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MGT 3190 Cross Cultural Management - Essay Example

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The basic issues in global marketing involve global efficiency through standardisation of products and services as well as garnering national and local responsiveness through adaptation of the products. (Walter et al, 1988 )The Mattel Company has effectively marketed Barbie through the use of these two basic premises in its global marketing strategy…
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MGT 3190 Cross Cultural Management
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Download file to see previous pages This strategy along with others that have to do with market segmentation and brand positioning for maximum customer satisfaction has been used by the Mattel Company in order to evolve a strategy that is best suited for the purpose of an entry level product in a diverse global market. Therefore, a good entry-level strategy for the Mattel Company has involved introducing the fact that Barbie has an international face as it can be modified to cater to any kind of culture or country. In this regard, there has been long-term growth through the management of the immediate and other short-term risks. In this case, the main risk came from losing its exclusivity, which can be tackled through the direct investment strategy. (Finnigan, 2001)
The Japanese market did not take very kindly to the Mattel Company's Barbie. This was basically due to the fact that the Japanese market did not understand Barbie with her long legs and wide chest. The physical attributes did not conform to the general attributes of Japanese women. This was a major problem apart from stiff competition from the doll names Takara which was a huge success in the Japanese market. Despite trying to strike a partnership with Takara, Barbie did not do very well. (Chonko, 1999) In order to do better business, Mattel could have first of all changed the way Barbie looked, to a certain degree. Even though, its priority list speaks of countries like UK and Australia as strategic places for expansion, internationalisation in today's world would mean a westward as well as an eastward growth owing to the fact that the East is booming and almost at par with the West as far as politics and economies are concerned. As an entry point mode, a company dealing with such products needs to make a more individualistic statement so as to avoid cheap imitations, which is what happened in the case of the Japanese market when it came up with its own 'Japanese Barbie' after the agreement between Mattel and Takara fell through. This calls for a mix of passive as well as consumer centric activities at the location as well as around it for better cultural orientation and market segmentation. For this, it is important to touch the pulse of the target consumers by being accessible to them distance wise and culture wise. Therefore, it will be found that for an entry level product in an international market, exploring the retail market is the best option. The direct investment strategy is the best one for the entry mode strategy. According to the entry level mode strategy, it is important for the product to take the characteristics of its target market into account apart from the investment plan it will follow in the course of going international. (Walter et al, 1988)
In this regard, the entry level mode can be applied to find the areas where there is competitive advantage so as to find variations in the large consumer base that this product can enjoy in Japan. This will assist the company in finding an appropriate contractual or intermediate strategy that may be customised to fit into the Indian market in terms of segmentation. With franchising, licensing and other activities that will promote an ...Download file to see next pagesRead More
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