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
o
o
o

E-Ethnocentric
P-Polycentric
R-Regio centric
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
orientation

Home-country
orientation

Host-country
orientation

Perception
about market

1.Domestic
market is superior

1.Each national Markets can be

market
is differentiated
distinctive
on the basis of
2.Focuses
on
commom
similarities
2.Focuses
on regional
between
home differences
characteristics
country & foreign between
home
market
country & foreign
country
3.Considers
foreign
market
secondary to and
extension
of
domestic market

Entire world is
a single market
that can be
effectively
tapped
by
standardised
marketing
strategy

Marketing
Strategy

Extension
of Localisation/adap Trade-off
domestic strategy tation( national between
to foreign market responsiveness)
standardisation
& localisation

Global
standardisation
(global
integration)

Companies
basic
objective

Profitability

Public
acceptance(legiti
macy)

Regional
Orientation

Global
Orientation

Both
Both
Profitability & Profitability &
Public
Public
acceptance
acceptance

Type
of Top-down
governance

Bottom up (each Mutually

local unit sets negotiated
objectives)
between region
&
its
subsidiaries

Mutually
negotiated at
all levels of
organisation

Culture

Home country

Host country

Global

Technology

Mass production

Batch production

Manager/MNC

MNC

HRM
Practices

Managerial

Regional

Flexible
Manufacturing
Overseas
Local nationals Regional
operations
are are used in key people
are
managed
by management
developed for
people from home positions
key managerial
country
positions
anywhere
in
region.
tailor MNC

use

Flexible
Manufacturing
Best
people
anywhere
in
the world are
developed for
key managerial
positions
everywhere in
the world.
a MNC construct

Predisposition

Characteristic
s

rely on values &

interests of parent
company
in
formulating
&
implementing
strategic plan
1.Overseas
operations viewed
as secondary &
primary means of
disposing
the
surplus
production.
(domestic
business priority
& foreign marketprofitable
extension
of
domestic
operations)

strategic plan to strategy

that
meet the needs of addresses both
local culture
local
&
regional needs

2.Domestic
techniques
&
personnelsuperior
to
foreign & most
effective
in
overseas market

3.Local
techniques
&
personnel
best
suited to deal
with local market
conditions

3.Domestic
marketing mix is
employed without
major
modifications in
overseas market.
(extension
strategy)

Merits

1.Recognise
importance
of
inherent
differences
in
overseas markets
2.
Subsidiaries
are established in
overseas market
&
each
is
independent with
own marketing
objectives
&
plans.

its
strategic
plan with a
global view of
operations

1.
Treat 1. Entire world
different
is treated as
regions
as single market.
different
market.
2.Standardised
marketing mix,
2.Region with to give uniform
similarity
of image
of
marketing
product
&
characteristics company for
treated
as global market
separate
market
3. Worldwide
approach
to
marketing &
its operations.

4. International
marketing
organised
on
country
to
country
basis
with
separate
marketing
strategy for all.

4. All foreign
marketing
operations
are
planned & carried
out from home
base& Overseas
marketing
administered by
export
department/intern
ational division.
1. No cost & Adaptation

to Advantages of 1.

Economies

Demerits

efforts needed for market

adaptation/localis characteristics
ation.
helps in better
understanding of
2. It is easy route local needs which
to
will lead to better
internationalisatio exploitation
of
n when foreign market potentials.
market exists with
similar domestic
characteristics.

both
localisation &
standardisation
.

1.
No
full
exploitation of IB
opportunities
worldwide.

Lack
of 1.
Not
attention
to successful in
intra-regional
many cases.
differences
2.
Uniform/stand
ard marketing
mix
not
guarantees fo
sure success in
every situation.
1.Punjab(Panee Microsoft
&
r
products Nokia
more)
(Standardised
products
2.Gujarat
worldwide)
( Sugar more)

1. High cost of
national
responsive
marketing
mix
for each country.

2. Lopsided focus
on
domestic 2. Delays
market.
localisation.

Examples

Nissan in 1st few

years
exported
cars
in
US
markets, sold cars
without change
than
sold
in
Japan.( Toyopet
cars)

in

1.Barbie(separate
Barbie for India
&
other
countries)
2.McD(no beef
burgers in India)

of large scale
production.
2.Lower costs
Advantage of
pace

3. SPF level in
sunscreens differ
according
to
country.

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