In this paper I will show the link between the international marketing theory and practice based on the example of the maquiladora industry located on the US-Mexican border. Furthermore, my research will pinpoint the fact that most of the decisions made by international mangers are a conclusion of the international marketing theory. This is the case starting with the macro analysis of the foreign markets and ending with the individual usage of the “4 P’s” regardless of the sector of business.
In the age of globalization many companies want to or are forced by the markets to expand their business to other countries. However, in the early years of the globalization process firms mostly extended their commerce usually on the national level or to the home country’ s neighbor markets, but today it does not appear anymore oddly, when a single company owns facilities located across the globe. Concerning this development, the company faces different challenges in each market, which will shape the usage of the marketing-mix. International marketing understood as “the segment of business concerned with planning, promoting, distributing, pricing and servicing of the goods and services desired by intermediate and ultimate consumers” is an important business tool in order to describe the decisions made by many companies across political boundaries.
To be fully able to understand the process of the companies’ expansion in terms of international marketing it is very important to begin the analysis with the assessment of the political and economic forces in the world, in the home country and in the particular country, where the business is supposed to be done. These forces create a framework for a company’s further decision-making. Therefore, only having the information about the political, economic and legal environment one is able to retrace the reasons for a multinational companies’ strategy choice.
Table of Contents
I. The Introduction
II. The speaker review
1. The environment analysis
2. The company analysis
a) Aisling Company
Porter’s Five Forces of Competition
SWOT
Business-Level Competitive Strategies
The Marketing Mix (the 4 P’s)
a) Mitsubishi Company
Porter’s Five Forces of Competition
SWOT
Business-Level Competitive Strategies
The Marketing Mix (the 4 P’s)
III. The analysis and conclusion
IV. Bibliography
Research Objectives and Core Themes
This paper examines the practical application of international marketing theory through the case study of the maquiladora industry located on the US-Mexican border, focusing on how companies adapt their strategies to environmental shifts and market competition.
- Analysis of external business environments (economic, political, legal, and cultural factors).
- Evaluation of corporate strategies using Porter’s Five Forces and SWOT analysis.
- Implementation of the Marketing Mix (4 P’s) in cross-border assembly facilities.
- Impact of the globalization process and the emergence of Chinese market competition.
- The role of management in strategic decision-making and business longevity.
Excerpt from the Book
The environment analysis
According to the speakers, the business environment is the crucial factor for the development of the maquiladora industry for in the EPZs. Referring to Sergio Quiroz the main advantages for the location are: the cheap labor, the proximity to the US, the availability of educated management staff and the special tariff treatment. These factors, which have been recognized by the vice-president of Aisling Industries (Mexicali) and by other speakers, as well, can be identified as economic variables impacting the business environment. The basic labor force with an average hourly payment of $2.5 is considerably cheaper than in the United States, where the cost of labor are almost five times higher. Furthermore, the duty-free import and export of goods, which is the most important characteristic of the EPZs, is another economic factor, which has a positive impact on the maquiladora industry development.
Besides, referring to the economic factors concerned with the geographical location, all introduced guest speakers discern the globalization process, which consolidates the markets more and more, as the one that mainly shapes their decisions.
The protective labor laws in Mexico, which force an employer to pay a dismissed worker the salary of three months and additionally twenty daily payments for each year worked in the company, mentioned by the Ernesto Duarte, the human resource manager of Mitsubishi (Mexicali), is an significant factor with regards to the legal environment of doing business. This regulation can notably hinder an efficient allocation of the labor force. Legal impacts can be also identified in form of loose environmental protection laws in Mexico, which, on the contrary to the labor laws, can attract an investment.
Summary of Chapters
I. The Introduction: Sets the academic scope by linking international marketing theory to the maquiladora industry on the US-Mexican border.
II. The speaker review: Evaluates the business environment and provides detailed case studies of the Aisling and Mitsubishi companies regarding their strategic positioning.
III. The analysis and conclusion: Synthesizes the findings, highlighting how successful companies navigate external threats like global competition through adaptive strategy.
IV. Bibliography: Lists the academic and industry-specific sources used to support the research.
Keywords
International marketing, Maquiladora, US-Mexican border, Globalization, Export Processing Zones, Porter’s Five Forces, SWOT, Marketing Mix, 4 P’s, Strategy, Business environment, Competitive advantage, Logistics, Supply chain, CRT technology.
Frequently Asked Questions
What is the core focus of this research paper?
The paper explores the practical application of international marketing theories within the maquiladora industry, specifically analyzing how border-based assembly plants align their strategies with global economic and political realities.
What are the primary thematic areas covered?
The themes include the influence of the business environment (economic, legal, and cultural factors), the use of strategic management tools like SWOT and Porter’s Five Forces, and the operational application of the 4 P’s (product, price, place, promotion).
What is the primary objective of the work?
The objective is to demonstrate the link between theoretical international marketing frameworks and the real-world strategic decision-making processes of firms operating across political boundaries.
Which scientific methods are employed?
The paper utilizes a case study approach, drawing upon qualitative data and expert testimony from industry representatives to conduct environmental, company-specific, and competitive analyses.
What content is discussed in the main body?
The main body examines the specific environments of Mexican EPZs, conducts detailed SWOT and competitive strategy analyses for Aisling and Mitsubishi, and discusses the challenges of supply chain logistics and marketing implementation.
Which keywords best characterize this research?
Key concepts include international marketing, maquiladora, globalization, competitive advantage, strategic management, and supply chain logistics.
Why did the Mitsubishi company struggle despite its operational efforts?
Mitsubishi failed primarily due to an incorrect prognosis of technological shifts (specifically the decline of CRT technology in favor of LCD) and a rigid approach to marketing that did not allow for adequate adaptation to the US market.
How does the Aisling Company differentiate itself in a competitive market?
Aisling differentiates itself by combining low-cost sourcing from China with a highly personalized service-oriented strategy, effectively leveraging its geographical proximity to the US to solve logistics and supply chain problems for its clients.
- Arbeit zitieren
- Dr. Aleksander Szymanski (Autor:in), 2003, The theory and practice of international marketing – B2B, München, GRIN Verlag, https://www.hausarbeiten.de/document/168686
