Global Marketing Portfolio: AS1 - Global Strategies and Analysis

This report presents a student's portfolio on global marketing, encompassing four key entries. The first entry elucidates the glocalization framework, emphasizing the blend of global and local strategies, and provides examples like McDonald's and Starbucks. The second entry reviews the BRIC market, specifically Brazil, assessing its political and economic environment, and analyzes the advantages and disadvantages for a UK company like Sainsbury's considering market entry. The third entry explores the triggers and motives behind internationalization, focusing on perceptive management as a trigger and profit/growth as a motive, using Sainsbury's expansion into Brazil as an example. The final entry compares and evaluates the waterfall and shower approaches to market expansion, providing definitions, advantages, disadvantages, and real-world examples to illustrate each strategy's application in the global marketplace.

AS1 – Portfolio
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Contents
Portfolio Entry 1: The Global Marketing concept...........................................................................3
Portfolio Entry 2: Review of emerging BRIC Markets...................................................................5
Portfolio Entry 3: Why Internationalise..........................................................................................7
Portfolio Entry 4: Market Expansion Strategies..............................................................................8
REFERENCES..............................................................................................................................11
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Portfolio Entry 1: The Global Marketing concept
1. Explain the Glocalisation Framework
Glocalization is based on the combination of “globalization” and “localization” that describe a
product as well as service (Al Badi, 2019). It can be distributed and developed globally but also
adjusted to accommodate users and consumer in local marketplace.
Global low-cost production and selling
The price of goods and services are decided according to prevailing market condition.
Sometimes, products are sold below low cost production. An effective price decision must bear
some relation to price/cost. This situation may occur due to demand recession in global
marketplace.
Global roll-out of concept
It is a type of strategy that could be a one-stop solution for all different challenges. It will
require pursuit of growth beyond boundaries. Companies are deciding the expansion at a go and
sequentially, it must ensure that product or service adaptability to the local markets.
Low complexity
The complexity means that information require to complete document within
organization. It include all essential organizational processes, structure, infrastructure, facilities,
tools, product and service. Glocalization lower the complexity of task by identifying and
prioritizing the non-essential operations.
Culturally close to consumer
Culture influences the values that existing potential consumers hold, the goals and
objectives. It is all about the perceive, categorize and reason about their business environment or
culture. When a consumer evaluates a product on display in physical store and also compares
with prices.
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Flexible response to local customer needs
Flexibility within an enterprise in context is rather complex concept to define as
incorporates several dimensions. Traditionally, Flexible response that will attract the local
customer and help to fulfil specific need and requirement as per their demand. Flexible response
tends to focus on the ability of entire enterprise to adjust business operation and function. While
adapting the ability in a reversible manner to handle the local consumer needs.
Regional and local market penetration
Market penetration refer to successful selling of different product as well as service
within specific marketplace (Banshwar, Sharma and Shrivastava, 2018). It can be measured by
sale volume of existing good as well as service, compare with total target market. Regional and
local market penetration are helping the business in term of growth and development. It involves
strategy to sell particular items and services within existing market and obtained higher market
share
2. What are benefits a company might achieve by adopting a think globally but act locally
strategy.
When an organization might achieve by adopting a think globally but act loyally strategy. Which
turn into consider to biggest driver for organization. Benefits within company include local
resources, low prices and effectively geographical location and others (Griffin and et.al., 2020).
Companies has been produced the large number of standardised item in single plant in order to
achieve the minimum efficient scale.
The term ‘think globally and act local refer to way in which company need to adapt their
brands to suit individual localized targeted audience. In this way, organization will make an
effective strategy to find right mix of global as well as local in all operations. It helps for
expansion the business into international level ensure that brand remains globally consistent.
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3. Identify the example from real business world that supports portfolio entry and demonstrate
‘Glocalisation’
For Example-
Different companies which have mastered glocalization such as Starbucks, Hindustan
Unilever Limited and McDonald’s and so many great examples. McDonald’s have produced the
Beef burger elsewhere in the global world. It provide way to McAloo Tikki vegetarian burger in
India. On the other hand, Starbucks makes milkier coffee for different citizen group for
increasing value in global marketplace. In this way, it can achieve the successful Glocalization.
Portfolio Entry 2: Review of emerging BRIC Markets
Provide a brief background to your chosen BRIC country
Brazil is the largest country in South America and fifth largest nation in the global world.
Basically, country has formed into different triangle on the eastern side of continent with 4,500
miles. This country has a federal republic within president, congress and other judiciary
(Kasemsap, 2016). In 1888, the nation struggled because of democracy but military government
was removed. In 1995, it has been established the Brazil’s politics, economy in fairly stable
condition or situation.
The Brazilian economy has become consider one of the largest emerging markets. In past
decade, attracting the record for investment and inter-national financial press in equal
measurement. Main aim is to look behind reality, evaluating the overall performance of Brazilian
economy. It would be improving the financial instability in which receive praise for its business
price, fiscal responsibility for rapid growth and development.
Evaluate the political risks for Brazil
The political risks for Brazil is declining after a decade for tumultuous events or program.
The majorly political risk within emerging market for increasing instability in business. In
Brazil, Exchange rate and currency volatility reflects on the performance of nation. It has fallen
12% against dollar from its current highest rate.
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In additional, political risk in Brazil which can measure inadequate way to track real
progress. Debt levels are troublesome and affected the nation GDP due to recession.
Nowadays, Economy is headed for considered the biggest crash, spending emergency and
mean while push government debt to record high. This can be happened when spreading the
Coronavirus which may increase the political risks.
Review the economic environment for Brazil
Brazil is the eighth largest economy, still working on rebuilding itself after recession.
When economy condition by almost 7% since, it has not able to grow at same pace during the
before recession. However, it seem to be looking current economic condition in Brazil but
recovery rate is lower. In 2019, The Brazil’s GDP grew 1.1% against 1.4% in 2018 (Kotabe and
Helsen, 2020). In this way, it can be identified that expected to fall -5.3% in 2020 due to
COVID-19 pandemic.
Summarise the advantages and disadvantages for a UK company
Sainsbury’s is the supermarket chain in UK, with 16% of share within supermarket industry.
The organization was founded in 1869, by James Sainsbury’s and also registered the enterprise
became the largest retailer of groceries. This organization is looking to move their business into
Brazil’s marketplace.
The advantage and disadvantage for a Sainsbury’s, when they are moving their business into
new markets.
Advantage
A primary benefit of Sainsbury’s to expand the business in new market that help for
attracting new customers. It brings in previously untapped client market and reaching towards
goals or objective.
Disadvantage
A Drawback of Sainsbury’s business expansion is that when require a large amount of
investment and resources. It has limited capital available for business transaction.
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Portfolio Entry 3: Why Internationalise
Select one trigger and one motive, debate these in relation to why Company may select to
internationalise. Support the answer with potential real business example.
Companies expand its business activities into foreign markets. It might be several reason for
this. The most frequent reason is to expand profitability. The motive and triggers for
internationalization is consider as key aspect for enterprises in term of planning (McMullen and
Bergman, 2017). Through this, it can easily enter into global market since both concept will
shape internationalization strategy. Additionally, foreign market can gain more opportunities that
could consider as motive. Competitive pressure is based on the reactive motive that mainly
started but does not seems the main according to information analysis.
For internationalization to take place something without outside the companies. It must
initiate the process and carry it through implementation.
Perceptive Management- it is consider as trigger that applicable when moving the business into
new markets. This will help for gain early awareness of developing opportunities in overseas
markets. They make it their enterprise to find out the open mindedness about where and when
their companies should expand overseas. This type of trigger is frequently affecting the foreign
travel during new business opportunities. At certain point, it should be increased causes of
business in context of foreign culture, environment. It is likely to be different from other regional
level. It is directly affecting the behaviour of individual staff members within organization.
A certain level of particular information or data that must be received in order to create own
assumption. Therefore, it may increase attribution error that arise when individual person
mistake another one as cause of negative event in new markets. In this way, it will be increasing
the problem in organizational behaviour. On the other hand, perception affecting the motivation
of staff members in context of professional as well as personal development. In order to reduce
the lack of opportunity for growth.
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The primary motive of enterprise to start the internationalization process in which increasing the
profits and grow in revenue.
Profit and growth goals into foreign markets – companies are thinking globally, which
become less of an option and more requirement when it comes to enter into new marketplace.
Main motive is to expand the business in order to increase profitability as well as productivity.
Taking an enterprise international present which will be increasing growth opportunities by
expanding talent, consumer and creating cost saving for manufacturing, importing. Cause of this
motive for internationalisation which required a lot of investment. Sometimes, it is directly
affecting the business into foreign market to reduce the visibility. Main cause that effects on its
current profitability in marketplace.
For Example- Sainsbury’s firm is expanding their business in Brazil to open physical
stores in different cities.
Portfolio Entry 4: Market Expansion Strategies
Compare and evaluate the waterfall approach and shower approach as a market expansion
strategy with real world example
Waterfall and shower approach are considered one of important strategy that help for expanding
the business in global marketplace. When an enterprise want to enter into foreign market that
will increase great opportunities for increasing visibility of business (Mensi, Hammoudeh and
Kang, 2017). Afterwards, it will be adapting the innovative idea that is always influence
organizations to establish the position in global marketplace. At certain level, it may use
waterfall approach in developing a new system and applicable in business for market expansion.
Waterfall approach Shower approach
Definition This strategy help for organizations
take a gradual advantage in
marketplace. Usually, it is convenient
form enterprises that do not have
required enough resource to cover
This strategy is contrast to the waterfall
strategy. It has into account that can use
appropriate time to reach into different
market. it is looking for advantage and
require the appropriate resources in
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several markets at same time. marketplace.
Market
expansion
In context of market expansion,
waterfall strategy occurs: typically
introduce new products in
marketplace and then in other way to
gain more advantage.
Shower strategy is a complex in term of
market expansion and not easy to align
the branches to market and introduce
new product in global world (Mensi,
Hammoudeh and Kang, 2017).
Advantage The advantage of waterfall strategy is
allowing the companies to use limited
resources and then start
internationalization process (Mensi,
Hammoudeh and Kang, 2017).
This strategy will reduce the level of
risk because enterprise will address
each and every market in different
manner.
Waterfall strategy will help for
business expansion to increase
product life cycle in domestic market.
Afterwards, it may enter another
marketplace.
The advantage or benefit of shower
strategy is helping the business to
successful enter into marketplace.
Through this, companies should use all
essential resources to perform
internationalization process.
By using Shower strategy, it is
possibility of business to increase the
risk level and other barrier due to
competitors into new markets.
Disadvantage The disadvantage of waterfall
strategy is increasing the difficulties,
problem for business in term of
success level. Through this strategy, it
is only introduced the product
innovation.
The disadvantage of shower strategy is
emerging need or requirement for
coordination otherwise, it will generate
the complex situation or problem. At
certain point, Necessity to develop the
efficient coordination between business
activities.
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Real world
Example
Citibank is planning to have
developed the application. By using
waterfall strategy, it has been
approach by enterprise.
A pet companies in Malaysia in 2016
forced to rename their products name
and service. At certain level, it has been
failed to adapt expansion strategy in
business markets.
Table: 1
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REFERENCES
Book and Journals
Al Badi, K., 2019. Implementation of marketing concept and organizational culture in SMEs in
Al Buraimi–Oman. Benchmarking: An International Journal.
Banshwar, A., Sharma, N.K. and Shrivastava, R., 2018. An international experience of technical
and economic aspects of ancillary services in deregulated power industry: Lessons for
emerging BRIC electricity markets. Renewable and Sustainable Energy Reviews. 90.
pp.774-801.
Griffin, R.W. and et.al., 2020. Organisational Behaviour: Engaging People and Organisations.
Cengage AU.
Kasemsap, K., 2016. Implementing electronic commerce in global marketing. Encyclopedia of e-
commerce development, implementation, and management. pp.591-602.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
McMullen, J.S. and Bergman Jr, B.J., 2017. Social entrepreneurship and the development
paradox of prosocial motivation: A cautionary tale. Strategic Entrepreneurship
Journal. 11(3). pp.243-270.
Mensi, W., Hammoudeh, S. and Kang, S.H., 2017. Dynamic linkages between developed and
BRICS stock markets: Portfolio risk analysis. Finance Research Letters. 21. pp.26-33.
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