Ethnocentric approach underlines host countries superiority. In other words, it is associated with orientation directed first of all at the home country management, “the home country knows best culture is applied” (Bowie and Buttle, 2004). Overseas operations are considered only as an additional
extension of the local market. Paul pinpoints that in this approach “management philosophy, domestic technology, strategies and even personnel are far more superior to foreign operations and are a perfect fit for foreign operations as well”. Companies oriented on ethnocentric approach are distinct with their complex structure in home country, while structure in other countries stays very simple. Such companies do not adapt their products to the needs and wants of other countries where they have operations. Ranchhod and Marandi (2006) come up with a good summary of ethnocentric approach, saying that this international marketing orientation “tends to ignore much of the opportunities outside the domestic market while those that venture outside tend to operate on the basis of “standardized” or “extension approach” marketing and do not engage in adaptation of any noticeable degree”. On one hand this approach sometimes can work as advantage for the company when it views foreign markets as “a means of disposing of surplus domestic production” (Vasudeva, 2006). On the other hand, the company may experience a lot of difficulties to survive in foreign markets as its brands will not be accepted by consumers of that country due to cultural differences as they are completely ignored by the headquarters. In this case the company still will have two choices: to continue its operations only in its domestic market; or change its international marketing orientation to a more appropriate one according to nowadays requirements of the international brands’ consumers. The example of such change is NISSAN which in the first years of its existence on international arena was following ethnocentric approach by selling its cars abroad exactly as they were sold in their domestic market in Japan, after several years of its international trading the company realized that ethnocentric international marketing orientation is no longer relevant for some industries including automobile industry in which they were operating and changed its approach to polycentric (see 2:1:5:2). Vasudeva (2006) concludes that in today’s international business world ethnocentric approach appears to be one of the biggest threats for international organizations.
ขีดเส้นใต้ใน ethnocentric วิธีโฮสต์ที่เหนือกว่าประเทศ ในคำอื่น ๆ มันจะเกี่ยวข้องกับปฐมนิเทศผู้กำกับครั้งแรกของทั้งหมดที่บริหารประเทศ "ประเทศบ้านเกิดรู้ว่า มีใช้วัฒนธรรมที่ดีที่สุด" (โบวีและ Buttle, 2004) การดำเนินงานในต่างประเทศถือว่าเป็นเพียงเพิ่มเติมextension of the local market. Paul pinpoints that in this approach “management philosophy, domestic technology, strategies and even personnel are far more superior to foreign operations and are a perfect fit for foreign operations as well”. Companies oriented on ethnocentric approach are distinct with their complex structure in home country, while structure in other countries stays very simple. Such companies do not adapt their products to the needs and wants of other countries where they have operations. Ranchhod and Marandi (2006) come up with a good summary of ethnocentric approach, saying that this international marketing orientation “tends to ignore much of the opportunities outside the domestic market while those that venture outside tend to operate on the basis of “standardized” or “extension approach” marketing and do not engage in adaptation of any noticeable degree”. On one hand this approach sometimes can work as advantage for the company when it views foreign markets as “a means of disposing of surplus domestic production” (Vasudeva, 2006). On the other hand, the company may experience a lot of difficulties to survive in foreign markets as its brands will not be accepted by consumers of that country due to cultural differences as they are completely ignored by the headquarters. In this case the company still will have two choices: to continue its operations only in its domestic market; or change its international marketing orientation to a more appropriate one according to nowadays requirements of the international brands’ consumers. The example of such change is NISSAN which in the first years of its existence on international arena was following ethnocentric approach by selling its cars abroad exactly as they were sold in their domestic market in Japan, after several years of its international trading the company realized that ethnocentric international marketing orientation is no longer relevant for some industries including automobile industry in which they were operating and changed its approach to polycentric (see 2:1:5:2). Vasudeva (2006) concludes that in today’s international business world ethnocentric approach appears to be one of the biggest threats for international organizations.
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