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Strategies for International Expansion
a different approach for Trans National Firms and SME

IDRAC - Lyon


IDRAC - Globalization and Corporate Strategies

Objectives of the session

Understand the differences in the international growth pattern between small and medium size firms and large trans-national ones Review the corporate strategies for growth and thechallenges raised by international expansion Understand how small and medium size enterprises can expand on foreign markets Understand how large trans-national enterprises deploy their strategies across the entire world


IDRAC - Globalization and Corporate Strategies

A. B.

The value chain and corporate strategies: a reminder The internationalization process: the steps to exportI.

The strategic steps
1) 2) 3) 4)

Diagnostic Methodology for the study Marketing Plan Deployment Supporting organisms Specificities Prospection Risks and Solutions


The techniques of International Trade
1) 2) 3) 4)


The impact of Internationalization on corporate offer, operations and organizations Conclusion: business as usual, but Multi-nationalizationMondialisation Globalization


The next steps to Globalization
1. 2. 3.


A continuous process - Different stages for companies according to their size and global market share
IDRAC - Globalization and Corporate Strategies


A. The Value Chain and Corporate Strategies


IDRAC - Globalization and Corporate Strategies

The value chain

Channel mix


Product mixThe Offer mix Marketing


Communication mix

The Demand Customer mix

Pricing mix

Purchase Human Resource Supply chain Finance



Financing system



IDRAC - Globalization and Corporate Strategies

Reminder on the marketing mix
Communication mix

Sales Promotion

Advertising Offer Mix Products EnterpriseServices Sales Force Intermediaries Consumers

Public Relations Direct Marketing Telemarketing, Internet

At the international, the problem is the same as on the domestic market.

The problem to be solved is the one of presenting an offer adapted to targeted consumers through various channels and insuring their satisfaction. However the environment is more complex and riskier.Graphique d’après Kotler & Dubois


IDRAC - Globalization and Corporate Strategies

Demand and Customer mix


Could be latent and unexpressed

EX. Walkman

Tracing and understanding demand is the key challenge for any enterprise Which type of customer
 

Selection of our future customer base

Ex. The patient of an hospital is a customer for thehospital service offer
Ex. The citizen is a customer for the services offered by civil servants

 

Which country and/or region and/or city Which segment

See. Definition of a segment

Definition of the proper balance among our customer groups
  

Product life cycle Market maturity Risks of new entrants and increased competition on some groups


IDRAC - Globalization andCorporate Strategies

Knowing the customer

Knowledge of consumer characteristics plays an extremely important role in many marketing applications, such as defining the market for a product or deciding on the appropriate techniques to employ when targeting a certain group of consumers Purchasing decisions are influenced by opinions and behavior of friends, family or reference group. Thebonds within a group of friends are in part cemented by the products they all use. There is also the pressure on each group member to buy things that will meet with the group’s approval: need to know if it is ―in‖ or ―out‖. Reference group: As a member of a large society, people share certain cultural values or strongly held beliefs about the way the world should be structured. Other values are...
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