I. Synopsis Inditex is a diversified group of brand concept stores engaged in textile designing, production and distribution of fashion products. The company offers a wide range of apparel and accessories, including footwear, handbags, belts, handkerchiefs, tableware, cutlery, glassware, decorative items, perfumes, lingerie, accessories, home furnishings, textile and leather garments and other fashion products. The company sells its wide range of products through its different concept stores, namely, Zara (66 per cent of all turnover in Inditex Group), Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe located all across the world. The company operates through 6,700 stores located in 90 countries across the world. Inditex is headquartered at A Coruña, Spain. II. Situational analysis (SWOT analysis of Inditex) Strengths: Broad Product Offerings The group, though its stores, offers a wide range of fashion products through its different concept stores. The group’s product portfolio includes clothing, footwear, handbags, belts, handkerchiefs, tableware, cutlery, glassware, decorative items, perfumes, lingerie, accessories, textile and leather garments and other fashion products. In addition, it also offers textiles for bed, table and bathroom linens, tableware, cutlery, handbags, footwear, belts and other related products. Wide range of products and services help the company to cater to a diverse range of customers, thereby generating more revenues and profits. Efficient Distribution System The company has a very efficient logistics and distribution system, which helps the company in timely movement of products from distribution centres to the company’s stores. The company has its logistics centres located in Arteixo (A Coruña), Naron (A Coruña), Zaragoza, Meco (Madrid), León, Tordera (Barcelona), Elche (Alicante) and Sallent de Llobregat (Barcelona), totalling to over a million square meters of space. The company’s distribution centres, on an average, take 24 hours for delivery to European stores and a maximum of 48 hours for American and Asian stores. The group, through its distribution centres, helps its stores to be well stocked with all the products, which helps it to retain its customers and attract new ones. Good logistics systems enable the company to provide timely customer service, which helps in building a good brand image. Wide Network of Stores The company operates through 6,700 stores located in 90 countries across the globe. The company operates under different store banners, namely, Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. Under the Zara banner ………………………… 1. Which theory is the best representative of Zara’s (Inditex’s) internationalization? 2. Please evaluate the competitive strategy of the three world market leaders. Which of the three will be the future winner with regard to global retailing in the fashion world? 3. What are the advantages and disadvantages of Zara’s (Inditex’s) multi-brand store strategy? 4. How successful do you think Zara has been by meeting the ‘risk of cannibalization’ as a consequence of the multi-brand strategy? 5. What are the advantages and disadvantages of going into a joint venture with Tata in India?
> Burberry has positioned its brand in the minds of consumers to be ‘functional luxury’. Burberry maintains a product line with great width and depth consisting of many products. Their products fall into one of the two main categories: fashion or continuit
> 1. What are the pros and cons of the product diversification strategy that Zippo has been following recently? 2. In a US marketing campaign in the late 1990s Zippo was repositioned as an essential tool for avid outdoorsmen. Individual tin and sleeve pa
> 1. What might have been the reasons that Danish Klassic was not able to meet expectations? Comment on the following: (a) the change of packaging – from glass to plastic brick carton (b) the consumer-oriented advertisement (photo a) – is it targeted at th
> 1. Try to describe the complex decision-making process regarding choice of supplier for installation of new elevators and escalators in a building. 2. What are Kone’s key challenges in establishing long-term relationships with its new global customers?
> 1. As a supplier of the Indego, how should Bosch’s approaches differ in the two types of distribution in Figure 2? Figure 2 looks like this: Figure 2: Two different distribution systems for the Bosch Indego 2. Which of the two distribu
> 1. Explain the role of ARM as a supplier in the ‘chip’ value chain. 2. What are the strengths and the weaknesses of ARM’s business model compared with Intel? 3. In which end-user application market should ARM strengthen its relationships to potential par
> Starbucks Corporation (www.starbucks.com) is named after the first mate in Herman Melville’s Moby Dick. It was founded in 1971 in Seattle. The original name of the company was Starbucks Coffee, Tea and Spices, later changed to Starbucks Coffee Company.
> Until now, SSL has sold their Durex condoms through Okamoto, the largest supplier of condoms in Japan. Overall SSL’s condom brand, Durex, is the world market leader in condoms. 1. What were the main motives for SSL establishing its own distribution chann
> 1. What are the likely main motives for Polo Ralph Lauren to shift the entry mode from licensing to hierarchical mode in South-east Asia? 2. Would you recommend them to take all geographical licenses back in-house, and turn them into hierarchical modes?
> Marriott is a diversified service and hospitality company with operations in five business segments: - Full-Service, which includes following brands: Marriott Hotels & Resorts, The Ritz- Carlton, Renaissance Hotels & Resorts and Bulgari Hotels & Resorts
> Discuss the limitations of per-capita income in evaluating market potential.
> In 1993, the Danish textile firm, Kabooki, was given the rights to use the LEGO brand (licensing-in) in connection with production and sales of children’s clothes. LEGO children’s clothes have the following features: functional, clear and strong colours,
> 1. Do you think that Hello Kitty will continue to rule the world? What are the pros and cons? 2. What are the reasons that Hello Kitty is licensed to so many different product manufacturers? 3. Suggest the future licensing strategy for Hello Kitty.
> Honest Tea is a tea company based in Maryland, USA. Honest Tea was founded in 1998 by Seth Goldman (now President and CEO, or as he calls it, ‘Tea-EO’) and Barry Nalebuff, to sell ‘bottled iced tea that tastes like tea’; a less-sweetened alternative to s
> 1. Which region of the world would you recommend Parle Products to penetrate as its first choice? 2. What kind of export mode would be most relevant for Parle Products? 3. How could Parle Products conduct a systematic screening of potential distributors
> 1. What are the main advantages and disadvantages for Arcus of using export modes, compared to other entry modes, for its Linie Aquavit? 2. What should be Arcus’ main criteria for selecting new distributors or cooperation partners for Linie Aquavit in ne
> Understanding entry modes into the Chinese market China became a member of the WTO on 11 December 2001, and is currently in the process of completing a seven-year transitional period. Overall, the Chinese economy has shown exceptional economic growth ov
> 1. What are the differences between the global strategies of Ansell and the other three competitors? 2. Which entry mode would you recommend for Ansell’s sourcing (purchasing or production) of condoms? 3. What are the pros and cons for Ansell acquiring a
> 1. Which kind of market entry mode would you generally suggest for Jarlsberg: (a) in Scandinavia? (b) in Asia? 2. What are the general motives for choosing a hierarchical mode (own subsidiary) in the United States?
> 1. What are the foundations of Oreo’s global success? 2. What demographic changes and cultural issues might influence the future global market for Oreo? 3. What are the most important screening criteria for Oreo (Mondelēz) in the IMS?
> 1. Discuss the appropriateness of the screening model used in this case. 2. Suggest another screening model that could be relevant for Philips Lighting to use in the Middle East.
> Explain the importance of a common European currency to firms selling goods to the European market.
> 1. What could be the main reasons for Tata Motors entering the global ultra-low-cost car market? 2. What are the competitive advantages that Tata Motors would enjoy with their Nano in emerging markets? 3. Which screening criteria would you suggest for Ta
> First of all, it should be mentioned that around 50 per cent of Allergan’s Botox sales is used for therapeutic purposes like migraine and depression. When we concentrate on the cosmetic purposes in general (and also include competitor products such as Dy
> The catalogue serves as a pre-shopping advertisement, an in-store sales aid and an interior decorating guide. Many consumers shop with the catalogue in hand. Since the catalogue is such an important marketing tool, it is crucial for it to accurately refl
> 1. Which sociocultural factors influence the sales of tickets for ‘Cirque du Soleil’ shows around the world? 2. What makes the business model of ‘Cirque du Soleil’ globally so successful? 3. What should be the criteria for selection of a theme for Cirque
> Although global business has been growing rapidly in recent decades and globalization seems inevitable, it is not without controversy, and the critics offer a few key arguments. 1. Some people lose while others gain, both in absolute and relative terms.
> 1. Which political and economic factors in the global environment would have the biggest effect on the future global sales of Danfoss Power Solutions’ hydraulic components/systems to: (a) manufacturers of construction and mining equipment (e.g. Caterpill
> The G20 was established in 1999, in the wake of the 1997 Asian Financial Crisis, to bring together major advanced and emerging economies to stabilize the global financial market. 1. What were the key arguments of the anti-globalization groups? 2. How cou
> 1. Which research market research method would you use to estimate the total world market for electric cars? 2. Which research market research method would you use to estimate the total world sales of BMW i3 electric cars?
> LEGO Friends – one of the world’s third largest toy manufacturer is moving into the girls’ domain www.lego.com 1. Emerging markets like China, India and Indonesia offer long-term opportunities for organic growth. However, LEGO still has a small share in
> Teepack Spezialmaschinen GmbH – organizing a global survey of customer satisfaction www.teepack.com 1. How would you forecast worldwide demand for tea bag machines? 2. How can Teepack and Teekanne use their relationship to each other with regard to colle
> Explain why a country’s balance of trade may be of interest to an international marketer.
> Nike sells their products to retail accounts, through NIKE-owned retail stores, and through a mix of independent distributors and licensees, in over 160 countries around the world. Nearly all the production of Nike’s products (especially footwear) is out
> DJI Technology Co. Ltd – a Chinese ‘born global’ is dominating the world market for drones with its Phantom Most growth in the drone industry is on the consumer/commercial side, as the drone market shifts away from the military market. Government regulat
> 1. What were Microsoft’s motives in entering the games console market with Xbox back in 2001? 2. What are the competitive advantages of Microsoft Xbox One and Sony’s PlayStation 4? 3. What are the competitive advantages of the original Wii and the new Wi
> Reebok (www.reebok.com/www.adidas-group.com) specializes in the design, marketing and distribution of sports and fitness products including footwear, apparel and accessories, as well as footwear and apparel for non-athletic use. The strategy is to start
> 1. List the criteria that you should use for choosing new international markets 2. If you were to advise DreamWorks Classics would you recommend them to use the ‘organic’ or ‘born global’ pathway for the internationalization of Postman Pat? 3. What value
> 1. Which of the internationalization models presented in this chapter fits best to the internationalization of Zumba? 2. Why has Zumba’s global business model been so successful?
> TOMS is not a non-profit organization but operates on a One for One mission: For every pair of TOMS Shoes purchased, a pair of new shoes is given to a child in need. At the beginning of 2013, over 10 million pairs of shoes have been given to children in
> 1. What are the main motives for the internationalization of EPE? 2. What can EPE do to maintain a steady income stream from abroad? 3. What are the most obvious assets for further internationalization of EPE?
> 1. In McNeil (2009), Kevin Starace states: ‘Vestergaard is just different from other companies we work with. They think of end users as a consumer rather as a patient or a victim’. What do you think is the meaning behind this statement? 2. Which are the
> I. Synopsis Although Kellogg commands the market leader position globally in breakfast cereals, it faces a new and more formidable international competitor starting 1989. General Mills and the Swiss food titan Nestlé, South Africa, established a joint v
> If you had a contract to conduct marketing research in Saudi Arabia what problems would you expect in obtaining primary data?
> Nivea (www.nivea.com) is a brand owned by Beiersdorf AG (www.beiersdorf.com) whose majority shareholder is Tchibo (owns 30 per cent of the Beiersdorf shares). 2014 key figures: Net sales: …………………………………… €6,285 million EBIT: ………………………………………… €796 million
> I. Synopsis Adidas is one of the largest companies in the sporting goods industry. The company offers a wide range of athletic and sports lifestyle products through three main brands: Adidas, Reebok and TaylorMade. Adidas operates through 170 subsidiari
> 1. What are the main reasons for the recent international marketing success of the Hunter Boots? 2. Recently Hunter has added outerwear (leather footwear and hand-bags) to their international product range. What are the pros and cons of extending the pro
> I. Synopsis Manchester United (abbreviated Man Utd) has developed into one of the most famous and financially successful football clubs in the world, being recognized in virtually every country of the world. Among Man Utd’s objectives is seeking new all
> Green Toys, Inc. – a manufacturer of eco-friendly toys is going international. www.greentoys.com 1. What are the key success factors in the world toy industry? 2. What are Green Toys’ key competitive advantages in the international toy market? 3. Should
> Discuss the benefits gained by adopting a matrix organizational structure.
> Identify the major weaknesses inherent in the international division structure.
> What is meant by performance indicators? Why does a firm need them?
> Discuss why firms need global marketing controls.
> Would Tokyo be a good test market for a new brand planned to be marketed worldwide? Why or why not?
> Discuss to what degree the choice of organizational structure is essentially a choice between headquarters centralization and local autonomy.
> Discuss the pros and cons of standardizing the marketing management process. Is a standardized process of more benefit to the company pursuing a national market strategy or a global market strategy?
> What key internal/external factors influence the organizational structure? Can you think of additional factors? Explain.
> Identify appropriate organizational structures for managing international product development. Discuss key features of the structure(s) suggested.
> Why is it so difficult for an international marketer to deal with bribery?
> What are your views on lobbying efforts by foreign firms?
> Compare and contrast the negotiating styles of Europeans and Asians. What are the similarities? What are the differences?
> Should expatriate personnel be used? What are some of the difficulties that they may encounter overseas? What can be done to minimize these problems?
> You are a European preparing to negotiate with a Japanese firm for the first time. How would you prepare for the assignment if it is taking place: (a) in the Japanese headquarters; (b) in one of its European subsidiaries?
> How can a company increase its communication effectiveness through the use of social media?
> Identify and discuss the major considerations in deciding whether research should be centralized or decentralized.
> What is meant by saying that advertising regulations vary around the world?
> Explain how personal selling may differ between the overseas and home markets.
> Identify and discuss problems associated with assessing advertising effectiveness in foreign markets.
> What are the advantages and disadvantages of global online distribution compared to the physical distribution?
> How is retailing know-how transferred internationally?
> Discuss the implications for the international marketer of the trend towards cross border retailing.
> What are the main advantages and disadvantages of following a Multiple Distribution Channel Strategy?
> Do grey marketers serve useful marketing functions for consumers and manufacturers?
> In attempting to optimize global marketing channel performance, which of the following should an international marketer emphasize: training, motivation or compensation? Why?
> What are the factors that affect the length, width and number of marketing channels?
> A US manufacturer of shoes is interested in estimating the potential attractiveness of China for its products. Identify and discuss the sources and the types of data that the company will need in order to obtain a preliminary estimate.
> Discuss current distribution trends in world markets.
> What is counter-trade? Why should firms be willing to consider counter-trade arrangements in their global marketing efforts?
> Explain these types of letter of credit: revocable/irrevocable, confirmed/unconfirmed. Under what sets of circumstances would exporters use the following methods of payment: (a) revocable letter of credit; (b) confirmed letter of credit; (c) confirmed ir
> Explain these terms of sale: EXW, FAS, FOB, CFR, CIF, DEQ and DDP. Which factors will determine the terms of sale?
> Why is it often difficult to compute fair arm’s-length transfer prices?
> What methods can be used to compute a transfer price (for transactions between affiliated companies)?
> What are the major causes of international price escalation? Suggest possible courses of action to deal with this problem.
> Discuss the decision to add or drop products to or from the product line in international markets.
> Identify the major barriers to developing international brands.
> When is it appropriate to use multiple brands in (a) a single market and (b) several markets/countries?
> Identify and classify the major groups of factors that must be taken into account when conducting a foreign market assessment.
> Describe briefly the PLC (IPLC) theory and its marketing implications.
> How would you distinguish between services and products? What are the main implications of this difference for the global marketing of services?
> Project export is often characterized by a complex and time-consuming decision-making process. What are the marketing implications of this for the potential subcontractor?
> How are project exports/turnkey projects different from general subcontracting in the industrial market?
> Explain the main differences between the US and the Japanese subsupplier systems.
> Describe the typology of subcontractors based on the differences in the contractor/subcontractor relationship.
> Apart from the management fees involved, what benefits might a firm derive from entering into management contracts overseas?
> Under what circumstances should franchising be considered? How do these circumstances vary from those leading to licensing?
> Which marketing tasks should be handled by the exporter and which ones by its intermediaries in foreign markets?
> Discuss the financial and pricing techniques for motivating foreign distributors.
> As the global marketing manager for Coca-Cola, how would you monitor reactions around the world to a major competitor such as Pepsi?
> . Identify the ways to reach foreign markets by making a domestic sale.
> Why is it difficult – financially and legally – to terminate a relationship with overseas intermediaries? What should be done to prevent or minimize such difficulties?
