Global Branding

Question: Describe about the the process of global brand strategy development and regional implementation? Answer: The present article focuses on a recent topic on international marketing. As companies are using the advantage of globalization, global branding has become very popular form of marketing. The organizations are implementing best practices to make their brands alluring to the customers. It is important for the organization to formulate a particular strategy of global branding for the success of the particular brand (Moran, 2013). It is important for the organizations to have coordination between the home and host country in order to make a larger impact on the target audience. The impact of the similarity of the home and host country on the performance of the organization has been debated for a long period of time. The findings from the debate have been inconclusive. But many authors have concluded that the global performance of the small and medium sized firms depends on the strategic fit between its exploration and exploitation strategies which largely depends on the choice of the ho st country. The similarity between the home country and the host country has positive impact on the growth of the firm. The international performance of the home county depends on its strategic fit with the host country. The exploitation strategy has a positive impact on the performance of the home and host country. However it is seen that the exploration strategy has a negative impact on the International performance of the SMEs. Apart from the exploration and the exploitation strategies there are various factors that lead to the international success of the small and medium sized firms (Matanda Ewing, 2012). With globalization there has been convergence of the preferences of the consumers. This has increased the preference of the consumers to search for effective ways in which their product can make a position in the world wide competitive market. It is imperative for the organizations to use global branding strategies for the success of their business in order to maintain their profit margin. Co-ordination between the home and host countries is one of the important criteria for the success of the global branding (Hbswk.hbs.edu, 2015). In case of multinational organizations, the home countries should have a dynamic, interactive working relationship with the host country. The investment policies of the home country in global branding are affected by the international trade and industrial conditions. The socio political forces also affect the working relationship with the host country (Sinkovics Ghauri, 2009). In regard to this the OECD countries has taken several measures to break down the barriers between the home country and the host country. The policy in the host country is shaped by a number of domestic, political and market forces of the host country. In addition to the socio-political and the market forces, the internal climate affects the regulation and the market approach that is implemented by the host country. The interaction of the home and host country is predicated on the contingencies that are faced by both the parties (Ronkainen Czinkota, 2002). The success of global branding is possible is possible by ensuring strategic fit between the home and host country can be implemented using the Colemans classical formulation as the function of the parties mutual interest and control over the MNCs domestic production. The home country invests in the host country if it receives the following advantages in the host country. They are The host country should be able to offer employment and tax benefits. The host country will share the foreign trade or replacement of imports. The host country must be able to contribute to the domestic economic growth of the country. The available alternatives of the host country can be explored by the home country. The evaluation of the alternatives can be done by the comparison of the various alternatives. When the various companies in the host country offers comparable alternatives then the home country has less interest in starting business with the host country. Global branding has been used by various companies across multiple geographies for the expansion of the business. But global branding is subjected to regulatory policies of the host country. The control of the operation by the host country will also depend on the available alternatives of the home country. Competition among the various global brands has been profound (Holt, Quelch Taylor, 2004). The laws and regulation of the host country to control the operation exercised by the home country is known as the regulation policy. In exercising the regulation policies, the Government plays a major role. The market policy depends on the policies formulated by the Government. The intervention of the Government can also be characterized by the offensive defensive continuum. The offensive policy aims at maximizing the total national intake. The term total national intake is not restricted to the amount of taxes. It also includes other factors like the number of employees involved, transfer of new technology and stimulates the economic growth of the host country via exports (Zou Fu, 2011). There are various short run changes in the strategic position as a result of the offensive policy (Topics.nytimes.com, 2015). On the other hand, the defensive policies of the host countries are unpredictable and discontinuous in nature. The government of the host country undertakes defensive policies on the basis of the spectacular events like accidents in the industry, international tax manipulations and corruption that results in political reaction from the Government operating in the host country. The defensive policy is fundamentally non intervention policy (Brady, 2010).The companies like KFC , Mc Donalds , Pizza Hut , Dominos , LOreal , Lenovo has been successful worldwide by using effective strategies of branding that has converged the audiences and brought them to a single platform(The Economist, 2012). Globalization has opened up various avenues of the business worldwide and global branding has been one of the significant ways for the success of the business of the organization. References Brady, D. (2010). Essentials of international marketing. Armonk, NY: M.E. Sharpe. Hbswk.hbs.edu,. (2015). Articles About Marketing: Brand Management HBS Working Knowledge. Retrieved 4 February 2015, from https://hbswk.hbs.edu/topics/brandmanagement.html Holt, D., Quelch, J., Taylor, E. (2004). How Global Brands Compete. Harvard Business Review. Retrieved 4 February 2015, from https://hbr.org/2004/09/how-global-brands-compete Matanda, T., Ewing, M. (2012). The process of global brand strategy development and regional implementation. International Journal Of Research In Marketing, 29(1), 5-12. doi:10.1016/j.ijresmar.2011.11.002 Moran, G. (2013). 5 Strategies to Build a Global Brand. Entrepreneur. Retrieved 4 February 2015, from https://www.entrepreneur.com/article/226554 Ronkainen, I., Czinkota, M. (2002). Best practices in international marketing. Fort Worth: Harcourt College Publishers. Sinkovics, R., Ghauri, P. (2009). New challenges to international marketing. Bingley: Emerald Jai. The Economist,. (2012). Brand new. Retrieved 4 February 2015, from https://www.economist.com/node/21559894 Topics.nytimes.com,. (2015). 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