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International business

Mock Exam Question for advanced topics in international business. Write a 3000 word paper answering; there were a large number of companies which focused on global markets with homogenous products from Europe to China yielded results only for a short period of time.This is due to various reasons, but first, because of the onslaught of the global competition, the local brands had to strengthen their marketing mix. This led to increase in the competitiveness of the local brands and the customers started to return to the local brands. The next reason is when there is an economic downturn, the spirit of nationalism starts to rise and the loyalty towards local producers is more felt among the consumers. Another major reason is the success of the global brands created a backlash against US brands in particular in Eastern Europe and in the Muslim world. These reasons have created need for the global brands to think and regionalize their brand.The regionalization of the global brand will increase the be better for the global brands because the initial glamour of buying a global brand had only short lived. If we try to understand the advantage of the global brands are they have previous experience and exposure in operating in foreign markets, they can have huge edge over the local companies when it comes to technologies and product design, which may affect in their costing and pricing. The disadvantages of the global brands in adopting a homogenous strategy is the lack of understanding of the local markets. The cultural differences and the dynamics of the market place can be myriad sometimes. The essence of globalization is global competition, when we want to win the customers we have to talk the language of the customer. Whatever may be the brand image and brand equity the question at large is whether we are able make the consumer choose our product when it is stacked in the stores.After the sales started to stagnate, the business managers of the global brands realized that they had taken the global strategies too far.

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