International Business International Organisation

Prof Bharat Nadkarni

Factors determining the International Organisation Extent of commitment to International Business Nature of International Orientation Size of International Business & Expansion Plans

Number and Consistency of Product lines

Characteristics of the Foreign Markets

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Types of International Organisation
Built-in Export Department
Separate Export Department Export Sales Subsidiary International Division Global Organisational Structure

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Global Organisational Structure Global Product Structure Global Geographic Structure Global Functional Structure

Global Matrix Structure

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Market Coverage Strategies
Concentrated marketing strategy
This approach is based on a decision to achieve a maximum penetration in one or more segments to the exclusion of rest of the market. Instead of spreading thinly in many parts of the world, it decides to concentrate its forces on a few clearly defined areas. A small firm with limited resources might compete effectively in one or two market segments, wheareas the same firm would be buried if it aimed for a total market. By employing the strategy of market segmentation, a company can design products that really match the market demands. Companies with ethnocentric orientation may sometimes adopt a concentrated marketing strategy, i.e., the company may concentrate on those foreign markets or segments where it can sell the same products as sold in the home market.

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Niche Marketing
The concentrated marketing strategy sometimes takes the form of niche marketing, i.e., concentrating on a market segment that is not satisfactorily served o which is ignored by the major players. Such a strategy avoids a direct and immediate competition with major firms. There may also be niche markets with virtually no competition. While selecting a niche, the firm should ensure that : 1. The niche should be of sufficient size to be profitable and it has growth potential 2. There is no much competition and that it is not of interest to major competitors 3. The firm has the capabilities to serve the segment so well that it will have an edge over other firms. 4. The firm will be capable of defending its domain. Creating niches Expanding niches Protecting niches .. Kotler

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Undifferentiated marketing strategy
Undifferentiated marketing is characterised by market aggregation,i.e., treating a whole market as a single unit whose parts are alike in all major respects. The entire market is sought to be tapped with a single marketing mix.

Differentiated marketing strategy and Market Segmentation

Market segmentation is necessary not only for differentiated marketing but also for selecting the appropriate market segment to concentrate on. Whatever may be the basis of segmentation, a market segment should possess certain essential characteristics. A market segment shall be 1) Measurable 2) Substantial 3) Differentiable 4) Accessible and Actionable