...select the most effective route to market you’ll need a clear understanding of your target market and the needs and preferences of your target customers. Before entering a new market, you’ll also need to take time to evaluate your business and its strengths and weaknesses. Ask yourself the following questions: • How is business done in our industry sector and in our target market? • Where are the potential customers located? • What are their information requirements? • How sensitive are they to price? • What export experience does our company have? • How much finance do we have available? • How much after sales support or service will be needed? • What degree of control are we happy with? • What level of resource commitment are we prepared to make? • What is our current level of ability to increase capacity? • How much time can we spend travelling to the market? • What entry option is best suited to our product or service? Having made the decision to enter an overseas market, the options available to you will vary according to the costs involved, degree of risk entailed and the amount of control required. The simplest form of entry strategy is exporting either direct or indirect. More complex forms may involve joint ventures or other forms of strategic alliances while, eventually, companies may decide to invest directly in the host country. Direct exporting This involves selling directly to your target customer in their home market. With this approach your business...
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...HAIER, TAKING A CHINESE COMPANY GLOBAL 1. SUMMARY Haier (“the Company”) was China’s biggest white-goods producer and supplier in 1990s. In 1984, there was nearly 300 local producers in China market, most of which were producing poor quality goods. However, customers were willing to pay more for higher-quality products and reliable service. This need created an advantage for differentiation. In Chinese market, demand was high. Haier being able to read customer need properly, focused on Product Quality, After-Sale Services and Brand Building. While there was oversupply in the market, with product differentiation Haier was able to raise its prices. Their target was to be a first-class brand. In early 1990s, while the demand was exceeding the supply, they decided to set up a large scale production. In 1991, they focused on Diversification on product range. They acquired an AC and a Freezer company, which were performing poor and turned around these companies into profitability quite soon with the right restructuring and strategy. There was a government pressure on Haier to take over poor performing firms ( i.e. in 1993, acquisition of Red Star). In 1992 the Company needed additional capital to invest in land and construction, but did not get subsidied due to government restrictions.As an alternative solution the Company undertook an IPO and went public with its 43.7% refrigerators division on Shangai Stock ExChange in 1993. In 1997, the Company added TV and telecommunication...
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...Marketing | Dell | New Horizons Case Study | | | 7/1/2012 | | Executive Summary In 1984, at the age of 19, Michael Dell founded Dell Computer with a simple vision and business concept; that personal computers could be built to order and sold directly to customers. Michael Dell believed his approach to PC manufacturing had two advantages: (1) bypassing distributors and retail dealers eliminated the markups of resellers, and (2) building to order greatly reduced the costs and risks associated with carrying large stocks of parts, components, and finished goods. Now, that concept picked up and arrived at Dell being the multi-billion dollar leading computer manufacturer in the world with 2001 revenues reaching $32 Billion and return on investment of 335%. However, things started to plummet by 2001 and Dell experienced, for the first time, a -10% decline in sales and unprecedented cutthroat competition from HP and IBM. Dell Corp. had to make difficult decisions on how to sustain its profitability in light of its broad product portfolio - PCs, workstations, servers and storage products for a broad cross-section of customers in the United States and worldwide. Fueled with ambition and determination, Michael Dell is set to maintain his company's leading position in these tough times. Dell, facing a predicament of whether they should maintain their strategic course or fundamentally change it in order to achieve the targeted growth rates, managed to acquire three important...
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...Manchester in UK. Over the years the importance of Asia in the electronics industry grew amazingly, especially China, which dominated the industry’s growth at greater than 20 percent of sales in the 2002-2005. While Europe and the Americas were expected to grow 3 percent per year from 2005-2008, it was expected that China would grow 12 percent per year during the same period – China’s importance in the market was expected to grow from less than a tenth in 2002 to over a third in 2008. As a result of this incredible growth, Teradyne built a facility in Shanghai. However, despite the industry’s growth in the Chinese territory, in late 2003 the Teradyne’s market share in China was only one third of what it was in Europe and North America. Jeff Hotchkiss, president of Teradyne’s Assembly Test Division, was sent to Shanghai to find and solve the problem. I. Recognizing the Problem There are several problems in Teradyne’s business in China: - Because local expertise was so difficult to find in the previous years, the Chinese Operation was overseen by parent company nationals (PNC’s). However, these English-speaking Americans expatriates, aside from increasing Teradyne’s overseas costs enormously, had little direct contact with costumers. They did not understand the Chinese culture, and were not able to...
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...international business transactions are international trade and investment. International trade refers to an exchange of products and services across borders. Exchange can be through exporting, importing or countertrade. Exporting is an entry strategy involving the sale of products and services to customers located abroad from the home base or third country. Importing is the buying of products abroad and bringing them to the home market. Countertrade is a business transaction where all or partial payments are made in kind rather than cash. Both finished and intermediate goods, such as raw materials and components are subject to trade. While on the other hand international investment refers to the transfer of assets to another country, or acquisition of assets in that country through foreign direct investment and contractual agreements, Cavusgil (2008). Among the organizations arrangements for exporting are Indirect Exporting, Direct Exporting and the establishment of a Company- Owned Subsidiary. Direct exporting is accomplished by contracting with intermediaries located abroad, and involves using Manufacturing Representatives or Sales Agents, Foreign Distributor/Importer, Overseas Retailers, Central Trade Offices...
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...business Index 1 3 7 13 14 19 22 28 32 34 37 39 42 45 48 51 52 55 Section 4: Section 5: Section 6: Foreword The current economic environment has certainly presented UK businesses with some challenges, but it has also offered immense opportunity as well. The appeal of overseas markets has never been greater and, for British companies looking to buy or sell outside the UK, now is undoubtedly the time to explore that opportunity. That’s why I’m delighted to share this Guide to International Trade with you. It contains a wealth of useful information about how to trade internationally, including insights into research we have conducted among UK businesses, and informative articles from prominent trade bodies such as UK Trade & Investment, the British Chambers of Commerce and the British Exporters Association. Our recent research conducted among 500 UK companies has told us that many businesses believe now is a good time to increase overseas trading. However, they’re not fully realising these ambitions. In fact, 50% of the businesses questioned believed that UK organisations were not sufficiently aware of the opportunities out there. This guide is designed to help you realise those overseas opportunities...
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...but it will be in a customer group with whom you already have a relationship. If you get off track, your present customers will let you know! 2. Introduce a New Product. You have a successful product/service that you have been offering for some time and have been collecting data, customer feedback and doing the tinkering on your newest product. This is a normal evolution in business, not just an expansion tactic. When positioned as adding value and being responsive to customer needs, this can be a relatively risk-free way to expand. 3. Develop a New Market Segment or Move into New Geography. Both of these areas require cost outlays and uncertainty. Moving your products into new categories or demographic segments requires market research, beta testing and new marketing strategies, i.e. a message for a 16-year old will differ that one for a 60-year old. Management of new remote locations may absorb significant time and attention. While the risks are more, the payoffs are large - and for most businesses looking to expand, these two methods of expansion are inevitable. 4. Start a Chain. A restaurant, retail or service business that's easily reproduced and can be run from a distance is all you need to launch a chain. But, you must be cognizant of what made the first location a success - was it location, your staff or you? If it is just you, then duplication is only possible through detailed operations plans and sharing staff between locations. You will need to duplicate the plan...
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...to know the difference between domestic and international markets and how to understand how to choose the market, to learn the economic ,legal and cultural aspects of international marketing environment, to understand the risks involved in doing international business, pricing, financial terms, and payment methods used in international markets, also to learn how to gather information about the market and understand the differences between domestic and international channels and finally to understand the factors that influence the choice of distribution channels in overseas market. . Globalization has opened up markets and provided untapped opportunities to companies across the world. With increasing competition, changing customer needs and stagnation of demand in domestic markets, many companies have started looking at international opportunities. However, why go international? Why do we need to choose the market? And why does need to understand about all these? Exporting and international business can be interesting, exciting and in some cases challenging. In all cases it should be profitable and help a business grow. Doing business internationally is not the same as doing business at home. There are new skills to learn and new knowledge to acquire about the country you will be going into. We will need to learn about the different laws and regulations, the different customer buying habits, and change our marketing strategies and materials to appeal...
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...efficient automobiles that comply with health and safety environmental regulations Limited flexibility in processes Improvement in process’s are easily identified Strategies similar to competitors, need to identify Staying abreast of current technology trends Structures Stationary and mobile services Mobile units don’t possess many capabilities to serve Acquire space in optimal location Need more than one service location for customers Small Offices, (no big offices) backup operating locations Processes and Systems Value, quality and competitive pricing Data reliability New ideas to service client Drastic changes in process could deter major clients Cloud computing and Process improvement Resources List of local area business to target Small start-up budget Acquire better supplies Supplies may be limited due to many competitors Subject matter experts stay abreast of current resources needed Goals Attainable goals based on industry Fast growing threats and vulnerabilities To expand beyond initial goals as business grows Competitors may want to feed off of success Set short term goals to leave room for change in strategy Strategic Capabilities Service differentiation advantages Reputation not developed Acquire more satellite offices Corporations may be downsizing, creating less of a need for services Be prepared for more market demand Culture Type of business pertains to all cultures Society believes this industry yields higher salaries Diversification Limited employment limited...
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...Owning and operating a business is not something that comes easily to most people, after all many businesses struggle to keep afloat in their own country forget about opening a business overseas. Running a business can be a challenge especially trying to do it from a different country. There are many things that you need to take into consideration such as language barriers, currency exchange and customs to name a few. Many entrepreneurs look to the international market because they have lower startup costs and there is less business around to compete for startup costs. This by no means makes starting a business overseas easy however; there are definitely tricks to the trade. As with anything there are challenges, setting up an international business takes a lot of time and could potentially take longer than a business started in your own country. Dealing with the international laws and tax regulations is a job in itself. A lot of thought needs to be put into starting the business as there are far more things to think about such as transportation, utilities, internet speed and economic stability. Not many people would think about it but traffic and transportation are huge things to consider. Traveling three miles to the office in the United States which takes ten minutes could take easily three hours while in another country. Opening a business in unfamiliar territory certainly opens up a myriad of roads to be traveled and the possibilities of success are endless. It is all about the...
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...SUMMARY BUSINESS CONCEPT The Kite industry has expanded rapidly in the past several years and growth is expected to continue at a strong pace for the foreseeable future. This offers excellent opportunities for new companies to enter this market. We intend to address the needs of customers in this market who seek higher quality, higher priced kites. We will address this need by importing, selling and distributing higher end kites in the US and Canada. Distinguishing characteristics of our business will be top quality products, special emphasis on higher end independent retailers, and high level of service. CURRENT SITUATION We are a start-up company, incorporated in 1998 in the State of California. The principal owner is Tom Anderson whose title is President and who has many years of experience in the toy industry. Other key personnel include Nancy Anderson, his spouse who has experience in customer service, bookkeeping and office work. At this time we are seeking additional equity capital to compliment our own equity investment and seeking to arrange a bank line for inventory and receivables financing. We have firm commitments to distribute several highly sought after overseas kite manufacturers and have verbal commitments from independent retailers primarily along the West Coast to stock our products. We hope to ship our first products within six months of finalizing financing arrangements. ------------------------------------------------- KEY SUCCESS FACTORS The success...
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...Product Launch Plan MKT 571 February 25, 2013 Meraj Khan Product Launch Plan General Electric (GE) is building the world by providing capital, expertise, and infrastructure for a global economy (G.E., 2013). The corporation is preparing for the launch of the Smart Helmet in Japan and Hong Kong markets, respectively. The Smart Helmet offers improved safety and modern technological capabilities through Bluetooth synchronization and Global Positioning System (GPS) with a heads-up visor display. This paper considers components of the product launch plan for Japan’s domestic market and Hong Kong’s international market. The plan includes a description of the product and positioning, targeting, market needs and growth, SWOTT analysis, the competition, objectives and strategy, pricing and financial information, communication plan, distribution strategy, and market research for the plan. GE anticipates the detailed plan will result in a successful product launch. Product Description The Smart Helmet is designed primarily as a protective covering for the head of any cyclist who desires a full-face helmet. As a product of innovative thought, the Smart Helmet increases safety and convenience by offering a standard voice-activated global positioning system and Bluetooth synchronization with a heads-up projection at forward sky-level. Such features allow the rider to enjoy an uninterrupted journey with music, verbal companionship, and navigation without taking his or her eyes off...
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...Product Launch Plan General Electric (GE) is building the world by providing capital, expertise, and infrastructure for a global economy (G.E., 2013). The corporation is preparing for the launch of the Smart Helmet in Japan and Hong Kong markets, respectively. The Smart Helmet offers improved safety and modern technological capabilities through Bluetooth synchronization and Global Positioning System (GPS) with a heads-up visor display. This paper considers components of the product launch plan for Japan’s domestic market and Hong Kong’s international market. The plan includes a description of the product and positioning, targeting, market needs and growth, SWOTT analysis, the competition, objectives and strategy, pricing and financial information, communication plan, distribution strategy, and market research for the plan. GE anticipates the detailed plan will result in a successful product launch. Product Description The Smart Helmet is designed primarily as a protective covering for the head of any cyclist who desires a full-face helmet. As a product of innovative thought, the Smart Helmet increases safety and convenience by offering a standard voice-activated global positioning system and Bluetooth synchronization with a heads-up projection at forward sky-level. Such features allow the rider to enjoy an uninterrupted journey with music, verbal companionship, and navigation without taking his or her eyes off the road. GE’s new product is differentiated from competitors...
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...self-interest or not and then we are going to discuss briefly why we are disagree with statement of "The Wealth of Nations" (1776) by Adam Smith. “Contract and how do business-people come to have duties under the law of contract” When two or more parties agreed upon specific terms and conditions in written and willingly want to perform their duties and responsibilities is called agreement and when the agreement is enforceable under the law is called contract. Every contract should need to have the offer and acceptance from two or more parties and with something in return (consideration) and with the purpose to make legal relations. The main legal requirements for the formation of a contract are as follows: • Capacity: The ability or capacity to understand and know the contract is called as capacity. In a valid contract all the parties must need to have capacity like companies and adults except minors because they don’t have the capacity to know and understand the contract. Those who are under the age of...
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...we raise our competitive edge. Otherwise, we’ll lose the China market to foreigners. — Zhang Ruimin, 19961 All success relies on one thing in overseas markets—creating a localized brand name. We have to make Americans feel that Haier is a localized U.S. brand instead of an imported Chinese brand. — Zhang Ruimin, 20032 On December 26, 2004, Haier Group, ranked China’s number-one company by the Asian Wall Street Journal,3 celebrated its 20th anniversary with annual sales topping RMB 100 billion.a (See Exhibit 1 for Haier revenue growth.) Starting with a defunct refrigerator factory in Qingdao, Shandong province, founder and CEO Zhang Ruimin built Haier into China’s largest home appliance maker.b Globally, Haier ranked third in white goods revenues, and was the second-largest refrigerator manufacturer (with about 6% of the global market) behind Whirlpool and ahead of Electrolux, Kenmore, and GE.4 Zhang pledged to make Haier the world’s best-selling refrigerator brand by 2006. (See Exhibit 2 for global appliance market shares.) Haier held about a 30% share of China’s RMB 129 billion white goods market,5 and had a growing presence in “black goods”...
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