Strategic Planning for Market Entry
Barriers to Entry
Market Challenges
Trade Barriers
Standards
EU Regulations
Conformity Assessment
Product Certification
Accreditation
Market Entry Strategy Selection
Franchising
Joint Ventures/Licensing
Licensing
Agents, Distributors and Trading Houses Agents
Distribution and Sales Channels
E-Commerce
Germany
EU Regulations
Strategic Alliances, Licensing and Franchising
Joint Ventures
Foreign Direct Investment
Finding the Right Partner
Negotiating a Partnership Agreement
The Agreement Checklist
Have the salient points of the agreement been agreed upon in principle?
Participants and their Roles
Negotiation Baselines
Section 10: Managing International Business Operations
Exit Strategies
Conclusion
Introduction
In this work, the case study of Tesla Motors has been taken as an example to understand the strategies of international businesses with particular attention to Germany. The work begins with exploration of strategies pervasive in international markets with close attention to entry issues. The various forms of foreign investments and business like Greenfield, acquisitions, mergers, and Joint Ventures are explored (Lymbersky 2008, p.7) in the said context of the target of Tesla motors in the automobile sector in Germany.
Section 1: Strategic Planning for Market Entry
The main strategy adopted by companies like Tesla Motors looking to expand operations inland as well as in foreign locations is by being innovative, economical, and giving more value for money. However, the critical questions that need be answered are: is it worth to be a pioneer in these rapidly changing times? Or is it better to let others make the move first and then improvise, learning from the mistakes others commit ?How much lead would you concede by holding back? What steps would ensure market share with newer entrants trying to slice into your market? If you choose to follow suit rather than taking the lead, what strategies are most beneficial? (Kalyanaram & Gurumurthy 1998, p.1; Benjamin Levi, 2006) Tesla Motors' mainstay is its innovativeness. Radical changes in conveyances are sought by this company and it strives to take the industry to the next level. Strategic planning in accordance with the rules and regulations in Germany need to be addressed with due diligence, lest it falls short of expectations.
Scientific studies present that typically, pioneers in the industry comes with a considerable along with permanent market-share benefit over those following the leaders. Tesla can choose to take lead in the auto industry with its pioneering efforts, as Germany offers bountiful of opportunities for exactly this innovative spirit. However, late entrants can still succeed simply by adopting exclusive positioning along with advertising and marketing methods. Innovators mostly, when they reach the settled phase, usually take a dominant stance. At times, they allow complacency to seep in, and thus may not be able to respond swiftly enough to changes in the demand value of the industry as well as those of the customers. This is another important consideration that Tesla Motors should be alert about. Relatively new entrants can easily reap the benefits of vacuum thus created in the demand-supply domain left unexploited by the ageing innovators, or even adopt revolutionary solutions to address such gaps (Kalyanaram & Gurumurthy 1998, p.2; Das, 2012).
Market entry strategies (Rao, 2011)
Strategic Planning for Market Entry
Competing methods are usually dependent on the ambient market environment and the placement along with services/product profile with the existing players. By means of adding a product at the lower price compared to the established players, latecomers can easily bring in new customers would you not have access to or else bought this kind of item an in essence, expanding the whole industry. Tesla can, to begin with, adopt the strategy of a reduced price tag as it may result in switching of loyalties to newer products. However, this tactic will probably result in lessened margins for that fresh entrant balanced with various other players already in the market, unless of course the new entrant's cost connected of manufacturing is fairly economical. Businesses can easily remain competitive if they innovate and Tesla Motors are nothing if not innovative. The actual advancement could be a changeover or even incremental. One type of incremental advancement is usually an enhanced version of the existing product. The enhanced product can easily remain competitive immediately with existing goods, or even it is usually targeted for a smaller segment within the existing industry. Such innovative products can occasionally bring in new customers that are not the actual focus on for that existing goods and services. As products become fully developed in the base markets, organizations usually venture...
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