1. Assume that one of the case companies you analyzed (Pixar, MacDonald, Johnson
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Question
1. Assume that one of the case companies you analyzed (Pixar, MacDonald, Johnson &Johnson, Heineken) is seeking to enter (sell its products or service) a new international market. Identify the case company and the country. Describe the two types of conflicting competitive pressures that the company confronts as it formulates its international strategy for entering the country identified. If the company were to pursue an entry from that involves strategic alliance or cross border acquisition, discuss some of the challenges that managers must overcome in making the growth strategy successful. What recommendations and strategy would you offer to address these conflicting demands and challenges?
Explanation / Answer
Identify the case company and the country.
Pixar is an animation company offering high-quality animation films and is the worldwide leader. The country chosen for entry is India
Describe the two types of conflicting competitive pressures that the company confronts as it formulates its international strategy for entering the country identified.
Pressures for cost reductions – In India, cities are graded into tiers based on population, economy and social factors. Pixar will have the pressure of marketing to tier 2 and 3 towns, where the cost of living is quite low compared to major cities. Though there are very major competitors, cost still plays a major role in reaching the audience
Pressures for local responsiveness – Indian audience have been exposed to fables and stories from epics like Ramayana and Mahabharata from their childhood. They identify themselves with the stories and films that have characterization, storytelling, and drama that is closely woven with. Here consumers have affordable alternatives through television. Pixar also may not have the high-end theatres that offer extreme quality, in all locations in India
If the company were to pursue an entry from that involves strategic alliance or cross-border acquisition, discuss some of the challenges that managers must overcome in making the growth strategy successful.
Challenges in alliances
In case of a cross-border acquisition, challenges arise in choosing the competent player, culture clashes etc.
What recommendations and strategy would you offer to address these conflicting demands and challenges?
Localization – the primary issue is differentiating from the competitor's who offer equally respectable animation films. So, Pixar should produce more of localized films that align with the values, culture, and traditions of the Indian consumer. The animation movies, though watched by kids, are actually decided by parents who have been accustomed to Indian values and stores. They would be willing to see their favourite childhood stories with their kids, in a new format
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