Pitfalls of Ethnocentrism Exposed as Nissan Enters the United States’ Automotive Market: Applying the EPRG Framework

Domestic markets undoubtedly reach maturity, triggering firms to pursue growth internationally. However, stiff competition and challenges arise in the global market as companies engage in a constant battle to sustain competitive advantage. Adapting to these challenges has implications for management, profitability and the workforce. In particular, cultural influences and pressures mean that home country managers are compelled to approach crucial decisions differently. The Ethnocentric, Polycentric, Regiocentric and Geocentric (EPRG) framework has been routinely appraised conceptually. By contrast, this case offers a practical viewpoint of the EPRG framework in the context of Nissan’s foray into the United States’ automotive market; it sheds light on the company’s export motives, the relationship between its home and host markets, and its development of an international marketing strategy and activities to ensure growth in the US market. The case proposes that businesses should consider aligning their strategic planning to suit host country preferences to achieve market growth and drive sustainable competitive advantage. Finally, it poses questions to provoke students’ critical thinking and the application of the EPRG framework in Nissan’s actual scenario vis-à-vis its operations in the US market.