Caso de éxito Samsung (en ingles)

[pic 1]

Abstract

International marketing is the process of planning and conducting transactions across borders to create exchanges that satisfy the objectives of individuals and organizations (Czinkota & Ronkainen, 2006). The standardization approach understands markets as homogeneous and defend that the key to succeed is the ability of the company to standardize goods and services (Buzzell, 1968). On the other hand, the Adaptation Method highlights the difficulties in using a standardized approach and support the tailoring to fit in the unique dimensions of international markets (Thrassou & Vrontis, 2006). We illustrate these conceptual arguments through a case study of the Samsung mobile business, profiling its marketing mix strategy in four different countries: Brazil, China, France, and United States, and comparing it to the headquarters in South Korea. The methodology used multiple sources of data, both primary and secondary to guarantee its value and authenticity. The study concludes that Samsung applies both strategies: standardizing its core competencies and characteristics and adapting non-core characteristics to fit the cultural and economic aspects of different countries. Promotion is the marketing mix element more adapted while placement and pricing have the same overall strategy across countries. Product concept and name is standardized while some characteristics as color may be adapted to fit cultural preferences. This conclusion is aligned with the literature and contribute to the International Marketing and Standardization and Adaptation field, as it brings a practical and applied study on a well-known company.

Keywords: International Marketing. Standardization and Adaptation. Mobile. Case Study.

[pic 2]

1. Introduction

Due to the expansion of companies to other countries and the increased competitiveness on a global scale, the term international marketing has become a subject of wide interest within both academics and corporations. It is noticeable the improvements in transportation and communication technologies leading the growth of international capital and global markets (Venables, 2006). Also, McCann (2008) defends that multinational enterprises have an important role not only in their parent countries, but also in other nations around the globe.

Globalization is a phenomenon, which implies not only trade, but a functional integration of dispersed and fragmented activities, forming global chains of production (Martinez, 2007). Daniels, Radebaugh and Sullivan (2002) use the term to refer to the deepening relationship and broadening interdependence among people from different countries. One of the main challenges for companies is to develop strategic plans that are competitive as the globalization of markets intensifies (Cateora, 1990).

Consequently, international marketing involves the planning and execution of transactions across different countries to fulfill both personal and corporate objectives (Czinkota & Ronkainen, 2006). It is through international marketing that the discussion about global standardization and local responsiveness arises presenting a complex dilemma for companies. Standardization may lead a loss of sales, while customization may sacrifice the firm’s production and marketing efficiencies (Moon, 2005). Although Standardization and Adaptation discussions have presented important organizational aspects in international marketing, Solberg (2002) suggests that it is often neglected in the literature.

The concept of Marketing Mix and 4P’s can be defined as the set of activities comprising a firm’s marketing program (Borden, 1991). According to Yoo et all (2000), each element of the marketing mix has a positive or a negative impact on the company’s brand equity, requiring companies to have a well-defined strategy.

Considering the number of companies expanding operations overseas, the present study analyzes how a multinational company apply its marketing strategy based on standardization and adaptation approaches in different countries. To achieve this purpose, a case study on the international marketing mix strategy of Samsung mobile business in four different countries (Brazil, China, France, and United States of America) was analyzed and compared to its strategy in the company’s headquarters in South Korea. As a conclusion, the present study contributes to the international marketing management field, as it presents a case study on how an established brand in the mobile industry applies its marketing mix strategy in different countries compared to its headquarters and balances the standardization and adaptation concepts on its implementation.

1. Literature Review

1. Cultural and Institutional distance between countries

Based on international economic research, the framework created by Ghemawat (2018) suggests that the amount of trade operations between countries is influenced by similarities and differences among four different dimensions: Cultural, Administrative, Geographic, and Economic (CAGE). The Cultural aspect relates to the interactions among people that generate attributes of a society not enforced by laws; the cultural and language difference between countries can increase or reduce the possibility of economic interactions. The Administrative/Political dimension includes laws, policies, institutions and international organizations created by political power and enforced by governments. The Geographic dimension englobes the physical distance between countries, common land borders, different time zones and climates, access to ocean and topography. And, finally, the economic aspect relates to differences in the economic mechanisms that can affect cross- border activities and relationships.

Based on Ghemawat (2018), if two countries have the same official language, are part of the same regional trade arrangement, share a common border, and have similar levels of per capita income, the probability of trading is 10 to 15 times higher if compared to countries not sharing the same aspects. Firoz & Ramin (2004) states that cross cultural comparison of factors affects corporate performance and should not be a challenge, but an opportunity to be exploited.

Hofstede and Minkov (2010) define culture as what differentiate members of a group from another. The cultural dimensions represent independent preferences for one situation over another that differentiate countries, rather than individuals. The Hofstede model of national culture consists of six dimensions: (1) Power Distance Index, (2) Individualism versus Collectivism, (3) Masculinity versus Femininity, (4) Uncertainty Avoidance Index, (5) Long-Term Orientation versus Short-Term orientation and (6) Indulgence versus Restraint.

...