SECTION A: International Market Evaluation

Business executives in the new millennium are, or will be, forced to deal in the

global marketplace. The enormous growth and potential profits in overseas

markets motivate this, as does the desire to survive the onslaught of global

competition (Rosensweig, 1998). However, when considering overseas markets,

executives face relatively complex strategic planning assignments given

today’s rapidly shifting alternatives in terms of risk, stability, and potential

returns inherent in the myriad markets around the world.

Selecting among alternative international markets, be it for exporting,

licensing, joint ventures, strategic alliances or direct investment, requires

information. Likewise, the assessment of information across different types of

markets determines, in large part, the degree of success (or failure) achieved in

the international arena (Andersen and Strandskov, 1998). In theory, decision

makers’ perceptions of the importance of different types of foreign market

information may be driven by a combination of things, including the industry

they represent, the specific markets they are considering, and the type of

transactions they would favor when entering specific markets (Carlisle, 1996;

Harrell and Kiefer, 1981; Hodgson and Uyterhoevern, 1962; Stobaugh, 1969).

While the political climate in one country or region may be perceived as a

key dimension to an international venture’s success (or failure), the level o

Business executives in the new millennium are, or will be, forced to deal in the

global marketplace. The enormous growth and potential profits in overseas

markets motivate this, as does the desire to survive the onslaught of global

competition (Rosensweig, 1998). However, when considering overseas markets,

executives face relatively complex strategic planning assignments given

today’s rapidly shifting alternatives in terms of risk, stability, and potential

returns inherent in the myriad markets around the world.

Selecting among alternative international markets, be it for exporting,

licensing, joint ventures, strategic alliances or direct investment, requires

information. Likewise, the assessment of information across different types of

markets determines, in large part, the degree of success (or failure) achieved in

the international arena (Andersen and Strandskov, 1998). In theory, decision

makers’ perceptions of the importance of different types of foreign market

information may be driven by a combination of things, including the industry

they represent, the specific markets they are considering, and the type of

transactions they would favor when entering specific markets (Carlisle, 1996;

Harrell and Kiefer, 1981; Hodgson and Uyterhoevern, 1962; Stobaugh, 1969).

While the political climate in one country or region may be perceived as a

key dimension to an international venture’s success (or failure), the level o

Business executives in the new millennium are, or will be, forced to deal in the

global marketplace. The enormous growth and potential profits in overseas

markets motivate this, as does the desire to survive the onslaught of global

competition (Rosensweig, 1998). However, when considering overseas markets,

executives face relatively complex strategic planning assignments given

today’s rapidly shifting alternatives in terms of risk, stability, and potential

returns inherent in the myriad markets around the world.

Selecting among alternative international markets, be it for exporting,

licensing, joint ventures, strategic alliances or direct investment, requires

information. Likewise, the assessment of information across different types of

markets determines, in large part, the degree of success (or failure) achieved in

the international arena (Andersen and Strandskov, 1998). In theory, decision

makers’ perceptions of the importance of different types of foreign market

information may be driven by a combination of things, including the industry

they represent, the specific markets they are considering, and the type of

transactions they would favor when entering specific markets (Carlisle, 1996;

Harrell and Kiefer, 1981; Hodgson and Uyterhoevern, 1962; Stobaugh, 1969).

While the political climate in one country or region may be perceived as a

key dimension to an international venture’s success (or failure), the level o

 

The increase in profits and growth in business firms in the overseas markets is greatly motivated by the pressure on business executes to go global with the need to survive the stiff competition. The consideration of overseas markets requires proper strategic planning since risks, profit-potential and stability keeps changing constantly in the world markets.

Information is greatly required when selecting international markets for licensing, exporting, direct foreign investments and joint ventures. After the Second World War, the global economy has witnessed a consistent growth in its overall pattern. The growth has been largely indicated by change in pattern of trade and is majorly in the global economic structure. Some of the changes include the upcoming regional trading blocs, the ever increasing participation of former countries/communities and the emergence of India and China.

The main global economic changes includes the emergence of regional trading blocs which allow members to freely trade with each other while creating barriers of trade with non-members. The fluctuations experienced in the short term period due to economic cycle have not hindered the steady and continuous growth of trade globally. The global market in Russia is one of the largest in the World.

The inclination towards international brands and particularly the luxury sector presents an opportunity for retail businesses that are looking for imports. According to Federation of International Trade Associations (FITA), despite the fact that Russia has strict trade legislation and tariff policies, it is open to foreign trade.

Analysis shows that Brazil’s internet penetration is about 40% of the population and most of the country’s population is active online meaning that e-commerce is a strategic venture. The rising purchasing power of the consumer in Brazil and the high percentage of the middle class citizens present an opportunity for business.

China has a population that represents close to 20% of the world’s population. Therefore it forms the biggest consumer market in the globe. The recent trade liberalization has seen China join the World Trade Organization leading to its abolishment of trade tariffs and barriers to trade and thus creating a good business opportunity for international markets.

Electronic commerce is the communication systems interactions, security and data management systems, which enables the exchange of information in regards to sale of services and products. E-commerce framework comprises of the infrastructure, the services and the products and structures. The E-commerce infrastructure involves the hardware, software, databases and communications, while the services involve a wide range of services that enables presentation of information. The products and structures consist of forecasts and direct provision of services and goods to customers.

SECTION B: Marketing International Strategy

The mode of entry to the international market is important for companies seeking expansion. The marketing international strategy that I will on focus onis the service industry and specifically the food industry. The objective is the collection and analysis of dairy market globally, identification of optimal entry strategies for ABC Food Company and giving recommendation on the optimal strategy to ABC Foods in the global market. The opportunities that ABC Food Limited will be exposed to, indicates that it is viable despite the many weaknesses present. The company will incorporate internationalization strategy of product design so as to conform to the needs of international users. ABC Limited will focus on emerging markets around the world that provide highly prospective environment for doing business as this will ensure a faster expansion. Nepal is a country that will provide the best opportunity due to its low development since it is landlocked. The promotion of Foreign Direct Investment and market oriented reforms in Nepal makes it an attractive business destination for ABC Limited.

Market entry strategies that ABC Food Limited will seek to use includes; the direct exporting of its food products directly to markets, licensing and franchising. The most ideal market entry strategy for ABC Limited is franchising since it involves a business model that is repeatable and allows investors to promote sales by using their own premises.

Learner Leader engagement is key in performance management since the staff of ABC will discuss the goals and expected outcomes. The learning curve creates the ability to learn a common language and focusing on results for performance management. Coaching for execution will be utilized by ABC Limited for employee engagement and thus improving productivity.

The product and Communications Extension is a communication strategy that ABC Food Limited will employ alongside the product extension-communication adaptation strategy. The two selected communication strategies will ensure that the food products compete favourably in the new markets.

Marketing capabilities are perceived with regards to the company’s ability to utilize available resources in performance of marketing duties towards achieving desired results. The targeted marketing outcomes by the ABC food limited are the transnational product innovation capabilities,management of brand capabilities, offshore exploitative and explorative opportunities and customer care support, competence in the local market and account management capabilities.

 

SECTION C: Marketing International Strategy-Continuation

ABC Food Limited has its strengths which will be responsible for keeping it moving, and also weaknesses in the new market dispensation. The company will also be surrounded with opportunities that are worth taking and not forgetting the threats. SWOT analysis is important in identification of the current position with reference to the mentioned elements of analysis. The strengths that the company has include the constant supply of dairy products thus minimizing complaints from customers. The consistent supply results in higher sales and increased profits. The innovation capabilities are salient strengths of the company. The strengths mentioned makes the company stable and hence giving it leverage in entering international markets.

The company will be struggling with a few weaknesses which includethe lack of full knowledge of the international market. The issue of brand recognition in some international markets may also be a weakness since the brand may be little known to some markets.

The opportunities available for the company will ensure that the company finds its way into the international markets. The company will be producing healthy foods and thus being in tandem with the increasing preference for healthy foods around the globe. The company has an opportunity to gain access to countries with aging population with an aim of supplying functional foods that is greatly required.

The threats that the company will face by trying to internationalize cannot be overlooked. The threat of strong competition from market veterans will be a big challenge since the competitors could be having extensive knowledge of the market. Additionally, the other threat facing ABC Limited is the markets that are price sensitive. The price sensitive markets makes the company sell at a comparatively lower prices and hence reducing profit margins for the company.

The analysis done depicts the target international market as a very promising venture since the labour from the target developing country is cheaper. The political instability challenges that exist hinder full innovation, research and development. The innovation challenges create an opportunity for ABC limited to conduct research necessary for expansion.

The analysis clearly shows that the market remains highly attractive and favourable for ABC limited and only a strategic plan should be made to take advantage of the opportunities. The strategy applied in different global markets should always be different depending on factors in that affect business in that country.

The recommendation from the proposed business venture for ABC limited is direct import as the entry strategy that is optimal since the strategy is cost effective and less risky. The other factor also is the focus on brand building internationally for easy acceptance in the new markets.

 

In the general marketing literature,

 

 

Do you need high quality Custom Essay Writing Services?