EPRG Framework
EPRG Framework
Ethnocentric Orientation
Domestic market extension concept: Domestic strategies, techniques, and personnel are perceived as superior International customers, considered secondary International markets regarded as outlets for surplus domestic production International marketing plans developed in-house by international division Example: Hero cycles and Atlas cycles
Ethnocentric-Domestic
Domestic expansion only
Ethnocentric-International
Foreign expansion viewed as an appendage to domestic operations; same strategies are utilized in all countries.
HQ
You seeour way works best around the world.
Polycentric Orientation
market
May establish businesses in each target country Fully decentralized, minimal coordination with headquarters Marketing strategies = specific to each country Result: No economies of scale, duplicated functions, higher final product costs
Polycentrism
Activities and functions are planned and managed, often by local nationals, on a country-by-country basis (e.g., HRM is decentralized by country)
HQ
Would you look at this? The GMs do understand the local markets
Regiocentric Orientation
Regiocentrism
Operations are geared towards a particular continental region with similar economies and cultures Betaminor
HQ
Alphaland
Betaland
Geocentric Orientation
Geocentrism
Products are functional, reliable, and standardized low-cost products (e.g., HRM managed on a global basis)
HQ
(so urce : adapta tion libre d e He ena n D.A ., Per lmutter H .W . , M ultinational O rga niza tion D evelop m ent , Addison W esley Publish ing , 1979 )