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: • http://rainforestbaskets.com
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 of foreignness.
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
IKEA in Thailand: Focus on small Rooms
McDonalds in Paris: No drive‐through
McDonalds • Singapore: Whole‐grain Muffins, Corn Cup, 500 calorie meals
The most Expensive to adapt: Cars
Coca‐Cola around the World
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
A final Case Study: PFNC • http://www.pfnc.net/
Thank you for your attention!
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