Approaches to

International
Business
EPRG Framework was developed and
introduced by Wind, Douglas, and
Perlmutter and focuses on the
international marketing operations
of the company and the different
attitudes towards the company’s
involvement on the front of
international marketing processes
and environment.
 Ethnocentric Approach

• Company exports the same product designed for domestic markets

to foreign countries

• Views the foreign markets as an extension to the domestic markets

just like a new region.

• The executives at the head office of the company make the decisions
relating to exports and, the marketing personnel of the domestic
company monitor the export operations with the help of an export
department.
The ethnocentric approach of Nissan was Hallmark Cards extend the same
quite visible in its initial years as the cars and domestic operations into foreign markets.
trucks exported to the USA were difficult to In other words, the company extend the
start during the cold winter months. In Japan, domestic product, domestic price,
the car owners would cover their cars with promotion and other business practices
hoods or blankets during winters and to the foreign markets.
expected American’s to do the same.
 Polycentric Approach

• The company establishes a foreign subsidiary company and

decentralizes all the operations and delegates decision-making and
policy-making authority to its executives.

• Mostly focuses on the conditions of the host country in policy

formulation, strategy implementation and operations.
John Chambers, Cisco's CEO, opened in 2007 the Globalization Center East in
Bangalore, which de facto acts as Cisco's second HQ. By dispatching Wim Elfrink,
a Dutchman who is Cisco's number two exec, to head this new center, Chambers
sent a strong message to his company on how serious he was about diffusing the
locus of decision-making beyond the confines of Silicon Valley.
 After serving the cost-conscious Indian
farmers, John Deere's 5003 tractor model is
finding increasing demand in Western
markets, including among farmers in the U.S.
Midwest who are reeling under the recession.

Managing director of John Deere India, points out that his firm could never have
successfully developed and marketed this innovative product line globally if its top
management had stuck to its U.S.-centric core business model, and if it didn't
empower and connect a diverse team of U.S. and Indian engineers to collaboratively
design low-cost, high-value products that benefit farmers worldwide.
 Regiocentric Approach

• the foreign subsidiary considers the regional environment for

formulating policies and strategies

• It markets more or less the same product designed under

polycentric approach in other countries of the region, but with
different market strategies.
For marketing purposes, countries such as
India, Pakistan and Bangladesh have been
grouped together due to their similarities,
and a similar marketing strategy is used
across these countries.
In the country of India, McDonald’s’
serves the burgers without pork and
beef keeping in mind the religious
sentiments of the local citizens.
 Geocentric Approach

• Under this approach, the entire world is just like a single country for
the company.

• They select the employees from the entire globe and operate with a
number of subsidiaries.

• Each subsidiary functions like an independent and autonomous

company in formulating policies, strategies, product design, human
resource policies, operations, etc.
MTV channels are “branded accordingly as
MTV India, MTV Korea, MTV China and MTV
Japan and use more local employees with
use of local language” (Manish 2010) while
playing music that is suited to the
respective cultures.
KFC has “a vegetarian thali (a mixed meal with
rice and cooked vegetables) and Chana Snacker
(burger with chickpeas) to cater to vegetarians
in India”. While the entire menu was not
changed by KFC, they did consider local spices
(e.g. curry) and infused them in some of the
options in their menu.
Thank You!!!