Good Evening! INB3107 International Business Management December - - PowerPoint PPT Presentation

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Jul 19, 2023 315 likes •459 views

Good Evening! INB3107 International Business Management December 2016/January 2017 Ulrich Werner How do you adapt your Product or Service for the international Market? Adaptation across Borders Born Global Firms As a little starter:

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Good Evening! INB3107 International Business Management

December 2016/January 2017 Ulrich Werner

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How do you adapt your Product or Service for the international Market?

Adaptation across Borders

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Born Global Firms

As a little starter:

http://rainforestbaskets.com

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Liability of Foreignness (LOF)

Costs that arise from a company being foreign when entering a market in a different country. These are costs that local or domestic companies don’t face because they are familiar with institutions, culture, politics, language etc. Any company that enters a foreign market needs to have a particular advantage to overcome the costs

f foreignness.

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Companies face two opposing Pressures

To reduce costs – standardize products and achieve

economies of scale in production

To adapt to local market needs – this costs more but

can allow for market penetration and increase sales

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IKEA in Thailand: Focus on small Rooms

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McDonalds in Paris: No drive‐through

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McDonalds

Singapore: Whole‐grain Muffins,

Corn Cup, 500 calorie meals

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The most Expensive to adapt: Cars

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Coca‐Cola around the World

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The Pizza Company

William E. Heinecke, Minor International Group 1978
Started as franchisee of Pizza Hut
Own brand in 2001
Some 75% market share in

Thailand, with Pizza Hut a distant no. 2

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A final Case Study: PFNC

http://www.pfnc.net/

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