...Entering the Foreign Market Principles of Marketing MKT 100 November 03, 2013 My company is called Henderson’s iPhone Store. We market all the latest versions of Apple smartphones. We will be marketing the new Apple iPhone 6 and entering all foreign markets. The target market for the iPhone is teenagers, college students, business class individuals, and adults. (Apple Inc., 2013). Our specific target market for this report is a married person, approximately 36 years old, and lives in a major city. This individual has a steady job, makes a solid income of about $65K a year. This individual likes to play sports, and has a very active social life. He has high goals which include gaining the experience which will assist him in landing his dream job with an income of over $100K yearly. Consumer’s behaviors include finding convenient mobile devises that offers more efficient ways for calling, messaging, and entertaining using a single button. These consumers are looking for the latest technology to satisfy their personal and social needs. Most of these consumers are affluent, and will purchase expensive products and brands which are shown as a status symbol (Apple Inc., 2013). Identifying the target audience is an important success factor for Henderson’s iPhone Store. Market segmentation can be used in many ways to construct the framework to influence their targeting activities. Understanding the market and the factors that influence consumer buyer behavior can...
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...States, Canada and the U.K. It is consistently ranked in the top 100 best companies to work for and the top 100 best Corporate Citizens. Business Proposal: This document outlines the possibility of Whole Foods expanding into the German Market. Considerations are explored in the realm of German Culture, the Organic Food market, Competitors, Pros and Cons, Entry and Exit Strategy, and Human Resources strategy to declare whether or not Germany is an appropriate fit for Whole Foods. Whole Foods Entering Germany: Successful Whole Foods CEO John Mackey, is quoted as saying "If you want to be competitive in the long term, your business needs to have discovered its higher purpose and it needs to adopt a stakeholder philosophy." In a world where unhealthy food, rife with chemicals and saturated fats is becoming the norm; Whole Foods definitely seems to have found it’s higher purpose. Whole Foods, which is providing individuals with fresh organic food to promote a healthy lifestyle and a higher way of living is poised to spread this philosophy to the rest of the world. This stakeholder philosophy puts the ownership of healthy living on each and every one of us by providing the piece that has sorely been missing in the American market; options. The Whole Foods motto is “WHOLE FOODS, WHOLE PEOPLE, WHOLE PLANET”, therefore it is fitting that Whole Foods continues an expansion past Canada and the U.K into other areas of the world that can benefit from such options. The option...
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...operations throughout North America, including the United States, Mexico, Canada, and Puerto Rico. Founded in 1980, it employs a workforce of 13,180 employees as of December 31, 2012 (Clean Harbors, n.d.). In addition to the management and recycling of hazardous waste, Clean Harbors also offers hazardous material management and disposal services including the collection, packaging, recycling, treatment and disposal of hazardous and non-hazardous waste, and a wide variety of environmental cleanup services on customer sites or other locations on a scheduled or emergency response basis (Clean Harbors, n.d.). While Clean Harbors has enjoyed success in the markets it currently operates, there is potential for the company to expand through FDI into ever-emerging foreign markets. Considering the company’s experience in the Latin American markets including Mexico and Puerto Rico, Clean Harbors should investigate entry into Brazil’s economy through FDI to further grow its business, and establish itself within the country. Brazil, which currently has the world’s fifth largest...
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...business venture into a foreign country could encounter multiple risks. Therefore, prior to embarking on an international expansion, extensive, in-depth research of the target country is a necessity for success in the foreign marketplace. Team A will conduct a risk analysis of Moldova and its winery production and analyze all aspects of risk involved from entry to an exit plan. This paper will also describe the market risks and include a SWOTT analysis of the country. Political, Legal, and Regulatory Risks BDSD will encounter several risks when entering Moldova on a business level. A political risk is the current inability of the country’s parliament to elect a president. The country, divided over the election of leaders, disenchanted with the current leadership, and facing ongoing power struggles with neighboring countries has caused political deadlock. In addition, Moldova faces internal uprisings and tense relations with other nations in the region. If the country does not elect a president this year then the Moldovan Constitution calls for the dissolution of parliament. Dissolving parliament could have the potential to cause an uprising of the population creating an uncertain political forecast for the country (BBC News 2011). The legal risks of entering Moldova include financial, security, and the success of the BDSD Company’s relationship with the Moldova business partners. BDSD’s legal counsel will identify the potential legal risk of entering into a business agreement...
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...Phase One Individual Project Natalie Olivo Global Managerial Economics ECON310-1301A-02 January 14, 2013 Phase One Individual Project Before entering into any other type of global market, it is important that the decision-makers familiarize themselves with different macroeconomic and microeconomic concepts. A solid understanding of these concepts will make it much easier for a decision to be made. Major decisions such as these should not be made on a whim. Any additional information that the people who make the decisions can get regarding how different aspects can affect supply and demand will help them to build a solid foundation for their expansion into the new market. The World Band and International Monetary Fund (IMF) play a large role in the global market. The World Bank supports and promotes the development of economies long-term. They also assist in poverty reduction by providing technical or financial support to help countries from specific areas. It is funded by its member country contributions and by the issuance of bonds. World Bank and the IMF work together on a regular basis. The IMF promotes international monetary cooperation. They give advice and technical help to he assist with the building and maintenance of strong economies. It is equally important to understand the Gross Domestic Product (GDP). When a country exports goods to another country, those exports bring money into the country. When money is brought it, it increases the exporting...
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...Introduction Business continuously expands into global organizations finding it necessary to pay close attention to the foreign exchange market. These companies must follow the foreign exchange market closely and should develop appropriate hedging strategies to protect them. Exchange rate risk is the unexpected exchange rate that may cause an organization to lose or gain income. Currency hedging is a method of minimizing the exchange financial rate risk within an international organization. Global Companies involved in operations should have good understanding of the financial risks that the company could go through prior to starting its venture. Exchange Rate Mechanisms Currency hedging is “a particular hedging strategy used to reduce risks in the foreign exchange market which are used as in any hedging situation, where one security would be offset by another security, such as holding a short and long position of the same security at the same time, (Investor Words, 2009).”This content can be found on the following page:http://www.investorwords.com/6779/ Is impossible to predict how much the currency will be worth on the exact day that company will be converting it. With hedging, the uncertainly is gone. When companies decide to expand their business into growing globally the company will have to deal with many new issues that would not have affected them if they would have continued doing business locally. The exchange rate is a very important factor when doing international...
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...Country Risk and Strategic Planning Analysis TSI international consulting is a firm that provides services that support the United States and foreign businesses in globalization operations. TSI consulting international will be entering a 50/50 partnership with Setex consulting international, a Romanian integral investment company that provides tailored expert business services for global and national businesses who wish to extend business to the Romanian market and other foreign countries. TSI international partnerships with Romania will help develop the country's weak rural agricultural infrastructure. By providing 50% of the capital the government will have a vested interest in firm’s success. Our company will provide modern agricultural training techniques and machinery to the rural area citizens of Romania. The bigger strategy will be to drive revenue through export to the Eastern European region and eventually the members of the European Union. As a country that was previously a communist nation the minds of rural citizens will easily buy into the strategy where they see clear authority and a mode to enhance their standard of living. Launching a global joint venture can present a generous amount of risks that require analysis. The potential risks of TSI consulting opening and maintaining a partnership business venture in Romania with global ambitions will be vast and complex. To begin, TSI international will analyze numerous categories of risks ranging from legal to financial...
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...FDI)? What are the Theories of FDI? What Are the pons & cons , Cost/ benefitr fro the cost country n home country? Answer: Foreign Direct Investment: FDI occurs when a frim invest directly in facilities to produce or market product in a foreign country. The Theories of FDI: Theroies of FDI may be classified under the following------ 1. Production or product Cycle Theory of Vernon 2. The theory of Exchange Rate on Imperfect Capital Market 3. The Internalisation Theory 4. The Eclectic Paradigm of Dunning Production or product Cycle Theory of Vernon Production or product theory developed by Vernob in 1966 was used to explain certain types of FDI. He believes that there are four stage of production cycle— * Innivation * Growth * Maturity * Decline. Vernon’s production life-cycle suggest that frims undertake FDI at particular stage in the life cycle of products they have developed or produced. However, Vernon’s theory does not adresss the issue of whether FDI is more efficient than exporting or licensing for expanding abroad. The theory of Exchange Rate on Imperfect Capital Market: This is another theory which tried to explain FDI. Initially the foreign exchange risk has been analyzed from the perspective of international trade. However, currency risk rate theory cannot explain simultaneous foreign direct investment between countries with different currencies. The sustainers argue that such investments are made in different times...
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...Date: January 24th, 2012 Sheridan College Executive Summary With Orascom’s Algerian office being attacked and its failure to enter the Indian market, they have a real problem assessing risks in internationalization. The company has done really well locally becoming the market leader within Egypt by owning 43.6% of market share within the telecom industry. Algeria showed the right signs for entry as its GDP increased at a rate of 3.8% per year. There was also very little competition in Algeria since there was only one telecom company available. However there were country risks that were not assessed. This resulted in Orascoms office in Algeria to be attacked by angry soccer fans. India took on new liberalized laws that would open the telecom industry to the private sector and reduce tariffs. The telecom sector was projected to make $43 billion in revenues. This shows that there were investments to be made in the industry as there were millions of new subscribers every year. However, Orascom failed to capitalize on the huge Indian market as it failed in the Indian market within in a short amount of time of entering. If Orascom follows the recommendation of improving its strategic planning, then the risks of internationalization will be minimized and this will result in the company being very successful entering foreign markets. Table of Contents Introduction 4 Environmental Analysis 5 SWOT Analysis 10 Problem Statement 13 Alternatives 14 Recommendation...
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...Country Evaluation & Market entry strategies With respect to Fashion Industry in India -By AMEYA DESHMANE PGDM-RM-(54) ACKNOWLEDGEMENT I would like to thank Prof. Thomas Matthew for his valuable guidance and advice. He not only suggested the Country Evaluation & Market entry strategies for the project but also contributed to the various attributes to be added in order to make a successful report. Index | Contents | Page number | 1 | Introduction | 4 | 2 | Country Evaluation | 5 | 3 | Market Entry Strategies- Definitions and Types | 7 | 4 | Joint Venture- Burberry India with Genesis Colors | 8 | 5 | Licensing- Tommy Hilfiger with Arvind VF | 9 | 6 | Franchising- Stuart Weitzman with Reliance Brands | 10 | 7 | Mergers & Acquisitions- LVMH & Gitanjali Jewels | 11 | 8 | Conclusion | 12 | Introduction International expansion for fashion companies presents an opportunity for the multinational companies to expand their growth. This may be due to an increase in the local or international competition in the domestic market for the company. In India the recent relaxation in the entry of FDI for single brand and multi brand retailing have prompted us to re-examine some of the market entry strategies that would be appropriate to enter into a country like India. For this purpose initially we will have to evaluate the market scenario in the country after which we will examine the various market entry modes which the companies in Fashion Industry...
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...Multinational Expand to overseas markets I. Search for Cheap Raw Materials II. Exploration of new Market Opportunities III. Search for Knowledge that is useful in production IV. Reduce costs of operation 3. Essentials for Successful Internationalization I. Uniqueness of Multinationals II. Multinationals enhance survival of their brands III. Multinationals must establish themselves in markets where costs of production and distribution are raw. IV. Installing patented technology to prevent rivals from producing a Company’s products without permission. V. Maintenance of a Company's Competitive Advantage VI. Enhance quality of goods and services VII. Establishing relationships or alliances to enable sourcing of materials and selling of finished products and services appropriately. VIII. Obtaining superior talent or human resources from the available pool in the target market to oversee its operations. 4. Evolution of Multinationals I. Considering the characteristics of new markets such as wealth and population II. Examining the competitors that are present, infrastructure and political stability of a country III. Monitoring economic performance for target overseas markets IV. Evaluating trade barriers existing in various markets V. Analyzing data on various international markets VI. Establishing the resources that a business has which will enable it to succeed in the foreign market. VII. Setting global...
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...facets and equipments for transforming the printed books into the digital soft copies. Will is capturing the difference between capital verse consumers when changing into digital sound from written copyrighted print. Entrepreneurial ability is the last economic concept in the Will Bury Goes Global Scenario. Entrepreneurial ability is factoring the risks into one and therefore entrepreneurial ability is the most important economic concept. According to McDonnel-Brue,” Entrepreneur is an innovator assuming risks for initiating projects and takes strategic decisions in business” (McDonnel-Brue, Pgs 23-24). Will Bury to reach out in an untouched market is taking all the initiatives and risks for digitalizing hardcopy books and Will Bury will make good use of the skills learned at his current employer. Will is entering an uncertain market and taking risks that have the probability to yield negative financial results for his business. Will is an innovator by recognizing the consumers need and...
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...for Going Abroad 1) Market Factors ❖ Limited growth in domestic market □ The company’s domestic market might be stagnant or shrinking; □ For example: Tesco’s move into the Far East, the US, and Central and Eastern Europe. ❖ Small domestic market □ In some industries, survival means broadening scope beyond small national markets to the international area. □ For example: Philips, Nokia and Electrolux could not compete against the strength of global competitors by servicing their small domestic market alone. For them, internationalisation was not an option: it was a fundamental condition for survival. ❖ Foreign markets attractive □ The company might discover foreign markets that present higher profit opportunities than the domestic market does. 2) Competition Factors ❖ Global competitors offering better products or lower prices might attack the company’s domestic market. The company might want to counterattack these competitors in their home markets to tie up their resources. (Kotler, et al. 2004). ❖ When several companies in an industry go abroad, others feel obliged to follow suit to maintain their relative size and growth rate. This is particularly true in oligopolistic industries. 3) Cost Factors ❖ High national labour cost, shortages of skilled workers, and rising energy charges can raise domestic cots to uneconomic levels. These factors may stimulate moves towards foreign direct investment in...
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...Globalization Student’s Name Institution Globalization When undertaking to implement major financial decisions like investing in foreign stock exchange markets. It is important for organizations to conduct due diligence of this decision. This decision might mean the generation of substantial profits, especially where a corporation gets enlisted in a stock exchange market of a foreign country. Huge profits are realized when the company invites the members of the public to subscribe its stake through (IPO) initial public offer. On the other hand, a company might accrue massive losses perhaps due to shares volatility (Maskell & Baggaley, 2003). It is of the essence that a Company evaluates the proposed investment decision of getting enlisted in foreign countries stock exchange market they choose to invest. Due diligence will enable the Company access all information relating to the movement of stock and share prices. This information will allow a company to avoid investing in equity markets that are highly volatile (Maskell & Baggaley, 2003. (Maskell & Baggaley, 2003), defines foreign-exchange risk fluctuations in the prices or value of an investment due to changes in foreign exchange rates or exchange rates. This risk is also known as exchange rate risk or merely currency risk; it is simply the loss an investor accrues during a long or a short position due to unfavourable movements in the exchange rates. Currency risk mostly affects international...
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...November 22, 2010 Channel and Pricing Strategies Team C’s objective is to state the channel and pricing strategies of Thermo Express. Our team has decided to have our home country as Chile and our international market country as the United States. We considered the population as well as the potential that our product “Thermal Express,” in order for the launching of the product to take place. We have also realized that the challenges and opportunity will accompany it. In order for the company to develop and launch, we had to develop pricing strategies in both the domestic and international markets. We will also provide justifications for our choice for acquiring the United States as our international market. The two advantages in this product are that it is green, meaning it is good for the environment and will eliminates the excessive use of cups and perishable items. Second because of the economic state, people can save money by using this and not constantly buying coffee or tea bags. Justification for Thermo Express Our organization has selected the United States has our international market to sell our product Thermo Express. Although the opportunities for companies to enter and compete in foreign markets are significant, the risks also can be high. Companies selling in global industries however, in fact have no choice but to internationalize their operations (Philip Kotler and Kevin Lane Keller, 2007, p.322). The company must also decide...
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