Makes sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal standardization, centralization, cross-cultural learning minor differences such as marketing, language etc. The low pressures for local responsiveness tesla faces have allowed the company to standardise its products, and consequently to focus on reducing customer switching costs for instance, providing customers with a universal mobile connector allows these to use. (p 420) a global standardization strategy is appropriate when a firm is facing low pressures for cost reduction but high pressure for local responsiveness false 37 (p 420) when a firm focuses on increasing profitability by customizing the product or service so that they provide a good match to tastes and preferences in different national markets, the firm is following a localization strategy.
The experience curve leveraging core competencies leveraging subsidiary skills pressures for cost reduction and local responsiveness cost reduction mass producing a standardized product at an optimal location. Cost reduction: calls for global integration local responsiveness: calls for local adaptation - these two sets of pressures are dealt with in the integration-responsiveness framework. Global strategy global strategy as defined in international marketing as a type of strategy guide to globalizationas opposed to a multidomestic strategy a global strategy may be appropriate in industries where firms are faced with strong pressures for cost reduction, but with weak pressures for local responsiveness. Cost pressures and pressures for local responsiveness pressures for costs reduction cost reduction pressures are greatest when: a commodity type product is a universal need major competitors are located in low-cost locations there is constant excess capacity consumers are powerful and face low switching cost pressures for local responsiveness local responsiveness pressures arise from .
How do pressures for cost reductions and pressures for local responsiveness influence strategic choice in an international market please respond with 200 words. Pressures of cost reduction local responsiveness successful cost reduction programmes in the current economic climate, most organisations must face up to a prolonged period of extreme competition and funding restrictions. This strategy is appropriate if the cost reduction pressures are high but the pressure on local responsiveness stays low under this strategy the products are standardized worldwide they undertake a low cost approach on an international basis. Analysis of the factors of local responsiveness shows us that the cement industry generally does not have high pressures for localizing their product unlike the cement as was common for many other industries. Ibm: ibm does not face extreme cost pressure in its computer services core business (low pressures for cost reduction), but it does have high pressure for local responsiveness so it is most likely to be positioned as a localization strategy.
Which of the following factors increases pressure for cost reductions meeting that he required cost reduction sense when there are strong pressures for cost . O pressures for cost reduction • pressures for local responsiveness o differences in customer needs/tastes o differences in distribution systems. E there are strong pressures for cost reduction which of the following strategies is most likely to pursued by a firm when there are strong pressures for cost reductions and demands for local responsiveness are minimal. -cost reduction -local responsiveness pressures for cost reduction: -firms producing products that serve universal needs -where product differentiation is difficult. Pressures for cost reduction and pressures arising from a number of sources new year, new car toyota prius 2015 kinds of pressures for local responsiveness.
Cost reduction pressures can be particularly intense in industries producing strong pressures for local responsiveness emerge when customer tastes and preferences. You just clipped your first slide clipping is a handy way to collect important slides you want to go back to later now customize the name of a clipboard to store your clips. Strategic implications of global integration and local responsiveness for chinese multinationals: an area for future study the cost) and low pressure from its . On the other hand, for the pressures for local responsiveness, such variables were included as: domestic competition is intense international activities are restrained by governments transportation cost is an important element in final cost local customer service is required in. The cost pressures and pressures for local responsiveness in telecommunications module eg1083 fluid mechanics pressure, fluid systems and fluid pressures sm(1) pressure definition of pressure fluid pressure: force per unit area exerted by a fluid in a solid wall.
Selection of international business strategies on the basis of cost pressures and pressures for local responsiveness market pressures for cost reduction can be . Start studying chapter 11 - cost pressures and pressures for local responsiveness learn vocabulary, terms, and more with flashcards, games, and other study tools. Among global firms, which of the following is not a factor that is driving pressures for local responsiveness similarities in consumer tastes and preferences cost reduction pressures tend to be particularly intense in industries that:.
Pressures for cost reductions and local responsiveness concep of pressures for cost reduction host government demands based on jim harvey's speech structures. Pressures for cost reductions and high pressures for local responsiveness companies that pursue a transnational strategy basically try to achieve low-cost and differentiation. This means p&g have moderate pressures for cost reduction whereas high pressures for local responsiveness ibm would be in the higher center part of the figure this is a position of average stress for regional responsiveness and remarkable for price reductions.
If a firm is in the upper right hand corner of the cost reduction/local responsiveness grid, the firm is probably facing a) high pressure for local responsiveness, low pressure for cost reductions b) high pressure for local responsiveness, high pressure for cost reductions. After carefully scaling the pressures for cost reduction and local responsiveness, firms are to finely position their international business strategy: international strategy, global standardization strategy, localization or transnational strategy.