What global market-entry strategy did mary kay use when it entered India?
a. indirect exporting
b. direct exporting
c. licensing
d. direct importing
e. joint venture
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The Correct Answer for the given question is Option b. direct exporting
Mary Kay entered India using an direct exporting strategy. Mary Kay prioritized God first, her family second, and her career third when doing business. However, in India, it was adapted that faith came first, followed by family, and then career. As a matter of respect for those who practice other religions, Mary Kay does this for the purpose of the religion.
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Global Strategy
In order to expand into the global market, a company must develop a global strategy. Developing a global strategy is intended to increase sales across the globe. Standardization, international and multinational strategies are all included in the term “global strategy”.Companies that pursue a global strategy seek to increase profitability by taking advantage of experience curve effects and location economies to decrease costs. In other words, they are trying to reduce costs. Globally oriented firms concentrate production, marketing, and R&D activities in a few favorable locations. Customization increases costs (it involves shorter production processes and duplication of functions) so global firms don’t tailor their product offering and marketing strategy to local conditions. To maximize the benefits of economies of scale, global firms prefer to market a standardized product worldwide instead. Global firms can also use their cost advantage to support aggressive pricing. Where there is strong pressure for cost reductions and minimal local responsiveness requirements, such as in the semiconductor industry, this strategy makes the most sense.
There may be a case for a global strategy in industries where firms face strong pressures to reduce costs while weak pressures to respond locally. A global strategy would allow such firms to sell their products globally. However, fixed costs (capital equipment) are considerable. Scale economies and experience curve effects can still be employed by these companies, because they are able to mass-produce a standard product that can be exported (provided demand exceeds costs). In order to pursue a global strategy, firms must coordinate their pricing and product strategies across international markets, and therefore, global strategy-driven organizations are often highly centralized.
Global strategies consider all aspects of a business-its suppliers, production sites, markets, and competitors. Every product or service is analyzed in light of both domestic and international market standards. It means integrating international perspectives into product formulations at the time of design, not as an afterthought. In other words, it means meeting world standards before seeking world markets and being world class even in local markets. Being truly global means deepening the company’s understanding of local and cultural differences.
FAQs
Unlike firms pursuing a global standardization strategy, firms pursuing an international strategy
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The Correct Answer for the given question is Option
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Which of the following best describes the direct investment global entry strategy?
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The Correct Answer for the given question is Option
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Pressures for a global integration strategy for all markets are increased by the presence of
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The Correct Answer for the given question is Option
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Which of the following is not a risk associated with a global strategy?
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The Correct Answer for the given question is Option
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Which global entry strategy has the highest degree of risk?
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The Correct Answer for the given question is Option
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The most important consideration when a firm chooses a global product strategy should be
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The Correct Answer for the given question is Option
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Which of the following are the two components of a global marketing strategy?
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The Correct Answer for the given question is Option
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Which of the following is true of a firm that pursues a global standardization strategy?
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The Correct Answer for the given question is Option
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Which of the following types of firms would be most likely to use a global marketing strategy?
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The Correct Answer for the given question is Option
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MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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