...picture. The industry is expected to grow to double its current size by the year 2012. India's IT industry is expected to grow at an annual average rate of 18% in the next five years. The industry is also expected to cross the 100 billion US Dollar mark by 2011. One of the major areas of growth for the IT industry of India is by tapping the potential in the domestic market. The IT industry of India is largely dependant on the export market. Penetrating more into the domestic market would create further opportunities of growth for the IT industry. POLICES N REGULATION The projections about the size of India's IT industry present a very optimistic picture. The industry is expected to grow to double its current size by the year 2012. India's IT industry is expected to grow at an annual average rate of 18% in the next five years. The industry is also expected to cross the 100 billion US Dollar mark by 2011. One of the major areas of growth for the IT industry of India is by tapping the potential in the domestic market. The IT industry of India is largely dependant on the export market. Penetrating more into the domestic market would create further opportunities of growth for the IT industry. Poised to become a US$ 225 billion industry by 2020, the Indian information technology (IT)...
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...I. Investigate global market 1. Defining global market In the aspect of marketing, global market is the set of many foreign markets which include every available buyer or potential buyer of a product or a service. This concept allows international company forecast the capacity of the market in an effective way. A country’s overseas market includes foreign customer market, industrial market and government market. 2. Investigate global market Investigate global market is the process of gathering materials and information about target market, compare and analyze these information, to withdraw the fluctuation tendency of global market in every production lines, production groups to build a foundation to every business strategy of international companies To investigate global market, we must study the environment of the target market, more specifically, study about every details of the region of this market. The term Business Environment is composed of two words ‘Business’ and ‘Environment’. In simple terms, the state in which a person remains busy is known as Business. The word Business in its economic sense means human activities like production, extraction or purchase or sales of goods that are performed for earning profits. On the other hand, the word ‘Environment’ refers to the aspects of surroundings. Therefore, Business Environment may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that are...
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...Globalisation is a phenomenon that poses great opportunities and should be pursued while recognising and addressing the costs. Globalisation takes various forms, yet defined here within the economic scope due to its strong contemporary prominence and impact. Economic globalisation entails the interactions and interdependence of global markets, due to increased mobility of goods, services, capital and communications. Globalisation is driven by many factors, including technological advancements and deliberate neo-liberalist policy. It is not a new phenomenon, yet contemporary globalisation differs dramatically in scale, penetrating more people and remote areas than ever before. Globalisation has many benefits such as economic growth and poverty reduction, yet on a domestic scale economies must be allowed to adapt, and the global economy must be managed on an international scale. Economic interdependence and advances leads to a safer, more democratic world. The forces of globalisation have been set in motion and are not able to be reversed, hence the world must recognise globalisation as inevitable, and work to reap the benefits. Globalisation is an encompassing term, taking various forms that describing the vast social, economic, cultural and political changes that arise due to interaction and integration of people, institutions and governments of different states. Due to contemporary impact, globalisation here is defined within the scope of economic globalisation, it is a process...
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...its domestic market does well, globally Walmart has been a success. Considering external factors is a priority for companies entering the global market. There are many environmental challenges from a current domestic market including differences in technology, economy, competitive atmosphere and social/cultural standards. In countries where the idea of supermarkets must be introduced rather than enhanced Walmart had its job cut out entering foreign markets. Extensive market research, service development and channels of distribution were key factors in creating an effective marketing strategy. With a global marketing budget of $2.4 million the company works with different agencies in developing nations such as India, China and Mexico where it sees opportunities in big economic challenges. (Hall 2010) The advantage of entering into developing countries is to recruit local communities and make every day necessities more affordable to the general public. Socially many countries lack the concept of supermarkets and in place rely on smaller convenience or family run stores, areas of little or no competition. By building locally the company is able to rebrand itself with each country. From product differentiation, to positioning and placement and promotion Walmart has a unique presence in each country. Culture is a major focal point of environmental change for the retail department store industry. In penetrating new markets...
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...in its strategic planning as it looks to continue its growth and dominance in the Thai market? How can Mistine match its strengths with its market opportunities to create competitive advantage moving forward? After having analyzed the information about Mistine’s domestic market, there are several problems that need to be managed including a high employee turnover rate, limited channels of distribution, and an increased competition in the industry. Employee turnover: The rate of salesperson turnover at Mistine is about 200%, which is very high. The reason is due to several reasons. Most of Mistine’s salespersons sell the products as their second job aside from their full time job, which leads a low sense of belonging to the company. In In order to create this sense of belonging, it is necessary for the company to construct a good employee relationship to make them feel that Mistine is a part of their life. The program can include beauty training for every salesperson across the country and distribute free samples so that they are able to recommend the products to their customers. Distribution channel: The products are only available to the customer through a salesperson, which limits the accessibility of the product for those who do not know any salesperson but are interested in Mistine and know the products through mass media. This fact opens the opportunity to penetrate into those markets and allow the company to increase both its customer base and revenue. In order to be...
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...Penetrating a foreign market has always been a big problem during a firm’s process to grow including the question of how and when going abroad. Therefore there are many reasons why firms decide to extend their business operations by entering foreign markets. Whether it is a defensive step aimed to avoiding the consequences of the saturated domestic market or an offensive strategy based on the expectations of unusual profits. So there is always the doubtful prospect if a foreign entry is worth or is it not worth. The main aim of the essay is to answer these questions. In the last few years it generally could be observed that globalisation has increased the competition amongst firms and enlarged the company’s willingness to enter foreign markets. Small, middle-sized and big companies are using different approaches to reach their target customers, increase profits or ensure the company’s growth. Different strategies offer these companies various opportunities to adapt modes to enter foreign markets and to find new channels of distribution. Moreover the European market consists of much originality which should be taken into account like the EU organization. But entering foreign markets is nothing new in a globalised world and interconnecting Europe. Merchants have dealt with international partners in nearly every decade throughout history. International represented firms like Siemens opened foreign subsidiaries more than 160 years ago. What is the fascination associated with...
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...humble location in Seattle’s Pike Place Market, Starbuck’s now has expanded to 12,000 cafes in 35 countries around the world. CEO Howard Schultz and his Starbucks team hopes to expand to 40,000 shops worldwide by penetrating into key markets, half of those 40,000 situated outside the U.S. Throughout its existence Starbucks has built brand equity and a established a loyal following based on the idea of convenient, high-quality specialty coffee that surpassed the taste of its competition. Like every company venturing abroad, Starbucks faced many challenges and growing pains in bringing American-style coffee into international markets. For example, in China, Starbucks faces government intervention (although policies are more relaxed presently), consumer hesitation due to the lack of coffee consumed, and different consumer behavior. Another global challenge is the global economy and competition. Starbucks also had to deal with an initial lack of acceptance from historic café culture in France, with older coffee drinkers frowning upon the big U.S. coffee chain with standardized disposable cups. Starbucks has faced challenges particularly in locations with volatile political or economic situations, such as Lebanon and Israel. Starbucks was forced to close in Israel because of the threat of terrorist attacks and was boycotted in Lebanon due to anti-war protestors. Despite the challenges, and CEO Shultz’s warning that an over-aggressive market expansion was compromising the company’s...
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...years later, Dairy Milk is the leader in chocolate bar products and the company’s major source of revenue. Sales from Cadbury’s Dairy Milk alone are estimated at over £135 million for 1995. Cadbury considers its success is based on three factors: quality, value for money and good advertising. Issue Cadbury Schweppes already has manufacturing plants in 25 countries and sales in further 165 countries. Recently, it is planning to enter the French market with its Dairy Milk product with either of these two methods – 1. As a subsidiary product Cadbury already has production facilities in France in the form of its subsidiary, Chocolate Poulain. The company can use this subsidiary to produce Dairy Milk as well. However, Chocolate Poulain is already producing at near full capacity and changes in production due to Dairy Milk’s introduction will not only affect the sales of Chocolate Poulain, but the whole machines need to be recalibrated. 2. By exporting the product Exporting Dairy Milk to France is also an option since the French market is very close to UK and Cadbury already exports Cadbury Fingers to France. However, the French chocolate industry is dominated by multinational foreign owned groups such as Nestle Rowntree, Lindt and Sprungli, Kraft and General foods, and Mars Alimentraire SA, which all are subsidiaries of foreign groups. Simply exporting Dairy Milk may be insufficient to tackle competition from these leading enterprises....
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...[pic] University of Information Technology and Sciences Assignment 1 Why International Companies differ from Domestic Companies Course Title: International Business Course Code: BUS 341 Department: BBA Date of Submission: February 16, 2012 Prepared For: Ayesha Binte Safiullah School of Business Prepared By: Samiul Islam Abir. ID 09310175 Why international companies differ from domestic companies? The companies doing their business in two or more country are international companies and the companies doing business in a single country only are domestic companies. There are many differences between these two types of companies. These differences occur due to the difference across borders. Nation-states generally have unique government systems, laws and regulations, currencies, taxes and duties, and so on, as well as different cultures and practices. So, What is Domestic Business: Domestic business is the exchange of goods, services, or both within the confines of a single national territory. It is always aimed at a single market and deals with only one set of competitive, economic, and market issues. The exchange is always with a single set of customers all the time, though the company may have several segments in a market. Domestic business may be sub-divided into Wholesale business, and Retail business. Wholesale is concerned with buying goods from manufacturers or dealers in large...
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...Starbucks: Going Global Fast Ronnie Deaver MKG400 International and Multi-Cultural Marketing Colorado State University – Global Campus Dr. Michael E. Ricco June 19, 2016 Starbucks: Going Global Fast Starbucks is a fast growing and well known US based company focused on penetrating international markets. When entering a new market, there are always associated risks, problems, controllable/uncontrollable elements, and process optimizations. Below is a discussion on the factors contributing to Starbucks expansion into international markets such as Japan. Controllable Elements For any company expanding to a new market, there is a plethora of controllable and uncontrollable elements to consider; some new and some similar to those faced in domestic markets. Interestingly, the controllable factors that Starbucks encountered when entering the global market were similar to those faced in their domestic market; product, price, place and promotion. The Starbuck’s brand name and image connect with millions of customers globally. Starbucks can control and adjust its product to meet the cultural needs and expectations of a market; including price, availability, and their marketing strategy. Using appropriate market research, Starbucks can pre-emptively make certain that their product is the right fit for each of its international locations. According to Starbucks (n.d.), they maintain a high level of success internationally by working with international partners who understand and share...
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...Synopsis: JetBlue is a low-cost domestic airline in the United States following a rather interesting combination of ‘low-cost and differentiation’ as its strategy. From its inception in 1998, the airline grew to become the 11th largest player in the airline industry in a short span of 6 years. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath of the September 11, 2001 attacks on World Trade Center, and at a time when the entire airline industry was experiencing losses. The core of JetBlue’s strategy was low-cost achieved through a smaller and more productive workforce; automated processes; better use of technology; use of brand new single model planes that reduced maintenance costs and training costs at the same time. However, moving into the growth phase, JetBlue was contemplating the introduction of a new model of planes, i.e., EMBRAER, that are smaller than the A320s that they were using. These planes were to be utilized for penetrating mid-size cities and also during off-peak times on existing routes. This had potential implications for its low-cost strategy. Also, the success of JetBlue invited the attention of its competitors. New discount carriers such as ‘Song’ were being launched that closely imitated JetBlue’s differentiated product offering. This posed questions to the viability of both the bases of JetBlue’s competitive advantage. Added to this, was the prospect that JetBlue would come head-to-head...
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...Case Analysis - LINDO ENTERPRISES By: Catherine Q. Pagdato I. Executive Summary Lindo Enterprises is one of the small-scale industries which has established and positioned their product in the market. They are in the business of processing raw seafood into a packed-snacks. Their financial data had shown an increasing sales and profit year after year since 1998. However, they are faced with a challenge of maintaining their competitive advantage and market position through a sustainable 10% annual growth rate for the next five years. Achieving this target would require the considerations and a careful study of the major threat or problems that the business is, and is going to face. Competition is on the top list, distribution of the product both locally and internationally through export-consolidators considering the quality standard, the increasing worldwide trend towards health consciousness which negates the consumption of processed snack foods and the stricter health and sanitary requirements on the import goods of the export markets are the major threat that must be resolved or given action. The analyst had come up with the recommended plan of action that could counter strike the above mentioned threats or problems. A strong campaign for marketing strategies to promote the product and gain the competitive advantage, a nationwide distribution of the product must be targeted, a continuous innovation of the product focusing on its quality and standards that could surpass...
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...Community, the interest in exports increased significantly. After the study of the market reach, Arcelik decided upon Western Europe as being the most appropriate to start international business. An added dimension was to learn from a healthy competition from the joint venture of the German giants Bosch & Siemens. Since the Turkish Government has already reduced the import tariff interest to nil, Arcelik’s domestic market was vulnerable to competition from Bosch & Siemens-the largest household appliance makers in Western Europe and Germany. Arcelik’s most successful European market-United Kingdom- was established in 1989. This was chosen keeping in mind that UK was a price sensitive market with no domestic domination, thus empowering Arcelik with the opportunity to capture market share through volatile consumer purchasing power. The lack of domestic brand dominance provided a chance for Arcelik to establish customer-base and loyalty by providing good quality appliances at cheaper prices. Two-thirds of the refrigerator sales attributed to table-top refrigerators. The retail prices (including taxes) for these were £150, and on sales in 1997 of approximately 200,000 units would yield revenue around 30mn. After an expenditure on advertising 0.6mn, Arcelik is expected to gain deeper penetration than the current 8% in 1996. Turkey By 1996 Arcelik, in Turkey, had already established a fair share in the market of white goods. In 1992-96, there was a 21% increase in demand irrespective...
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...its dip line – a vegetable dip. The most vivid issues of the company’s dip line presentation include a tight focus on the original taste, since this segment of the market is tightly occupied with the companies, competing for the title of the most innovative relatively to launching the most unique flavors, as it directly affects the price policy – uniqueness costs more. The company is eager to concentrate both on the existing market it already occupies and penetrating new markets in different regions of the world. After a thorough research, Egypt has been chosen as a preferred marketing area, being the country with relatively little presence of dip products, thus, demonstrating a high demand potential in the case of implementation of well-developed brand strategy, taking into account both domestic population and tourists flow. USA provides about 14% of Egyptian imports, being the leading Egypt`s imports partner. The GDP per capita rate is 2 781 for the year 2011 and this rate is instantly growing. It is important to note that Egypt demonstrates a very high rate of inflation – 13.3% (for the year 2011), while the level of poverty is still pretty high. The overall imports rate in 2011 was 57.41 billion US dollars, while foodstuff occupies one of the leading positions in the imported commodities. Thus, Egyptian market is attractive for launching...
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... International Market , Recession, Fish Sandwich Weaknesses; Breakfast Menu , Management Problem Threats; Food Borne Illnesses, Increase in Beef Prices. Competitive Factors; Product Strength Lack of differentiation Unique patty shape Customer Loyalty and Satisfaction Convenience Speed of service Market Share Third largest company in QSR Introduction of new products Customer Concentration Location variables Strengthen penetration Technical Factors New and up to date technologies have long time been the means of support of the quick-service restaurant Wendy’s has combined order-taking, order processing, and payment steps down to an effortless deed that only takes a matter The future generations of winners in the QSR business will be well-known for the most part by how well they know their customers and how they make the most of that knowledge to build customer preservation and loyalty. Wendy’s strategy takes structure along three steps: (1) collecting information, (2) turning information into knowledge and (3) turning knowledge into a customer relationship Wendy’s Strategy Formulation Wendy’s is confined to a red ocean Therefore, in order for Wendy’s to continue forth, they must look to new ventures and ways of doing business that are consistent with their mission but also allow for further future growth Competing in the Industry Overall Wendy’s needs to stand by their strategy of creating a niche market by way of their...
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