BA (Hons) Marketing – 3rd year
Mathieu Chomarat: 06110827 Portobello College Year 2006-2007
International Marketing Strategy
Assignment 2: Ikea Case Study
Lecturer: Carmel Gernon Room: F6
Table of Contents
A Brief Introduction to the essay: 1
Macro-environment of Ikea in Brazil: 1
Politic and legal environment: 1
Economical environment: 2
Social environment: 3
Technological environment: 4
Environmental factors: 4
Market strategy entries: 4
Wholly owned stores: 4
Joint venture: 5
Strategy recommended: franchising 6
Success factors in Brazil 7
Know how to attract new customers 7
Be able to sell good quality products at a low price
…show more content…
Furthermore, the government is willing to make the country more liberal. In this intent, Brazil is a part of the Common Market of the South, Mercosur which has founded Common External Tariffs (CET) for Argentina, Brazil, Paraguay and Uruguay, concerning a growing number of products. In the geographic area of Mercosur, the tariffs are also eliminated, and factors of production (labour or capital for example) can move freely. These CET apply for equipment goods at rates included between 0% and 14%[ http://www.septimanie-export.com/fr/fiches-pays/bresil/acces-au-marche] (numbers given for the tariffs applied on the CIF[ Cost Insurance Freight] price of goods). This is a big opportunity for Ikea, because reduced tariffs would reduce prices on their imports to Brazil if they set up one or more outlets there.
There doesn’t seem to have a special law limiting the size for big stores, which quite goes in the right way for Ikea.
Economical environment:
With emerging markets grabbing investors’ attention, many are turning their focus towards South American markets. Strong exports, high commodity prices and increased investments have been contributing factors to growth within many of the Latin American markets[ Ann-Marie Fleming, 19th of Jan 2007, seekingalpha.com, stock market opinions and analysis website].
The total Gross Domestic Product (GDP) of Brazil for the third quarter of 2006 was
A firm 's international marketing program must generally be modified and adapted to foreign markets. This international marketing program uses strategies to accomplish its marketing goals. Within each foreign nation, the firm is likely to find a combination of marketing environment and target markets that are different from those of its own home country and other foreign countries. It is important that in international marketing, product, pricing, distribution and promotional strategies be adapted accordingly. In order for an international firm to function properly, cultural, social, economic, and legal forces within the country must be clearly understood.
After reading the "Direct Mail" article posted in our course, discuss three things you learned related to online giving trends of donors from different generations.
International marketing is the export, franchising, joint venture or full direct entry of a marketing organization into another country. • To bring countries closer for trading purpose and to encourage large scale free trade among the countries of the world. • To bring integration of economies of different countries and there by to facilitate the process of globalization of trade. • To establish trade relations among the nations and thereby to maintain cordial relations among nations for maintaining world peace. • To facilitates and encourage social and cultural exchange among different countries of the world. • To provide better life and welfare to people from different countries of the world. • To provide assistance
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.
The Mayo Clinic is a well-known health care provider that treats international and domestic, upper class society. An example of their consumer base is the President of the Republic of Equatorial Guinea, Teodoro Obiang Nguema Mbasogo, who was seen at the Rochester clinic in New York. Founded almost a Century ago by the “Mayo” family, these world renowned physicians travelled the world comparing notes and surgical approaches as well as adopting international patients, creating an international legacy.
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.
Nike – A report on Nike trainers from Nike Inc. and its market analysis in the UK.
Coca Cola wanted to continue its international expansion because it believed that the U.S. market would eventually reach maturity, and that growth prospects were better overseas. For much of its initial expansion, Coca Cola followed a localization strategy, allowing each country unit to manage its own operations.
For most manufacturers, success or failure is determined by how effectively and efficiently their products are sold through their marketing channel members (e.g., agents, wholesalers, distributors, and retailers). Given this situation, considerable marketing channel research has focused on organizational responsibility for managing channel how interrelationships among a firm and its channel members can be managed better (Achrol and Stern 1988; Anderson et al 1997). Globalization of markets is a phenomenon that has received much attention and been extensively debated both at general societal/institutional/cultural levels and at market and business levels. In any globalization process, distribution of goods and services
This paper analyzes why and how companies set their international business strategies with the host nations and the benefits that they have reaped through the years with their decision. The discussion handles foreign manufacturing strategies with direct investment and without direct investment, its advantages and disadvantages and how companies have profited by their decisions in each of the cases. At the end of the discussion it would be clear that how such business decisions play a vital role in the growth of the companies both in home and host countries
Sourcing assets and not just products: Sourcing products and elements internationally based has long been a trademark of international business. However this features understood that global marketing strategies are much about strength assessing for market approach justification as they are about trademark hoarding abroad.
5. Marketing means solving problems of how best to meet customer needs. What were the mistakes Afjuz made in its former approach to marketing? What marketing strategy should Afjuz adopt to improve its performance on the British market? Give your reasons.
5. Foreign country can change trade laws, devalue the currency, it can happen coup that would expropriate the property of foreign firms.
Agria - Sweden’s leading dairy products cooperative. It is a united organization that develops and sells a line of fresh dairy products. Individual cooperatives had been persuaded to drop their own trademarks, the Delissa line was launched. It compromised yogurts, dessert, fresh cheese and fresh cream. Agria’s share rose from 3% to 25% of Swedish fresh milk products market. 20 000 farmer members of the cooperative had helped build Agria into a powerful national and international organization. By 1997, more than 1.1 billion Delissa yogurts and desserts were being consumed per year world-wide.
The reason why I chose this topic because I would like to become an international business manager in the future, so as a result of that I have to know a lot about the international business environment and that will help to develop my career in international of business management and yes international business environment is related to my area of study or professional field of study, as a student of business administration and management, I would definitely come across learning the principles that guide and help one on how to study the international business environment and adopt it ,