Market Entry Challenges in Asia
Many companies want to move into Asia, but there are market entry challenges that have to be faced there. Still, Asia represents a very important and profitable market for many companies, and it is not unusual for these companies to draw major profits from their overseas operations. EBay, however, has many problems in the Asian markets, and has struggled with these issues in the past (Chan, 2007). In order to understand why this is the case for the company, one must address the 4 Ps (product, place, promotion, and price). By looking at each one of those, a person can get a better idea of why eBay failed in some of the Asian markets and why it performed better in others. In the U.S., eBay is very popular. The same is true for the UK and a few other countries. That does not mean, though, that…...
mlaReferences
Chan, Isabelle (2007) "EBay Has Its Eye on Southeast Asia" 29 Oct 2007, e-commerce, Business Week.
Ihlwan, M. & R. Hof (2006) Out-eBaying eBay in Korea, Business Week, New York: July 17, 2006, p.74, Issue 3993
Kotler, P., & Gertner, D. (2002). Country as brand, product, and beyond: A place marketing and brand management perspective. Journal of Brand Management, 9, 249-254.
Mangalindan, M. (2006) China May Be eBay's Latest Challenge as Local Rivals Eat Into Market Share, Wall Street Journal, New York, N.Y.; October 12, 2006.
com. In case of several companies, enhancing customer relationships is among the most capable features of e-commerce. However, whereas the Internet has presented the consent of a novel method to draw and communicate with the customer, hardly few enterprises have discovered a method to efficiently manage interactions with their customers on the Internet. (David, 2000)
The real skill is involved in making the device suitable to accomplishment of the business strategy and also makes profit persistently. (Howard, 1999) This makes McGrath and Heiens to describe the failures of Internet startups as a moot testimony that "the Internet is a tool, not a panacea" and that a "sound business strategy is always a prerequisite for success" Therefore, even though many successes have appeared to day on the Web in the online industry and in the digital forms in general still more are to be explored for accomplishing long-term goals of the business…...
mlaReferences
Allbritton, Marcel M; Rogers, Everett M. (1995) "Interactive Communication Technologies in Business Organizations" the Journal of Business Communication. Volume: 32; No: 1; pp: 36-43
Archer, Norm; Head, Milena; Wang, Fang. (2002) "E-Tailing: An Analysis of Web Impacts on the Retail Market" Journal of Business Strategies. Volume: 19. No: 1; pp: 114-120
Baker, John. F. (December, 1998) "Hyper Wars: Eleven Strategies for Survival and Profit in the Era of Online Business-review." Publishers Weekly. Volume: 12. No: 1; pp: 27-33
Beck, John C; Lynch, Patrick D. (2001) Profiles of Internet Buyers in 20 Countries: Evidence for Region-Specific Strategies. Journal of International Business Studies. Volume: 32; No: 1; pp: 57-63
Market Entry Strategies Into 2004 Germany: High Value, Low Volume Is the Key to Overcoming German Pessimism and Conservative Consumerism
Because of its relative political stability, and great economic wealth, Germany remains one of the most desirable countries for investment and market entry, in all of Europe. In short, there are, comparatively speaking, many Euros floating around the nation to be spent, despite the conservative investment policies of the average German worker, and the recent European recession. ages are high and lifestyles of individual Germans are affluent. But the German consumer remains wary, for taxes are high as well, and labor unions are strong, and the system of social services encourages a way of living that is not disposable, as in America, but tends to place more of a stress upon quality of life, via long vacations and enjoyment of what one has, than conspicuous consumption. (U.S. Commercial Services, German Business…...
mlaWorks Cited
Austrade. (2003) "Market Entry Strategies: Germany." Retrieved on September 28, 2004 at http://www.austrade.gov.au/IT/layout/0,,0_S4-1_wqcrz1e-2_-3_PWB1527372-4_marketstrat-5_-6_-7_,00.html
Invest in Germany. (September 2004) Retrieved on September 28, 2004 at http://www.invest-in-germany.de/en/news/magazine/2004_08/_html/artikel_06.htm
U.S. Commercial Services. (2004) "German Business Practices." Retrieved on September 28, 2004 at http://www.buyusa.gov/germany/en/practices.html#_section5
d.). Billboards and other public advertising such as on buses and subways are also a viable option. Japanese are wired, so advertising through popular Internet portals is a possibility. Also, mobile phone advertising is a possibility. However, it is worth noting that the preferred medium for advertising is highly dependent on the type of product or service offered. Therefore to some extent the ideal channel will be dictated by industry norms (Ibid), unless we choose to buck the trend.
Promotion of Product
The Japanese market is intensely competitive for most products, since it is a mature market with only limited growth prospects. Promotion can be very aggressive as a result. Japanese consumers are price sensitive, but they are equally sensitive to quality. Thus, it is best to enter the market with either a cost leadership strategy or a differentiated strategy. The company's position on the value proposition curve must be carefully managed.
Promotion…...
mlaWorks Cited:
No author. (2007). Foreign Market Entry Modes. QuickMBA. Retrieved December 1, 2009 from http://www.quickmba.com/strategy/global/marketentry/
Asahi Shimbun. (no date). The world's second-largest advertising market. Asahi Shimbun. Retrieved December 1, 2009 from http://adv.asahi.com/english/market/advertising.html
Noorbakhsh, S. (2008). Marketing 101 (P&G in Japan). Entrepreneur Magazine. Retrieved December 1, 2008 from http://www.entrepreneur.com/tradejournals/article/182002391.html
A third strategic effort made by eBay in conquering the Asian market is represented by diversification -- not the diversification of its operations or provision of services, but the diversification of the markets served. Traditionally focused on China as a source of increased gains, eBay has come to redirect its attention to other countries as well. The online auction company is as such focusing on launching and expanding operations in Japan, South Korea, Singapore, Malaysia, Thailand or even the Philippines (Chan). Through this strategic expansion to more Asian countries, eBay is decreasing its dependency on the revenues generated in China and is striving to create a stable expansion on the Asian continent.
2. Starbucks
Starbucks is one of the largest American corporations, with stores opened throughout the entire globe. The global expansion strategy at the coffee company is that of physical expansion through the opening of more and more Starbucks stores across…...
mlaReferences:
Chan, S., eBay has its eye on southeast Asia, Bloomberg Businessweek
Ihiwan, M., Hof, R., 2006, Out-eBaying eBay in Korea, Information Technology
Ihiwan, M., 2006, Gmarket eclipses eBay in Asia, Bloomberg
Mangalindan, M., October 12, 2006, China may be eBay's latest challenge as local rivals eat into market share, Wall Street Journal
Market Entry to Ivory Coast
Company Profile and Background
Market Analysis- Ivory Coast
isk Analysis
Social and Cultural Analysis
Economic Analysis
Political and Legal Analysis
Market Entry Strategies
Marketing Mix
Product
Promotion
Price
Place and Distribution
Branding
Market Entry to Ivory Coast
Company Profile and Background
Barilla Group is an Italian food company whose headquarters are located in the city of Parma. The company also has its operations in various nations in Europe. Barilla was established in the year 1877, initially as a bakery shop and was set up as a family business. In the present, the company is still controlled by the Barilla family. The company is renowned and has established itself as a multinational pasta maker. In particular, the group undertakes the production of numerous kinds of pasta and is actually the leading pasta maker across the globe. The company has a market share of about 45% in Italy and also 25% of the market share in the United States. The Group produces pasta…...
mlaReferences
Adingra, J. A. (2014). Good governance and fight against corruption: MeiteSindou illuminates the Belgian Chamber of Commerce. Retrieved 19 May 2016 from: http://news.abidjan.net/h/484727.html
Barilla Website. (2016). History. Retrieved 19 May 2016 from: http://www.barillagroup.com/en/history
Buckley, P. J., & Casson, M. C. (1998). Analyzing foreign market entry strategies: Extending the internalization approach. Journal of international business studies, 539-561.
Chung, H. F., & Enderwick, P. (2001). An investigation of market entry strategy selection: Exporting vs. foreign direct investment modes -- a home-host country scenario. Asia Pacific Journal of Management, 18(4), 443-460.
Company Background
Adidas was formed in Herzogenaurach, a town in Mittelfranken, north of Nürnberg, not far from Erlangen, and remains headquartered there today. The company was founded by Adi and Rudolf Dassler. The brothers eventually had a falling out, with Rudolph founding Puma. Adidas has grown to become one of the leading designers and marketers of sports apparel, footballs, and other related items. The company operates globally, has revenues of nearly €20 billion, and profits of €0.72 billion in 2015 (Adidas 2015 Annual Report).
Adidas competes against Nike, Reebok, Puma, and several other brands in this space. Major product lines include footwear, apparel, and footballs. Adidas sponsors a lot of athletes and athletic clubs as part of its marketing. Ultimately, this industry is characterized by incremental changes to basic product designs, a strategic emphasis on marketing spending, and distribution, and companies that utilize a global strategy, selling the same way in each…...
Market Entry and Exit Strategies and Decisions
Entering the market in a timely fashion is equally as important as exiting the market. Just as leaving the market, market entry can be planned. In any market, a business can make money by properly timing both the entry and exit. If one miscalculates any of these, then the business runs the risk of not getting the return on investment.
Entering a market sooner has the advantage of being a market pioneer (Bednarek, 2013). In contrast, late market entry can be advantageous since the products are cheap or improved unlike those already in the market. Already cluttered markets serve an opportunity for late arrival based on improved quality. For instance, a company may launch its product in German, Mexico, and Australia but at different times. The company may launch the product in one country at a time and will only enter the next market after…...
New Market Expansion StrategySection 1Industry and Competition AnalysisThe apparel/clothing market is highly competitive with numerous players vying for market share. Garne operates in the Ukrainian market, but if it were to expand it would be competing with the likes of other international and domestic brands like Zara, H&M, and Uniqlo.While Garne faces stiff competition, it has a few key advantages. First, Garne has a strong online presence and is able to reach a global audience with a little revision to its online store (such as multi-language upgrades). Second, Garne offers a wide range of sizes and styles, making it accessible to a diverse group of customers. Third, Garne has a well-established brand identity and is known for its quality products at affordable prices. As a result, Garne is well-positioned to compete in the apparel/clothing market. Finally, as Garne is based in Ukraine, it may be seen by international consumers more…...
mlaReferences
Bianchi, E. C. (2016). American individualism rises and falls with the economy: Cross-
temporal evidence that individualism declines when the economy falters. Journal of personality and social psychology, 111(4), 567.
Ki, C. W. C., & Kim, Y. K. (2019). The mechanism by which social media influencers
unning Head: INTENATIONAL BUSINESS MANAGEMENT ADVISO 4INTENATIONAL BUSINESS MANAGEMENT ADVISOInternational Business Management AdvisorMarket Entry strategyCompany IntroductionSani-Matic Inc. is situated in Sun Prairie, WI, United States. It is a machinery manufacturing industry. The company has a total of 125 employees across its locations. The company generates about $ 24.52 million in sales. The company designs and produces automatic sanitary process cleaning equipment, from clean-out-of-place parts washers to clean-in-place systems and sanitary parts that provide a complete clean. The companys additional expert services include a tactical solutions program that ensures the optimization of money-saving efficiencies and increased productivity, field service, and start-up programs.Industries in which the Company OperatesThe company capitalizes on food, beverage, biotech, pharmaceutical, nutraceutical, and personal care. The company stays committed to producing sanitary cleaning results for various industries, including beverage and food, and bio-pharm, which encompasses personal care, biotech, pharmaceuticals, and nutraceutical industries.Food and Beverage IndustryThe company supplies businesses…...
mlaReferencesBabin, R. (2008). Assessing the role of CSR in outsourcing decisions. Journal of Information Systems Applied Research, 1(2), 1-14.Belcourt, M. (2006). Outsourcing—The benefits and the risks. Human resource management review, 16(2), 269-279.Galová, J. (2014). Selected business aspects of the emerging market of Ukraine. Journal of Central European Green Innovation, 2(1063-2016-86165), 51-59.Górecka, D., & Sza?ucka, M. (2013). Country market selection in international expansion using multicriteria decision aiding methods. Multiple criteria decision making, (8), 32-55.Kaninda, B. (2016). The development of a strategic framework for South African explosives companies expanding business activities into Sub-Saharan Countries (Doctoral dissertation).McGee, J., & Sammut?Bonnici, T. (2015). Competitive strategy. Wiley encyclopedia of management, 1-4.Meyer, N. G., & Breitenbach, M. C. (2004). The market potential of the South African apple industry: strategies and options. Agrekon, 43(1), 22-37.Nazarova, A. (2019). Target market entry process for a sports drink company.Papadopoulos, N., Martín, O. M., & Gaston?Breton, C. (2011). International market selection and segmentation: A two?stage model. International Marketing Review.Ricart, J. E., Enright, M. J., Ghemawat, P., Hart, S. L., & Khanna, T. (2004). New frontiers in international strategy. Journal of International Business Studies, 35(3), 175-200.Tokas, K., & Deb, A. K. (2020). CAGE distance framework and bilateral trade flows: case of India. Management Research Review.Vlados, C. (2019). Porter’s diamond approaches and the competitiveness web. International Journal of Business Administration, 10(5), 33-52.
GM's Chevy Volt and its all-electric design, as well as diesel-electric and conventional gas-electric hybrids could and must replace the image of the 'old' GM in the public's imagination. The company has shed the Hummer stigma, now it must create a new image for itself in the future, not just domestically, but internationally.
orks Cited
Gas-free cars future priority. (2009, April 20). China Daily. Retrieved August 6, 2009
http://en.ce.cn/Industries/Auto/200904/20/t20090420_18857964.shtml
General Motors. (2009). Company history. Updated August 4, 2009. The New York Times.
Retrieved August 6, 2009.
http://topics.nytimes.com/top/news/business/companies/general_motors_corporation/index.html
Hu, Lei. (2008). GM's joint venture is China's top-selling brand in 2007. Edmunds.
Retrieved August 6, 2009.
http://www.edmunds.com/insideline/do/News/articleId=124379
Jason. (2004). The global hybrid race: Is Europe catching the fever. GreenHybrid. Retrieved August 6, 2009 at http://www.greenhybrid.com/wiki/index.php/The_Global_Hybrid_Race:_Is_Europe_Catching_The_Fever%3F
ald, Matthew. (200, August 5) $2 million in grants to speed up electric car manufacturing.
The New York Times. Retrieved August 6, 2009.
http://www.nytimes.com/2009/08/06/business/06battery.html?scp=2&sq=GM%20China&st=cse
Ying, Tina & Erik Holm. (2009). Buffer posts $1 billion profit on China hybrid carmaker BYD.
Bloomberg…...
mlaWorks Cited
Gas-free cars future priority. (2009, April 20). China Daily. Retrieved August 6, 2009
http://en.ce.cn/Industries/Auto/200904/20/t20090420_18857964.shtml
General Motors. (2009). Company history. Updated August 4, 2009. The New York Times.
Retrieved August 6, 2009.
However, that the company is using estern management techniques bodes well for its ability to behave ethically, specifically with respect to its desire to avoid bribery and corruption. It would have bribed its way to that deal, but instead chose not to, even though ultimately the deal was blocked.
Leadership is in short supply in Chinese business, so Coca-Cola has relied on foreign managers, even those from Taiwan or Hong Kong, to bring expertise. This has proven to be a challenge anyway, as the chlorine issue highlights, as there is a lack of experience at the plant level and problems like that occur. Thankfully, the company has enough foreign talent in place to ensure that issues like that are dealt with quickly and effectively. It is necessary to ensure that the company has some of its top people in the country, given that it expects China to be its largest…...
mlaWorks Cited:
Abrams. S. (2012). Coke faces a huge creditability problem in China. Business Insider. Retrieved November 24, 2012 from http://articles.businessinsider.com/2012-05-02/news/31527493_1_coca-cola-coke-chlorine-levels
Coca-Cola Company. (2012). Website, various pages Retrieved November 24, 2012 from http://www.coca-colacompany.com/our-company/leading-the-industry-refreshing-the-world-responsibly
Trefis. (2012). Coca-Cola pushes into Brazil and China. Forbes. Retrieved November 24, 2012 fromhttp://www.forbes.com/sites/greatspeculations/2012/04/10/coca-cola-pours-into-brazil-and-china-pushes-pepsico-aside-in-the-u-s/
China Daily. (2007). Coca-cola aims to make China its largest market. China Daily. Retrieved November 24, 2012 from http://www.chinadaily.com.cn/bizchina/2007-08/07/content_6015222.htm
Company International Expansion
Potential Countries for Expansion
Canada
United Kingdom
China
Country for Expansion
Expansion Advice
Potential Countries for Expansion
In this case, we will discuss the potential for the expansion of XYZ company, based in the U.S., to another country for business. At the beginning, we choose three possible countries where the business can set up expansion projects and then compare the various business, economic, political and legal aspects to choose the best destination for expansion. In the second part, we would also weight the possible modes of market entry and subsequent expansion. For the first part, we choose three potential countries for expansion -- Canada, the United Kingdom, and China.
Canada
There has been a modest growth in the overall apparel market since the dollar value was unfavorable and the market was affected by retail competition. Expanding online options also gave rise to price wars. There has been downward pressure on the price and value of growth due…...
mlaReferences
Euromonitor.com. (2016). Apparel and Footwear in Canada. [online] Available at: [Accessed 11 Mar. 2016].http://www.euromonitor.com/apparel-and-footwear-in-canada/report
Euromonitor.com. (2016). Apparel and Footwear in China. [online] Available at: [Accessed 11 Mar. 2016].http://www.euromonitor.com/apparel-and-footwear-in-china/report
Retail sales value monthly in textile, c. (2016). Clothing retail store sales value Great Britain 2013-2015 -- Statistic. [online] Statista. Available at: / [Accessed 11 Mar. 2016].http://www.statista.com/statistics/288014/retail-sales-value-monthly-for-clothing-footwear-textile-stores-great-britain
Sun, B. (2010). Concerns of Enterprises' Expansion. IJBA, 1(1).
Growth Strategy
Market Entry Strategy
There are a number of different options for the market entry strategy. These include licensing, joint venture and direct investment. For Target there are a number of considerations to make. First, the company just utilized the direct investment strategy in Canada, buying the real estate assets of a large chain of discount stores that went under. This move gave Target a large real estate footprint with which to work. Theoretically, that should have helped the company with things like economies of scale, but instead it was too big for Target to manage and the company suffered massive stockouts that may have set it back in that country years (Shaw, 2014). Target can view this one of two ways -- either it learned something from the experience and can enter the UK market most effectively via direct investment, or it should avoid direct investment and find a…...
mlaReferences
Bermingham, F. (2014). Supermarket price war killing British food producers. International Business Times. Retrieved November 29, 2014 from http://www.ibtimes.co.uk/supermarket-price-war-killing-british-food-producers-1476283
QuickMBA. (2010). Foreign market entry modes. QuickMBA. Retrieved November 29, 2014 from http://www.quickmba.com/strategy/global/marketentry/
Shaw, H. (2014). Bare shelves and out-of-stock items at Target's Canadian stores 'unacceptable', says interim CEO. Financial Post. Retrieved November 29, 2014 from http://business.financialpost.com/2014/05/21/target-still-struggling-to-rebound-from-botched-canadian-expansion-and-hacker-attack/
Amazon's Strategy In India
Amazon has one of the most successful strategies that has developed in the last couple generations of contemporary business models. Their use of a "customer-centric" perspective, new distribution channels, and technology as core competencies have fueled an impressive growth rate in many new niches. Yet, despite many successful strategies initiatives that Amazon has developed thus far, the international sphere as a channel of expansion has produced mixed results. The case presents an overview of Amazon's efforts to enter the Indian market and the factors that are within the country and the culture that the company will have to navigate in order to overcome many challenges related to these circumstances.
For example, organized retail only represents a small portion of India's total retail market and therefore, for Amazon's strategy to work, the company will have to develop this market segment while simultaneously positioning itself at the center of this…...
mlaWorks Cited
D'Onfro, J. (2015, February 4). The biggest mystery about Amazon's business right now. Retrieved from Business Insider: http://www.businessinsider.com/amazon-international-growth-2015-2
Reuters. (2014, June 10). Crumbling infrastructure? E-tailers like Flipkart, Amazon & eBay are widening logistics networks in India . Retrieved from The Economic Times: http://economictimes.indiatimes.com/industry/services/retail/crumbling-infrastructure-e-tailers-like-flipkart-amazon-ebay-are-widening-logistics-networks-in-india/articleshow/36320147.cms
Corporate-Level Strategies: Aligning Business Activities for Growth and Competitiveness
Corporate-level strategies are overarching plans that guide the direction and scope of a corporation as a whole. They determine the organization's long-term goals, shape its competitive landscape, and allocate resources to achieve those objectives. Corporate-level strategies provide a framework for decision-making and ensure alignment between different business units and functions.
Types of Corporate-Level Strategies
Several types of corporate-level strategies exist, each with its own set of objectives and implementation methods:
1. Diversification:
Related diversification: Expanding into new businesses or products that complement existing operations to create synergies and reduce risk.
Unrelated diversification: Venturing into businesses....
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