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.
[...] Anybody can buy tickets for a day match on the website. A large part of by- products for mobile phone are also available. There is a possibility of organizing meetings, booking a special conference room with special services. There is a partnership with a big company of bet-on-line. There is a link toward its official web site to bet from the MU web site. Manchester United also has an official TV channel with a lot of reporting about the club and the players while broadcasting all the team's football matches. [...]
[...] Finally, it is important to notice that this all communication strategy was as efficient as costly, and even if this is one of the most important clubs in the world, the financial situation is not optimistic for the future. Moreover, the “social” relationship between the top management of Manchester and the “customer”/ the fans, is not really good. Manchester wanted to expand a local concept with local values abroad, and even if this internationalization was a success, the conservation of the core values was not anticipated and that is why Manchester United is in financial trouble. [...]
[...] International development strategies Types of strategy To enter international markets, MNEs have to think of their strategy which has to take into account global integration and local responsiveness. Here are the 4 types of strategies: the international strategy, the multidomestic strategy, the global strategy and the transnational one. Global: Views the world as a Transnational: Prefers a single market. Tightly flexible value chain to controls global operations facilitate local from headquarters to responsiveness. Adopts preserve focus on complex coordination standardization. mechanisms to facilitate global integration. [...]
[...] Many by-products are created with the face of the club as credit-cards, mobile phone, commercials. The club earns money with this kind of partnerships and it can follow the fan in his daily life. It's in the way to be present in different part of the market. Local branches It enables a localized adaptation since the local branches are managed by local clubs: for instance there is an important fan club in Tokyo which regroups all of the Japan's supporters of Manchester United. [...]
[...] Local/global dilemma A local-global dilemma exists. It relates to the extent to which products and services may be standardized across national boundaries or need to be adapted to meet the requirements of specific national markets. A global strategy involves that the company competes everywhere in order to compete effectively, that the product is the same for each market meaning there is a standardization of product. There is also a centralized control that makes decisions and standardized products are developed and produced in centralized locations. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
