Preview

Marketing Strategy of Tung Lok

Powerful Essays
Open Document
Open Document
1265 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Marketing Strategy of Tung Lok
Company: Tung lok
Marketing strategy 1:
Mode of entry:
In international marketing, modes of entry indicate the risk of foreign market represents, the amount of resources required and how the company can enter the market. Political risk and financial risk are the two major factor that Tung Lok will assess to understand deeper the United Kingdom markets before investing in.
The purpose of the political risk assessment is to evaluate the political stability of UK. The changes in a country’s political structure and policies can cause the loss of the investment or business. There are 3 main types of political risks here:
Ownership risk
Operation risk
Transfer risk
Naturally, UK government will favor the local companies than the foreign companies in order to encourage the domestic economic development. So the foreign companies will counter many policies which can lead to the end of their business such as Expropriation and Confiscation. The company’s assets will be seized and an amount of compensation will be paid to the owners, which is a form of expropriation. Confiscation is a transfer of the ownership from the foreign company to a host company without any compensation.
The foreign company cannot be operated by entirely foreigners as the foreign worker quota is limited. The government will demand a partial transfer of ownership and management to the local and implant regulations so that a large share of the product is locally produced and the main profit remains in the country. This process is domestication.
While shifting funds between countries, many companies running overseas are facing common problems, for example, shortage of foreign currency in the local bank. Government officials drag on the negotiation as foreign company requires more approval letters and documents. High tax and government price control of the import affect the competitiveness of the company as the input price increases. To deal with these problems, long term contracts

You May Also Find These Documents Helpful

  • Better Essays

    Mt435 Unit 3 Assignment

    • 1483 Words
    • 6 Pages

    Andexer, T. (2008). Analysis and Evaluation of Market Entry Modes Into the Asia-Pacific Region. Retrieved March 17, 2013 from books.google.com/books?isbn=3640144074…

    • 1483 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Demonstrate an understanding of the role of entry mode choice and other strategic issues in order to succeed in international business…

    • 759 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    The financial size of many international companies provides them with a strong negotiation position, and an international companies’ power need not rest solely on size. It can come from the possession of capital technology, and management skills, plus the capability to deploy those resources around the world.…

    • 1278 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    International projects present multinational corporations with many complexities in organizing a profitable transaction structure.Foreign exchange risk is an underlying problem. Credit risk presents another challenge. Payment terms and the certainty of realizing them can be difficult points. Negotiations with foreign corporations and governments, and with agents and intermediaries, present additional challenges. An example of the demanding environment for global financial activities is presented in the case of "Avicular Controls and Pakistan Airlines". It is found in Cases in International Finance on page 40.…

    • 1615 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Sanctuary Soft Proposal

    • 2377 Words
    • 10 Pages

    Zekiri, J. & Angelova, B. (2011), "Factors that Influence Entry Mode Choice in Foreign Markets", European Journal of Social Sciences, vol. 22, no. 4, pp. 572-584.…

    • 2377 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Young, S., J. Hamill, C. Weaver and J. R. Davies (1989) International Market Entry and…

    • 2769 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Different entry modes bring different risks and returns. Foreign enterprises should weigh and balance those risk factors.…

    • 9316 Words
    • 38 Pages
    Powerful Essays
  • Good Essays

    This essay assignment is the application of the theory, concepts and analytical tools of the module international business strategy in the context of a market entry strategy of a real company.…

    • 6821 Words
    • 28 Pages
    Good Essays
  • Good Essays

    Source Company will lose jobs as it does not require many numbers of resources as they hire in other countries. It will lead to local unemployment and political pressure. We recently have…

    • 614 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    The Legal International Trade course has several key areas of focus for Students of International Business.…

    • 414 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    competitve advantage

    • 1858 Words
    • 5 Pages

    With the global trade network more integrated, according to Pearce and Robinson (2009), firms tend to enter foreign market to gain more profit due to the maturity of domestic market, excess capability, and potential purchasing power in foreign market. Therefore, as a firm has already achieved success in its domestic country it might consider enter a new market. Before it operates in a new market, it has to consider the barrier of market entry, such as the barrier of political, social, economic or technology in a new market. And as foreign entry decision (Peng, 2009) model presents three aspects: where, when and how should be considered before enter in a new market. In addition, as a manager of a company should adjust its competitive advantage to adapt different market. Based on the study of Hill (2013), changes in the forces which include macroeconomics, social, technological, global, political and legal, and demographic may give great influence in competitive force model. Therefore, the ability of a firm to solve problems by the impact of different forces then build new competitive advantage by its resource advantage and competences significant as it enters a new overseas market. This essay will present some specific example of the firms which may enter a new overseas market and face different issues during the process of entering a new market and offer solutions to each issue.…

    • 1858 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    A political risk refers to government interference in the business affairs of foreign persons or companies doing business in a particular country.…

    • 1452 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    First , licensing. The Company will enter into an agreement with the receiving licenses in foreign markets and impose fees or royalties where the recipient the right to buy the license to use the company's production process, trademark, patent, trade secret, or other valuable items. Companies will be able to get into the market at low risk, while receiving benefits lessen manufacturing expertise, or product, or a name that is recognizable without the need to start from scratch. For example, McDonald's represents the food industry and Holiday Inn representing the hospitality industry. Some disadvantages of this method include less control over recipients of licenses and if they succeed, it has added another competitor in the…

    • 1374 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    • I have read and understood the University’s definitions of COLLUSION and PLAGIARISM (available on p. 31 of the current Academic Student Handbook of Xi’an Jiaotong-Liverpool University and in the 2011 ELC Student Handbook Appendix 2, 4, and 5).…

    • 1463 Words
    • 6 Pages
    Better Essays
  • Good Essays

    IT companies do not necessarily have to stick to a single entry mode but can…

    • 896 Words
    • 7 Pages
    Good Essays

Related Topics