group (based in Chicago), a European group (based in Paris), and an Asian group (based in
Singapore). Each regional group develops the marketing approach within its region. In order of
importance, the largest markets for your products are North America, Germany, Great Britain,
China, and Australia. Your company is experiencing problems in its product development and
commercialization process. Products are late to market, the manufacturing quality is poor, costs
are higher than projected, and market acceptance of new products is less than hoped for. What
might be the source of these problems? How would you fix them?
ANSWER 5: The dispersion of activities makes sense—products are produced in the lowest cost
location and marketed by people familiar with local conditions. (The R&D in North Dakota must
QUESTION 6: Reread the Management Focus on Levi Strauss, and then answer the following
questions:
a. What marketing strategy was Levi Strauss using until the early 2000s? Why did this strategy
appear to work for decades? Why was it not working by 2004?
b. How would you characterize Levi Strauss’s current strategy? What elements of the marketing
mix are now changed from nation to nation?
c. What are the benefits of the company’s new marketing strategy? Is there a downside?
d. What does the Levi Strauss story tell you about the “globalization of markets”?
ANSWER 6:
a. Levi Strauss was highly successful in the 1990s with its iconic 501 jeans—a global symbol of
b. The company had a three-strategy: move production off shore where jeans could be produced
more cheaply; broaden its product line, introducing a line of jeans that could be sold in
c. Benefits include tailoring products to specific markets and cultures. The downside could be
d. One size does not fit all when it comes to globalization. It is important for companies to assess
CLOSING CASE: Domino’s Worldwide
Summary
The closing case describes how Domino’s Pizza expanded its business globally and what steps it
took in various countries to ensure success. The following questions can be helpful in directing
the discussion.
QUESTION 1: Do you think it is wise for Domino’s to stick to its traditional “home delivery”
business model, even when that is not the norm in a country and when its international rivals
have changed their format?
ANSWER 1: Domino’s decided to maintain its home delivery business model because it made