International marketing / positioning in local markets - PowerPoint Presentation Example

INTERNATIONAL MARKETING POSITIONING IN LOCAL MARKETS Introduction The key factors that determine the success of a business in both local and international market is the development of a sustainable competitive advantages in local markets. Moreover, positioning in local market has as well been incredibly decisive in the success of multinational businesses in the contemporary competitive market. The prosperity of a business in global market is therefore primarily based on the level in which domestic market offers a business with additional advantages pertinent in international market.

Positioning in local market is the entire process of designing business’s image essential in development of productive reputation in customers’ mind (Porter 2000, p.79). Modification of the Company’s Domestic Positional AdvantagesIn most cases, local and global market operates in spatial environment that is independent and interlinked. Moreover, market demands and needs, market infrastructure, and the nature of competition differ from one market to another (Barney 2001, p. 199). Therefore, to be productive in contemporary local and international market, a company ought to modify its domestic positional advantage in it is local markets to match with modern global requirements and market demands.

For example, the global and local success of P&G Company has been brought about by effective modification of the existing detergent products in the development of new products that matches with emerging development such as the use of washing machines as well as modern washing habits. Moreover, Suzuki motor in Japan has as well successfully prospered in transforming its product to fit in different markets in the world. At present, Suzuki is more placed in both local and global market compared to other competitors such as Toyota and general motors.

Develop Capacity the Local Market PositionIn creating market advantages in a competitive market, a business needs to create sustainable capability that can support productive market position in local market. In this case, a business entity needs to make proper use of location-specific resources and assets. This will help in the creation of operational systems and local capabilities essential in sustaining the product’s position in both local and international market. For example MTV has offer years been exceptionally effective in duplicating its distinctive products and mass merchandise in many global markets such as United States of America and Japan.

Their products are therefore similar and unique in the entire global market. This has as a result increased its market advantage over their big competitors in the world. The P&G is as well commonly known for its effective duplication of its products in global market.Creation of Context-Specific CapabilitiesThe development of context-specific capabilities entails creation of effective relationship between the company’s products and its customers. Effective relationship between the company’s customers and products leads to the development of trust and royalty to the company’s brand.

Contexts specific product should as well adapt to typical market condition. For example, Smith, Klein & French has in the last five years invested in creating new and strong network between its products and customers in Japan. This has a result led to successful entry in Japanese market. The company has opened wholesales and outlets in many parts of the world market such as china. Opening of several outlets has led to the development of very strong linkage between the company’s products and its customersUse of local skills and competenceUse of local resources and skills is especially essential in the implementation of exceptional competitive mechanism in an organization.

Exploitation of local skills also helps in fine-turning the company’s brand to match with the local requirements. For example, the success of K-Mart and Wal-Mart in local and international market is facilitated by its effective use of local resources and manpower which includes the employment of local employees in the production line of its products. Use of local resources is as well known for advancing linkages between the Wal-Mart company’s products and its local customers in its parent country.

K-Mart employs local professionals in their new market with an aim if encouraging its customers to participate in the company’s decision making process. A good number of its local managers are from their local marketsConclusionThe prosperity of an organization in global market is to a great extent necessitated by valuable positioning in local market. Moreover, a good number of the most profitable businesses in global market has created strong network between its products and the company’s customers in their local market.

Therefore, it is incredibly vital for new businesses with an intention of expanding into global market to be sufficiently positioned in local market in order to flourish in the contemporary intricate international marketReferencesBarney, J., 2001, "Firm Resources and Sustained Competitive Advantage," Journal of Management, 17 (1), 99-120.Porter, M., 2000, “Competitive Strategy”, New York: The Free Press