EPRG Orientation

(made easier to understand and remember the core concept)

• Given By Wind , Douglas & Perl mutter

• The degree, kind & nature of involvement in International Business (I.B.)

or International Orientation of companies vary widely.

• Company re-orient/re-organise its activities.

• It identifies four types of attitudes/orientation toward

Internationalisation:

o E-Ethnocentric

o P-Polycentric

o R-Regio centric

o G-Geocentric
 Concept of EPRG orientation/approach can better be understood with the help of
table of characteristics cum differences, which is given in the following pages.

Have a look!

Basis Ethnocentric Polycentric Regiocentric Geocentric

Management Home-country Host-country Regional Global

orientation orientation orientation Orientation Orientation

Perception 1.Domestic 1.Each national Markets can be Entire world is

about market market is superior market is differentiated a single market
distinctive on the basis of that can be
2.Focuses on commom effectively
similarities 2.Focuses on regional tapped by
between home differences characteristics standardised
country & foreign between home marketing
market country & foreign strategy
country
3.Considers
foreign market
secondary to and
extension of
domestic market

Marketing Extension of Localisation/adap Trade-off Global

Strategy domestic strategy tation( national between standardisation
to foreign market responsiveness) standardisation (global
& localisation integration)

Companies Profitability Public Both Both

basic acceptance(legiti Profitability & Profitability &
objective macy) Public Public
acceptance acceptance

Type of Top-down Bottom up (each Mutually Mutually

governance local unit sets negotiated negotiated at
objectives) between region all levels of
& its organisation
 subsidiaries

Culture Home country Host country Regional Global

Technology Mass production Batch production

Flexible Flexible
Manufacturing Manufacturing
HRM Overseas Local nationals Regional Best people
Practices operations are are used in key people are anywhere in
managed by management developed for the world are
people from home positions key managerial developed for
country positions key managerial
anywhere in positions
region. everywhere in
the world.
Managerial Manager/MNC MNC tailor MNC use a MNC construct
Predisposition rely on values & strategic plan to strategy that its strategic
interests of parent meet the needs of addresses both plan with a
company in local culture local & global view of
formulating & regional needs operations
implementing
strategic plan
Characteristic 1.Overseas 1.Recognise 1. Treat 1. Entire world
s operations viewed importance of different is treated as
as secondary & inherent regions as single market.
primary means of differences in different
disposing the overseas markets market. 2.Standardised
surplus marketing mix,
production. 2. Subsidiaries 2.Region with to give uniform
(domestic are established in similarity of image of
business priority overseas market marketing product &
& foreign market- & each is characteristics company for
profitable independent with treated as global market
extension of own marketing separate
domestic objectives & market 3. Worldwide
operations) plans. approach to
marketing &
2.Domestic 3.Local its operations.
techniques & techniques &
personnel- personnel best
superior to suited to deal
foreign & most with local market
effective in conditions
overseas market
4. International
3.Domestic marketing
marketing mix is organised on
employed without country to
major country basis
modifications in with separate
overseas market. marketing
 (extension strategy for all.
strategy)

4. All foreign
marketing
operations are
planned & carried
out from home
base& Overseas
marketing
administered by
export
department/intern
ational division.
Merits 1. No cost & Adaptation to Advantages of 1. Economies
efforts needed for market both of large scale
adaptation/localis characteristics localisation & production.
ation. helps in better standardisation 2.Lower costs
understanding of . Advantage of
2. It is easy route local needs which pace
to will lead to better
internationalisatio exploitation of
n when foreign market potentials.
market exists with
similar domestic
characteristics.

Demerits 1. No full 1. High cost of Lack of 1. Not

exploitation of IB national attention to successful in
opportunities responsive intra-regional many cases.
worldwide. marketing mix differences
for each country. 2.
2. Lopsided focus Uniform/stand
on domestic 2. Delays in ard marketing
market. localisation. mix not
guarantees fo
sure success in
every situation.
Examples Nissan in 1st few 1.Barbie(separate 1.Punjab(Panee Microsoft &
years exported Barbie for India r products Nokia
cars in US & other more) (Standardised
markets, sold cars countries) products
without change 2.Gujarat worldwide)
than sold in 2.McD(no beef ( Sugar more)
Japan.( Toyopet burgers in India)
cars)
3. SPF level in
sunscreens differ
according to
country.
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