EPRG Model

 International business some disadvantages also , there is some strategic decision taken by business to understand how and where to set up business .

The model gives Headquarter details  and the functions .

Ethnocentric Approach - We know that excessive production more than demand of the product either due to competition or change in taste . They are used in secondary market (foreign market ).To disposing of surplus domestic operation . The office is in home country.No major modifications is done. No adulteration is required. It is just extended arms.There is little or no difference in product and Employees are hired of home country for higher position.

What we can do of that surplus amount ?

This surplus amount can be exported to the foreign countries . Under this approach whatever surplus is produced without any intention on focusing international market but simply having surplus production and want to sell in Foreign market . We don't have any specialise policy.

Example - 1. Patanjali only focused on domestic level their strategies in global market was not focused on foreign market needs whatever they did in domestic market it was same in other countries . The product marketing strategies is equal to the foreign market.They are assuming home country is superior and should be used everywhere. 

2. Haldiram is also one of the example for Ethnocentric approach which is successful also.

The difference between Haldiram and Mc Donalds is that the taste is adapted by Country Culture and Haldiram focuses on Indian taste.  Both products are different they are adapting the product on the basis of demographics of the country.

Polycentric Approach -  Mc Donalds is Polycentric Approach , A company gives equal  importance to every foreign country in which it will or is operating .Mc Donalds have different menu in every country depending the demand of the customers .

In India beef is not in the menu whereas in country like Pakistan or USA there is selling of Beef Burgers . 

They are adapting the culture of each country .

The company decentralises all its operations  . Delegates decision making power .

Centralisation is the top Management has decision making and Decentralisation has delegation of the responsibility and decision making.

It is complete opposite to Ethnocentric Approach. This orientation is completely different , they believe the market of every country is different and need to cater the needs as per the demand. Subsidiary is completely different from the other market. Each subsidiary is independent .

It is important because there might be huge difference in the taste and preferences between the home and the host country. 

Example - 1. Pizza Hut , they are customising the market mix as per the host market , they try to look like the Indian market.

2. Google search engines - For every country there is different culture and customs , the google changes its doodles for different events .

Regiocentric Approach -  Company finds economic , cultural , political similarities among regions in order to satisfy the similar needs of potential customers. They focus the strategy on a basis of particular region . They will e targeting a particular region .

If you see region wise there may be some countries which has political economic or cultural similarities .

Example - HSBC is one of the largest banking and financial services organisation in the world, with well established businesses in Europe , Asia pacific region , America , the middle east and Africa. They group countries on the basis of their market characteristics ie market characteristics of these countries would be more or less similar .

Geocentric Approach - Under this approach the company analyses the taste , preferences and needs of the customers in all the foreign markets and adopts a standardised marketing mix. They consider all the countries as one .

So this is generally very difficult because you cannot have a standardised approach , but there are some products which do have a standardised largely standardised.

Example - COCA COLA , they adopted this strategy by selling its popular soft drink with the same content packaging, branding and even to some extent their advertisement thees world wide. You can have a large control over the price of huge economics of scale and prevail over there right!

APPLE is also a Geocentric approach because the product more or less the same in every country in case of shape size features etc.