Local vs Global

Résumé du document

Companies are confronted by two types of pressure: the global efficiency and achievement of a local sensitization facing the different national markets. The pressures linked to the efficiency and which incite to the coordination and global integration of activities can be grouped together in four categories: market, cost, competitive and governmental. In the market pressures, we can distinguish the homogeneity of needs, the importance of customers and the chain of global distribution, the existence of a transferable marketing between countries. The cost pressures are manifested on the economies of scale, the experience, the supplying needs in specific areas, a successful logistic, the cost differences between countries and the high cost of the product development. The governmental pressures can be the existence of a favorable commercial politic, the standard techniques between countries, common regulations of marketing and the governmental intervention in the sector. Finally, there are two fundamental competitive pressures: a big volume of international trade and the existence of competitors that pursue global strategies by creating interdependent links between countries. Concerning the pressures that oblige companies to seek an adaptation to the conditions of each country can be provoked by different factors. There are the divergences in customers needs, differences in the distribution chain, the presence of local substitution products, the need to adapt the infrastructure or the traditional practices of the country, a market structure where the local competitors hold a significant market share and/or they are not concentrated, and the governmental condition.

Extraits

[...] Manchester United is not only a club for fans and the values are the most important factors to increase the club popularity. Thanks to the strategy with players contract the football club succeeded in creating a dynamic around the brand, the players was used for advertising and thanks to this concept and with the high level of communication, the internationalization of the brand was made “quickly”. With this example we could think that it is a kind of mix between the MTV strategy and Wal- Mart's; on one hand, the effort produced in order to impose the brand abroad is pretty important, and, on the other hand, considering that Manchester United was successful with the communication in every continents and thus, within a lot of different cultures. [...]

[...] The company's will is to focus on Asian and South American markets. However, Wal-Mart invested in Europe: in the United Kingdom, where it bought Asda and became one of the leaders on the market, and in Germany. In 1998, the corporation buys 2 German retailers: Spar and Wertkauf (95 stores altogether). Ethnocentric orientation Alas, Wal-Mart did not encounter success beyond the Rhine River. First of all, prices were too high for a people used to discount stores such as Aldi and Lidl. [...]

[...] It's profitable for them in terms of image and to recruit new football stars. We can see that in general, these schools are implanted in countries where Manchester united is famous. To conclude on that part, Manchester United has a global strategy and sells the United” brand. But with the different partnerships obtained, there is an indirect local strategy. It's more the way of promoting which is local. The company is present on different markets and the brand is adapted in the different countries through the different partnerships done. [...]

[...] Wal-Mart tried to implement its company's culture but it did not take German's habits into account. They made the employees smile, which was considered in some cases as flirting, and the check-out assistants had to say “Hello, how are you doing today?” to the customers who answered they wanted to be left alone. Singing the “employee's chant” every morning did not help either, nor the bad relationships the company had with the trade unions. In the United States Wal-Mart does not accept any trade union within its building and Germany has a historic past with them, so it was more than necessary to be in good terms with them, which was not the case. [...]

[...] Sources BBC NEWS (2006) Wal-Mart to enter Indian market, viewed 19th January 2010 Biswas. A & Sen. A (1999) “Coke vs Pepsi: Local and Global Strategies” [Internet] Available from: [Accessed from 5 February 2010] Claver Cortes. Francisco. Azorin. Quer Ramon. D (2009) “Stratégie compétitive et environnement sectoriel” Cairn.info {Internet] Available from : [Accessed 5 February 2010] Capell, K. (2007) The Arab World Wants Its MTV, viewed January 27th http://www.businessweek.com/magazine/content/07_43/b4055067.htm Daniels, J. et al (2009) International Business: Environments and Operations, Pearson International Edition, 12th Ed. [...]