Global business strategy2.docx

1、Global business strategy2Global Business Global Business Strategy By NightslicerGlobal business strategyIntroductionAt the very beginning years of this century, the global economic environment has seen tremendous changes. The most significant thing is the rise of emerging countries. The share of glo

2、bal GDP which is accounted for by developed nations such as Japan, the United States, and European countries has dropped from almost 80 % in 2000 to about 60 % in 2010. And it is estimated that this share will fall to around 50 % by 2020 and to about 40 % by 2030. Meanwhile, emerging countries such

3、as China, India, and Brazil are increasing their market presences. In terms of population, the picture of a global economy centering on developed nations, in which those countries that represent 10 % of the population generate 90 % of the wealth, is disappearing. It is becoming increasingly importan

4、t for global companies to develop business strategies to adapt to this new era. In this article, we will systematically summarize the four business strategies of global companies.Text1. Global standardization strategyOver the years industries have participated in organizations that have developed na

5、tional, regional, and international standards that have resulted, in some cases, in two or more standards that are used in the marketplace. At present, global standardization strategy is widely used in the international companies, such as McDonalds. McDonalds Corporation is the largest chain of fast

6、-food restaurants around the world, primarily selling hamburgers, chicken, french-fries, milkshakes and soft drinks. More recently, it also offers salads, fruit and carrot sticks. It began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California.McDonalds pro

7、duct marketing positioning: the internationalization of the brand has been a McDonalds global strategy. Although international is a trend, but the product and marketing strategy is not very standardized, the same product, in a place popular, for a place they cant market. Therefore the McDonalds in v

8、arious countries to expand the local market at the same time, maybe made some changes to the product, and often also therefore becomes globalization new product creative source. Such as sales high fillet-o-fish, is located in the Muslim countries of McDonalds, because people cannot eat pork, making

9、Pork Burger is slow-moving, and the development of new products. Of course, the McDonalds in the introduction of new products all is not well, the localization of the product is not successful. In the development of new products, still need to consider brand attributes. Quality of product developmen

10、t, McDonalds in the global standardization strategy, is also taking the soil and route. In the past fifty years, McDonalds is always walk in the popular culture of tip, consumers found himself in need, creates consumer demand, of course, the premise is to create demand, consumers must understand exa

11、ctly what you really want. For consumers, they want a easily afford consumption, improving the first-class food, cleaning and safe environment, full of welcome, fast and convenient, child care, feedback area. Also like neat service quality, easy to consumers must have confidence. Therefore, although

12、 there was also criticism of the McDonalds hamburger delicious menu is not enough, not rich, but it can also have a group of loyal customers. McDonalds said customer segmentation for children season parents two groups, two customers too season using behaviors, thus to different relationship marketin

13、g practice response. McDonalds promotional methods, through advertising, an active base and customer intimacy, and integrated delivery message. McDonalds authorizes childrens meals for children to establish advertising hobby and strengthen the cognition of parents.McDonalds in different social stage

14、s adopt different entry mode. First of all, MacDonald chose the franchise mode, franchising and licensing of entry mode similar to. It is authorized to grant the franchisee operating independently of the franchise. Granted power includes name, products, technology, management and marketing of commer

15、cial research. Join the party to pay a fee, assume the obligations. McDonalds uses the franchise mode of foreign market entry. First, be followed in the international market with their standard product or management guidelines. Second, make full use of foreign resource and capital, so that in the in

16、ternational market expands rapidly and the swift and violent development. In third, McDonalds in the fund does not need to input foreign branch, should be chartered enterprise funds by raising hardy join, join in the financial and legal completely independent. In fourth, the Franchisee has the perso

17、nnel, sales and distribution rights, but the right to operate or control in the hands of authorized dealers, so that the rapid expansion of the needs of corporation. Fifth, authorized to McDonalds to join to provide technical and sales guidance on its products and services to achieve global standard

18、ization. McDonalds in the world to provide standardized products at McDonalds fast food, and McDonalds type of service form and management strategy. Meals include: Hamburg, cola, French fries, soup, coffee and so on. These products and traditional fast food is different. Not only in the production p

19、rocess is simple and rapid and the taste is delicious, easy to people in a short period of time to accept.With the successful expansion of McDonalds into many international markets, the company became a symbol of globalization and the spread of the American way of life. Its prominence also made it a

20、 frequent subject of public debates about obesity, corporate ethics and consumer responsibility.2. Localization strategyLocalization strategy advocates a global adaptation. We are trying to integrate into the enterprise market, and strive to become a strategic target market in one taken. It requires

21、 companies to not market themselves as foreign invaders, but as a member of the inherent in the target market into the local culture, which emphasizes business to adapt to the environment to achieve greater development space. Localization should understand into is a process rather than a purpose. On

22、e thing in order to adapt to the current surroundings and do change, popular said is to do as the Romans do. The concept of localization is also widely used in different industries. Localization is the reflection of modern marketing concept, its core is: enterprise all business activities to consume

23、rs as the core, rather than to be the fond of merchants, habit as the criterion, the enterprise standard must be changed according to the regional change of customer changes.Withthedevelopmentofeconomicglobalization,theincreasinglyfiercecompetitionamongmultinationalcorporationsmakesthemcompetenotonl

24、ywithlocalcompaniestoseizemarketshare,butalsowithothercountriesinlocalcountrysmarkettowinthecompetitivemarket.Fromtheviewofmarketingsegmentationandpersonalmarketingstrategy,theenterpriseshavetostudythelocalcultureandsocietyaswellasdevelopproductsforlocalmarketing,thustheycancaterforthedifferentdeman

25、dsofproductsfordifferentsocietiesandcultures.There are four localization characteristics of business: the product localization; the marketing localization; the localization of human resources; research and development localization. To better illustrate the application of localization strategy, there

26、 is also a very good case. The analysis of Coca Colas localization strategy in China: Coca Cola, as the largest beverage company in the world, has a long history of more than 110 years. Coca Cola in China firstly has got a great success in Chinese marketing. However, without any mature marketing str

27、ategies, Coca Cola in China cant have such a great achievement. And the basis of all marketing strategies is localization, which is the most important element that Coca Cola has been the most popular beverage in China.At the beginning of 1927, Coca-Cola had invested in China. In 1948, Shanghai had b

28、ecome the first market outside of the US whose annual sales achieved more than 1,000,000 boxes of Coca-Cola. In 1979, the first year of Chinas Reform and Opening Up, Coca-Cola became the first international brand that returned to the Chinese mainland. In 1999, a Gallup survey showed that 81% of the

29、Chinese consumers could recognize the Coca-Cola brand. In 2003, an independent Chinese authoritative consumption survey showed, Coca-Cola had been the most popular beverage in China for eight years. Now, Coca Colas investment in China exceeds $1,200,000,000, in Chinese mainland it has built 28 bottl

30、ing companies and 34 factories and has more than 20,000 employees. To deal with the brand name problem, the translated name “Ke Kou Ke Le” which was accepted by Chinese consumers, Coca-Cola got a great success in Chinese marketing. A brand name which can be suitable for reading aloud is the sound pa

31、rt of the brand; it is also the key element of the brand, the most distinctive feature of the brand and the basic form of brand culture concept. A good brand name itself is one of the simplest and the most direct advertising language. It can quickly and effectively expresses the central contents of

32、this company. From this view, “Ke Kou Ke Le” is a good example. “Coca” and “Cola” stands for two primary ingredients in English. Chinese name of Coca-Cola doesnt have this relationship. However, “Ke Kou Ke Le” became another creation. “Ke Kou”, an adjective in Chinese, often used to describe delicious food, so “Ke Kou” will make consumers naturally feel the product is flavorful. “Ke Le” is completely an innovative idea which didnt been used in China before until the translator put it up. In others words, this localize