Sk Ii

• Should SK-II go global and Should P&G try to integrate their SK-II beauty brand into the new global markets? (China and Europe). Would it be worth the potential risk because of the large uncertainty of how successful the product would be in the new market?

The analysis used is the Integration Responsiveness Framework:

All global firms that engage in international trade must have passed through a couple of stages in the process of cross-border expansion. And as firms pass through these stages, their offerings (bundle of benefits) simultaneously pass through the same process. The International Product Life Cycle Theory of Raymond Vernom explained the series of stages a product passes through; starting from the stage where the product is introduced into the domestic market, to the early maturity stage which is when sales is increased through exporting, and lastly the late maturity which is the development of foreign subsidiaries. In the process of achieving this, a global firm will, hence, decide on the appropriate strategy of conducting international business: this could be through local adaptiveness (adaptation/ customization) or cross-market integration (standardization/homogeneity of the market). The Company started by tailoring its product to meet the peculiar demands and needs in each market (country) it operates. This is a form of polycentric orientation where each and every country office has some level of autonomy, and it form of orientation gains public acceptance of the locals since products are developed based on local needs and profits are kept in the host country and many of the local nationals are used in key management positions for they have sufficient knowledge of the local needs. In adopting the adaptation model, the SBU had the responsibility for product development primarily based on local needs.