Chapter 12 – Global Marketing Management
5. What is the importance of collaborative relationships to competition?
The competitive environment of international business is changing rapidly. To be competitive in
global markets a company must meet or exceed new standards for quality and new levels of
technology. There is an increasing change of pace for product development and profitability. Cost
The accelerating rate of technological progress, market demand created by global industrialization,
and the creation of new middle classes will result in tremendous potential in global markets. But,
along with this surge in global demand comes an increase in competition as technology and
management capabilities spread beyond global companies to new competitors from Asia, Europe, and
The environment facing multinational companies demands flexibility, quality, cost containment,
cutting edge manufacturing skills, and a rapid response to market changes to sustain a competitive
advantage. The strengths and capabilities a company must have to be a major player are enormous
6. In phases one and two of the international planning process, countries may be dropped from
further consideration as potential markets. Discuss some of the conditions in each phase that may
exist in a country that would lead a marketer to exclude a country.
12-2
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