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21 December, 02:27

Rhone-Rohrer Chemicals, a French leader in specialty chemicals used an ethnocentric policy to approach international markets. It followed the same domestic marketing and management practices in foreign markets. Rhone-Rohrer Chemicals' international expansion failed miserably because Rhone-Rohrer Chemicals suffered from:

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  1. 21 December, 02:54
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    Cultural Myopia

    Explanation:

    Myopia in general refers to short sightedness.

    A Cultural myopia refers to the belief that one's own culture is better suited and apt in all situations and circumstances and applies to all people.

    In business context, this conveys the inability of a firm to adopt or modify it's product strategies as per the market conditions of a foreign nation, thereby providing standardized or same products and services as it provides in it's own domestic market.

    For instance, Heinz provides different variants of it's ketchups across the globe, incorporating changes and modifications in ingredients as would better suit a market and better cater to it's needs. The company for instance provides ketchup without onion and garlic as ingredients to suit Indian market requirements.

    In the given case, the chemical company applied the same French ethnocentric policies in international markets and followed the same domestic marketing policies internationally. Thus, it's expansion move failed miserably since it failed to adapt to the requirements of global markets and could not cater to them effectively.
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