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SEVENTH
‘All good marketing is local. Global companies know this and are going “glocal”. There is EDITION
also a trend towards the “Internet of Everything”, which revolutionizes the whole marketing SEVENTH EDITION
GLOBAL MARKETING
discipline. Svend Hollensen has captured all the latest trends very well with the new cases in
GLOBAL MARKETING
his seventh edition of Global Marketing.’
Philip Kotler, S. C. Johnson & Son Distinguished Professor of International Marketing, Kellogg School
of Management, Northwestern University, USA
‘The best textbook on global marketing I have come across! The case studies, many of them
available online, provide an excellent basis for class discussion.’
Elisabeth Götze, Vienna University of Economics and Business, Austria SVEND HOLLENSEN
‘Excellent level of detail in each chapter to support learning around strategic global marketing
decisions. The video case studies are a huge bonus and really help to bring the subject alive.’
Giovanna Battiston, Senior Lecturer in Marketing, Sheffield Hallam University, UK
In this era of increased globalization, if there’s one textbook that today’s students and tomorrow’s
marketers need to read, it’s Svend Hollensen’s world-renowned text. For over fifteen years Global
Marketing has been the definitive, truly international guide to marketing. During that time, borders have
become ever more transient and this book more central to the work of marketers all around the world.
Now into its seventh edition, Global Marketing continues to be the most up-to-date and thorough
text of its kind, with cutting-edge case studies and a focus on the impact of new technologies and
perspectives on international marketing. This seventh edition expands on a number of new topics,
HOLLENSEN
including: shared economy solutions, social media, e-services and smart app marketing, as
well as many more.
It is ideal for undergraduate and postgraduate students studying international marketing, and for any
practitioners who want to take their global marketing strategies to the next level.
Key features include:

• A clear part structure, organized around the five main decisions that marketing people in
companies face in connection to the global marketing process
• End of part and end of chapter case studies helping students to understand how theory relates
to real world application
• Video case studies (available at www.pearsoned.co.uk/hollensen), showing how practitioners
are using Global Marketing in their work
About the author

‘The world today truly is flat, and a sound global perspective is an absolute
Svend Hollensen is Associate Professor of International Marketing at
the University of Southern Denmark and has worked as a marketing
Cover image © Thomas Vogel /
Getty Images must for all students. Svend Hollensen’s Global Marketing provides a thorough
consultant for several international companies and organizations. As and comprehensive treatment that delivers on this need.’
well as this book, he is the author of other Pearson texts, including
Marketing Management and Essentials of Global Marketing.
Michael R. Solomon, Professor of Marketing, Haub School of Business, Saint Joseph’s University,
USA, and Professor of Consumer Behaviour, University of Manchester, UK
Student resources specifically written to complement this textbook
are at www.pearsoned.co.uk/hollensen
www.pearson-books.com
CVR_HOLL0111_07_SE_CVR.indd 1 25/05/2016 16:16

Global Marketing
A01_HOLL0111_07_SE_FM.indd 1 5/26/16 9:13 PM

iii
Seventh Edition
global MarketinG Svend Hollensen

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First published 1998 by Prentice Hall (print)

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Seventh edition published 2017 (print and electronic)
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NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION

Brief Contents
Preface xviii
Acknowledgements xxxiv
Publisher’s acknowledgements xxxvi
Abbreviations xli
About the author xlv
Part I The Decision Whether To Internationalize 3

1 Global marketing in the firm 5
2 Initiation of internationalization 55
3 Internationalization theories 82
4 Development of the firm’s international competitiveness 107
Part I Case studies 155
Part II Deciding Which Markets To Enter 181

5 Global marketing research 185
6 The political and economic environment 218
7 The sociocultural environment 251
8 The international market selection process 279
Part II Case studies 318
Part III Market Entry Strategies 343

9 Some approaches to the choice of entry mode 349
10 Export modes 365
11 Intermediate entry modes 387
12 Hierarchical modes 420
13 International sourcing decisions and the role of the subsupplier 441
Part III Case studies 468
Part IV Designing the Global Marketing Programme 491

14 Product decisions 499
15 Pricing decisions and terms of doing business 558
16 Distribution decisions 597
17 Communication decisions (promotion strategies) 632
Part IV Case studies 679
Part V Implementing and Coordinating the Global

Marketing Programme 711
18 Cross-cultural sales negotiations 713
19 Organization and control of the global marketing programme 741
Part V Case studies 775
Index 806

Contents
Preface xviii
Acknowledgements xxxiv
Publisher’s acknowledgements xxxvi
Abbreviations xli
About the author xlv
Part I The Decision Whether To Internationalize 3
Part I Video case study: Uber 4
1 Global marketing in the firm 5

Learning objectives 5
1.1 Introduction to globalization 6
1.2 The process of developing the global marketing plan 6
1.3 Comparison of the global marketing and management style of SMEs and LSEs 7
Exhibit 1.1 LEGO’s strategic drift 14
Exhibit 1.2 Economies of scale with Nintendo Game Boy 16
Exhibit 1.3 Ford Focus Global Marketing Plan 18
1.4 Should the company internationalize at all? 19
1.5 Development of the ‘global marketing’ concept 20
Exhibit 1.4 Helly Hansen is using ‘localization’ through geo-targeting
technology 23
Exhibit 1.5 Persil Black & Persil Abaya = glocalization (same product, but
different packaging and market communication) 23
1.6 Forces for global integration and market responsiveness 24
Exhibit 1.6 McDonald’s is moving towards a higher degree of market
responsiveness 27
1.7 The value chain as a framework for identifying international competitive advantage 28
1.8 Value shop and the ‘service value chain’ 34
1.9 Global experimental marketing 38
Exhibit 1.7 Case Construction Equipment is using experiential marketing 41
Exhibit 1.8 IKEA’s use of AR 42
1.10 Information business and the virtual value chain 43
1.11 Summary 44
Case studies
1.1 Green Toys, Inc.: a manufacturer of eco-friendly toys is going international 45
1.2 Hunter Boot Ltd: The iconic British brand is moving into exclusive fashion 50
1.3 Video case study: Nivea 52
Questions for discussion 53
References 53
2 Initiation of internationalization 55

viii Contents
2.1 Introduction 56
2.2 Internationalization motives 56
Exhibit 2.1 Jägermeister: the famous herbal liqueur is going global
as a result of ‘managerial urge’ in the family-owned company 58
Exhibit 2.2 Global marketing and economies of scale in Japanese firms 61
Exhibit 2.3 Internationalization of Haier – proactive and reactive motives 64
2.3 Triggers of export initiation (change agents) 65
2.4 Internationalization barriers/risks 69
Exhibit 2.4 De-internationalization at British Telecommunications (BT) 73
2.5 Summary 75
Case studies
2.1 LifeStraw: Vestergaard-Frandsen transforms dirty water into clean drinking water 75
2.2 Elvis Presley Enterprises Inc. (EPE): internationalization of a cult icon 78
2.3 Video case study: TOMS Shoes 79
References 80
3 Internationalization theories 82
3.1 Introduction 83
3.2 The Uppsala internationalization model 85
3.3 The transaction cost analysis (TCA) model 89
3.4 The network model 92
3.5 Born globals 94
Exhibit 3.1 K-pop – a ‘born global’ phenomenon has worldwide success 95
3.6 Summary 99
Case studies
3.1 Zumba: a dance phenomenon is going global 100
3.2 Dreamworks Classics: internationalization of Postman Pat 103
3.3 Video case study: Reebok 104
References 104
4 Development of the firm’s international competitiveness 107

4.1 Introduction 108
4.2 Analysis of national competitiveness (the Porter diamond) 108
4.3 Competition analysis in an industry 113
4.4 Value chain analysis 118
Exhibit 4.1 Hilti is selling the ‘use’ – not the product 120
4.5 The sustainable global value chain 131
4.6 Corporate social responsibility (CSR) 131
Exhibit 4.2 Chiquita – integrating CSR in the resource base 133
4.7 The value net 135
Exhibit 4.3 Value net – cooperation/competition between competitors
within each airline alliance. The three alliances are competing
against each other 136
4.8 Blue ocean strategy and value innovation 137
Exhibit 4.4 Hotel Formule 1 – value innovation in action 139
4.9 Summary 141
Case studies
4.1 Nintendo Wii: Nintendo’s Wii took first place on the world market –
but it didn’t last 142

Contents ix
4.2 DJI Technology Co. Ltd: a Chinese ‘born global’ is dominating the world market for
drones with its Phantom 148
4.3 Video case study: Nike 152
References 152
Part I Case studies

I.1 Zara: the Spanish retailer goes to the top of world fashion 155
I.2 Manchester United: still trying to establish a global brand 161
I.3 Adidas: the No. 2 in the global sportswear market is challenging the No. 1, Nike 165
I.4 Cereal Partners Worldwide (CPW): the No. 2 world player is challenging
the No. 1, Kellogg 172
Part II Deciding Which Markets To Enter 181
Part II Video case study: HondaJets – Honda enters the small-sized

business jet market 183
5 Global marketing research 185

5.2 The changing role of the international researcher 186
5.3 Linking global marketing research to the decision-making process 187
5.4 Secondary research 189
5.5 Primary research 193
5.6 Other types of marketing research 204
5.7 Marketing research based on Web 2.0 208
Exhibit 5.1 Amazon.com – sustaining a competitive advantage through
market research and analytics 209
5.8 Setting up an international marketing information system (MIS) 210
5.9 Summary 211
Case studies
5.1 Teepack Spezialmaschinen GmbH: organizing a global survey
of customer satisfaction 212
5.2 LEGO Friends: one of the world’s largest toy manufacturers moves into
the girls’ domain 213
5.3 Video case study: BMW i3 – the electric car 216
References 217
6 The political and economic environment 218

6.2 The political/legal environment 219
Exhibit 6.1 Huawei Technologies Corporation: the role of home
government in the internationalization process 221
Exhibit 6.2 Google is experiencing political risk in China 225
6.3 The economic environment 230
Exhibit 6.3 EU’s antitrust regulator complains about competition
practices of Google 235
6.4 The European Economic and Monetary Union and the euro 236
6.5 BRIC – the show growth is hitting the emerging countries 238

x Contents
Exhibit 6.4 ChotuKool – Indian Godrej is creating a disruptive innovation

(a low-cost refrigerator) for the BOP market 240
6.6 ‘Bottom of pyramid’ (BOP) as a market opportunity 241
Exhibit 6.5 Vodacom – reaching both BOP (bottom of pyramid)
customers and BOP entrepreneurs in Africa 243
Exhibit 6.6 Voltic Cool Pac – distribution of water in Ghana 244
6.7 Summary 245
Case studies
6.1 G-20 and the economic and financial crises: what on earth
is globalization about? Protests during a meeting in Brisbone,
Australia, November 2014 247
6.2 Danfoss Power Solutions: which political/economic factors would affect
a manufacturer of hydraulic components? 248
6.3 Video case study: Debate on globalization 249
References 250
7 The sociocultural environment 251

7.2 Layers of culture 253
Exhibit 7.1 Electrolux is adapting its vacuum cleaner for the Japanese market 255
7.3 High- and low-context cultures 255
7.4 Elements of culture 257
Exhibit 7.2 In China the Citroën C4 brand name was changed
to Citroën c-Quatre 258
Exhibit 7.3 Sensuality and touch culture in Saudi Arabian versus
European advertising 260
Exhibit 7.4 Polaroid’s success in Muslim markets 264
7.5 Hofstede’s model, (the ‘4 + 1’ dimensions model) versus the GLOBE model 265
Exhibit 7.5 Pocari Sweat – a Japanese soft drink expands sales in Asia 267
7.6 Managing cultural differences 267
7.7 Convergence or divergence of the world’s cultures 268
7.8 The effects of cultural dimensions on ethical decision-making 269
Exhibit 7.6 The quest for beauty opens a huge market for whitening
products in Asia 271
7.9 Summary 272
Case studies
7.1 Cirque du Soleil Inc.: the show that revolutionized the circus arts
is expanding its global scope 273
7.2 The IKEA catalogue: are there any cultural differences? 275
7.3 Video case study: Allergan – the maker of Botox and breast implants 277
References 278
8 The international market selection process 279

8.2 International market selection: SMEs versus LSEs 280
8.3 Building a model for international market selection 281
Exhibit 8.1 Bosch Security Systems: IMS in the Middle East for fire
detection systems 295
8.4 Market expansion strategies 299
Exhibit 8.2 Sunquick’s waterfall approach 299

Contents xi
Exhibit 8.3 An example of the ‘trickle-up’ strategy 301

Exhibit 8.4 Bajaj is selecting new international markets ignored by global leaders 305
8.5 The global product/market portfolio 306
8.6 Summary 306
Case studies
8.1 Tata Nano: international market selection with the world’s cheapest car 308
8.2 Philips Lighting: screening markets in the Middle East 313
8.3 Video case study: Oreo (Mondelez) 316
References 317
Part II Case studies

II.1 SodaStream: Managing profitable growth in an increasingly
competitive global environment 318
II.2 The Female Health Company (FHC): the female condom is seeking a foothold
in the world market for contraceptive products 324
II.3 Zalando: how can the online apparel retailer turn financial losses into
positive profits? 327
II.4 Ferrari: international market selection (IMS) for the exclusive sports car brand 335
Part III Market Entry Strategies 343
Part III Video case study: Müller Yogurts – entering the US market 347
9 Some approaches to the choice of entry mode 349

9.2 The transaction cost approach 350
9.3 Factors influencing the choice of entry mode 352
Exhibit 9.1 Zara is modifying its preferred choice of entry mode, depending
on the psychic distance to new markets 356
9.4 Summary 358
Case studies
9.1 Jarlsberg: the king of Norwegian cheeses is deciding on entry modes
into new markets 358
9.2 Ansell condoms: is acquisition the right way to gain market shares
in the European condom market? 360
9.3 Video case study: Understanding entry modes into the Chinese market 363
References 364
10 Export modes 365

10.2 Indirect export modes 368
10.3 Direct export modes 372
Exhibit 10.1 Lofthouse of Fleetwood’s (Fisherman’s Friend) decision
criteria w
hen selecting new distributors 374
10.4 Cooperative export modes/export marketing groups 379
10.5 Summary 380
Case studies
10.1 Lysholm Linie Aquavit: international marketing of the Norwegian Aquavit brand 381

xii Contents
10.2 Parle Products: an Indian biscuit manufacturer is seeking agents

and cooperation partners in new export markets 383
10.3 Video case study: Honest Tea 385
References 386
11 Intermediate entry modes 387

11.2 Contract manufacturing 388
11.3 Licensing 389
11.4 Franchising 392
Exhibit 11.1 Build-a-Bear workshop’s use of the indirect franchising
model in Germany – Austria - Switzerland 394
11.5 Joint ventures/strategic alliances 398
Exhibit 11.2 Irn-Bru’s distributor alliance (Y coalition) with Pepsi Bottling
Group (PPG) in Russia 400
Exhibit 11.3 Safedom: a Chinese condom manufacturer needs a partner
with which to enter the European market 408
11.6 Other intermediate entry modes 409
11.7 Summary 412
Case studies
11.1 Hello Kitty: can the cartoon cat survive the buzz across the world? 412
11.2 Kabooki: licensing in the LEGO brand 415
11.3 Video case study: Marriott 417
References 418
12 Hierarchical modes 420

12.2 Domestic-based sales representatives 422
12.3 Resident sales representatives/foreign sales branch/foreign sales subsidiary 422
12.4 Sales and production subsidiary 424
12.5 Subsidiary growth and integration strategies 425
12.6 Region centres (regional HQ) 427
12.7 Transnational organization 428
12.8 Establishing wholly owned subsidiaries – acquisition or greenfield 429
12.9 Location/relocation of HQ 430
12.10 Foreign divestment: withdrawing from a foreign market 431
Exhibit 12.1 Tesco’s withdrawal from Japan in 2012 after nine years 431
Exhibit 12.2 Walmart’s withdrawal from the German market 433
12.11 Summary 435
Case studies
12.1 Polo Ralph Lauren: Polo moves distribution for South-east Asia in-house 436
12.2 Durex condoms: SSL will sell Durex condoms in the Japanese market
through its own organization 438
12.3 Video case study: Starbucks 439
References 440
13 International sourcing decisions and the role of the subsupplier 441


Contents xiii
13.2 Reasons for international sourcing 443

13.3 A typology of subcontracting 445
13.4 Buyer–seller interaction 446
13.5 Development of a relationship 449
13.6 Reverse marketing: from seller to buyer initiative 452
13.7 Internationalization of subcontractors 453
Exhibit 13.1 An example of Japanese network sourcing: the
Mazda seat-sourcing case 455
13.8 Project export (turnkey contracts) 456
13.9 Summary 457
Case studies
13.1 ARM: challenging Intel in the world market of computer chips 458
13.2 Bosch Indego: how to build B2B and B2C relationships in a new global
product market – robotic lawnmowers 462
13.3 Video case study: Kone elevators and escalators 465
References 466
Part III Case studies

III.1 Raleigh Bicycles: does the iconic bicycle brand still have a chance
on the world market? 468
III.2 Netflix Inc.: the US internet subscription service company is dominating
the television and movies streaming world 473
III.3 Autoliv Airbags: transforming Autoliv into a global company 480
III.4 IMAX Corporation: globalization of the film business 485
Part IV Designing The Global Marketing Programme 491
Part IV Video case study: Tequila Avión 498
14 Product decisions 499

14.2 The dimensions of the international product offer 500
14.3 Developing international service strategies 500
Exhibit 14.1 Salesforce.com as provider of CRM ‘cloud’ services 506
14.4 The product life cycle 506
Exhibit 14.2 The iOS (Apple)/Android (Google) global contest
in the smartphone business 510
Exhibit 14.3 Threadless T-shirt crowdsourcing business 513
14.5 New products for the international market 515
Exhibit 14.4 Product invention – solar-powered portable charging
systems for India 521
14.6 Product positioning 521
Exhibit 14.5 Chinese piano manufacturers are experiencing the
‘country of origin’ (COO) effect 522
Exhibit 14.6 Madame Tussauds – a brand that brings people closer
to celebrities on a global basis 523
14.7 Brand equity 524
14.8 Branding decisions 525
Exhibit 14.7 Unilever’s Snuggle fabric softener – an example of local
brands in multiple markets 526

xiv Contents
Exhibit 14.8 Kellogg under pressure to produce under Aldi’s own label 530
Exhibit 14.9 Shell’s co-branding with Ferrari and LEGO 531
Exhibit 14.10 Roundup – a global brand for multiple markets 532
Exhibit 14.11 Maggi – local brands for multiple markets through acquisitions 534
14.9 Sensory branding 534
Exhibit 14.12 Starbucks’ expanding product line strategy is causing
problems for its ‘scent marketing strategy’ 537
14.10 Implications of the internet for collaboration with customers on product decisions 538
14.11 3-D printing – a possible new industrial revolution in customization 541
14.12 Global mobile app marketing 542
Exhibit 14.13 L’Oreal is extending the customers’ buying experience with
the mobile app Makeup Genius 544
14.13 ‘Long tail’ strategies 545
14.14 Brand piracy and anti-counterfeiting strategies 546
Exhibit 14.14 The next stage in pirating, faking an entire company – NEC 547
14.15 Summary 548
Case studies
14.1 Danish Klassic: launch of a cream cheese in Saudi Arabia 548
14.2 Zippo Manufacturing Company: has product diversification beyond the lighter
gone too far? 552
14.3 Video case study: Burberry branding 553
References 555
15 Pricing decisions and terms of doing business 558

15.2 International pricing strategies compared with domestic pricing strategies 559
15.3 Factors influencing international pricing decisions 559
15.4 International pricing strategies 563
Exhibit 15.1 German car manufacturers are using ‘skimming’ price
strategy in China 564
Exhibit 15.2 A ‘market pricing’ (‘mass point’) strategy in use: the Converse
brand is making a comeback under Nike ownership 566
Exhibit 15.3 Volkswagen Group’s product portfolio approach to pricing 570
Exhibit 15.4 The Gillette price premium strategy 571
Exhibit 15.5 Kodak is following the reverse ‘buy-in/follow-on’ strategy for
its printer and cartridge division 572
15.5 Implications of the internet for pricing across borders 581
15.6 Terms of sale and delivery 583
15.7 Terms of payment 585
15.8 Export financing 588
15.9 Summary 590
Case studies
15.1 Harley-Davidson: does the image justify the price level? 591
15.2 Gillette Co.: is price standardization possible for razor blades? 592
15.3 Video case study: Vaseline pricing strategy 593
References 595
16 Distribution decisions 597

16.2 External determinants of channel decisions 599

Contents xv
16.3 The structure of the channel 601

Exhibit 16.1 Burberry: the iconic British luxury brand targets
25 of the world’s wealthier cities 604
16.4 Multiple channel strategy 605
Exhibit 16.2 Dell’s use of the multi-channel distribution strategy 607
16.5 Managing and controlling distribution channels 609
16.6 Implications of the internet for distribution decisions 613
16.7 Online retail sales 615
16.8 Smartphone marketing 616
16.9 Channel power in international retailing 618
Exhibit 16.3 The ‘banana split’ model 618
16.10 Grey marketing (parallel importing) 622
16.11 Summary 623
Case studies
16.1 De Beers: forward integration into the diamond industry value chain 624
16.2 Tupperware: the global direct distribution model is still working 627
16.3 Video case study: DHL 630
References 631
17 Communication decisions (promotion strategies) 632

17.2 The communication process 633
Exhibit 17.1 Husqvarna’s consumer wheel 636
17.3 Communication tools 637
Exhibit 17.2 Lego Ninjago’s 360 degree marketing communication 642
Exhibit 17.3 Ricola is using celebrity endorsement in the international
marketing of its herbal drops 646
Exhibit 17.4 Ambush marketing strategy – Dutch Bavania vs Anheuser Busch’s
Budweiser during the FIFA World Cup 2010 648
17.4 International advertising strategies in practice 654
Exhibit 17.5 Jarlsberg cheese – cross-border communication 659
17.5 Implications of the internet for communication decisions 660
17.6 Social media marketing 661
Exhibit 17.6 Generating buzz in the pre-communication stage for BMW1
Series M Coupé 668
17.7 Developing a viral marketing campaign 669
17.8 Summary 670
Case studies
17.1 Helly Hansen: sponsoring fashion clothes in the US market 671
17.2 Morgan Motor Company: can the British retro sports car brand still be
successful after 100 years? 673
17.3 Video case study: BMW Motorcycles 676
References 677
Part IV Case studies

IV.1 Absolut Vodka: defending and attacking for a better position
in the global vodka market 679
IV.2 Guinness: how can the iconic Irish beer brand compensate
for declining sales in the home market? 687
IV.3 Dyson: the iconic vacuum cleaner manufacturer launches the robotic version 695
IV.4 Triumph Motorcycles Ltd: rising from the ashes in the international
motorcycle business 705

xvi Contents
Part V Implementing and Coordinating the Global

Marketing Programme 711
Part V Video case study: Stella & Dot 712
18 Cross-cultural sales negotiations 713

Exhibit 18.1 Google gives a clock as a gift in China 714
18.2 Cross-cultural negotiations 715
Exhibit 18.2 Euro Disney becomes Disneyland Resort Paris – Disney
learns to adapt to European cultures 724
18.3 Intercultural preparation 725
18.4 Coping with expatriates 727
18.5 Knowledge management and learning across borders 729
18.6 Transnational bribery in cross-cultural negotiations 732
18.7 Summary 733
Case studies
18.1 ZamZam Cola: marketing of a ‘Muslim’ cola from Iran to the European market 734
18.2 TOTO: the Japanese toilet manufacturer seeks export opportunities
for its high-tech brands in the US 736
18.3 Video case study: Dunkin’ Donuts 738
References 739
19 Organization and control of the global marketing programme 741

19.2 Organization of global marketing activities 742
19.3 The global account management organization 747
Exhibit 19.1 Danfoss Power Solutions’ GAM 757
Exhibit 19.2 AGRAMKOW – working to model 3 758
19.4 Controlling the global marketing programme 759
19.5 The global marketing budget 765
19.6 The process of developing the global marketing plan 769
19.7 Summary 770
Case studies
19.1 Mars Inc.: merger of the European food, pet care and confectionery divisions 770
19.2 Henkel: should Henkel shift to a more customer-centric organization? 771
19.3 Video case study: McDonald’s 773
References 774
Part V Case studies

V.1 Sony Music Entertainment: new worldwide organizational structure
and the marketing, planning and budgeting of Pink’s new album 775
V.2 Red Bull: the global market leader in energy drinks is considering
further market expansion 782
V.3 Tetra Pak: how to create B2B relationships with the food industry
on a global level 792
V.4 Polaroid Eyewear: can the iconic brand achieve a comeback in the
global sunglasses industry? 798
Index 806

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to complement this textbook and support your learning,
please visit www.pearsoned.co.uk/hollensen
Lecturer Resources
For password-protected online resources tailored to support
the use of this textbook in teaching, please visit
www.pearsoned.co.uk/hollensen

Preface
Globalization is the growing interdependence of national economies – involving primarily

customers, producers, suppliers and governments in different markets. Global marketing
therefore reflects the trend of firms selling and distributing products and services in many
countries around the world. It is associated with governments reducing trade and invest-
ment barriers, firms manufacturing in multiple countries and foreign firms increasingly
competing in domestic markets.
For many years, the globalization of markets, caused by the convergence of tastes across
borders, was thought to result in very large multinational enterprises that could use their
advantages in scale economies to introduce world-standardized products successfully.
In his famous 1994 book, The Global Paradox, John Naisbitt has contradicted this
myth, especially the last part:1
The mindset that in a huge global economy the multinationals dominate world business
couldn’t have been more wrong. The bigger and more open the world economy be-
comes, the more small and middle sized companies will dominate. In one of the major
turn-arounds in my lifetime, we have moved from ‘economies of scale’ to ‘diseconomies
of scale’; from bigger is better to bigger is inefficient, costly and wastefully bureaucratic,
inflexible and, now, disastrous. And the paradox that has occurred is, as we move to the
global context: The smaller and speedier players will prevail on a much expanded field.
When the largest corporations (e.g. IBM, ABB) downsize, they are seeking to emulate
the entrepreneurial behaviour of successful SMEs (small and medium-sized enterprises)
where the implementation phase plays a more important role than in large companies.
Since the behaviours of smaller and (divisions of) larger firms (according to the above
quotation) are convergent, the differences in the global marketing behaviour between
SMEs and LSEs (large-scale enterprises) are slowly disappearing. What is happening is
that the LSEs are downsizing and decentralizing their decision-making process. The result
will be a more decision- and action-oriented approach to global marketing. This approach
will also characterize this book.
In light of their smaller size, most SMEs lack the capabilities, market power and other
resources of traditional multinational LSEs. Compared with the resource-rich LSEs, the
complexities of operating under globalization are considerably more difficult for the SME.
The success of SMEs under globalization depends in large part on the decision and imple-
mentation of the right international marketing strategy.
The primary role of marketing management, in any organization, is to design and
execute effective marketing programmes that will pay off. Companies can do this in their
home market or they can do it in one or more international markets. Going international
is an enormously expensive exercise, in terms of both money and, especially, top manage-
ment time and commitment. Due to the high cost, going international must generate added
value for the company beyond extra sales. In other words, the company needs to gain a
competitive advantage by going international. So, unless the company gains by going
international, it should probably stay at home.
The task of global marketing management is complex enough when the company oper-
ates in one foreign national market. It is much more complex when the company starts
1
Naisbitt, J. (1994) The Global Paradox, Nicholas Brealey Publishing, London, p. 17.

PreFace xix
operations in several countries. Marketing programmes must, in these situations, adapt to

the needs and preferences of customers that have different levels of purchasing power as
well as different climates, languages and cultures. Moreover, patterns of com-petition and
methods of doing business differ between nations and sometimes also within regions of the
same nation. In spite of the many differences, however, it is important to hold on to simi-
larities across borders. Some coordination of international activities will be required, but
at the same time the company will gain some synergy across borders, in the way that
experience and learning acquired in one country can be transferred to another.
objectives
This book’s value chain offers the reader an analytic decision-oriented framework for the
development and implementation of global marketing programmes. Consequently, the
reader should be able to analyse, select and evaluate the appropriate conceptual frame-
works for approaching the five main management decisions connected with the global
marketing process: (1) whether to internationalize; (2) deciding which markets to enter; (3)
deciding how to enter the foreign market; (4) designing the global marketing programme;
and (5) implementing and coordinating the global marketing programme.
Having studied this book, the reader should be better equipped to understand how the
firm can achieve global competitiveness through the design and implementation of
market-responsive programmes.
target audience
This book is written for people who want to develop effective and decision-oriented global
marketing programmes. It can be used as a textbook for undergraduate or graduate
courses in global/international marketing. A second audience is the large group of people
joining ‘global marketing’ or ‘export’ courses on non-university programmes. Finally, this
book is of special interest to the manager who wishes to keep abreast of the most recent
developments in the global marketing field.
Prerequisites
An introductory course in marketing.
special features
This book has been written from the perspective of the firm competing in international
markets, irrespective of its country of origin. It has the following key features:
● a focus on SMEs as global marketing players;
● a decision/action-oriented approach;
● a value chain approach (both the traditional product value chain and the service value
chain);
● a value network approach (including different actors vertically and horizontally);
● a social media marketing approach is integrated throughout the book;

xx PreFace
● coverage of global buyer–seller relationships;

● extensive coverage of born globals and global account management (GAM), as an
extension of the traditional key account management (KAM);
● presents new interesting theories in marketing, for example, service value chain, value
innovation, blue ocean strategy, social marketing, corporate social responsibility
(CSR), global account management, viral branding and sensory and celebrity branding;
● aims to be a ‘true’ global marketing book, with cases and exhibits from all parts of the
world, including Europe, the Middle East, Africa, the Far East, North and South
America;
● provides a complete and concentrated overview of the total international marketing
planning process;
● many new up-to-date exhibits and cases illustrate the theory by showing practical
applications.
outline
As the book has a clear decision-oriented approach, it is structured according to the five
main decisions that marketing people in companies face in connection with the global
marketing process. The 20 chapters are divided into five parts. The schematic outline of
the book in Figure 1 shows how the different parts fit together. Global marketing research
is considered to be an integral part of the decision-making process, therefore it is included
in the book (Chapter 5), so as to use it as an important input to the decision about which
markets to enter (the beginning of Part II). Examples of the practice of global marketing
by actual companies are used throughout the book, in the form of exhibits. Furthermore,
each chapter and part ends with cases, which include questions for students.
Part I: The decision whether to internationalize

Chapters 1–4
Part II: Deciding which markets to enter

Chapters 5–8
Part III: Market entry strategies

Chapters 9–13
Part IV: Designing the global marketing programme

Chapters 14–17
Part V: Implementing and coordinating the global

marketing programme
Chapters 18–19
figure 1 structure of the book

PreFace xxi
What’s new in the seventh edition?
The new seventh edition is concentrated around two major themes: ‘glocalization’ and the
‘internet of everything’. The glocalization concept which runs throughout this new edition
enables international marketers to utilize the synergies arising from being both ‘local’ and
‘global’ at the same time. An important aspect of this new edition is its emphasis on the
so-called ‘internet of everything’, which is becoming incorporated in all parts of the daily
communication and buying behaviour of consumers around the world. Consequently, this
increasing ubiquity of the internet is reflected in its inclusion in every chapter and in most
of the cases and exhibits. The book is still structured around the well-known stages that
SMEs go through when they internationalize as shown in Figure 1.
The book’s chapters and cases are totally updated with newest journal articles and
company information. Besides that, the following new issues are introduced in the indi-
vidual chapters:
● Chapter 1 – the concept of providing customer value through the product value chain and
the service value chain is now extended by adding ‘customer experiences’ as value genera-
tor. Augmented reality (AR) can be seen as a form of experiential marketing because it
focuses not only on a single product/service, but also on an entire experience created for
the customers. AR technology enhances the customer’s current perception of reality.
● Chapter 2 – the ‘inverted U-shaped curve’ is introduced as a means of identifying, in
terms of internationalization, the optimum point that results in the maximum number
of countries that should be served. Internationalization incurs costs for the expanding
company which explains why further internationalization can have a negative influence
on profitability and why over-internationalized companies may reduce their degree of
internationalization.
● Chapter 4 – introduces the concept of the ‘sharing economy’, where individuals are able
to lease assets (products or services) owned by someone else, typically through an
online marketplace. There are several ways of selling use of a product rather than own-
ership. Hilti is introduced as a company which provides products, systems and services
to the global construction industry, but which focuses not only on selling the hand-held
power tools but also on selling the use of the products. This chapter also introduces
Barney’s VRIO analysis in order to determine the competitive potential of a given firm’s
resource.
● Chapter 5 – here Amazon is used as an example of how companies can use big data and
analytics in order to create competitive advantage. Amazon is now offering and selling
their algorithm services to other companies, e.g. through Amazon Web Services (AWS).
● Chapter 6 – shows how a company like Google is confronted with political risks. In
China, the company experienced political risks, and the chapter shows how they coped
with it. Google’s involvement in an EU antitrust case is also examined.
● Chapter 8 – introduces the GLOBE model, which is an updated extension of Hofstede’s
original work. This chapter also discusses the effects of cultural dimensions on ethical
decision-making.
● Chapter 12 – presents a framework for analysing the cultural interaction between organiza-
tions in different countries, i.e. between HQ and the specific subsidiary/the host country.
● Chapter 14 – introduces e-services through ‘cloud computing’. Furthermore, 3-D print-
ing is introduced as a possible new industrial revolution in customization. In the last part,
global mobile app marketing is discussed as the new global marketing tool – one which
is attracting increasing attention due to the global roll out of 3G and 4G mobile services,
together with the increasing penetration of smartphones and tablets. Mobile value-added
services (MVAS) represent a special case where the app offers services that are not
directly tied to sales but are designed to help customers solve problems or make deci-
sions. Such an app enriches the total customer experience of a product/service offering.

xxii PreFace
● Chapter 15 – introduces the Freemium (Free + Premium = Freemium) pricing strategy,

a pricing strategy by which a product or service is provided free of charge (Free), but
changes are introduced afterwards for more advanced features or functionality
(Premium).
● Chapter 16 – in connection with the introduction of the omnichannel retailing (or
multichannel retailing) approach, a 2×2 matrix is introduced, based on two basic
dimensions: information delivery and transaction fulfilment.
● Chapter 17 – now contains the transition from the traditional one-way market com-
munication – playing ‘bowling’ – to playing ‘pinball’. In a social media marketing
world, the bowling metaphor no longer fits. In this new arena, marketing can be better
described as playing ‘pinball’: companies serve up a ‘marketing ball’ (the brand) into a
dynamic and chaotic market environment.
● Several new exhibits with real updated company examples are added to vaiours chap-
ters.
● Many completely new and exciting chapter case studies are now available:
● Case 4.2: DJI Technology Co. Ltd – a Chinese ‘born global’ is dominating the world
market for drones with its Phantom
● Video case 5.3: BMW i3 – the electric car
● Video case 7.3: Allergan – the maker of Botox and breast implants
● Video case 8.3: Oreo Mondelēz
● Video case 13.3: Kone elevators and escalators
● Video case 14.3: Burberry branding
● Two new part introduction video case studies are now available:
● Part I Video case study: Uber
● Part II Video case study: HondaJets
● Furthermore, completely new part cases have been added:
● Case II.1: SodaStream – managing profitable growth in an increasingly competitive
global environment
● Case II.3: Zalando – how can the online apparel retailer turn financial losses into
positive profits?
● Case II.4: Ferrari – international market selection (IMS) for the exclusive sports car
brand
● Case III.2: Netflix Inc. – the US internet subscription service company is dominating
the television and movies and streaming world
● Case IV.3: Dyson – the iconic vacuum cleaner manufacturer launches the robotic
version
● In total 6 (chapter cases) + 2 (part video cases) + 5 (part cases) = 13 new cases have been
added to the book, making a total of:
● 38 chapter case studies (two per chapter) + 5 part video case studies (one per part) + 19
chapter video case studies (one per chapter) + 25 part case studies (five per part) = 87
case studies in all.
● Furthermore 16 completely new exhibits have been added to the book. The total num-
ber of exhibits is now 72.
Pedagogical/learning aids
One of the strengths of Global Marketing is its strong pedagogical features:

● Chapter objectives tell readers what they should be able to do after completing each
chapter.
● Real-world examples and exhibits enliven the text and enable readers to relate to mar-
keting models.

Preface xxiii
● End-of-chapter summaries recap the main concepts.

● Each chapter contains two case studies, which help the student relate the models pre-
sented in the chapter to a specific business situation.
● Questions for discussion allow students to probe further into important topics.
● Part cases studies – for each part there are five comprehensive case studies covering the
themes met in the part. To reinforce learning, all case studies are accompanied by ques-
tions. Case studies are based on real-life companies. Further information about these
companies can be found on the internet. Company cases are derived from many differ-
ent countries representing all parts of the world. Tables 1 and 2 present the chapter and
part case studies.
● Multiple choice questions.
● Part video case studies: each part is introduced by a video case which highlights a
general decision problem from the part.
Chapter case studies: overview (the video case studies can be viewed at www.pearsoned.co.uk/
Table 1
hollensen)
Chapter Case study title, subtitle and related Country/area of Geographical Target market
websites company target area
headquarters B2B B2C
Chapter 1 Global Case study 1.1 US US, World ✓ ✓

marketing in the Green Toys, Inc.
firm A manufacturer of eco-friendly toys is going
international www.greentoys.com
Case study 1.2 UK World ✓

Hunter Boot Ltd
The iconic British brand is moving into
exclusive fashion www.hunterboots.com
Video case study 1.3 Germany World ✓

Nivea (8.56)
www.nivea.com
Chapter 2 Case study 2.1 Switzerland World ✓ ✓

Initiation of LifeStraw (developing
internationalization Vestergaard-Frandsen transforms dirty water countries)
into clean drinking water
www.vestergaard.com
Case study 2.2 US World ✓

Elvis Presley Enterprises Inc. (EPE)
Internationalization of a cult icon
www.elvis.com
Video case study 2.3 US World ✓

TOMS Shoes (developing
www.toms.com countries)
Chapter 3 Case study 3.1 US World ✓ ✓

Internationalization Zumba
theories A dance phenomenon is going global
www.zumba.com
Case study 3.2 UK World ✓

DreamWorks Classics
Internationalization of Postman Pat
http://classics.dreamworksanimation.com

xxiv Preface
Table 1 Continued
Video case study 3.3 US World ✓ ✓

Reebok (9.09)
www.reebok.com
www.adidas-group.com
Chapter 4 Case study 4.1 Japan World ✓ ✓

Development of Nintendo Wii
the firm’s Nintendo’s Wii took first place in the world
international market – but it didn’t last
competitiveness www.nintendo.com
Case study 4.2 China World ✓ ✓

DJI Technology Co. Ltd
A Chinese ‘born global’ is dominating the
world market for drones with its Phantom
www.dji.com

Nike (14.03)
www.nike.com
Chapter 5 Global Case study 5.1 Germany World ✓

marketing Teepack Spezialmaschinen GmbH
research Organizing a global survey of customer
satisfaction
www.teepack.com
Case study 5.2 Denmark World ✓

LEGO Friends
One of the world’s largest toy manufacturers
moves into the girl’s domain
www.lego.com
Video case 5.3 Germany World ✓

BMW i3
The electric car
www.bmw.com
Chapter 6 The Case study 6.1 US World ✓ ✓

political and G-20 and the economic and financial
economic crises
environment What on earth is globalization about? Protests
during a meeting in Brisbane, Australia,
November 2014
www.theguardian.com/world/
g20-brisbane-2014
Case study 6.2 Denmark, US, World ✓

Danfoss Power Solutions Germany
Which political/economic factors would
affect a manufacturer of hydraulic
components?
www.powersolutions.danfoss.com

Preface xxv
Table 1 Continued
Video case study 6.3 US US ✓ ✓

Debate on globalization
No website available
Chapter 7 The Case study 7.1 Canada World ✓

sociocultural Cirque du Soleil Inc.
environment The show that revolutionized the circus
arts is expanding its global scope
www.cirquedusoleil.com
Case study 7.2 Sweden, World ✓

IKEA catalogue Holland
Are there any cultural differences?
www.ikea.com
Video case study 7.3 ✓ ✓

Allergan
The maker of Botox and breast implants
www.allergan.com
Chapter 8 The Case study 8.1 India World ✓ ✓

international Tata Nano (emerging
market selection International market selection with the countries)
process world’s cheapest car
www.tatamotors.com
Case study 8.2 Holland World ✓

Philips Lighting
Screening markets in the Middle East
www.philips.com

Oreo (Mondelēz)
www.oreo.com
Chapter 9 Some Case study 9.1 Norway World ✓ ✓

approaches to the Jarlsberg
choice of entry The king of Norwegian cheeses
mode is deciding on entry modes into new markets
www.jarlsberg.com
Case study 9.2 Australia, Europe, World ✓

Ansell condoms Belgium
Is acquisition the right way to gain market
shares in the European condom market?
www.anselleurope.com
www.lifestyles.com
Video case study 9.3 World China ✓

Understanding entry modes into the
Chinese market
No website available

xxvi Preface
Table 1 Continued
Chapter 10 Export Case study 10.1 Norway Germany, the ✓ ✓

modes Lysholm Linie Aquavit rest of the
International marketing of the Norwegian world
Aquavit brand
www.linie.com
Case study 10.2 India World ✓ ✓

Parle Products
An Indian biscuit manufacturer is seeking
agents and cooperation partners in new
export markets
www.parleproducts.com
Video case study 10.3 US World, US ✓

Honest Tea
www.honesttea.com
Chapter 11 Case study 11.1 Japan World ✓ ✓

Intermediate entry Hello Kitty
modes Can the cartoon cat survive the buzz across
the world?
www.sanrio.com
Case study 11.2 Denmark World ✓ ✓

Kabooki
Licensing in the LEGO brand
www.legowear.dk

Marriott (9.36)
www.marriott.com
Chapter 12 Case study 12.1 US World, Asia ✓ ✓

Hierarchical Polo Ralph Lauren
modes Polo moves distribution for South-east
Asia in-house
www.ralphlauren.com
Case study 12.2 UK World ✓ ✓

Durex Condoms
SSL will sell Durex condoms in the Japanese
market through its own organization
www.durex.com

Starbucks
www.starbucks.com
Chapter 13 Case study 13.1 UK World ✓

International ARM
sourcing decisions Challenging Intel in the world market of
and the role of the computer chips
subsupplier www.arm.com

Preface xxvii
Table 1 Continued
Case study 13.2 Germany World ✓ ✓

Bosch Indego
How to build B2B and B2C relationships in a
new global product market – robotic
lawnmowers
www.bosch.com
Video case study 13.3 Finland World ✓

Kone elevators and escalators
www.kone.com
Chapter 14 Case study 14.1 Denmark Saudi Arabia ✓ ✓

Product decisions Danish Klassic Middle East
Launch of a cream cheese in Saudi Arabia
www.arla.com (regarding the Puck brand)
Case study 14.2 US World ✓ ✓

Zippo Manufacturing Company
Has product diversification beyond the
lighter gone too far?
www.zippo.com
Video case study 14.3 UK World ✓

Burburry branding
www.burberry.com
Chapter 15 Pricing Case study 15.1 US US, Europe ✓

decisions and Harley-Davidson
terms of doing Does the image justify the price level?
business www.harley-davidson.com

Gillette Co.
Is price standardization possible for razor
blades?
www.gillette.com
Video case study 15.3 US US, World ✓

Vaseline pricing strategy
www.vaseline.com
Chapter 16 Case study 16.1 South Africa, Europe, World ✓ ✓

Distribution De Beers UK, Luxembourg
decisions Forward integration into the diamond industry
value chain
www.debeers.com

Tupperware
The global direct distribution model is still
working
www.tupperware.com
Video case study 16.3 Germany World ✓

DHL
www.dhl.com

xxviii Preface
Table 1 Continued
Chapter 17 Case study 17.1 Norway US ✓ ✓

Communication Helly Hansen
decisions Sponsoring fashion clothes in the US market
www.hellyhansen.com
Case study 17.2 UK World (Europe ✓ ✓

Morgan Motor Company and US)
Can the British retro sports car brand still be
successful after 100 years?
www.morgan-motor.co.uk
Video case study 17.3 Germany US, World ✓ ✓

BMW Motorcycles
www.bmwmotorcycles.com
www.bmw.com
Chapter 18 Case study 18.1 Iran Europe, Middle ✓ ✓

Cross-cultural ZamZam Cola East
sales negotiations Marketing of a ‘Muslim’ cola from Iran to the
European market
www.zamzamrefreshment.com
Case study 18.2

TOTO
The Japanese toilet manufacturer seeks export
opportunities for its high-tech brands in the
US
www.toto.co.jp/en/
Video case study 18.3

Dunkin’ Donuts
www.DunkinDonuts.com
www.dunkinbrands.com
Chapter 19 Case study 19.1 US World ✓ ✓

Organization and Mars Inc.
control of the Merger of the European food, pet care and
global marketing confectionery divisions
programme www.mars.com
Case study 19.2 Germany World ✓ ✓

Henkel
Should Henkel shift to a more customer-
centric organization?
www.henkel.com

McDonald’s
www.mcdonalds.com

Another random document with
no related content on Scribd:
Tudela, writing about the middle of the twelfth century, testifies to the
tenacity with which many of the Jewish communities in Europe,
which he visited in his tour, clung to the belief that they were
destined to be redeemed from captivity and be gathered together in
the fulness of time. The various Messiahs whose rise and failure
have been narrated in the foregoing pages would never have
attained their wonderful popularity but for this belief. But even in
normal times it was the ardent desire of every good Jew to die in
Jerusalem, and the longing of some to live there. This desire was
nursed by the poets and thinkers of Israel. We have seen at the
beginning of the twelfth century Jehuda Halevi addressing Zion, in
accents full of tenderness, as his “woe-begone darling,” and in
fulfilment of a life-long vow ending his days among her ruins. A
century later three hundred Rabbis from France and
1211
England set out for Palestine.
1260 In 1267 Nachmanides, faithful to his own teaching,
performed the pilgrimage to Jerusalem, and found the
city, owing to the ravages of the Mongols, a heap of ruins—a
devastation which was considered to indicate the near approach of
the Messiah. Nachmanides, in a letter to his son, thus describes the
melancholy sight: “Great is the solitude and great the wastes, and, to
characterise it in short, the more sacred the places, the greater the
desolation. Jerusalem is more desolate than the rest of the country:
Judaea more than Galilee. But even in this destruction it is a blessed
land.” He goes on to say that, among the two thousand inhabitants to
which the population of Jerusalem had been reduced by the Sultan’s
sword, he found only two Jews, two brothers, dyers by trade, in
whose house the Ten Men, the quorum necessary to form a
congregation for the purpose of worship, met on the Sabbath, when
they could; for Jews and Jewesses—“wretched folk, without
occupation and trade, pilgrims and beggars”—continued to come
from Damascus, Aleppo, and from other parts, to mourn over the
ruins of Zion. In spite of all the afflictions which met his eye, and in
spite of his longing for the friends and kinsmen whom the aged
pilgrim had forsaken without hope of ever seeing again,
Nachmanides is able to declare that for all those losses he is amply
compensated by “the joy of being a day in thy courts, O Jerusalem,
visiting the ruins of the Temple and crying over the ruined Sanctuary;
where I am permitted to caress the stones, to fondle the dust, and to
weep over thy ruins. I wept bitterly, but I found joy in my tears. I tore
my garments, but I felt relieved by it.” Nor does the Jew’s sublime
optimism fail him even in view of that desolation: “He who thought us
worthy to let us see Jerusalem in her desertion, he shall bless us to
behold her again, built and restored when the glory of the Lord will
return unto her ... you, my son, you all shall live to see the salvation
298
of Jerusalem and the comfort of Zion.”
The example of this noble old man was followed by many Jews
of Spain and Germany, both in his own and in subsequent times.
Down to this day a pilgrimage to Jerusalem is considered a sacred
duty, and many devote the savings of a laborious life to defray the
expenses of a last visit to the Fatherland—“our own land.” Like
shipwrecked mariners long tost on the waves, they drift year after
year from all parts of the world to this harbour of rest and sorrow and
hope. On the eve of the Passover aged Jews and Jewesses of every
country on earth may be seen leaning against the grim ruin of the
Temple—all that remains of the magnificence of Israel—weeping and
wailing for the fall of their nation. They kiss the ancient stones, they
water them with their tears, and the place rings with their poignant
lamentations.
And yet, though many come to lament the faded lustre of their
race, and are happy to die in Palestine, how many are there who
would care to live in it? This is a question to which different Jews
would give different answers. It may be urged that the longing for
Zion is a romantic dream which might lose much of its romance by
realisation. It can also be shown that the Jewish people has seldom
thriven in isolation; that a narrow environment is uncongenial to its
temperament; and that the Jew has always instinctively preferred the
life which is more suitable to the free development of his gifts—that
is, the life of competition with foreign nations. All this may be to a
great extent true; but, none the less, there are Jews who believe that
the majority of their race, or at all events the suffering portion of it,
would, under favourable conditions, gladly return to the land of their
ancestors. The same belief has been held by several distinguished
Christians, British and American, who at various times have lent their
support to the movement for Jewish rehabilitation—some actuated
by an enthusiasm for the Millennium, others by an enthusiasm for
British interests in the East. Among the latter may be mentioned Lord
Palmerston and Lord Salisbury, both of whom years ago
countenanced the attempts made to obtain from the Sultan a
concession of territory in Palestine for the purpose of establishing a
299
self-governing Jewish colony.
But while the bulk of the race enjoyed comparative toleration,
few Jews were there found willing to relinquish the land of their
adoption for the gratification of a merely sentimental yearning
towards that of their remote forefathers. It was not until the revival of
persecution under its more rabid and sanguinary forms that the
Zionist Utopia became a living reality, and the assertion of Gentile
Nationalism led to a corresponding invigoration of Jewish
Nationalism. Then the Jews began to consider seriously the problem
of the future of their race, and to cast about, once more, for a refuge
where they could worship their God unmolested, develop their moral
and intellectual tendencies uninfluenced by an alien environment,
and pursue their daily occupations unfettered by legal restrictions.
Such a refuge could only be found in Palestine. One of the
promoters of this idea summed up the reasons, which led him to the
choice of Palestine, in the following terms:
“In Europe and America it is a crime to have an Oriental genius
or an Oriental nose; therefore, in God’s name, let the Jew go where
300
his genius will be free and his nose not remarked.”
The massacres of Russian Jews in 1881 and 1882 coincided
with the publication of various schemes of rescue by members of the
persecuted race, who found many sympathisers outside Russia. The
practical fruit of the agitation was the birth, among other committees
and societies all over Russia and Roumania, of an association under
the name of “Chovevi (Lovers of) Zion,” the programme of which was
to promote the settlement of Jewish refugees in the Holy Land with a
view to the ultimate creation of an autonomous Jewish State. This
was the origin of the movement now known all over the world by the
name of Zionism. From the very first it met with a reception which
proved how sincere and how widespread was the desire for a return
to the Land of Promise. A writer, well qualified to speak on the
subject, thus describes the welcome accorded to the proposal: “It
has seized upon the imagination of the masses and produced a
wave of enthusiasm in favour of emigration to Palestine, the force
and the extent of which only those who have come in contact with it,
301
as I have done, can appreciate.”
It was not, however, until 1896, when Dr. Theodor Herzl came
forward with a definite plan, that the movement acquired
cosmopolitan importance and was placed on a solid practical
foundation. Dr. Herzl was a Jewish journalist of Vienna, born in
Buda-Pesth on the 2nd of May, 1860. He was the son of a well-to-do
merchant, and was educated in Vienna, where his parents had
removed shortly after his birth. Having for some time practised at the
Bar, he subsequently gave up Law for Literature, contributed to the
Berliner Tageblatt and other journals, and wrote several novels and
plays. In 1891 he was appointed Paris correspondent of the Vienna
Neue Freie Presse, and it was during his sojourn in Paris that Dr.
Herzl, filled with indignation at the outburst of French anti-Semitism,
and dismayed by the triumph of the enemies of the Jews in Austria,
resolved to undertake the lead in the movement for the rescue of his
co-religionists. Even if no practical result were attained, he felt that
the effort would not be utterly wasted, as it would, at all events, tend
—in the words of the Zionist programme adopted at the first
Congress in Basel, in 1897—to promote “the strengthening of Jewish
individual dignity and national consciousness.”
Firm in this conviction, the young leader expounded his scheme
in a pamphlet which appeared in 1896 in the three principal
European languages, under the title, The Jewish State: an attempt at
a Modern Solution of the Jewish Question. According to Dr. Herzl’s
proposal the State was to be a self-governing republic tributary to the
Porte. Christian susceptibilities would be consulted, and diplomatic
complications avoided, by establishing the principle of broad
religious toleration, and by excluding from Jewish jurisdiction the
scenes of Christ’s life and death, and the shrines of the different
Christian communities in Palestine. The plan was received with
applause by a minority in every quarter, and Dr. Herzl found
enthusiasts in both hemispheres ready to help the cause with their
pens and with their purses. A Zionist newspaper was founded in
Vienna (Die Welt), a new Zionist Association was organised with
numerous ramifications in all parts of the Jewish world, and in less
than seven years from its beginning the movement numbered
several hundred thousand of adherents. The Association holds
annual Congresses in various great European centres, with a view to
disseminating the idea, discussing all details connected with the
movement and deciding on the practical steps necessary to its
success.
It is obvious that the first requisite was the Turkish Government’s
consent to the acquisition of land in Palestine on the terms already
described. For this purpose Dr. Herzl paid a visit to Yildiz Kiosk in
May, 1901, and again in August, 1902. The latter expedition was
undertaken in response to a telegraphic invitation from the Sultan
himself, who expressed the desire to be informed of the precise
programme of the Zionists. Regular conferences took place with high
officials both of the Palace and of the Porte, and in the end Dr. Herzl
drew up and laid before Abdul Hamid a minute statement of his
views, explaining the demands of the Zionists and formulating the
conditions of a Jewish settlement in a part of Palestine and
elsewhere in Asia Minor, on the basis of a charter. The proposals
were duly considered, and the Sultan expressed his deep sympathy
with the Jewish people, but the concessions which he was prepared
to make for a Jewish settlement were not considered adequate by
the leaders of the Zionist movement, and the negotiations led to no
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definite result.
Indeed, the obstacles in the way of a satisfactory arrangement
on the basis of the Zionist programme are neither few nor small. The
Turks, it is true, have always displayed towards the Jews a degree of
toleration such as the latter have seldom experienced at the hands
of Christians. As we have seen, in the fifteenth and sixteenth
centuries Turkey was the only country that offered an asylum to the
Jewish refugees from the West. Religious sympathy may be partially
responsible for this toleration, strengthened by the fact that the Jews
of Turkey, devoid of all national aspirations, are distinguished among
the Sultan’s subjects by their loyalty to the Ottoman rule, and by their
readiness to help the Porte in the suppression of Christian rebellion.
It has also been suggested that Abdul Hamid was anxious, by a
display of sympathy with the Jews generally and the Zionists in
particular, to secure their powerful championship in the West against
the host of enemies which the Armenian massacres had raised to his
Empire. Hence the present Sultan’s attitude towards the race—an
attitude which in its benevolence contrasts strongly, if not strangely,
with the treatment meted out to his Christian subjects. In 1901 Abdul
Hamid appointed members of the Hebrew community to important
posts in the Turkish army, and attached two more to his personal
entourage. On another occasion, when a blood-accusation was
brought against the Jews by the Christians of the East, he caused
the local authorities to take steps to prove its groundlessness and
clear the Jews of the heinous charge. And yet, it would be hard to
imagine the Sultan giving his sanction to the creation of a fresh
nationality within his Empire, and thus adding a new political problem
to the list, already sufficiently long, which makes up the
contemporary history of Turkey. Moreover, concerning the return of
the Jews to the Land of Promise, there are certain old prophecies to
whose fulfilment no true Mohammedan can be expected to
contribute. For both these reasons, political and religious, the Turkish
Government in 1882, upon hearing that the Jews who fled from
Russia were meditating an immigration into Palestine, hastened to
arrest the movement.
But, even if the Sultan could be brought, as Dr. Herzl hoped, “to
perceive the advantages that would accrue to his Empire from a
Jewish settlement on the basis of the Zionist programme,” it should
not be forgotten that the Sultan is not the only, or indeed the most
important, agent in the matter. Palestine, and Asia Minor generally, is
a field for the eventual occupation of which struggle most of the
Great Powers of Europe. Missions of a semi-religious, semi-political
character, representing several European nationalities, and
sedulously supported by several European Governments, have long
been at work in the land. Among them may be mentioned the
Russian, the French, the Italian, and the German. Russia, who
persecutes the Jews at home, would not see with any degree of
pleasure a hostile population, consisting for the most part of her own
victims, settled in a province to the ultimate absorption of which she
aspires; the less so as that population will in all probability be under
British influence. Although, for reasons not difficult to fathom, the
Russian Consuls in Palestine and Syria are instructed to extend over
the Russian Jews in those countries a protection with which the latter
very often would gladly dispense, the Russian Minister of Finance, in
1902, forbade the sale of the Jewish Colonial Trust shares in the
Czar’s dominions—a step which created great perturbation in the
ranks of Polish Zionists, the most deeply affected by the
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prohibition. This measure, harmonising as it does with Russia’s
well-known designs in Palestine, throws on that Power’s real attitude
towards Zionism a light too clear to be affected even by the Russian
Government’s assurances of a benevolent interest in the
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movement. An analogous opposition, in a minor degree, may
reasonably be anticipated on the part of the rival Powers, especially
Germany, and that despite the promises which the German Emperor
made to the delegation of Zionists who waited on him during his visit
to Palestine in 1898. Both Russia and Germany enjoy a strong
ascendancy over the present Sultan, whose fear of the one Power
and appreciation of the other’s friendship are too lively to permit of
any action calculated to offend either. The Christians of the East are
also a power to be reckoned with, and they, any more than the
Christians of the West, would not bear to see the sanctuary of
Christendom falling into the hands of the “enemies of Christ.” The
extra-territorialisation of Jerusalem has indeed been suggested by
the Zionists. But is it to be expected that the Jews will ever really
resign themselves to the final abandonment of Zion? The more
powerful they grew in Palestine the less inclined would they be to
suffer the ancient capital of their nation to remain in any hands but
Israel’s.
To these external difficulties must be added the lack of unanimity
among the Jews themselves. Although the Zionist movement is
undoubtedly enjoying a considerable measure of popularity, it is
subject to a measure of opposition no less considerable. The great
Jewish financiers of the West, who, thanks to their wealth, have little
reason to complain of persecution, have hitherto shown themselves
coldly sceptical, or even contemptuous, towards the idea. Nor has its
reception been more cordial among the high spiritual authorities of
Israel. Both these classes hold that the plan of restoration, even if it
prove feasible, is not desirable. To the cultured and prosperous Jew
of the West the prospect of exchanging the comforts and elegant
luxuries of civilised life in a European or American city for the barren
obscurity of an Asiatic province is not alluring. The re-settlement of
Israel in Palestine has no charm for him. To him the old prophecies
are an incumbrance, and their fulfilment would be a disappointment.
For such a Jew nothing could be more inexpedient or more
embarrassing than the advent of the Messiah. This attitude is well
illustrated by a saying attributed to a member of the wealthiest
Jewish family in Europe: “If ever the Messiah came,” is this
gentleman reported to have said, “I would apply for the post of
Palestinian ambassador in London.” Less polished, but not less
significant, was another Western Jew’s terse reply to the question
whether he would go to Palestine: “Pas si bête.”
Even so, what time Cyrus permitted the captives of Babylon to
return to the land of their fathers, many preferred to remain in rich
Mesopotamia. The sacrifice of present comfort in the pursuit of a
romantic ideal presupposes a degree of emotional fervour and of
material wretchedness that it would be unreasonable, if not
uncharitable, to demand from a whole nation. But this opposition, or
indifference, to the Zionist efforts at repatriation does not necessarily
and in all cases spring from worldly motives of self-indulgence. It is
only one manifestation of a sincere divergence of sentiment which
has its sources deep in the past of the Jewish race, or, one might
say, of human nature, and which can only be adequately treated in a
separate work on Modern Judaism. Here it is sufficient to describe it
only in so far as it bears on the subject immediately under
discussion. Zionism, while acclaimed with enthusiasm by the Jews of
the East, has met in the West with two sets of adversaries who,
though asunder as the poles, have found a common standpoint in
their opposition to the movement. These adversaries are the
extreme Liberal and the extreme Orthodox Jews of Western Europe
and America—the Sadducees and Pharisees of to-day. The one
scoffs at the movement as too idealistic, the other as not idealistic
enough. The contempt of the one is based on commonsense; that of
the other on the Bible. The one objects to all Messiahs; the other
refuses to follow any but the Messiah. To the one Dr. Herzl appeared
as a dreamer of dreams; to the other as a prosaic utilitarian. The
sentimental aim of Zionism is an offence in the eyes of the one; the
other condemns its methods as sordidly practical. They both, starting
from diametrically opposite premises, arrive at the conclusion that
the movement is a set-back of Jewish history, an agitation, artificial
and superfluous, which “has no roots in the past and no fruits to offer
for the future.”
The Liberal Jew’s ideal is not separation from the natives of the
country of his adoption, but assimilation to them. He has long lived in
political freedom. All careers are open to him; all objects of
distinction for which men strive are within his reach. He is an ardent
patriot. The political toleration to which he owes his liberty is
accompanied by a religious breadth, or may be scepticism, in which
he fully participates. Like his Christian neighbour, he is content to live
in the present. He has gradually abandoned the ceremonial
observances of the Law and the belief in a Messianic restoration,
and is trying to obliterate all traces of tribal distinction. By
intermarriage and education he endeavours to identify himself with
the country of which he is a citizen. In point of nationality he calls
himself a German, a Frenchman, an Italian, an Englishman, or an
American. In point of creed he may be a Reformed Jew, a Unitarian,
a Theist, an Atheist, or a placid Agnostic. This attitude is as
intelligible as the sentiment from which it springs is respectable.
Such a Jew feels that he cannot be a citizen of two cities. He must
choose; and in his choice he is guided by self-analysis. He feels that
the country of his birth has greater claims upon him than the country
of his remote origin; that he has more in common with his next-door
neighbours than with the Patriarchs and Prophets of Asia.
To this category evidently belongs the anonymous author of a
book that may be regarded as the Liberal Jew’s apologia pro vita
sua. After having demonstrated that among modern Jews there is,
strictly speaking, neither racial nor religious unity, the writer goes on
to explain what, in his opinion, should be the attitude of “the modern
Occidental Jew”:
“Such a Jew, educated in an English, German, French, or
American school and university, is certainly in looks, manners,
character, habits, tastes, and ideas as different from a Jew of Turkey,
or Egypt, or Russia as he can well be. The people to whom he
corresponds in all essential points are the people of his own country
in which he was born and bred and has lived.... Now, what must
such an Occidental Jew say of himself, if he is true to himself, and if
he recognises truth in all matters as the supreme guide of man? He
will have to say that the strict racial unity of the Jews is doubtful,
even with regard to the past; and as regards the present he will have
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to deny it altogether.”
The author proceeds to point out that, with regard to his moral
and intellectual development, the Occidental Jew has undergone the
same educational influences as his Christian compatriot and
contemporary: Hebraism, through the Bible, Hellenism through the
Renaissance, Catholicism, Chivalry, Reformation, French
Revolution: “He must finally, above all, remember his indebtedness
to the moral standard of modern times, that love of man as man
which is the result of no one of these currents alone, but is the
outcome of the action of all of them, and to the standard of truth, as
intensified by modern science. Now, realising all this, he must admit
that a very small portion of his moral and intellectual existence is
Jewish in the Oriental sense of the term, and he cannot thus be
cramped back into the laws which are to govern the thought and life
of a Jew as laid down in the Talmud and embraced by the practices
of the devout and observant Jew. He is speaking and living a lie if he
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denies this by word or deed.”
The practical question arises: “Recognising the evils of racial
exclusiveness, what ought such a modern Occidental Jew to do?”
The answer is: “He has simply to live up to his convictions in every
detail of his life. He must not only, as he has ever done, perform the
duties of a citizen in the country in which he lives, fully and
conscientiously, but he must refuse, as far as the race question
goes, in any way to recognise the separate claims of the Jews within
his country.... He may feel justly proud of being a descendant of a
race which is not only the oldest and purest, but has through many
centuries steadfastly followed the guidance of a great spiritual idea
to the blessing of mankind, just as a Norman, or a Saxon, or a Celt in
Great Britain may, when called upon to do so, consider, and be
gratified by, the memory of his own racial origin. Beyond this he must
not go. He must spurn and avoid all those symbols and rites which
have been established to signify a separate, even though a chosen,
people. His marriage and his choice of friends must be exclusively
guided by those considerations of inner affinity which are likely to
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make such unions perfect as far as things human can be perfect.”
Such a Jew’s advice, if asked by his less advanced brethren of
Eastern Europe, would be, not to perpetuate the narrowness of
antiquity, but to share in the broad development of modern
civilisation. Not to go back to the political and religious isolation of
Palestine, but to move on with the political and religious progress of
modern Europe and America: to seek for light not in the East but in
the West. He regards the memories of Israel with indifference, and
its aspirations with perplexity. He can hardly enter into his Polish
brother’s soul and realise his modes of thought and feeling. To him
the longing for Zion is an incomprehensible mystery, the attempt to
gratify it a wild and hopeless adventure. If Eastern Europe will not
have the Jews, he is ready to help them to migrate to Western
Europe, or to America; but with the Zionist Utopia he neither can nor
will have anything to do. When told that Western Europe has
eloquently declared her hostility, and America may soon follow, he
calmly answers that anti-Semitism is a passing cloud; the wind which
has wafted it over the western sky will, sooner or later, dissipate it.
Precisely similar are the views entertained by the cultured
minority of Russian and more especially of Polish Jews. Despite the
strong anti-Semitic feeling displayed by the Christian inhabitants of
those countries, the more advanced representatives of the race offer
a vigorous opposition to Zionism and its separatist tendencies,
holding that the re-animation of Jewish national sentiment is a
temporary infatuation due to the cruel treatment of the Jews and
destined to die out with it. These Jews also have abandoned the old
Jewish national ideals, convinced that a man may frequent a Jewish
synagogue and have a Semitic nose and yet be as good a Polish or
Russian patriot as any other. They feel that a thousand years’
residence in Poland has weaned them effectually from any
sentimental attachment to Palestine and that, born and bred as they
are in the North, they are physically unfit for a southern climate. In
one word, they consider themselves both in body and in mind
children of the land in which they have lived and suffered for so
many centuries.
In direct opposition to this type of Jew stands the irreconcilable
and uncompromising Israelite—a man who after twenty centuries’
residence in the West still persists in calling himself Oriental, in
cultivating obedience to antiquated modes of thought, and in
adhering to formulas obsolete and, in his altered circumstances, a
trifle absurd. Like the Zionist of the Russian pale, this Oriental Jew of
the West is ready to exclaim with the Psalmist: “If I forget thee, O
Jerusalem, let my right hand forget her cunning. If I do not remember
thee, let my tongue cleave to the roof of my mouth; if I prefer not
Jerusalem above my chief joy.” But, unlike the Russian Zionist, he
declines to support the movement, the object of which is to restore
him to Jerusalem. His wish is to remain distinct from the Gentiles,
and yet to remain amongst them. He clings to the Pharisaic ideal of
social isolation, while he recoils from geographical and political
segregation. He abhors the Liberal Jew’s doctrine of assimilation and
ridicules the Zionist’s efforts at repatriation. Is the heroic endurance
of Israel under all its sufferings to lead to nothing but racial extinction
by intermarriage—the very thing which, had it been allowed to
happen twenty centuries ago, would have obviated those sufferings?
Such an idea implies a negation of divine justice, and lowers the
solemn tragedy of Jewish history into something quite different. It
also forms a negation of what the orthodox Jew holds to be the
mission of Israel on earth. This mission, according to the orthodox
Jew of the West, is to maintain intact the monotheistic dogma among
the nations of the world. In order to fulfil this mission, Israel must
remain severely apart and yet scattered among the nations. It is the
argument “that it may possibly have been God’s will and meaning,
that the Jews should remain a quiet light among the nations for the
purpose of pointing at the doctrine of the unity of God”—an argument
which Coleridge answered by his famous retort: “The religion of the
Jews is, indeed, a light; but it is as the light of the glow-worm, which
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gives no heat and illumines nothing but itself,” and which a
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modern Jewish writer has described as “a controversial fiction.” It
might, perhaps, be more justly described as an unhappy
afterthought.
A Jew of this type may, or may not, believe in the ultimate
political restoration of his race; but if he believes in it, he holds that it
is to be brought about by some mysterious and miraculous
dispensation of Providence, such as the Pharisees expected to bring
about the conversion of the heathen. He opposes Zionism on the
ground that it discredits Providence by striving to effect by human
means that which, according to the prophets, is to be the special
task of God. His attitude is that of the typical Oriental. Persuaded of
the futility of personal action, he trusts in a vague impersonal Power
which envelops all things and shapes the course of events to an
inevitable and predestined end.
An eminent example of this way of looking at life is presented by
a recent publication, apparently authoritative, though anonymous.
On the one hand the author deplores the liberalism of the Occidental
Jew, and on the other he denounces the Zionism of Dr. Herzl. With
regard to the first, he says: “The miraculous preservation of the Jews
is itself an argument for their election. By every law and rule of
history they should have been exterminated long since, yet we see
them to-day in all parts of the world, fighting steadily and
pertinaciously for the purpose they are set to fulfil. That purpose
carries with it the bar on intermarriage, which, despite occasional
breaches, is still jealously observed by the overwhelming majority of
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Jews as an essential condition of their survival.” The purpose in
question is the one explained already, “to be a light to the nations.”
With regard to Zionism, the author’s position is, to say the least, very
emphatically set forth. For that movement, and for its leader, he
reserves some of his choicest sarcasms. Dr. Herzl is “this
redoubtable Moses from the Press-club”; he is accused of having
“traded on the resources of prophecy”; “Dr. Herzl, with ingenious
effrontery, represented his scheme of evading the mission of the
exiles, and their duty to the lands of their dispersion, as a fulfilment
of the ancient prophecy.” “Dr. Herzl and those who think with him are
traitors to the history of the Jews.” These and similar titles are
abundantly bestowed on the man who has been guilty of the heinous
sin of seeking to redeem his co-religionists from the house of
bondage by purely human means, without waiting for a direct
interference on the part of the Deity,—or of the European Concert:
“The restoration of the Jews to the land of their old independence,”
affirms the author, “may occur in one of two ways. It may be by the
concerted act of the Governments of the countries of their
dispersion, devised as a measure of self-protection against the
spread of the Jews; or by the fulfilment of prophecy when the Jewish
mission is complete.... But Dr. Herzl’s plan makes short work of the
spiritual element in the new exodus of Jewry. He would force the
hand of Providence. The restoration, instead of occurring on the
appointed end of the dispersion, would be interpolated in the middle
of it as a means of evading its obligations. This plan, which is a
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travesty of Judaism, is equally futile as statecraft.”
Many Jews also, who sympathise with the Zionist idea, shrink
from associating themselves with a movement which for the
attainment of its object must necessarily solicit the favour of Abdul
Hamid. They feel that the Sultan, owing to his drastic methods in the
treatment of domestic complaints, is not popular abroad, and they,
not unreasonably, apprehend that any practical advantages which
the movement might derive from its relations with the Sultan would
be more than counterbalanced by the loss of the moral support of
the Christian nations.
Lastly, even among Dr. Herzl’s own adherents, the men who
year after year gathered from all parts of the world in Basel, drawn
thither by one common desire, there did not reign that degree of
concord which is essential for the success of any enterprise of the
magnitude of the Zionist movement. The proceedings in those
congresses have been described by a Jew of the Occidental school
with a vivacity which need not be less accurate because it is
prompted by candid scepticism. “There,” says the chronicler, “at the
gateway to the playground of more than one continent, the Zionists
met annually to disagree in many languages on the advisability of
setting up Israel among the nations again; and here the descendants
of Abraham proved themselves no longer a race but a fortuitous
concourse of peoples: an exceptionally cosmopolitan and polyglot
multitude. More than that, their differences were accentuated by the
very enthusiasm that had drawn them together. The Zionism of the
English stockbroker and the French boulevardier is different entirely
from the sacred hope which the same word connotes for the rabbi of
Eastern Europe.... The young, up-to-date German student in
University club cap, who looked as if he might have stepped out of
‘Old Heidelberg,’ made no secret of his contempt for the gabardined
and long-curled rabbi. To the latter the cigarette which the student
coolly puffed on the Sabbath was desecration; the non-Jewish meals
in which the student indulged daily were regarded with pious horror
and indignation. Not for this had the other come to Basel, and the
sad-eyed and silent delegate who tramped half-way across Europe
on what he deemed a holy pilgrimage sighed and thought that Israel
was in greater darkness in the centre of its new-born hope than in
the unhappy land of persecution wherein he was suffered to exist.
Nor here did he expect to see the sacred Mosaic ordinances openly
flouted, nor those who had committed the greatest of sins—that of
marrying out of the faith—received with enthusiasm. Intermarriage is
the very antithesis of the Zionistic ideal, and here they were
endeavouring to run hand in hand. Here is the canker which is
gnawing at the hope of the sons of Zion. The Jewish race has
always been held inseparable from the religion of Judaism, and it will
ever remain so. But the old tradition, ‘All Israel are brethren,’ no
longer holds good for all that. Like the Christian, the Jew is now a
member first of the land that gave him birth, or which he adopts, and
a Jew afterwards.”
The writer goes on to comment on the inevitable outcome of this
diversity among the delegates: sections, plotting and counter-plotting
against one another, faction, cabal, personal animus, tumult,
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Babel.
This lack of unanimity will, no doubt, become more and more
pronounced as the movement advances from the purely theoretical
to the practical stage. Let us for a moment picture Israel back in
Palestine. Each community of immigrants, bound together by the ties
of language, habit, and particular home associations, will live in a
separate quarter. They will instinctively cling to their mother tongue
and bring up their children in it. The British Jews will despise their
Polish and Roumanian brethren as ignorant, and will, in their turn, be
despised by them as spurious Jews. The Spanish-speaking
Sephardim will scorn and be scorned by the Yiddish-speaking
Ashkenazim. All the differences, social and national, which underlie
the religious unity of Israel will emerge to the surface. The feeling of
brotherly equality will be superseded by class distinctions and, in one
word, freedom will bring about the disruption which oppression had
checked. Even as it is, the difference between the various sections
of the Jewish inhabitants of Palestine is noticeable at every turn.
There is, for instance, a small community, dwelling in a secluded
valley of Northern Galilee and first discovered by Lord Kitchener in
the course of his survey work in Palestine. These are said to be the
remnant of the ancient inhabitants. They speak the tongue of their
Syrian neighbours—an Arabic dialect retaining many elements of
Aramaic—they till the soil as their neighbours do, and, though
scrupulous in the observance of their religion and abstaining from
intermarriage with outsiders, they live on the best of terms with them.
On the other hand, the Jewish immigrants are not only distinct in
dress, dialect, and mode of living from these native Jews, but are
amongst themselves divided by the barrier of language, the Spanish
Jews being utterly unable to understand or to make themselves
understood to their brethren from Northern and Central Europe,
though they all employ the Hebrew characters in writing; and by
manners, the Spanish immigrants, owing to their longer residence in
the country, being more Oriental than the new-comers. The
Sephardim have adopted the Eastern garb and head-dress, and,
besides their Spanish mother-tongue, also speak Arabic. The
Russian and Polish Jews are clad in long flowing gowns of silk or
cloth, and their heads are covered with fur caps. The German Jews
affect the quaint long coat and low wide-awake of the land of their
origin. None of the Ashkenazim are permitted by their Rabbis to
learn Arabic. Their domestic life is that of the Western Judenstadt.
But they all cultivate the long ringlets which the Levitic law
prescribes. Not less marked is their difference in character, “The
Sephardim,” a recent traveller attests, “are tolerant, easy-going, and
sociable. They earn their living largely by manual labour, are fishers
at Tiberias, porters at Jerusalem and Jaffa. The Ashkenazim limit
their activities to traffic, shun work with their hands, are rigid
separatists, sticklers for the observance of the oral law, and
conservative in their Judaism. The Sephardim are stationary in
numbers; the Ashkenazim increase by leaps and bounds. They
constitute the wave of Jewish immigration and stand for the
development of Judaism in Palestine. There are two other sections
of Jews in the country insignificant in number. One comes from
Bokhara, the other from Yemen; the latter are very poor, and follow
the humblest callings. The shoe-blacks of Jerusalem are recruited
from their ranks. These various groups of the Jewish population, one
in race and faith, are so strongly marked off from each other that
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they may be regarded as diverse nationalities.” Finally, it should
be added that, besides the orthodox Jews, both Chassidim and
Karaites are represented in the population of the country.
Diversity of political ideals will intensify the discord arising from
social, sectarian, and national differences. In the new Jewish
commonwealth, it is to be feared, the old feud between the
Pharisees and the Sadducees will be revived under a new aspect.
The more advanced Jews from the West will be anxious to
administer the country on Western, that is secular, principles. The
Rabbis, with the fanatical populace of Eastern, Polish, and
Roumanian Jews at their back, will insist on establishing on a large
scale that supremacy of the Synagogue which formed the basis of
the ancient Hebrew State, and of the internal constitution of the
Jewish communities whilst in exile. And the Rabbis will be supported
by the traditions of the race. The Jewish catechism distinctly states
that the Law of Moses is only in abeyance, and that “whenever the
Jews return to their own land, and again constitute a state, it will
have full force.” Synagogue and State will thus repeat the struggle
which Church and State waged in Christendom for so many
centuries. And, whichever party won, the result would be almost
equally disastrous. Should the Rabbis succeed in establishing the
Levitical polity the country would, in the opinion of a high authority,
“either pass away through internal chaos or would so offend the
modern political spirit that it would be soon extinguished from
outside. If it were secular, it would not be a Jewish State. The great
bulk of its present supporters would refuse to live in it, and it would
ultimately be abandoned to an outlander population consisting of
314
Hebrew Christians and Christian Millennarians.”
However, be the practical difficulties as serious as they may, so
long as anti-Semitism endures the enthusiasm for Zionism is bound
to endure. Mr. Israel Zangwill, one of the most eminent champions of
the cause in England, has repeatedly expounded the views of his
brother-Zionists. In his address to a meeting in May, 1903, he
declared that “the only solution of the Jewish question was to be
found in a legally-assured home in Palestine.” He pointed to the
recent butchery of the Jews at Kishineff as a proof “that the question
was just where it was in the Middle Ages,” and expressed his
conviction that “the rest of Europe also tended to slide back into the
Dark Ages.” Hence arises the necessity for leaving Europe. Referring
to Baron Hirsch’s emigration scheme, Mr. Zangwill said, “Baron
Hirsch left £2,000,000 for emigration only, and £7,000,000 for
emigration principally. His trustees had reduced emigration to a
minimum. They despaired of emigration. But because colonists in
the Argentine and Canada were a failure, was that a reason for
despair? How dared they despair till they had tried the one land to
315
which the Jew’s heart turned?”
In August of the same year the Zionist Congress met at Basel,
and several interesting details were given concerning the progress of
the movement. It was stated that the number of members had risen
from 120,000 to 320,000, all of whom were directly represented at
the Congress by so-called shekel payments. The Report of the
Committee of Management showed that the year’s receipts
amounted to £9886, that Zionism was on the increase everywhere,
and that the Zionist Colonial Bank in London was already declaring
316
small dividends. This bank, it should be noted, was founded
under the name of Jewish Colonial Trust, with a capital of
£2,000,000 in £1 shares, over £350,000 of which has been
subscribed from among the poorer Jews, with the result that it boasts
no fewer than 135,000 shareholders. In addition to this institution,
two more Jewish National Funds have been started, one of them
known as the Shekel Account. In October of the same year the
Odessa newspapers reported that a number of persons, acting on
behalf of 107 Jews, mostly of the working classes, were taking steps
to effect, through the medium of the Colonial Bank, the purchase of
an immense tract of land in Palestine for the purpose of
317
colonisation. In the Zionist Congress of 1904 there were
represented about 2,500 organisations in various parts of the world.
These facts amply prove that Zionism has stirred a very real
enthusiasm among a vast section of the Jewish race, even though it
has stirred an equally real opposition.
In the meantime the Jewish population of Palestine has been
increasing steadily and rapidly, by immigration chiefly of Ashkenazim
refugees from Central and Northern Europe. In 1872 there were
scarcely 10,000 Jews in the Holy Land; by 1882 they had risen to
20,000; in 1890 there were only 25,000; in 1902 they were estimated
at 60,000—distributed in the various towns of Jaffa, Jerusalem,
Safed, Tiberias, and others. In all these places are to be seen new
Jewish colonies housed in neat white-washed buildings which
stretch in barrack-like lines—the bounty of a Rothschild or a
Montefiore. In addition to these urban colonies, there are numerous
agricultural settlements in Central Judaea, Samaria, and Galilee.
Immigration, stimulated by the persecution to which the Hebrew race
is subjected in Eastern Europe, and facilitated by the construction of
the Jaffa-Jerusalem railway, which has now been running for twelve
years, continues, partly under the auspices of the Alliance Israélite
Universelle. This society maintains many schools for boys and girls,
endeavouring to infuse French culture and the new spirit into the
ancient body of Judaism, which in Tiberias especially has always
sought its refuge and its tomb. Besides general instruction, the
pursuits of agriculture and gardening are assiduously encouraged.
From the elementary schools the most promising pupils are sent to
the Professional School of Jerusalem or to the Model Farm of
Mikweh, founded in 1870, whence, at the conclusion of their studies,
the students are placed in the Jewish colonies of Palestine and Syria
as head-gardeners and directors of agriculture, while others are
apprenticed to handicrafts, thus being gradually formed a population
both morally and materially equipped for life’s work under modern
conditions. The agricultural colonies, divided into three groups—
Palestine, Samaria, and Galilee—have helped, it is said, to attach to
the soil some 5000 out of the 60,000 Jews of the country. Other
centres of the same nature are in the course of formation across the
Jordan, towards the Howran range of mountains, where vast tracts
of land were acquired a few years ago, and are slowly reclaimed
from the waste of sand, rock, and marsh by the perseverance and
untiring industry of the Jewish colonists.
But, while dwelling on this bright side of the Zionist movement—
the side of enlightened enterprise—it is well to note another side not
so promising. The recent traveller, already quoted, gives a very
pessimistic account of his impressions. It is to be hoped that his
statements are exaggerated and his pessimism inordinate; but, in
the interests of historic truth, we feel compelled to listen to his tale:
“The Ashkenazim,” he tells us, “preponderate so largely as to swamp
the others. If there is ever a Jewish State, it will be Ashkenazim. The
great mass of them is located in Jerusalem, and the rest in Safed,
Tiberias, and Hebron. Gregarious by instinct, urban by habit, they
herd together in the towns, creating new ghettos similar to those they
have left in Europe. A fraction of them maintain themselves by petty
commerce; the rest live on Haluka, a fund provided by their wealthy
co-religionists in the West. This amounts to £50,000 annually in
Jerusalem. Its object is to enable its recipients to study the Talmud
and engage in religious exercises vicariously for those who
contribute it. Haluka is a fruitful source of sloth and hypocrisy, and
places undue power in the hands of the rabbis who are charged with

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Global Marketing [Print Replica] 8th Edition Svend

Marketing management a relationship approach Third

Global marketing Eighth Global Edition Warren J. Keegan

Principles of Marketing Global Edition Philip Kotler

Sports Marketing : A Global Approach to Theory and

Global Brand Strategy World Wise Marketing in the Age

Toyota's global marketing strategy innovation through

Marketing Opportunities and Challenges in a Changing

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CVR_HOLL0111_07_SE_CVR.indd 1 25/05/2016 16:16

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global MarketinG Svend Hollensen

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First published 1998 by Prentice Hall (print)

© Prentice Hall Europe 1998 (print)

ISBN: 978-1-292-10011-1 (print)

British Library Cataloguing-in-Publication Data

Library of Congress Cataloging-in-Publication Data

Print edition typeset in 10/12 Basic Commercial LT Com by Spi Global

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Part I The Decision Whether To Internationalize 3

Part II Deciding Which Markets To Enter 181

Part III Market Entry Strategies 343

Part IV Designing the Global Marketing Programme 491

Part V Implementing and Coordinating the Global

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Part I The Decision Whether To Internationalize 3

Part I Video case study: Uber 4

1 Global marketing in the firm 5

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4 Development of the firm’s international competitiveness 107

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Part I Case studies

Part II Deciding Which Markets To Enter 181

Part II Video case study: HondaJets – Honda enters the small-sized

5 Global marketing research 185

6 The political and economic environment 218

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Exhibit 6.4 ChotuKool – Indian Godrej is creating a disruptive innovation

7 The sociocultural environment 251

8 The international market selection process 279

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Exhibit 8.3 An example of the ‘trickle-up’ strategy 301

Part II Case studies

Part III Market Entry Strategies 343

9 Some approaches to the choice of entry mode 349

10 Export modes 365

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10.2 Parle Products: an Indian biscuit manufacturer is seeking agents

11 Intermediate entry modes 387

12 Hierarchical modes 420

13 International sourcing decisions and the role of the subsupplier 441

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13.2 Reasons for international sourcing 443

Part III Case studies

Part IV Designing The Global Marketing Programme 491

Part IV Video case study: Tequila Avión 498

14 Product decisions 499

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15 Pricing decisions and terms of doing business 558