In a brief essay, discuss how differentiation strategies and cost ...

[ENagel]

In a brief essay, discuss how differentiation strategies and cost leadership strategies affect international marketing decisions. Provide examples of firms that use both strategies.
 
  What will be an ideal response?

Question 2

What factors influence cultural stability and cultural change? What factors influence how much cultural adjustment organizations must make in foreign countries?
 
  What will be an ideal response?

[qytan]

Answer to Question 1

A differentiation strategy requires marketing managers to develop products as well as pricing, promotional, and distribution tactics that differentiate the firm's products or services from those of its competitors. Rolex has implemented a differentiation strategy. Cost leadership can be pursued and achieved through systematic reductions in production and manufacturing costs, reductions in sales cots, the acceptance of lower profit margins, the use of less expensive materials and component parts, or other means. Timex adheres to a cost leadership strategy.

Answer to Question 2

Individual and cultural values and customs may evolve over time. Change may come about through choice or imposition. Change by choice may take place as a reaction to social and economic changes that present new alternatives. Change by imposition, sometimes called cultural imperialism, has occurred, for example, when countries introduce legal systems into colonies by prohibiting established practices and defining them as criminal. In addition to national boundaries and geographical obstacles, language is a factor that greatly affects cultural stability. Religion is also a strong shaper of values. International companies sometimes have succeeded in introducing new products, technologies, and operating procedures to foreign countries with little adjustment. That's because some of these introductions have not run counter to deep-seated attitudes or because the host society is willing to accept foreign customs as a trade-off for other advantages. Some countries are relatively similar to one another, usually because they share many attributes that help mold their cultures, such as language, religion, geographical location, ethnicity, and level of economic development.