Chapter 7&8 – International Market selection and Entry
Approaches to market selection ← incremental entry vs simultaneous entries ◦ incremental → usually for small companies with fewer resources that wants to lower their risk preclude economies of scale. ◦ simultaneous → extensive resource thus, resulting in higher operating risk, may decide to leverage across asia pacific area, facilitate economies of scale. ← Concentrated approach vs diversified approach ◦ concentrated → resources limited/concentrated in limited number of markets which will reduce cost and operating risks. Economies of scale. Only concentrating on a number of market ◦ Diversified → spread risks exposure, broadens market
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- barriers can be entry (tariff/non tariff)/exit (profit,dividends+capital, taxation) ← which remaining overseas market should be avoided because competitors (domestic and foreign) are already well established? - help to determine whether market should be included/not because of their potential competitive reaction. Also include entering a market n prevent others entering the market, entering the market where competition already exist-confronting them and entering market where competition doesnt exist. The latter strategy designed to build market share and gain experience by attacking competitive markets in other countries at a latter stage.
4. Market responsiveness → what are firms competitive advantage in OS market ← which remaining OS market are not large enough to justify the marketing effort that will be necessary to gain a satisfactory market share? - can we gain market share despite the competition? ← Which remaining OS market are unlikely to respond to those marketing activities that are considered necessary to establish the g/s in the marketplace effectively? - will the market prevent/allow firm the achieve its objtvs? ← Which remaining OS market prohibit forms of presence that the firm consider as optimal and can afford when entering a new overseas markt? ← Which remaining OS market are unattractive bcos of costs and problems of reaching them from home
| High entry barrier to the industry because of large economy of scale, high CAPEX, and dominating market shares of big players
Marketplace, especially in technology business is growing fast and constantly bringing the new offers to the consumers. As a society we have an ongoing strive for newer and better things. It’s a part of the nature and it might seem like a race, but we tend to think that we can always have something improved. We get a phone, but the new model comes out a month later. We are most likely to go and get the new one, because it has more functions than our other phone. Do we really need that new phone? Probably not, but it’s the need for the newer and better things that will always be there and rule the marketplace. It is a great opportunity for the businesses to grow and to satisfy the consumer’s needs.
Imagine you are part of a strategic planning group at a large corporation that is considering developing a new proposed product. The marketing director has asked your team to do a competitive market analysis to determine the product’s potential success. The analysis will focus on your primary competitor in the product’s market.
* A broader capital base gives the company more access to credit which gives the company an option to venture into new business opportunities
customers lack a commercially viable alternative to Windows” (“Microsoft: Court’s Findings of Fact”). The barrier of entry would “prevent an aspiring entrant into the relevant market from drawing a significant number of customers away from a
DQ 1: Summarize the most important benefits and risks associated with diversification into global markets.
* Limited ability to invest in technology and new products due to smaller corporate sizes and inability to
2. Do the driving forces always outweigh the restraining forces in ensuring the attractiveness of international marketing to the Asia-Pacific firm?
This analysis of this project has been established by its 4 group members researching tactics used for international marketing for Apple, Inc., and to secure funding for the additional growth in marketing status of the company. The purpose of the research was to explore international marketing strategies such as distribution, pricing methods, and promotion and advertising strategies. The collection of data was done through the web by looking at news articles, Apple, Inc.’s website, and analyzing data from previous years of the company. Some findings included the products that are distributed around the world including iPhones, iPads, iPods, and Macintosh computers. The distribution process of Apple, Inc. begins with a China based product setting, then moving to Apple’s logistic center across numerous regions, then to different service
The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.
There are always business risk when it comes to expanding a company, especially from an international standpoint. There are many strategic risk that needs to be evaluated in order to expand the company successfully. Examining the possible risk of foreign currency exposure, basic functions of international banking/financial market, support of long term financing of operations, and assessment of opportunities that can be implemented within the company. There are risk on three dimensions of international finance, economic trends of the country, impact of globalization and monetary system. All of these situations will be discussed in this paper.
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In order to provide effective anti-virus protection VMTEC Sys must think globally. With cyber crime on the rise, no country should be overlooked as the next viable source of a computer virus (Muncaster, 2009). Because China has the most economic opportunities and presents the greatest threat to the personal and small business computer VMTECH Sys has identified a strategic need to establish a research and development division to be physically located in China. This research paper will analyze and review the economic opportunities and threats that VMTECH R&D can expect to encounter as well as other market conditions which will affect the operations of a division located within China.
International business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international production of physical goods and services such as finance, banking, insurance, and construction.
1. Describe the total market (e.g. number of visitors, market share, and visitor expenditure) for TTNQ in the country you have identified as offering the best potential for TTNQ. In describing the total market, you should also provide a brief analysis of trends and past performance of visitors to TNQ from your identified country.