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

good evening inb3107 international business management
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Good Evening! INB3107 International Business Management December - - PowerPoint PPT Presentation

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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Thank you for your attention!