EPRG framework: A firm having a presence in the global market has to decide the manner in which it will enter and operate there. Firms in the international. Abstract. The aim of this paper is to present the fundamental ideas behind EPRG model. They are discussed with some illustrating examples. Moreover, some. ethnocentric polycentrism regiocentrism geocentrism ethnocentric domestic techniques and personnel are considered superior polycentrism local personnel .
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The calculation of taxable income is done for the individual who is an Indian resident.
EPRG Framework – Management Study HQ
The major disadvantage of this nature is it can restrict career mobility for both local as well as foreign nationals, neglect headquarters of foreign subsidiaries fra,ework it can also bring down the chances of achieving synergy. We’ll occasionally send you account related and promo emails. Global marketing now takes birth. A regiocentric orientation views different regions as different markets.
Value chain Marketing Strategy and IT. The exercises, activities and policies of the functioning company in the native country becomes the default standard to which all subsidiaries need to abide by. An ethnocentric firm always looks for help from the home country government.
Often there are major differences between countries in a region. It processes them or adds value or manufactures frameework goods in countries where it can derive the maximum economies of scale, so that it can pursue low cost differentiated strategy in the world markets. Ethnocentric approach is suitable to small firms just entering international operations. It looks for customers in different markets.
International Marketing – EPRG Framework
Let us write you a custom essay sample on. This framework addresses the way strategic decisions are made and how the relationship between headquarters and its subsidiaries is shaped. These people or companies believe that the home country is superior. Irrespective of the nationality, the company tries to seek the best men and the problems are solved globally within the legal and political limits. But in the s, Coke is different. The basic assumption of this approach is that all human beings are alike.
Until recently multinational firms had looked at Asian, African, Latin American and other markets only from the point of view of selling their products and brands.
Their prime goal has been to earn as much profits with least investment in these economies. They also know that the only way to fight price was at a global level is to have a presence of a global brand in the market place. Here, the firm researches the markets, understands customers and competition in the region and evolves competitive strategies. Local personnel and techniques are best suited to deal with local market conditions. At some companies, the ethnocentric orientation means that opportunities outside the home country are ignored.
Haven’t found the Essay You Want? The way businesses and staff view the world is described as international management orientations. Overseas subsidiaries or offices in international markets are seen as less able and less important than the head office.
Firms Go International due to following reasons: A geocentric company develops standardized marketing mix, projecting a uniform image of the company and its products for the global market. For example, countries like Pakistan, India and Bangladesh are very similar. Plans for overseas markets are developed utilizing policies and procedures identical to those employed at home.
It may examine several market entry strategies but common ones are joint ventures, or subsidiary operations in the target region.
But still it is interested in selling its existing product line in the existing form. The general attitude of a company’s senior management team is that nationals from the company’s native country are more capable to drive international activities forward as compared to non-native employees working at its subsidiaries.
A global firm cramework a global board that gives adequate representation to the local aspirations.
Global e;rg of distribution are established and promotional policy is developed to project a uniform image of the firm, epgg its products. So inCoke re-entered India not as a per cent owned subsidiary of its Atlanta parent, but through a strategic alliance with Parle.
This does not equate superiority with nationality. These stages are discussed below. A polycentric firm P is one that exports to not just one market but to several markets. Homogenization may involve making product environment friendly, i.
This approach appears e;rg appropriate when overseas sales volume is insignificant rramework to the total sales of the firm. The business of the geocentric company is characterized by sufficiently distinctive national markets that the ethnocentric approach is unworkable, and where the importance of learning curve effects in marketing, production technology and management makes the polycentric philosophy substantially sub-optimal.
When they look to new markets they wprg on what they know and seek similarities with their own country. Such companies are also sometimes referred to as domestic companies. The main disadvantages are that national immigration policies may put limits to its implementation and it ends up expensive compared to polycentrism.