International expansion is a tricky path to navigate for even the world’s largest brands, requiring inconceivable amounts of time and resources to achieve, and despite their efforts many companies are still not successful. This can happen for a variety of reasons, anything from lack of sufficient market research to inadequate management style. Even the most experienced companies may struggle to develop a foothold in foreign markets. In marketing this is called the global experience learning curve: a process of developing multinational business expertise over time.
Category: Chapter 11 – Manage Pricing Decisions
Last month Disney announced it would begin offering an ad-supported subscription for its video streaming platform, Disney+, by late 2022. Major players in video streaming services like Disney, Paramount Plus, Netflix, and HBO Max are ramping up their pricing strategies in what appears to be a price war. The current battle: how many subscribers can one platform acquire?
Fetch Rewards is a company that allows users to earn rewards back on their purchases from several companies, eliminating the need to participate in brand-specific rewards programs. In exchange for a partnership with Fetch Rewards, companies can gain access to certain user data. User data analytics allows companies to strategically target customers based on their purchasing habits and favorite rewards, among other usage metrics. Would you give up data on your spending preferences for appealing rewards and personalized advertisements from your favorite brands?
Service, Service, Service
Service is more prominent than ever. With more than 80% of jobs in the United States related to the service industry, quality of service is impossible to ignore. However, most companies struggle to strike a balance between service quality and cost with some notable exceptions. Known for both impeccable service and cost-effective strategies, Singapore Airlines and Southwest Airlines have discovered the secret to keeping customers happy with a sustainable cost structure.
The Power of the Corporate Pocketbook
Companies and organizations are starting to mimic consumers in leveraging the power of the pocketbook; many are placing ethics at the forefront of their financial decision making. Recently, the NAACP, the Anti-Defamation League, Color of Change, and Free Press launched a campaign titled #StopHateforProfit. The campaign centers around the spread of misinformation and hate speech on social media platforms – primarily on Facebook – and encourages companies to boycott the site.
The Value of a Value Chain
IKEA’s product line includes about 9,500 products, and each year they introduce about 200 new products to that line. So how do they do it? How do they provide quality home furnishings at an affordable price? The IKEA process has been a source of intrigue for business strategists for years. This is partially due to their transparency with their mission, vision, value chain, and democratic design.
A Coke is a Coke is a Coke
Mexican Coke, sometimes called “Mexi-Coke,” has become somewhat of a phenomenon in the United States. So, what makes Mexican Coke so much different than the fizzy drink bottled here? There are a few potential explanations, but the most popular explanations are the use of sugar instead of high fructose corn syrup and the return to the traditional glass Coke bottle.