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6b EPRG Framework

The document discusses the EPRG framework for determining a firm's international orientation and strategy. The EPRG framework includes four orientations: ethnocentric (home country focus), polycentric (host country focus), regiocentric (regional focus), and geocentric (global focus). It describes the key aspects of each orientation and provides examples of Nissan taking an initial ethnocentric approach and McDonald's taking a regiocentric approach in India.

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Namrata Singh
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228 views2 pages

6b EPRG Framework

The document discusses the EPRG framework for determining a firm's international orientation and strategy. The EPRG framework includes four orientations: ethnocentric (home country focus), polycentric (host country focus), regiocentric (regional focus), and geocentric (global focus). It describes the key aspects of each orientation and provides examples of Nissan taking an initial ethnocentric approach and McDonald's taking a regiocentric approach in India.

Uploaded by

Namrata Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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6.

b Short notes:

EPRG framework:

A firm having a presence in the global market has to decide the manner in which it
will enter and operate there. Firms in the international market have a different
orientation and operating strategy. The country in which a company has its
headquarter is Home country and countries where it has subsidiaries are known as
host countries. EPRG Framework helps the company to decide the way in which
strategic decisions are being made and how the company manages operations
between headquarter and its subsidiaries. The concept of EPRG was introduced by
Howard V. Perlmutter within the journal article “The Tortuous Evolution of
Multinational Enterprises” in 1969.

1. ETHNOCENTRIC ORIENTATION (Home country orientation)

In this approach, A firm employs home market strategies to the international market.
Plans for overseas market are developed in the home office of the company.
Personnel is hired from home country. Also, promotion and distribution strategies
are similar to that employed in the home country.

2. POLYCENTRIC APPROACH (Host country orientation)

In this approach, marketing strategies are framed out as per the situation of the host
country ( the country where subsidiary is situated). Decisions can be altered as per
the economic, political and cultural disparities in the country. This provides a firm to
manage its operations independently, without much interference from its
headquartered.

3. REGIOCENTRIC ORIENTATION

In this approach, a firm treats a group of countries with similar characteristics as a


single market and accordingly designs a marketing strategy. Countries like India,
Pakistan and Bangladesh possess similar characteristic and can be served well with a
single marketing strategy.

4. GEOCENTRIC APPROACH

This approach maintains a balance between home and host market. Marketing
strategies are not influenced by the home or host country preferences. A firm tries to
adopt globalized marketing, formulates an integrated marketing strategy for across
the globe. this enables a firm to enjoy economies of scale.

Merits of EPRG Framework

 Less expensive as no costs and efforts required for the product


adaptation.
 Easy route to explore international markets with similar domestic
features

Demerits of EPRG Framework

 No optimum and exploitation of international human resource


opportunities
 The main focus is always on the domestic market

Examples of EPRG Framework

Ethnocentric Example – Nissan

The ethnocentric approach of Nissan was quite visible in its initial


years as the cars and trucks exported to the USA were difficult to start
during the cold winter months. In Japan, the car owners would cover
their cars with hoods or blankets during winters and expected
American’s to do the same.

Regiocentric Example – McDonald’s

In the country of India, McDonald’s’ serves the burgers without pork


and beef keeping in mind the religious sentiments of the local citizens

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