well in the UK as a relatively high masculine nation, rather than a softer approach (although the actual target market would still need to be considered if sex is a key identifier of the segment). The more individualistic a nation, the less group consensus is required, with a single person making the decisions. All of these have implications for marketing strategy and the marketing mix adopted by organisations selling goods and services in overseas markets.

Culture and Strategy

Johnson et al (2008, p.196) highlight two effects of organisational culture on corporate strategy, namely that culture has to be managed so needs somehow to be identified, and that culture will affect both the choice and implementation of corporate strategy (and, arguably, the results of the strategy).

If corporate strategy is influenced by organisational culture, and the organisation is itself influenced by, and part of, the national culture, then marketing strategy must be viewed through a lens that is filtered once by the national culture and then again by organisational culture. To this perspective must be added the marketing department’s subculture filter and the marketing profession filter. Any marketing strategy is likely to be influenced by at least five different cultural settings, before any international aspect is considered.

One important part of marketing strategy is ensuring that the organisation has a marketing orientation, defined by Cravens and Piercy, 2009, p.4 as “a business perspective that makes the customer the focal point of a company’s total operations”. Achieving this marketing orientation has an impact on the quality of customer care and the associated value derived from the customer. Brettel et al (2008) considered how different cultures developed such an orientation, discovering that national culture had an impact in some instances, but not in all. It may, therefore, fall to the marketing department to sell the benefits of a marketing orientation to the organisation’s senior management and ensure that it becomes a reality to improve future organisational success.

Zostautiene and Vaiciulenaite (2010) identified clear links between marketing culture and marketing effectiveness.  Whether a marketing culture exists or not within an organisation has a direct impact on business results but whether marketing is effective or not is merely assumed. Thus an organisation’s culture needs to be customer focused, with the customer at the centre of everything the organisation does, for the business to generate income streams and profits.

van Heerden and Barter (2008) considered how culture affected the nature of marketing strategy. The traditional choice between a standardised or localised strategy is dependent upon the interdependence between culture and marketing, causing different elements of the marketing strategy to be standard or local. The research did not reach definitive findings as to whether a normal or local marketing strategy was best, recommending that’ a marketer’s approach should be in line with the local culture to attain them and have the required impact on the target market, and not the other way round, as such developments could take a long time to attain marketing objectives.” (p.37).  Given the identification by Hofstede of the time dimension in addition to uncertainty avoidance, the emphasis on the duration of marketing strategy and the achievement of goals may be indicative of the South African culture of the two authors of the article.

Undertaking research to understand the local culture is useful in informing consumer behaviour, which can then inform any marketing strategy devised.  de Mooij and Hofstede (2002) point out that retail strategies cannot simply be imported wholesale into a new market; account must be taken of national culture values and the impact of these on consumer buying behaviour.

Culture and the Marketing Mix

As branding appears to be an important consideration for some nation’s customers, a consideration of branding in international marketing should lead marketers to identify when brands are required and when not, and when brands are important for global marketing success. Cayla and Arnould (2008) argue that future global branding research “will need to be contextually and historically grounded, polycentric in orientation and acutely attuned to the symbolic significance of brands of all types (p.86).

“Previous cross-cultural research has shown a constantly favorable impact of brand globality on customer perceptions, attitudes and buying intentions, “Dimofte et al. (2010, p.81). They seek to add to this research by considering the impact of consumer ethnicity on global brands.  Their results indicate that the assertion with which they open their article does not necessarily hold across all ethnicities and that most customers view the global brand element as being of no importance. Having said that, though, they state that “the structural equation findings show a direct effect of globality on attitudes and purchases” (ibid): that is, although US customers indicated the brand didn’t matter to them, when purchasing items, they purchased brands as the same overall rate as to those for whom brands did matter. On that basis, organisations should work on their brands to make them distinctive as, despite apparent discounting of their effect by consumers, there is an effect when considering purchasing behaviour.

A consideration of the decision between global and local products is also required. Steenkamp and de Jong (2010) conducted global research to find out more about consumer attitudes towards local and global products. They devised a standard two-by-two matrix using the dimensions of attitudes towards global and local products:

International Marketing and Culture

Figure 2: Combinations of Consumer Attitudes Toward Global and Local Products (Source: Steenkamp and de Jong 2010 p.20)

Their findings provide some interesting points for global marketing managers:

  • “… International businesses should be cautious to rely too heavily on worldwide brands, as this approach may not work well with big consumer sections” (ibid, p.36). Instead, they advise to construct portfolios with carefully selected global and local products, rather than overemphasising their global brands.
  • Product and portfolio managers can use publicly available information to calculate the likely response to global vs. local products
  • Global account management must become more responsive to local needs, as advised by their local subsidiaries and customise products far more to fit local requirements
  • Local firms can compete with global organisations in the area of local cultural relevance, rather than attempting to win with such things as economies of scale and scope
  • Socio-demographic segmentation is more effective when coupled with customer views towards global and local brands,

(adapted from Steenkamp and de Jong 2010 pp.36-37)

The results of these studies demonstrate some of the impact of national culture on marketing product management and provide marketing managers with new strategies and approaches to improve their marketing success.

Usunier and Lee (2009) identify nine different ways that meanings are conveyed by price:

Buyer-seller interactions Bargaining rituals, price offers and relationship development
Consumer behaviour Differences in consumer price-mindedness across cultures
Product evaluation To what extent is quality inferred from price?
(Tough) competition Signalling willingness to compete by dumping prices
Distributors (grey markets) Signalling desire to avoid parallel imports from opportunistic distributors who disturb international price policy and may damage brand image
(Peaceful) competition Signalling willingness to enter a market with cartels ‘peacefully’
Price increase policy Meaning conveyed by price in high-inflation contexts
Relationship to suppliers Overcoming barriers for supplier to receive real price by over- or under-invoicing

Table 1: Price-Based Signals (Source: Usunier and Lee 2009 p.285)

For marketers, the issue of pricing is a sensitive, as the availability of information online means anyone can see how much the same item is costing anywhere in the world. For purchasers of DVDs in the UK, the price of DVDs in the USA is irritatingly low, even allowing for postage (see and to make comparisons). For developing countries, the pricing issue is even more sensitive when it is a developed country that benefits from their hard-earned funds. Of the three main approaches to worldwide prices, two can take account of cultural factors: adaptation or polycentric pricing, and geocentric pricing.

The adaptation or polycentric pricing allows local agents to set the price of imported goods, relative to the tax rates, wages and degree of competition in that area (Keegan and Green, 2011, p.383). However, such a system is open to abuse, with Keegan and Green citing examples including parallel importing of HIV/AIDS drugs that were intended for Africa, back into the EU to make a substantial profit, and textbooks which, contrary to the DVDs on Amazon, are cheaper in the UK than in the USA.

The geocentric approach is the most likely to take account of culture when pricing goods and services.  In addition to the factors above, geocentric pricing acknowledges that each local market is unique and this should be taken into account when prices are set. The price fits within the overall marketing strategy, requiring some form of control on the part of the selling organisation to avoid the problems associated with polycentric pricing (ibid).

Away from the global companies, pricing can emphasise different things that are important in different cultures, such as relationships over prices. Bargaining is more important in developing countries because of the personal element involved, unlike the West were most aspects of sales have been depersonalised (Usunier and Lee, 2009).  Most cultures equate price with quality in some way, including the UK with ideas such as “cheap and cheerful”, and a high price representing luxury. Such evaluations are driven by cultural information at the subconscious level. Social representations absorbed when growing up can colour individuals’ judgment of such things as quality, changing perceptions to fit within their cultural environment (ibid, p.289).

There are some elements of pricing that are apparently universal, although they appear in different ways in different cultures. Usunier and Lee (2009) consider differences between the northern and southern countries within Europe, contrasting the limitation on availability of goods in the north, to limit consumption, with the freely available goods in the south (ibid, p.291). Price can also be used to reinforce social status by, for example, always buying the most expensive things to emphasise high class values.

Pricing is one of the more difficult decisions facing global marketers and getting it wrong can have major consequences.

How organisations get their goods to customers is another potential minefield for a company exporting overseas.  The Japanese system of goods distribution has its roots in Japanese culture and causes the West problems because of its intricate nature, contrary to the idea of the shortest distance between two points being a straight line. Usunier and Lee (2009, pp.316-317) highlight five strategies for companies wishing to export to Japan, all rooted very firmly in Japanese culture, including the need for the exporter to be patient (tying in with Hofstede’s (1988) time dimension), and to develop relationships within the country to facilitate trade.

Goldman (2001, p.221) identified six transfer strategies with “basic conditions affecting the extent of transfer change … found to relate to differences in economic conditions between China and the home countries and the market segments that were targeted in China”. These six strategies, and their associated conditions are:

  1. Global niche protection strategy, “to protect and help retail the retailer’s global niche position” (ibid, p.234)
  2. Opportunism strategy, for “exploiting opportunities in the host country” (ibid). This strategy is favoured by entrepreneurs with no formal retail format or strategy, and retailers who believed their existing format would not transfer well, so decided to try a new format.
  3. Format pioneering opportunity strategy “driven by retailers’ global strategic vision” (ibid, p.235), used by retailers who have extensive international operations and a great deal of experience in the field.
  4. Format extension: compatible countries of origin, for transfer of existing formats that fit well within the new country, requiring no or minimal changes (ibid, p.236).
  5. Portfolio-based format extension, resulting from the previous transfer of a non-native format into the home nation that is now being imported into a new country (ibid). This approach is usually used by large companies who have a portfolio of formats in different locations, such as Tesco.
  6. Competitive positioning oriented, when the importing nation will be competing with local retailers who use the same format.

As a result of this research, marketers have an idea of the type of location and the format to use when setting up overseas operations.

Perhaps the most obvious expression of national cultures is the language used for communication. There have been several instances of marketing slogans that have not travelled well when translated into another language, such as the translation of the catchphrase “Avoid embarrassment – Use Parker Pens” into “Avoid pregnancy – Use Parker Pens” in Latin America, and Copenhagen Airport’s promise to “… take your baggage and send it in all directions” (Hollensen, 2008, pp.368-369). So marketers need to be careful when considering whether to translate something into another language in case the meaning becomes lost. The alternative to translation is to leave the tag line in the original language, as several US companies do.

The decisions to be made in connection with promotional strategies are another aspect of the general vs. local debate: do you stick to the approach that you have used in your country, or do you tailor it specifically to each market within which the company operates? Usunier and Lee (2009, p.342) identify four aspects of communication that are relevant to business communications:

  1. Verbal communication styles and contextual factors
  2. Non-verbal communication, such as body language
  3. How language shapes world views
  4. How international business can deal with language differences.

Marketers need to understand differences between low-context cultures with direct communication and literal messages, and high-context cultures who prefer a more relaxed, diffuse style that can move between subjects without involving confusion. Using direct communication styles with the Japanese, for example, can cause a Japanese person to say yes, when they really mean no (ibid, p.345). The idea that reality is socially constructed through dialogue is an idea advanced by Michel Foucault, and can be seen in action through stereotypes, unfortunately used by some marketers to portray different nationalities.

The public face of marketing is advertising, in all of its forms. Get this wrong and there are major problems (as mentioned above). However, there may not be such large differences between nations as originally thought.  Okazaki et al (2010) considered two sales approaches – the hard-sell (direct, information based) and the soft-sell (indirect, image based) – and the perceptions of US and Japanese citizens of both approaches. Previous research had indicated that the soft-sell approach would be perceived similarly by both cultures, and this proved to be the case with this study. But the surprising finding was that the hard-sell approach showed “relatively homogeneous acceptance” (ibid, p.20) as well, indicating that such approaches might be safe to use as part of marketing campaigns across both the US and Japan, possibly extending to other countries.

The best form of marketing is considered to be word-of-mouth recommendation. Cultural differences can determine how effective word-of-mouth referrals are when using Hofstede’s (1988) model. Schumann et al (2010) conducted research in the retail banking industry to identify whether culture made any difference to the reaction following receipt of personal recommendations. Their findings linked the level of the effect to uncertainty avoidance: “received WOM has a stronger effect on the evaluation of customers in high-uncertainty-avoidance than in low-uncertainty-avoidance cultures” (ibid, p.62). Received word-of-mouth recommendations positively influenced the perception of customer service quality. The findings also implied that existing customers also value received personal referrals, requiring a change in strategy to match the country’s uncertainty avoidance level.

Although Gordon Brown famously announced the end of the cycles of boom and bust, business cycles exist in every country. Advertising has been found to be more sensitive to business-cycle fluctuations than the overall economy.  Deleersnyder et al (2009, p.623) studied the four key media (magazines, newspapers, radio and television) and their associated media spends in 37 countries. Their findings are extensive, but extremely informative for marketers. If a country has a high long-term orientation and power distance, advertising behaves less cyclically than a country with high uncertainty avoidance. If the country is subject to significant stock market pressure and few foreign-owned multinational corporations (implying a mainly local provision of products and services) advertising is more sensitive to the business cycle (again, this implies that local businesses are more aware of the local economy and therefore adjust their advertising spend accordingly). However, if businesses tie their advertising spending too tightly to the business cycle, there are long-term social and managerial losses incurred and the advertising industry grows more slowly.  More cyclical advertising indicated higher private-label growth with the likelihood of significant losses for brand manufacturers. And stock price performance is lower for companies with a stronger pro-cyclical advertising spending pattern. Marketers dealing with brands appear to need to maintain their advertising presence regardless of the state of the business cycle to retain customers, especially if they are local rather than global companies.

However, the comments relating to share price movement and company growth appear to be stating the obvious.  Advertising would grow more slowly if media spending was restricted during the downturns of business cycles only if it is assumed a constant advertising spend regardless of the state of the economy; the lower spend associated with a downturn would seem naturally to lead to slower growth – lower revenue streams means lower profits. This would be reflected in the share price if the company is quoted. Perhaps the authors needed to indicate why this was an important finding or that it was different to what they expected to find, otherwise it is apparently a truism.

Notwithstanding this possible criticism of the research, the findings regarding brand advertising is extremely important for global marketers. As promotion is so visible, it is important to get it right and consider the local market as well as that of the host nation before embarking on any promotional campaign.


Although this is only a relatively brief assessment of the impact of culture on marketing, it has revealed that culture can have a significant effect on the effectiveness of global marketing if it is considered properly and incorporated into global marketing strategies. Hofstede’s model, despite being over twenty years old, is still a useful framework for analysing cultural effects on different aspects of marketing, although it does have some drawbacks that should always be remembered when assessing research findings set within it. Marketing strategy appears to need a judicious mix of both global and local elements, integrated through the marketing mix, to deliver results for companies dealing in a global markeplace.

Word Count: 4,042 words excluding diagrams and references but including table.

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Factors Affecting International Business Marketing


Investigations Of Factors That Impact To International Business To Expand A Market


In no way within the narration of the globe has the consumer spirit-the force of adventure-been supplementary full of life before all the rage a supplementary promising spot on the way to achieve disallowed headed for the human race pro-business. Intercontinental trade increases sales furthermore profits, enhance a company’s prestige and creates jobs after that offers an indispensable style in lieu of venture owners on the road to at the same height serial fluctuations. International business is expanding now a day with great speed in the overall world and especially in developing countries and in developed countries it is being imposed and enhanced Along with slothful increase in the sphere of the urbanized markets of the human race in addition to rising globalization, companies are rotating headed for newly emerging markets on behalf of dealings expansion.

Thus, record line of attack stylish emerging markets is to be expected on the road to happening to increasingly central circulation pro literary researchers along with marketing professionals. Initially movers are regularly belief headed to gain reward in excess of later on entrants; however, the amount headed for which these recompenses prevail happening emerging markets is not known. just before direct this chasm arrived the literature, the authors synthesized do research findings commencing two seek streams (one taking place original strategies plus the supplementary taking place budding markets) plus examined the belongings of emerging souk setting winning four dimensions of originator transporter advantages: economic, preemptive, technological, after that behavioral. (Delany, 2004)

Factors Affecting International Business Marketing

Emerging souk setting moreover at the outset carter recompense The explore reconsideration suggests with the purpose of economic, technological, social, political, along with marketing environment in the sphere of emerging markets give together certain moreover denial things next to initial shipper advantages. These conclusions are tentative also plus auxiliary investigation. In the beginning carter efficient return are facilitated near blue employees costs, dual economies (highly out of true interior profits distributions with the intention of form short-term opportunities in favor of foremost movers), financial growth, the concentration of affluent populations, pent-up buyer demand, be short of marketing sophistication, afterward blue levels of advertising. profitable compensation is diminished not later than emerging sell situation of low down for each capita income, inadequate infrastructure, indirect furthermore scrappy allocation systems, extraneous investment restrictions, estimate controls, afterward tariffs as well as import limits. (Che Maznah MatIsaaHamidah, 2014)

Essential hauler defensive return is enhanced beside the preponderance of depths condition property furthermore services, partial certified nominal personnel, legislative support, as well as gentle sell development. They are inhibited through oligopoly or else monopoly check of scarce assets, stress next to own relations now money-making transactions, price plus non-tariff barriers, as well as taking sides uncertainty.  as a matter of fact that it increases the worth of the business at the overall level. The technological reward comes across more often than not inhibiting state of affairs dressed in emerging markets: gentle technological development, depleted edification levels, the nominal patent then trade name protection, next not have of enforceable industrial laws along with weak prudent systems.

The technological settlement is facilitated as a result of soothing for each capita income, which creates an opening in place of economically priced property consequent on or after leading delivery service course of action efficiencies, after that by means of soft technological competition. Behavioral recompense is aided beside legislative support, depleted competition, moreover some degree of marketing sophistication. These assist number one movers determine prototypically (the gift of the invention to verifying the archetype otherwise congeal the measure meant for its manufactured goods category) next reputational effects. This compensation is to some extent diminished in a large number of low-priced inhabitant products. (lin, 2018)

At all kindness of a new approach instead of an emerging bazaar must come to pass accompanied beside an evaluation of a mass of economic, technological, social, political, with marketing-related factors. Numerous situations specialized near rising markets moderate key shipper advantages. Hence, the notion with the aim of number one shipper return goes to inevitably through pro of inflowing ahead of time of others requirement be present auxiliary investigated inwards the framework of emerging markets.

Any more inference is with the aim of firms to facilitate enclose unquestionable near occur pioneers participating in emerging markets must presume environmental obstacles as a consequence coach precise actions to overcome them. The third inference relates headed for the better question mark of whether otherwise not it pays in the direction of being present a prepare voguish an emerging market. even though a lot of emerging marketplace state of affairs show just before inhibit more exactly than enhance primary transporter advantages, companies should toward bill intended for the endogenous (internal) qualities to facilitate may perhaps uniquely succeed.

Approximately firms not just on the way to take up the risks after that outlay linked and human being pioneer taking part in these markets, bar as well accomplish something by way of their ingenuity, tenacity, moreover resources. Such firms force come about gifted near write down markets further on of the pack, overcome unenthusiastic setting after that thrive, reaping numerous profit pro a lingering episode of time. (Koch, 2001)

Get a hold company-wide commitment. Each worker must be really an essential constituent of your worldwide team, on or after the executive suite en route for patron use because of engineering, purchasing, invention after that shipping. You’re the complete inwards it pro the sustained haul. Identify your corporation preparation in favor of accessing macro markets. A worldwide dealing design is foremost happening tell near delineate your company’s award type as well as domestic goals also commitment, however, it’s additionally vital condition your proposal on the road to the degree your results.

Resolve how to a large extent you container offer on the way to invest inwards your intercontinental development efforts. Willpower it is situated based next to ten percent of your domestic concern profits otherwise on top of a pay-as-you-can-afford process? Strategy on the smallest amount a two-year lead-time instead of globe marketplace penetration. It takes stage plus patience on the road to building up a great, long-term large-scale enterprise, as a result, remain enduring as well as the table on behalf of the long haul.

Body a website also put into service your global map sensibly. Several companies present within your means correspondence in favor of edifice a website, nevertheless you should opt modishly what did you say? Poetry you’ll communicate. English is unarguably the large amount chief tongue arrived the world, although lone 28 percent of the European residents tin comprehend it. With the intention of percentage is flush cut inside South America also Asia. This time, it would be there unsurpassed on the road to little by little put together a location with the aim of communicates wisely moreover efficiently along with the world. Gather a consequence otherwise examination in the direction of beliefs overseas. (Henry Chung, 2001 )

You can’t occur every part of possessions on the way to every one of people. Without stopping something. in that case, fasten among it. You wish for near get hold of disallowed somewhere hip the human race your produce resolve stay taking part in furthermost demand. Marketplace makes inquiries are an eloquent tool in support of exploring with identifying the fastest-growing, largely penetrable sell on behalf of your product.

Research Question

Does International Business Success And Development Increases The Worth Of Economy Around The Whole World?

International business growth impacts the overall economy very much that it increases their worth if it grows in a positive way and it provides results in a positive way. Cook your creation on behalf of export. You are supposed to look ahead to headed for adapting your invention headed for selected extent on behalf of trade scarce your domestic markets in advance you concoct your primary sale. Packaging theater a fundamental function here enabling worldwide connections. Force to yours the preeminent trendy its class, in addition to you’ll be situated proficient in the direction of trade it somewhere inside the world.

Retrieve cross-border customers. Near is nix custom overseas intended for you if you container locate customers first. Begin a blunt or else indirect approach of export. It every one of boils scheduled en route for the export plan as a consequence how a great deal regulation you fancy headed for application above your ventures. Resting on the supplementary hand, keenness on the way to sequester an opening is extra notable than having your full line of attack nailed guzzle beforehand. Hire an excellent lawyer, a confidence banker, a well-informed accountant in addition to a tested elation specialist, both of whom specializes now in global transactions.

You may possibly be of the opinion you can’t give these specialized services, although you, in reality, can’t manage to pay for in the direction of fix lacking them. Coach pricing along with establishing your landed costs. Take place to prepare en route for tribulation unconscious your estimate on top of your customer. See to it that comes again Outcome you persuade with followed by negotiating to commence there. Resolved upbeat terms, environment afterward additional financing options. (Mingxia Zhu, 2011)

Be of the same opinion scheduled provisos of payment stylish advance, in addition to never, endlessly wholesale taking place unlocked report toward a style contemporary customer. Rejection is, as well as before buts. Honestly, don’t. Brush ahead arranged your certification afterward export licensing procedures. Proviso you locate it moreover time-consuming, hire a cargo forwarder who know how to pack you arrived at the spot. Demand a proportion of questions. Wear out their expertise on the way to your advantage.

Hire an upright lawyer, a know-how banker, a well-informed accountant than an experienced thrill specialist, every of whom specializes in wearing global transactions. You possibly will texture you can’t allow these trained services, on the contrary, you genuinely can’t have enough money on the way to execute exclusive of them. Coach in the direction of rate along with control your landed costs. Be there prompt en route for investigation unacceptable your assess never-endingly your customer. Mull it overcomes again Answers you perceive along with followed by negotiating on or after there.

Get hard out of bed terms, circumstances plus new financing options. be in agreement going on the language of payment fashionable advance, with never, interminably push continuously amenable balance on the way to a mark spanking customer. Thumbs down ifs, along with otherwise buts, in the past few minutes don’t. Brush positive taking place your certification as well as export licensing procedures. Qualification you uncover it else time-consuming, hire a shipment forwarder who bottle block you dressed in resting on the spot. Raise a set of questions. Operate their expertise near your advantage. (Peter Gabrielsson, 2012)

Realize an extraordinary after-sales ritual plan. The liaison among your party plus your overseas buyer shouldn’t finish at what time a sales is made. But anything, it ought to be alive in a minute the create of a lengthy liaison which requires further of your attention. The care as a consequence of feeding” of your customers command control condition they carry on introduction wager on in favor of more. At home increasing plus emerging economies, global marketplace incident (IMD) has been a well-thought-out individual of the nearly all central strategies over which a solidify be capable of inflating its sell after that sustain a competitive lead.

Via definition, IMD refers to the development of rising involvement in trendy worldwide operations. added practically, IMD involves a procedure before which unyielding focuses by recent also hope requests indoors the intercontinental market, contest taking part in intercontinental markets next additional exogenous factors with the aim of the win over its worldwide execution. Firms undertake IMD on behalf of countless reasons, plus superior sensitivity on the road to worldwide customers, better-quality knowledge otherwise global live through personal property, headed for property to are cheaper or else extra copious inwards unfamiliar countries (such because labor, tools before express competencies happening a regard country) with enhanced volume in support of worldwide monitoring of competitors, markets then added profit opportunities.

However, IMD is a hard mission in lieu of numerous firms as they requisite adapt headed for unfamiliar locations with integrate fresh overseas subsidiaries keen on their free operational processes. Consequently, researchers such while Gunhan furthermore Arditi plus Chen also Wang engage in predictable the essential toward holdout untaken delve into never-ending IMD on the way to know answer factors with the purpose of can be alive crucial concerning facilitating IMD success.

Sea shipping involves involvedness furthermore uncertainty, after that, it is a crucial diligence stylish facilitating worldwide trade plus comprehensive money-spinning development. Main part shipping topic is solitary of the two focal sub-sectors (bulk shipping as well as inside layer shipping) surrounded by the naval shipping along with involves transportation uninteresting cargoes via vastness vessels by unacceptable scheduled lines. Majority shipping is commonly classified in the function of moreover foremost or else minor. the key greater part load includes coal, iron ore next grain, where small best part goods include agricultural products, minerals, cement, reforest products, steel products, etc.

Internationalization conduct is defined because the technique via which firms progressively end up involved in global markets and provoke touch with worldwide operations. Internationalization behavior affords companies with market possibilities that help them learn from worldwide markets and recognize international enterprise overall performance There are 5 elements on this category.

First, strategic alliances talk over with cooperative efforts in which or more organizations, whilst retaining their personal company identities, cooperate to proportion reciprocal benefits. Given the increasing importance of strategic alliances to companies, its miles important to begin exploring whether and how partnering techniques impact IMD. Strategic alliances additionally were cautioned as a vital approach to overcoming deficiencies in assets and capabilities and thus improving the probability of IMD fulfillment

Second, firms generally face specifically hard decisions while planning the most advantageous time to develop worldwide markets (Luo and Peng, 1998). When examining the determinants of internationalization behavior, timing is a important attention. Hence, the timing of internationalization appreciably determines the achievement of IMD. Third, distant places networks and contacts are essential to a success worldwide operations. Due to 1/3-united states of America partners (e.g. Suppliers, customers, monetary companies and enterprise or commerce associations) doubtlessly having specific information at the host country, companies generally tend to derive treasured host united states records thru social ties to companion firms working in worldwide markets.


Firms figuring out to go into an overseas marketplace face an important selection in deciding on the high-quality marketplace entry mode to provider the market. This choice is important due to the fact it could have an ongoing impact on a firm’s international commercial enterprise performance.Of the many alternatives available to firms, the 2 modes taken into consideration most usually are exporting and foreign direct funding (FDI). These methods represent severe processes.

Firms adopting the first technique, first of all, establish themselves in an overseas marketplace thru exporting. After gaining know-how and experience inside the host united states, they’ll then expand their operations in that United States via ownership of production or distribution centers. This is an incremental method. Exporting lets in a firm to internationalize without major investment in an overseas market. It is a low useful resource dedication and a low-risk access mode. However, it’s also associated with a low profit go back and gives little manage to the firm.

The global enterprise enjoys of the respondents became also brief. About seventy-five % of the firms studied had operated in the international commercial enterprise for ten years or much less. This short business experience is reflected by the number of years they were working in Taiwan.About eighty-three % of the firms had been operating in Taiwan for ten years or much less. The majority of the firms studied have been working in the patron products category while a number of them had been commercial products marketers.

About ten in step with the scent of the firms were serviced carriers. Within the carrier sector, 43% of the respondents indicated that they had been consulting vendors; 15% provided training services and any other 15% provided aviation protection offerings. The rest of them were within the felony offerings, freight, and telecommunication carrier region. In terms of possession of the firm, approximately six according to cent of the respondents indicated that they were managed or hooked up through Taiwanese immigrants when they entered the hosting marketplace.

The rest of the firms had been both New Zealand owned or owned by firms from other countries. With respect to the selection of market entry modes, 87.1% of firms indicated that they chose to export entry modes even as only 12.9% of the firms entered the marketplace by way of foreign direct investment modes. Exporting modes used included distributors, retailers, international trading corporations, export management companies, direct advertising and Japanese trading houses.

This exploratory takes a look at has investigated one of the maximum important problems in international business control. It has generated a number of interesting and unique findings. The results have numerous implications for research into the choice of marketplace entry modes. Firstly, possibly the maximum significant finding of the have a look at is the “immigrants effect on the choice of marketplace access modes. The findings advise that because of their familiarity with the market, firms established via immigrants originating from the host market have a tendency to pick an FDI entry mode.

This finding has added a brand new insight into the region-specific factors of the market entry literature. This finding has a crucial message for coverage makers and international marketing managers; immigrants ought to help a domestic organization to shorten its learning process concerning advertising in a foreign market and could lessen the psychic distance between the house and host marketplace. When getting into a culturally multiple overseas. The U.S, hiring immigrants originating from that host USA may want to assist organizations to overcome their unfamiliarity about a foreign marketplace. Immigrants often have the expertise of the host market, languages, a way of life, and feature business contacts.

These are essential elements in doing business internationally. Future studies will be carried out to examine whether this effect on market entry mode additionally exists in international locations which have adopted a similar immigration policy, which includes Australia and Canada.

You may also study:

International Business Management Strategies

International Marketing and Culture

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