4.6 International Marketing (HL)

Opportunity (International)

A favorable external condition, such as rising global incomes or GDP growth, that allows a business to grow abroad.

Threat (International)

External factors, such as language barriers or strict regulations, that pose challenges to a business expanding globally.

Economies of Scale (International)

The reduction in average unit costs as a company increases production and sales across global markets.

Risk Spreading (BMW Example)

Operating in multiple regions so that a recession in one (Germany 2008) is offset by growth in another (China/Middle East).

Brand Reputation Benefit

The increased recognition and consumer trust gained when a brand is successful in major markets like Europe or the USA.

Sociocultural Threats

Differences in language, customs, and business etiquette that can hinder sales if a business lacks local knowledge.

Economic Adaptation (Gillette Example)

Developing cheaper products, like a basic razor for India, to suit consumers with lower average incomes.

Infrastructure Impact

The quality of a country's transportation (air vs. sea) and labor market that determines the ease of operating abroad.

Environmental Threats

Natural disasters or climate change risks (flooding, drought) that can disrupt international supply chains.

Sustainability Conflict (Palm Oil Example)

Indonesia’s deforestation for palm oil led to an EU import ban, significantly decreasing export revenue.

Ethical Responsibility (Global)

The requirement for businesses to meet human needs within planetary boundaries regardless of where they operate.

Political Risk

The danger of doing business in unstable environments (e.g., Afghanistan) compared to low-risk areas like Singapore or the UAE.

Legal Restrictions (India Example)

Specific laws in host countries that dictate marketing, such as the illegality of advertising or selling beef burgers in India.

Trade Barriers (Legal)

Restrictions like tariffs or quotas that increase costs and slow down the distribution of exported goods.

STEEPLE Analysis in Marketing

A framework used to analyze Social, Technological, Economic, Environmental, Political, Legal, and Ethical threats in a new market.