The conduct of international business by multinational corporations proceeds according to well accepted concepts which have been developed over the past several decades. The chang ing environment of international business, however, is causing the conduct of international business to evolve from a multina tional to a global perspective (Schary, & Skjott Larsen, 1986).
Within the context of the evolving global perspective, American firms are focusing their strategy on five dominant areas of interest pricing, quality, service, product differen tiation, and productivity. This research examines the applica tion of these strategic factors in the global marketing effort. Organizational changes required for the adaptation of these factors to the global marketing effort, together with any necessary action plans, are also discussed.
Each of the five areas of interest considered in this research are interrelated with each of the other factors. Thus, while pricing is a major consideration for firms marketing globally, pricing is also a function of productivity, product quality, and other factors. Thus, it would be a mistake for a firm to attempt to deal with each factor independently.
The effects on pricing strategy of the other factors addressed in this research are discussed within the context of those specific factors. The consideration of pricing strate gies in this section involves those organizational actions which do not bear directly on the other factors discussed.
The cost of American produced goods has been a significant and detrimental factor in the marketing of these products globally. American firms are addressing this problem in two important ways.
First, American firms are establishing production facili ties in foreign countries. This strategy enables American com panies to produce goods at costs which are more comparable to those of their international competitors. Additionally, fore ign sourcing enables Am...