Cdbm
CHAP 12: INTERNATIONAL BUSINESS ENTRY
Key factors must be considered when selecting international market: I. MARKETING SELECTION 1) Market environment: PESTLE, 5 forces
Sociocultural Factors: Different in values and beliefs, perceptions… can affects marketing product. 2) Marketing selection: SWOT analysis
Product fit: is the product fit the needs and want of market, if not perfect, change or still establish to influent new users.
Market factors: our product in which stage of product cycle and how to distribute it. Competition: identify competitors if they are strong or not, their strengths n weaknesses. Entry factors: is that easy or difficult to entry market? Do we analysis the market perfectly, which org we should corp? costs for marketing? Resources: is there any investment for? How to develop staff n training programs. Political n legal: is the new market regulations differ from our own? Find out all the tariff and quotas. Is that easy to transfer investment n profits. 3) Selecting method: Some factors have to be considered: Product: franchising or mass production to develop production facilities in host country. Timing: develop totally new market by provide first entry advantages (higher price) or entering in existing, mature market through leanring exp from pioneers at lower price. Speed: the company want to quickly entering or not (if not the others will do first and take competitive adv) Costs: will cost create higher profits Flexibility: control or flexibility the parent company want Risk: any risk occur? Level of risks Payback period: quick profit return or longer term benefits? KFC lost all most 7 years before getting profit in vn market. Longterm aims: this entering is just to developing goal or long term strategy. II. ENTRY STATEGIES a. Exporting: direct exporting is when the business produces a product in home country n sells directly to foreign customer with involving any intermediaries.
Key factors must be considered when selecting international market: I. MARKETING SELECTION 1) Market environment: PESTLE, 5 forces
Sociocultural Factors: Different in values and beliefs, perceptions… can affects marketing product. 2) Marketing selection: SWOT analysis
Product fit: is the product fit the needs and want of market, if not perfect, change or still establish to influent new users.
Market factors: our product in which stage of product cycle and how to distribute it. Competition: identify competitors if they are strong or not, their strengths n weaknesses. Entry factors: is that easy or difficult to entry market? Do we analysis the market perfectly, which org we should corp? costs for marketing? Resources: is there any investment for? How to develop staff n training programs. Political n legal: is the new market regulations differ from our own? Find out all the tariff and quotas. Is that easy to transfer investment n profits. 3) Selecting method: Some factors have to be considered: Product: franchising or mass production to develop production facilities in host country. Timing: develop totally new market by provide first entry advantages (higher price) or entering in existing, mature market through leanring exp from pioneers at lower price. Speed: the company want to quickly entering or not (if not the others will do first and take competitive adv) Costs: will cost create higher profits Flexibility: control or flexibility the parent company want Risk: any risk occur? Level of risks Payback period: quick profit return or longer term benefits? KFC lost all most 7 years before getting profit in vn market. Longterm aims: this entering is just to developing goal or long term strategy. II. ENTRY STATEGIES a. Exporting: direct exporting is when the business produces a product in home country n sells directly to foreign customer with involving any intermediaries.