Malaysian Smes Go Global
Abstract
The decision on how a firm to penetrate foreign market segment is one of the most important decisions that can be made by the management of the company. Once the penetration method was chosen, its implementation will have significant implications on the firm that makes the decision, as well as on the market segment that it wishes to enter. A firm 's program of penetrating a foreign market is mostly determined by the method chosen in penetrating that market. In this write up, FAMA- Federal Agricultural Marketing Authority which has been set-up by MOA- Ministry of Agriculture and Agro-based Industry and responsible is responsible in the supervision, coordination, regulation and improvement of the marketing of agricultural products, which include fruits and vegetables, for domestic, export and import markets. Further discussion are focus on the objective, the identification of its internal and external factors, the consideration on all possible options, positions, the possibilities of losing control over how the product is presented to the final consumer and all the risks involved in penetrating foreign market, the selection of the method of penetration (mode of entry), the marketing management strategies and finally the conclusion and recommendation of the decision.
Introduction
Entering a new country-market is very like a start-up situation, with no sales, no marketing infrastructure in place, and little or no knowledge of the market. Despite this, companies usually treat this situation as if it were an extension of their business, a source of incremental revenues for existing products and services. Two aspects of the typical approach are particularly striking. First, companies often pursue this new business opportunity with a focus on minimizing risk and investment—the complete opposite of the approach usually advocated for genuine start-up situations. Second, from a marketing perspective, many companies break the founding principle of
The decision on how a firm to penetrate foreign market segment is one of the most important decisions that can be made by the management of the company. Once the penetration method was chosen, its implementation will have significant implications on the firm that makes the decision, as well as on the market segment that it wishes to enter. A firm 's program of penetrating a foreign market is mostly determined by the method chosen in penetrating that market. In this write up, FAMA- Federal Agricultural Marketing Authority which has been set-up by MOA- Ministry of Agriculture and Agro-based Industry and responsible is responsible in the supervision, coordination, regulation and improvement of the marketing of agricultural products, which include fruits and vegetables, for domestic, export and import markets. Further discussion are focus on the objective, the identification of its internal and external factors, the consideration on all possible options, positions, the possibilities of losing control over how the product is presented to the final consumer and all the risks involved in penetrating foreign market, the selection of the method of penetration (mode of entry), the marketing management strategies and finally the conclusion and recommendation of the decision.
Introduction
Entering a new country-market is very like a start-up situation, with no sales, no marketing infrastructure in place, and little or no knowledge of the market. Despite this, companies usually treat this situation as if it were an extension of their business, a source of incremental revenues for existing products and services. Two aspects of the typical approach are particularly striking. First, companies often pursue this new business opportunity with a focus on minimizing risk and investment—the complete opposite of the approach usually advocated for genuine start-up situations. Second, from a marketing perspective, many companies break the founding principle of
References: 2. Daniels, J.D, Radebaugh,L.H and Sullivan, D.P. (2013) International Business; Environments and Operations, Pearson. 3. Ovidius University of Constantza, Faculty of Economic Sciences in its journal Ovidius University Annals, Economic Sciences Series 4. Thompson, A.A, Peterraf, M.A, Gamble, J.E and Strickland, A.J (2012) Crafting and Executing Strategy: Concepts and Readings-Global Edition, McGraw-hill/Irwin. 5. Othman, Jamal and Yaghoob, Jafari (2009) Does ASEAN Freer Trade Benefit Malaysia?, Universiti Kebangsaan Malaysia Research paper.