Yip, Loewe and Yoshino (1988)

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Yip, Loewe, and Yoshino (1988) - How to Take Your Company to the Global Market

UK: Owing to the strength of the pound, things are more expensive in Britain. If the foreign company drops its price, it will lose any return on its UK plant. However, international buyers are aware of the price difference and buy the product in the other country.

Europe: European companies have had international success owing to their method of decentralised management. However, problems arise when the global strategy changes, but the local managers will not make the relevant alterations to their branch.

Japan: Many Japanese companies export their products all around the world, which involves a particular marketing strategy. Now they have to open manufacturing plants in other places and co-ordinate them effectively, which requires another set of skills.

US: American firms, owing to their huge domestic market have a have a habit of not investing in other countries and not adapting to local requirements.

Managers have two challenges to overcome if they want to go global. These are to determine a global strategy and then to successfully implement it.

Going global