International Retail Marketing

Chapter 13

A firm’s strategy: managers take to attain the goals, key goal: maximize the value of the firm for its owners

Enterprise Valuation→profitability→reduce cost/add value/raise price

→Profit growth→sell more in existing markets/enter new markets

Expanding internationally→profitability/profit growth

Multinational: economies of scale (brand, reputation, information, distribution system)/adapt(merchandise, sourcing, location, pricing)=act locally

Value Creation=V-C

High value customer→high price→greater profitability

Functional/social/emotional/epistemic认知的/aesthetic/hedonic享乐的

Profit increase: add value/low cost

Firm’s operation→value chain (creation act: production, marketing, materials management, R&D, human resources, information systems, and the firm infrastructure)

Primary act (R&D, production, marketing and sales, customer service)/support (information systems, logistics, human resources)

Core competence: firm skill/competitors/cannot/match

Location economies: cost ad/value creation act/optimal

Global web: different stage/value chain

Experience curve: Systematic production cost reductions that occur over the life of a product

Learning effect: cost saving/learning by doing/saving cost

Global expansion (international firm: expand market/realize location eco/cost reduction/greater return by leveraging)

Economies of scale: spreading fixed cost>large volume/utilize product>intensive/increase bargain wiz supplier/move down experience curve/get down curve quickly

Leveraging subsidiary: recognize value skill/establish incentive system/process for identify

Competitive pressure: cost reduction/ locally responsive/conflicting demands/lower unit costs

Cost reduction: fill universal needs/competitors→low cost/persistent excess capacity/consumer powerful

Local responsiveness: difference in consumer taste/traditional/distribution channel/gov demand

Global standardization strategy: (increase profitability/profit growth→reap cost reduction)/low-cost on global scale/

Localization strategy: (increase profitability/profit growth→firm good)/substantial differences/cost pressure not intense (high local res/low cost reduction)