Transcript Chapter 3 Notes B

Strategic Implications for
Business and Marketing
The complexity in the marketplace will change
• For MNC’s enlarged markets
• Reduced or abolished country-by-country tariffs and
restrictions
• Rules and regulations can be more sophisticated
• Production, financing, labor, and marketing decisions are
affected.
• Competition will intensify
• Will still have to deal with national markets due to
differences in language, customs, instability etc.
Opportunities
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Large mass markets (initial advantage to large MNC’s)
Mass production and distribution (economies of scale)
Lower prices will be beneficial to be competitive
Major savings resulting from not having to develop
different versions of the same product to satisfy national
standards
• The initial disadvantage to smaller companies will
disappear with mergers, joint ventures acquisitions etc.
• Coordinated programs to develop economic growth
• Protects businesses that operates within the borders
Threats or Market Barriers
• It could be difficult for smaller companies
to meet new and more sophisticated
product standards
• Exporters will find it very difficult to
compete
Marketing Mix Implications
• Reduced number of brands
• Much less price differential (more standardized
pricing) among member countries
• Integrated and competitive distribution system
• Competition among small and medium size
retailers
• Internet marketing will grow