Influence of strategic marketing decisions on the performance of foreign manufacturers in the US

Abstract

This study examines marketing influences on the performance of foreign manufacturers operating within the US, where performance is gauged via the joint criteria of market share achieved in the US and rate of utilization of the firm's US production capacity. A discriminant analysis approach finds foreign manufacturers who acquire an existing domestic manufacturing facility as opposed to building one, undertake research and development and introduce locally designed products in the US to be more likely to belong to the group of ‘successful’ firms. Further, a low or competitive price strategy and the practice fo exporting to the U.S. before undertaking manufacturing there are less likely to result in this measure of success.

Keywords:

• marketing strategy
• performance of multinational firms
• multiple discriminant analysis