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CaseStudyonUncontrollableFactorsofInternationalMarketingGroupMembersChenYaoLiuHangyuLiaoQiaoyanGeChunyanLiQiFromBusinessEnglish1101Case1.NewsCorporation(political-legal)Case2.KangnaiGroup(technology)Case3.Procter&Gamble(culture)Case4.BectonDickinson,BD(structureofdistribution)ContentsCase1.NewsCorporation(political-legal)Case1.NewsCorporstionNewsCorporation(新闻集团),oneoftheworld'slargestdiversifiedinternationalmassmedia,isanAmericanmultinationalcorporationheadquarteredinNewYorkCity.Whenitexpandedit'smarkettoChina,thecompanypaidmuchattentiontothemarketingenvironment,especiallythepoliticalone.Itinsistsontheprincipleofmutualtrustandbenefit(互信互利原则)andseekingthecommangrandwithChinesegovernmenttobuildagoodlong-termtrustrelationship.Atpresent,NewsCorporationandthechannelsitownscooperatewithcableTVstationsinmorethan30provincesandcitiesinChina.Case1.NewsCorporstionAnalysis:Theuncontrollablefactor:political-legal.Itisanuniversalknowledgethatlotsofbarriersandrestrictions,suchascustomtariffandimportquotas,aresetuptoprotectdomesticmarketandpoliticalrisksexistaswell.ItisveryintelligentthatNewsCorporationbuildsgoodreationshipwiththegovermenttoadapttothepolitical-legalenvironment,whichpavestheroadforthecompanytodevelopinthatcountry.Case1.NewsCorporstionCase2.KangnaiGroup(technology)Case2.KangnaiGroupKangnaiGroup(康奈集团),whichisfamousforitshigh-endshoes,wasconfrontedwithtechnologybarriersjustlikemanyothercorporationdidintheearly21stcentury.
Mostcompanieschosethreeways:1.provetheirproductswerenotcoveredbythestandardssetbytheimportingcountry;2.trytopersuadetheimportingcountrytogiveuptherestrictionthroughlobbyingorinternationallitigation(国际诉讼).3.breakthebarrierbyconformingtothestandards.Case2.KangnaiGroupCase2.KangnaiGroupNevertheless,KangnaiGroupfoundthefourthway:tomakethestandardsbyjoiningintheSATRA(ShoeandAlliedTrade'sResearchAssociation〈英国〉鞋业研究协会)whichistopshoecertificationorganizationintheworld.Later,bycooperatingwithSATRA,KangnaigraspedthelatesttechnologyofmakingshoesinAmericaandEuropeandbrokethetechnologybarrier.Analysis:Case2.KangnaiGroupTheuncontrollablefactor:technology.Technologyhereincludestechnologylevel,policies,theabilityofdevelopingnewproductsandthedeveloptrendsoftechnology,etc.Technologylimitsthedevelopmentofcompanies,especiallythosewhoarebasedonlessdevelopedcountries.Inthatcase,itiseasyforacompanytolosecompetitivenesswhenitisgoingglobal.Maybe,corporationscanmakeadetour(绕道).However,amongthefourmethodsmentionedpreviously,frommypointofview,thelasttwotakethingsinthelongrun,whichwillresultinlong-rangebenefits.Case2.KangnaiGroupCase3.Procter&Gamble(culture)Case3.Procter&GambleTheProtecter&GambleCompany(宝洁公司),alsoknownasP&G,isanAmericanmultinationalconsumergoodscompanyheadquarteredindowntownCincinnati,Ohio,UnitedStates.Itsproductsincludepetfoods,cleaningagents,andpersonalcareproducts.OnceitwasexpandingitsEuropeanmarketforitstoiletpaperbrandedPuffwhichmeantverysoftandcomfortable,itturnedoutafailureinGermanandEnglishmarkets.Case3.Procter&GambleCase3.Procter&GambleWHY?PuffwasaslangforbrothelinsomeGermanditrictsandwaswidelyusedtoimplygayinEngland.Case3.Procter&GambleAnalysis:Theuncontrollablefactor:culture.Cultureisaninvisiblefactorconcernedwithdifferentcustoms,religions,values,consuminghabbitsandevenaestheticstandards(审美观念),etc.IfP&Gcheckedoutthemeaningofpuffinothercountries,greatchanceswerethatthemarketingstrategywasasuccess.So,gettingfamilliarwiththeculturalenvironmentofthetargetednationisextremelyimportant.Ofcourse,Self-referenceCriterionmustbeavoided.Case4.BectonDickinson,BD(structureofdistribution)Case4.BDBectonDickinsonandCompany(BD)(美国碧迪公司)isanAmericanmedicaltechnologycompanythatmanufacturesandsellsmedicaldevices,instrumentsystemsandreagents.Case4.BD
BDmadeamistakethemomentitattemptedtosellitsproductsintheeuroareas.ThecompanyhadsetupanationaldistributionnetworkcoveringtheEuropeancountriesintheearly1990s.But,itsbusinessspreadedoutoftheexpectation.Thoughthedistributioncenterworkedattheverybeginning,BDsoonrealizedthenetworkwasveryossifiedandinefficient.Inventorycostwasveryhighandsomeofthestockhavetobesrcapped(报废)becausetheywereoverduebeforedepatching.Theshortageofgoodswasanotherproblemandatthesametimethedistributioncostskeptincreasing.Case4.BD
Case4.BDAnalysis:Theuncontrollablefactor:structureofdistributionThoughBDCompanyresolvedtheproblem,wecanlearnalotfromthecase:thenetworkwasbuiltfortheancientEuropeorganizing,distributing,andstoringgoodsbycountrieswentagainsttheprinciplethatenterprisesshoulddecidethe
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