In the Montreal market (characterized by bilingualism, strict advertising regulations, distinctive consumer preferences, and harsh winter conditions), there were multiple “friction points” between standardized decisions and local realities. A junior marketing professional acknowledged the importance of the standardization pursued by the parent company and its national subsidiary, but she also recognized its limitations when faced with local realities. Should she raise her concerns at the next Dealer Association Group meeting and highlight the need for adaptation to local specificities?
BMW Montreal Centre: How Much Local Adaptation in a Global Automotive Dealership System?
Aurelia Durand, Marie-Anne Taillandier
Product #:W49132
Supplier:Ivey
Discipline:International Business, Marketing
Setting:Canada, Germany, 2024
Industries:
Geography:
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Learning Objectives
Working through the case will allow students to do the following:
- Identify and explain how the company enters international markets through a combination of foreign direct investment via wholly owned subsidiaries and a dealership system (and contrast this distribution system with franchising).
- Analyze how marketing decision authority is centralized or delegated across global, regional, national, and local levels within the firm’s governance structure, and infer its multinational strategy.
- Evaluate concrete marketing decision frictions in the extended marketing mix, and assess whether specific decisions should be further standardized, locally adapted, or require a combination of both.
- Synthesize the factors influencing standardization versus adaptation decisions by integrating firm-level, industry-level, and country-level considerations.