Indirect Investment Options
The indirect investment option avails itself of two avenues: licensing agreements or branch or representative offices. "Foreign companies with patents, trademarks, or other intellectual property are free to enter into licensing agreements with local companies. Licensing has the advantage of limiting a foreign company's exposure, since the company need not set up an office or a joint venture" (Price Waterhouse Coopers. N.D.P.18). The branch or representative office "remains part of the parent company and is therefore not entitled to the rights and protections accorded to Chinese legal entities; however, it also must appoint a Chinese legal representative" (Price Waterhouse Coopers. N.D.P.18).
Pros and Cons of Direct v. Indirect
Of the direct and indirect investment options there are positives and negatives. The direct investment option allows the foreign entity to immerse themselves into the political, regulatory, and business framework of China's economic powerhouse. One of the most…… [Read More]
maket enty stategy of cosmetics poduce SkinCeuticals on the Chinese maket. SkinCeuticals is pesented in the Company Pesentation section. The SWOT Analysis section analyzes numeous stengths, weaknesses, theats, and oppotunities associated with the company's situation. The China Analysis section pesents some of the most impotant factos that influence the business envionment in this county. Thee is also a section on Costs, Benefits, and Risks. The stategy of SkinCeuticals is pesented in the Maket Enty Stategy. The Recommendations section eveals the advantages of SkinCeuticals on the Chinese maket.
SkinCeuticals is a cosmetics company established in 1997. The company focuses on poducing cosmetics combined with phamaceutical effects. These poducts ae based on using the oiginal topical vitamin C fomula in ode to addess the diffeent poblems of the skin. The company's poduct stategy eflects its pinciples. These pinciples ae epesented by developing poducts intended to pevent damage to the skin…… [Read More]
GM's Chevy Volt and its all-electric design, as well as diesel-electric and conventional gas-electric hybrids could and must replace the image of the 'old' GM in the public's imagination. The company has shed the Hummer stigma, now it must create a new image for itself in the future, not just domestically, but internationally.
Gas-free cars future priority. (2009, April 20). China Daily. Retrieved August 6, 2009
General Motors. (2009). Company history. Updated August 4, 2009. The New York Times.
Retrieved August 6, 2009.
Hu, Lei. (2008). GM's joint venture is China's top-selling brand in 2007. Edmunds.
Retrieved August 6, 2009.
Jason. (2004). The global hybrid race: Is Europe catching the fever. GreenHybrid. Retrieved August 6, 2009 at http://www.greenhybrid.com/wiki/index.php/The_Global_Hybrid_Race:_Is_Europe_Catching_The_Fever%3F
ald, Matthew. (200, August 5) $2 million in grants to speed up electric car manufacturing.
The New York Times. Retrieved August 6, 2009.
Ying, Tina &…… [Read More]
19). The family-friendly atmosphere at the company's restaurants has also been conducive to its growth, as well as Applebee's combination of good food and alcoholic beverages. For instance, Crandall and his colleagues suggest that the casual dining nomenclature ". . . includes such settings as Applebee's where the food comes with a relaxed atmosphere. The concept here is 'not-so-fast' food for aging boomers who may still crave a burger but now want to sit down and eat it from a plate, perhaps with a glass of wine" (p. 19). The company has a proven track record of success in its foreign markets, making further expansions a viable proposition as discussed further below.
Identification and Discussion of Potential Foreign Market and Proposed Entry Strategy
In general, companies have a wide range of entry strategies available to enter foreign markets, including using company-owned restaurants that use locally hired managers or franchises (Prater…… [Read More]
Market Entry Strategies Into 2004 Germany: High Value, Low Volume Is the Key to Overcoming German Pessimism and Conservative Consumerism
Because of its relative political stability, and great economic wealth, Germany remains one of the most desirable countries for investment and market entry, in all of Europe. In short, there are, comparatively speaking, many Euros floating around the nation to be spent, despite the conservative investment policies of the average German worker, and the recent European recession. ages are high and lifestyles of individual Germans are affluent. But the German consumer remains wary, for taxes are high as well, and labor unions are strong, and the system of social services encourages a way of living that is not disposable, as in America, but tends to place more of a stress upon quality of life, via long vacations and enjoyment of what one has, than conspicuous consumption. (U.S. Commercial Services, German…… [Read More]
Stategic Planning fo Maket Enty
Baies to Enty
Maket Enty Stategy Selection
Agents, Distibutos and Tading Houses Agents
Distibution and Sales Channels
Stategic Alliances, Licensing and Fanchising
Foeign Diect Investment
Finding the Right Patne
Negotiating a Patneship Ageement
The Ageement Checklist
Have the salient points of the ageement been ageed upon in pinciple?
Paticipants and thei Roles
Section 10: Managing Intenational Business Opeations
In this wok, the case study of Tesla Motos has been taken as an example to undestand the stategies of intenational businesses with paticula attention to Gemany. The wok begins with exploation of stategies pevasive in intenational makets with close attention to enty issues. The vaious foms of foeign investments and business like Geenfield, acquisitions, meges, and Joint Ventues…… [Read More]
Market Entry to Ivory Coast
Company Profile and Background
Market Analysis- Ivory Coast
Social and Cultural Analysis
Political and Legal Analysis
Market Entry Strategies
Place and Distribution
Market Entry to Ivory Coast
Company Profile and Background
Barilla Group is an Italian food company whose headquarters are located in the city of Parma. The company also has its operations in various nations in Europe. Barilla was established in the year 1877, initially as a bakery shop and was set up as a family business. In the present, the company is still controlled by the Barilla family. The company is renowned and has established itself as a multinational pasta maker. In particular, the group undertakes the production of numerous kinds of pasta and is actually the leading pasta maker across the globe. The company has a market share of about 45% in…… [Read More]
com. In case of several companies, enhancing customer relationships is among the most capable features of e-commerce. However, whereas the Internet has presented the consent of a novel method to draw and communicate with the customer, hardly few enterprises have discovered a method to efficiently manage interactions with their customers on the Internet. (David, 2000)
The real skill is involved in making the device suitable to accomplishment of the business strategy and also makes profit persistently. (Howard, 1999) This makes McGrath and Heiens to describe the failures of Internet startups as a moot testimony that "the Internet is a tool, not a panacea" and that a "sound business strategy is always a prerequisite for success" Therefore, even though many successes have appeared to day on the Web in the online industry and in the digital forms in general still more are to be explored for accomplishing long-term goals of the…… [Read More]
d.). Billboards and other public advertising such as on buses and subways are also a viable option. Japanese are wired, so advertising through popular Internet portals is a possibility. Also, mobile phone advertising is a possibility. However, it is worth noting that the preferred medium for advertising is highly dependent on the type of product or service offered. Therefore to some extent the ideal channel will be dictated by industry norms (Ibid), unless we choose to buck the trend.
Promotion of Product
The Japanese market is intensely competitive for most products, since it is a mature market with only limited growth prospects. Promotion can be very aggressive as a result. Japanese consumers are price sensitive, but they are equally sensitive to quality. Thus, it is best to enter the market with either a cost leadership strategy or a differentiated strategy. The company's position on the value proposition curve must be…… [Read More]
Market Entry Strategy
There are a number of different options for the market entry strategy. These include licensing, joint venture and direct investment. For Target there are a number of considerations to make. First, the company just utilized the direct investment strategy in Canada, buying the real estate assets of a large chain of discount stores that went under. This move gave Target a large real estate footprint with which to work. Theoretically, that should have helped the company with things like economies of scale, but instead it was too big for Target to manage and the company suffered massive stockouts that may have set it back in that country years (Shaw, 2014). Target can view this one of two ways -- either it learned something from the experience and can enter the UK market most effectively via direct investment, or it should avoid direct investment and find…… [Read More]
Optimal Foreign Entry Strategy for Jaypee Brothers
Established in 1969, Jaypee Brothers is the largest health sciences publisher in India with offices in the United Kingdom, the United States and Panama. Jaypee Brothers currently publishes more than 350 health science books and journals each year (About Us 2015). The company is currently seeking to develop its presence in other markets including the Middle East and Africa. This paper reviews the relevant literature to provide a brief overview of Jaypee Brothers and to identify a professional entry strategy for the company to enter these new markets. Finally, a summary of the research and important findings concerning an optimal professional entry strategy for Jaypee Brothers are provided in the conclusion.
eview and Discussion
With its headquarters in New Delhi, India, Jaypee Brothers (hereinafter alternatively "Jaypee" or "the company") is a global publishing company with collection centers in the United Kingdom,…… [Read More]
A directional strategy is a strategy to take the organization in a specific direction. For example Pepsi bought a ussian diary as part of its strategy to create a $20 billion nutrition business. This is not related to market conditions as such, just a focus on growing an area of business. In contrast, an adaptive strategy is one where the company needs a strategy to adjust to some sort of change in the marketplace. An example of this would be an old-school grocery store adding more organic foods to its shelves in response to that market trend.
A market entry strategy is a strategy used to enter a market. There are several of these: exporting, licensing, joint venture, and direct investment (QuickMBA, 2010). These work for entering new domestic markets as well. New products or changes to existing products would also qualify, perhaps, as entering a new market.…… [Read More]
A third strategic effort made by eBay in conquering the Asian market is represented by diversification -- not the diversification of its operations or provision of services, but the diversification of the markets served. Traditionally focused on China as a source of increased gains, eBay has come to redirect its attention to other countries as well. The online auction company is as such focusing on launching and expanding operations in Japan, South Korea, Singapore, Malaysia, Thailand or even the Philippines (Chan). Through this strategic expansion to more Asian countries, eBay is decreasing its dependency on the revenues generated in China and is striving to create a stable expansion on the Asian continent.
Starbucks is one of the largest American corporations, with stores opened throughout the entire globe. The global expansion strategy at the coffee company is that of physical expansion through the opening of more and more Starbucks…… [Read More]
Company International Expansion
Potential Countries for Expansion
Country for Expansion
Potential Countries for Expansion
In this case, we will discuss the potential for the expansion of XYZ company, based in the U.S., to another country for business. At the beginning, we choose three possible countries where the business can set up expansion projects and then compare the various business, economic, political and legal aspects to choose the best destination for expansion. In the second part, we would also weight the possible modes of market entry and subsequent expansion. For the first part, we choose three potential countries for expansion -- Canada, the United Kingdom, and China.
There has been a modest growth in the overall apparel market since the dollar value was unfavorable and the market was affected by retail competition. Expanding online options also gave rise to price wars. There has been…… [Read More]
Adidas was formed in Herzogenaurach, a town in Mittelfranken, north of Nürnberg, not far from Erlangen, and remains headquartered there today. The company was founded by Adi and Rudolf Dassler. The brothers eventually had a falling out, with Rudolph founding Puma. Adidas has grown to become one of the leading designers and marketers of sports apparel, footballs, and other related items. The company operates globally, has revenues of nearly €20 billion, and profits of €0.72 billion in 2015 (Adidas 2015 Annual Report).
Adidas competes against Nike, Reebok, Puma, and several other brands in this space. Major product lines include footwear, apparel, and footballs. Adidas sponsors a lot of athletes and athletic clubs as part of its marketing. Ultimately, this industry is characterized by incremental changes to basic product designs, a strategic emphasis on marketing spending, and distribution, and companies that utilize a global strategy, selling the same way…… [Read More]
Foreign Market Entry Diversification
Foreign Market Entry and Diversification
Diversification is expanding a company's current operations by adding new markets, products, services or stages of production to its current portfolio. It is all about entering a single or a series of new business lines that differ from its current operations (Cengage, 2006). Murphy Auto Company (MAC) is one of the largest luxury automobile company which wishes to diversify and enjoy even greater profits compared to its competitors. The justification behind the need to diversify first and foremost is the intense competition that the brand faces from cheaper car companies, since due to recession, people prefer buying cheaper alternatives compared to buying such brands like Mercedes and MAC.
Another justification for diversification is the inability of the firm to fully satisfy the needs of the target market owing to the cultural differences of societies they operate in. By diversifying…… [Read More]
Market Entry and Exit Strategies and Decisions
Entering the market in a timely fashion is equally as important as exiting the market. Just as leaving the market, market entry can be planned. In any market, a business can make money by properly timing both the entry and exit. If one miscalculates any of these, then the business runs the risk of not getting the return on investment.
Entering a market sooner has the advantage of being a market pioneer (Bednarek, 2013). In contrast, late market entry can be advantageous since the products are cheap or improved unlike those already in the market. Already cluttered markets serve an opportunity for late arrival based on improved quality. For instance, a company may launch its product in German, Mexico, and Australia but at different times. The company may launch the product in one country at a time and will only enter the next…… [Read More]
However, that the company is using estern management techniques bodes well for its ability to behave ethically, specifically with respect to its desire to avoid bribery and corruption. It would have bribed its way to that deal, but instead chose not to, even though ultimately the deal was blocked.
Leadership is in short supply in Chinese business, so Coca-Cola has relied on foreign managers, even those from Taiwan or Hong Kong, to bring expertise. This has proven to be a challenge anyway, as the chlorine issue highlights, as there is a lack of experience at the plant level and problems like that occur. Thankfully, the company has enough foreign talent in place to ensure that issues like that are dealt with quickly and effectively. It is necessary to ensure that the company has some of its top people in the country, given that it expects China to be its largest…… [Read More]
Amazon's Strategy In India
Amazon has one of the most successful strategies that has developed in the last couple generations of contemporary business models. Their use of a "customer-centric" perspective, new distribution channels, and technology as core competencies have fueled an impressive growth rate in many new niches. Yet, despite many successful strategies initiatives that Amazon has developed thus far, the international sphere as a channel of expansion has produced mixed results. The case presents an overview of Amazon's efforts to enter the Indian market and the factors that are within the country and the culture that the company will have to navigate in order to overcome many challenges related to these circumstances.
For example, organized retail only represents a small portion of India's total retail market and therefore, for Amazon's strategy to work, the company will have to develop this market segment while simultaneously positioning itself at the center…… [Read More]
For this type of customers, Diesel should create a special line of clothing items, different from the one for the primary target customers. For the primary target customers the central piece is the jeans. For the secondary target customers Diesel designers should combine jeans with other clothing items that are best suitable for 25-35 aged customers, that have good jobs and that are present in high social circles. For the secondary target customers the price should be significantly higher than the price for the primary target customers. The secondary target customers are trying to buy a certain status together with the clothing items they buy, so the higher the price of the clothes, the higher the status they are achieving. Other than this, the price should reflect the work invested in creating these clothing items, which require extra care for the secondary target customers.
As mentioned above, the communication strategy…… [Read More]
These new customers of the optimal industry are looking for their own long-term competitive advantage through better alignment and direction of their own resources.
Differences between competitors are significant and aligned more on quality and customization of products than on price or aggressive discounting and the use of promotions. As a result, price elasticity is a permanent factor of the market and also signals the use of more effective means of differentiation, including the delivery of exceptional levels of service and greater levels of product customization expertise.
In the optimal industry there are also an abundance of suppliers, each with highly differentiated and highly efficient supply chains of their own, all ensuring perfectly filled orders. The supply chain then is the greatest competitive differentiator of the industry from the manufacturing and fulfillment perspective.
The highly unique approach to service that is provided by suppliers also focuses on the…… [Read More]
MAKET ANALYSIS & PODUCT INNOVATION
Market Analysis and Product Innovation: Facebook Inc.
In an increasingly competitive environment, business organizations must remain innovative. They must deliver offerings that resonate with the ever changing needs of the consumer and the operating environment (Akbar & Tzokas, 2013). This often calls for product innovation, which has been marked as a crucial driver of competitive advantage in the contemporary marketplace (Song & Chen, 2014). Nonetheless, product innovation is often not a straightforward undertaking. An organization must have comprehensive understanding of the environment in which it operates, especially in terms of the threats and opportunities it presents, for its products to succeed in the marketplace (Bart, 2002). The organization must also effectively utilize its resources and capabilities to overcome those threats and take advantage of the opportunities (Holahan, Sullivan & Markham, 2014).
One organization that is an epitome of innovation in today's business environment is Facebook…… [Read More]
The franchising operations have expanded significantly during the recent years namely because of the benefits and reduced risks they offer to both parties. A positive example in this sense is given by international chain McDonald's, which franchised several of their stores to countries across the globe. The McDonald's example however also reveals that franchising is not always suitable, and it is far from being the universally agreed method of successfully penetrating the foreign markets. To better understand, before entering the ussian market, the officials at McDonalds clearly analyzed the market features and felt the need to handle the operations by themselves, rather than become a franchisor. As a result of increased attention to details, the American corporation now holds next to 80% of the ussian fast food industry. Other American-based fast food chains have attempted to enter the market, but they did this through franchising, and the economic background in…… [Read More]
Strategic Management Health Care
I will use AIDSCAP Nepal as my organization. AIDSCAP has a mission to reduce the incidence of AIDS/HIV among Nepalese sex workers. The organization is not competitive in nature -- it is not a corporate but a not-for-profit entity. It is funded by USAID, so there might be some element of competition for funding that demand it show results for its efforts, but ultimately there is not much competitive posture for AIDSCAP at all.
Strategic thinking is essential to successful performance of any organization (Goldman, 2007), so the leaders of the organization must set a strategy that takes into account the external and internal environments. This is the case even when the organization is not engaged in active competitive, something that AIDSCAP as a not-for-profit entity does not engage in.
An adaptive strategy is defined as one that deals with the environment and its challenges by…… [Read More]
From the place or distribution standpoint, Cincom relies on a direct sales force for the majority of its sales. This translates into the sales force for Cincom visiting the companies who are interested in purchasing their solutions and providing conference room pilots or demos of their software. Cincom also concentrates on creating demos that match to the needs of their customers exactly, by first evaluating the process workflows and procedures that are most in need of improvement within a customers' business. Cincom will model a customers' entire business to provide insights into how their software can streamline the overall production process.
Finally on the promotional aspect of their marketing mix for CONTOL, Cincom relies primarily on customer references and a series of videos of customers sharing how the EP system has helped to streamline their overall operations. There is also a series of brochures and data sheets, and self-running demos…… [Read More]
Geely Car Entry into AU Market
Entry Strategy to Australia's Automobile Market
Australia's automobile market is among the most developed in the world and would make an ideal market for Geely to target given the relative proximity from the company's headquarters in Hangzhou and Australia. The company moved its headquarters there in 2003 to strategically position for international exports (Jiacai, 2002). However, there are many regulations that exist in Australia that are not present in the Chinese market that Geely will have to adapt to. Australian Design Rules (ADRs) are national standards for vehicle safety, anti-theft and emissions (Department of Infrastructure and Transport, 2012). It's recommended that they pursue a low cost entrant strategy in the urban markets.
Regulations and Incentives
Australia is one of the few countries that are yet to offer incentives for efficiency in vehicles. However, they are many regulations for safety. For example, the…… [Read More]
Recommend how the company should take advantage of or respond to each of the marketing environment force examples (political, legal, and regulatory; technological; social; and competitive and economic forces).
To respond to the different regulatory changes, the company would have to follow the provisions that are stipulated in the new law. This would means increased legal consultants and procedures in place to ensure compliance. To respond to the changes in technology, the company can begin building a following for the discount stores on Face book and Twitter. They can also offer special discounts to those who are shopping online through their I Phones or lack erries. The social networking would help to create a core group of die hard Nordstrom consumers, similar to what Apple has, which would address various social issues.
Assume the company is planning to open stores in a new foreign market area, Mexico. Recommend an overall…… [Read More]
Merger, Acquisition, And International Strategies
From a humble beginning in 1998 of responding to about 10,000 queries by offering search engine services, Google, Inc. has grown to a gigantic multinational corporation providing immense and widely used, actually over 30, services with a search engine capacity that responds to more than 200 million queries daily.
Using a combination of personal logging information and other information gathered from its spectrum of services and Google cookies, it is capable of building large dossiers of pertinent information of its individual users. In this essay I wish to examine Google's three most popular and innovative services namely: Ad Sense, Gmail and Google Search in order to show how the huge amount of data gathered from these three services are used to create incredibly big profiles of all its individual users. I will not, however, underestimate the important role its other services like Google…… [Read More]
Thus, despite the high per-capita incomes in Scandinavia, consumers are value-conscious. Unlike Germany, Scandinavians are willing to pay more for wine, and recognize quality differences.
Like Scandinavia, the Netherlands is open to wine imports. With historical connections to Spain and Portugal, and without alliances with Italy or France, Dutch wine drinkers are friendly to imports and to the Spanish character found in Chilean wines. Like Scandinavians, the Dutch have high per-capita incomes are willing to spend for super-premium wines. They are unwilling to 'overpay' for quality, however, and are likely to compare the quality of an 8 pound Chilean wine to similarly-priced products from Australia, the U.S. And other major wine exporting countries.
Chilean Wine Promotion in Europe
Chile is not alone in wanting to increase wine exports to Europe. Australia and the United States have developed significant market share and see growing exports to European markets. The Wine…… [Read More]
INTECONTINENTAL HOTEL GOUP'S ENTY INTO CHINA
The International Hotels Group (IHG) is a British multinational hotel chain. The history of IHG dates back to 1777 when William Bass founded the company originally as a beer brewing company in England, called the Bass Beer PLC. After nearly two centuries predominantly in the beer industry, Bass entered the hospitality industry in 1970 by purchasing hotel assets. Three decades later, Bass sold all of his beer assets to focus completely on the hospitality industry, renaming the company to Six Continents PLC. To focus even more completely on the hospitality industry, the company demerged is hotel and soft drink assets and rebranded itself to International Hotels Group PLC in 2003.
Keen on making the IHG brand the first choice for travellers and hotel owners, the chain has become one of the largest hotel chains worldwide. Through management contracts, franchise agreements, and direct…… [Read More]
Norms: Every society has a set of norms, which often include the folkways, mores, taboos and rituals that exist within the culture.
Values: The values of a culture often refer to the things that are to be achieved or to the things that are considered of great worth or value.
eligion and Beliefs: The religion and the beliefs of the people in a civilization play an important role in shaping up of the culture of any society.
Social Collectives: Social collectives refer to the social groups, organizations, communities, institutions, classes, and societies, which are considered as symbolic social constructions within a culture.
Statuses and oles: A status or a social role is a slot or position within a group or society that a person belongs to.
Cultural Integration: This refers to the degree of harmony or integration within the various elements of culture (What are the Elements of Culture, 2009).…… [Read More]
Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense pressure to perform. The amount of capital investment investments required to get a drug from conception, through clinical trials and into the market is enormous. The already high-strung pharmaceutical industry is increasingly investing greater amounts of resources in search of the next "blockbuster" drug that can help them gain market position and profits. Laws, regulations and patents are important to the industry while spending billions of dollars in ensuring the copyright of their products.
It is the intention of this…… [Read More]
Great publicity machine
Pretty and young
String of top hits
International success, including non-English-speaking markets
Somewhat narrow demographic appeal
Lukewarm critical reception
Some controversy surrounding drugs, twerking, etc.
Many opportunities in pop, and if she wants in country
Growing up in sound/growing with fans
Internal brand building (new fans)
Changing musical tastes
Miley Cyrus has been immensely successful for the past several years and in 2013 has actually improved on her past record. Her new album Bangerz has been commercially successful, outselling her previous release Can't Be Tamed. Cyrus has seemingly transitioned into more adult material successfully. The aggressive marketing of Cyrus has turned off critics, but not fans, which is likely the objective. For future strategies, now that Cyrus has the attention of fans, the marketing machine needs to keep the pressure for six…… [Read More]
Introduction and Description of the Problem
Tesco is the market leader in the UK supermarket industry, with a share of 28.8% as of the summer 2014 (Statista 2014). Other major firms in the industry are Asda, Sainsburys and Morrisons, but the industry overall is highly fragmented. Most firms in the industry compete in the mainstream segment of the market, including Tesco. Few major players operate with a premium platform. The industry has recently been characterized by the rise of discounters, including new market entrants from the continent in Aldi and Lidl, both of which compete in the discount segment, along with incumbent discounter Iceland.
The emergence of the discounters is a major strategic problem for Tesco. The discounters, well-financed and operationally sophisticated, have been able win market share in the UK with their low prices, and at this point are stealing share away from the more established companies.…… [Read More]
Corona Beer (Modelo)
Identify and discuss the trends in the global beer markets.
Driven by the rapid consolidation of breweries and channel-based selling organizations the global beer markets continue to experience flat or slow growth. With the cost of entry into this industry high from a capital investment standpoint, accentuated by high interest rates, the overall industry growth rates continue to be flat with differentiation at the product level contributing little to overall market growth. The key to gaining market share in the global beer industry today are distribution and selling alliances. Alliances and partnerships on the sell-side of breweries are very high priority, as are continued investment in information systems and technologies to streamline the supply chain operations (Sahin, obinson, 2002). Gaining greater supply chain efficiencies can significantly increase overall profitability by reducing stock-outs by minimizing pricing and delivery inaccuracies and increasing product quality. The brewery industry has as…… [Read More]
The first point that has to be looked into is the health of the company, Colorado Australia. The company is passing through a bad phase and this is not the time for a product launch as generally no new introduction can make money for a period of time after launch. When the company launching the product is itself in a relatively poor condition of finances, then it is less likely to take risks that will be required for the successful development of the new product. Here the situation is likely to be of a new brand in a new market, rather than a totally fresh launch. The company is already exporting substantial quantities and it is possible even the same item is being exported for sale by another organization under a different brand name. It may be possible that expansion of sale of quantities under that arrangement may…… [Read More]
One industry that has seen a shift in the market model is the smartphone industry. During the mid-2000s, this industry was an oligopoly, populated basically by two firms that emerged from the old PDA market. Palm and RIM (Blackberry) operated as a duopoly, catering primarily to business customers with early smartphones. Apple joined the industry with the iPhone, and was quickly followed by a number of other players. The organization of the industry is somewhat unique, as some firms are vertically integrated providers with operating systems and hardware integrated (Blackberry, Apple) and other firms have a number of hardware manufacturers working in conjunction with operating systems makers. Thus in operating systems there remains almost an oligopoly with two or three major firms and a couple of other minor ones, whereas on the hardware side the industry is fully in a state of monopolistic competition.
Short Run and Long…… [Read More]
Strategy & Decision Making
Wal-Mart has become a global corporation. The company's primary vision focuses on a more global presence and promotion of the organization's ethical culture across global stakeholders. The company's concept of a vision statement focusing on a culture of ethics is vital in globalization. The company has embraced diversity and culture in their global operations thus leading to a competitive advantage and good reputation. By promoting a culture of ethics, Sam Walton has assisted stakeholders and customers to make informed decisions thus doing the right thing (Griffin, 2012).
Wal-Mart's mission statement focuses on quality customer service, striving for excellence and respect for individuals. Therefore, based on their core beliefs and values, the mission of the company emphasizes on the provision of daily low prices and exceptional services to customers. The company has managed to uphold their business for long because the top executives and managers work…… [Read More]
Market Society and the Public Sphere
My journal text comes to illustrate the utmost significance of globalization viewed as the force molding and shaping the current world. It describes the multidimensional aspect of globalization that influences and encompasses all facets of life through an integrated network. Currently, globalization is the buzzword in media articles, daily talks of media people and talks of politicians. There is no aspect of life that is not influenced or affected by globalization (Tober, 2006, 33). However, many people find it difficult to reflect on this phenomenon. This is because the term is applied in so many aspects leading to its ambiguity in defining it according to my text.
Numerous volumes of work have written about globalization in numerous fields such as political, science, business, economics, sociology and many more. This has made the term globalization lack a precise cogent theory and definition. This is seen…… [Read More]
Office Depot started its operation five years after Staples. The company has aligned its business strategy to target increasing its market share through business policies similar to those undertaken by Staples Inc. The company is locally owned and faces difficulties in capital expansion to be able to roll more distribution outlets similar to Staples. This has incapacitated the company in acquiring economic of scale in operation. The company currently controls 27% of the total market shares in regions where Staples operates. Office Max is a foreign company that has been in operation for the last 8 years. The company traces its roots in Australia where it controls the largest proportion of office paper supply. In the region, the company has captured 8% of the market share in distributing paper products majorly. The company targets to acquire the market for paper distribution this being where the larger proportion of stationary demand…… [Read More]
Market Efficient espect Set Information Impossible Makes Abnormal Profits
In his work, Fama argued that given the massive use of resources by the brokerage firm to conduct studies on trends in the industry, the effects of changes in interest rates on corporate balance sheets and expectations of managers and/or political analysts of the companies should be able to systematically beat a generic portfolio with the same risk characteristics.
Since, according to Fama, professional in every situation, the analyst has a fifty percent chance of beating the market; although its specific capabilities did not exist he would beat a lot of the market. The analyst did "help" the market to be efficient if all the investors, in fact, would hold portfolios composed of stock indices, would open up significant opportunities for professional traders to take advantage of the situation. But the movement of traders to that "new market" would…… [Read More]
It revealed the fact that customers were willing to buy chocolate in order to be in fashion.
The government, which is a communist one, has imposed chocolate importers to mark the country of origin in order to provide the customers with the accurate information about the products they offer.
Size, number, and financial strength of competitors. If we take into consideration the report mentioned above, the main competitors are: Dove (38.61%), Cadbury, Le Conte, Nestle, Hershey's, Golden Monkey, Ferrero Rocher, M&M's, Tresor Dore and Shenfeng. These ten producers account for 90% of the chocolate market, while the first three cover about two thirds of the market share. However, among these ten best companies we can only depict two internal brands. These are Golden Monkey (2.94%) and Shenfeng (1.58%). Due to the new regulations regarding the percentages and quality of the ingredients used, many national producers may not be able to…… [Read More]
This system has the ease of being used in any lighthouse irrespective of its current lighting and power systems. Due to this, Vega is the sole company in the world having such advanced technological and optical competencies. Through the system, all the beacons installed can be monitored from a central location, thereby reducing the quantity of false call outs and identifying faults which require manual attention.
Considering the Total Cost of Ownership -- TCO Vega's product offer a low TCO as their IT products recover the average cost of $30,000 for installation since it reduces the $1,250 per hour helicopter-assisted maintenance. The computer-managed systems have to be fail-proof as any type of false call could cost up to $3,500. This system manufactured by Vega uses the interactive technology capable of permitting technicians to switch lights on or off from a remote location. Vega enjoys economies of scale as it has…… [Read More]
The segmentation recommended in this marketing plan includes the following:
Ensure that locals (there is an advantage to the restaurant's site) become regulars.
Differentiate the "Italian" notion for those who want something different from "standard," "middle of the road" Italian fare.
Come up with very targeted marketing which ensures focus on the three target customer groups:
Those living/working within a well-defined radius
Those who may know the restaurant from other experiences in Australia
Spur-of-the-moment tourists who see the restaurant and walk in.
Cost structure of industry (especially whether variable cost is a small or large proportion of the normal selling price, and whether there are significant economies of scale of production, importance of transportation costs etc.),
The relative margins earned by restaurants vary from zero to 10% of total sales. Price discounts may be attractive to customers, but can have a dramatic impact on the bottom line if not properly…… [Read More]
Market Entry Strategy
FedEx's market entry strategy is what is described as a 'frontal-assault strategy.' FedEx's strategy is aggressive, high cost and Americanized.
The first thing noted is that their strategy in China is exactly the same as in any location. As the executive vice president of FedEx is quoted as saying "we've got a pretty good formula for attacking any market...whether its China or Japan or Germany, it really doesn't make any difference."
Market entry strategies will normally take into account the environment of the market to be entered and develop a strategy that best suits that market. Considering the high cost of entry into the Chinese market adopting an American approach without considering whether it is the best approach could be concerning.
At the same time having the same approach in all locations is easier and more cost-effective for FedEx with it being known that "standardization can…… [Read More]
Market growth in wheelchairs is favorable for a few reasons. The growth in the industry is concentrated in higher-priced segments, with 12-15% each. This means that the relevance of the standard wheelchair is declining, despite that segment remaining the highest volume wheelchair at around 208,000 units or 61.3% by volume and 31.4% of dollar sales. Projecting current growth rates out five years, the industry will looks as follows:
1998 Wheelchair Market
1998 unit share
1998 $ share
Standard wheelchairs are going to lose unit share and are going to decline significantly in dollar share as well. The other three categories are going to increase in importance, so it is important for firms to capture a share of these markets. ight now, the power market is not served by Sunrise, so the company is essentially competing for what will be 38-39% of the total…… [Read More]
Exporting apparel to France would reveal a slightly similar difference. As integrant part of the European Union, France has removed numerous financial barriers in relationship to other EU member states. It has however intensified its barriers relative to product quality and sanitary standards. In terms of the direct relationship between France and the United States, this is generally a positive one, revealing mutual gains and lack of controversy. Efforts are currently being made to reduce the trade barriers between the United States and the EU as a whole (Buy USA, 2009).
A franchising entry strategy would reveal numerous benefits for Miana Fashion, such as reduced risks and shared responsibilities, but would also imply shared financial results. In France nevertheless, such a strategy would stand increased chances of success, supported by all political, economic, cultural and legal backgrounds. France is the leading franchising country of the European Union, with…… [Read More]
The criteria for successful Alliances in Emerging Country Economies
Economic shifts and globalization caused by the development of emerging economies and the recent financial crisis have affected various industries. Firms must adapt appropriately to the new standard where time to market is shortened even with their shrinking capital bases and growing global competition. At a period when alliances and partnerships are fundamental, particular emerging economies are subject to become critical partners. This paper seeks to give a theoretical foundation for analyzing the prevalence, the nature, and the location of global strategic alliances of firms in emerging economies. The focus will be on the criteria for alliances in these economies compared to alliances in developed countries. Propositions will be posted with respect to Small Medium Size Enterprises (SMEs).
Emerging economies previously used for contract manufacturing are evolving at a rapid speed. In a number of industries propelled by local…… [Read More]
Northampton-Based Organisation Wishes Expand Market Internationally
Strategy of International Trade
A firm may decide to operate internationally due to a wide variety of reasons. These reasons include but are not limited to market imperfections at home, gaining market power and favourable environment overseas. In order to operate internationally, firms need an appropriate strategy so that their resources are put to best use and the whole process of internationalization proceeds according to plan. (Twarowska and Kakol, 2013)
There are two ways of entering an international market, equity-based entry and non-equity-based entry. The former gives high return on investment and market control but it has high risk associated with it. The latter does not give sufficient market power nor high rate of return but it is volatile and minimizes the risk. (Twarowska and Kakol, 2013)
The first and the least risky method to trade internationally is engaging in import and export. Using…… [Read More]
Competing in today's economy, demands that a business find ways to break out a commodity status to meet customer needs more than competing firms do. A sound marketing strategy requires effective planning; this helps a business to capitalize the opportunities present in the market and leverage their strengths. Service businesses and firms encounter a number of unique cost considerations that need to be addressed when formulating service pricing strategy. Service pricing is not often finalized until after provision of the service; hence the consumer faces a lot of price uncertainty. Product line pricing tends to be more complicated. The opportunity for illegal pricing is greater in services than in goods.
The overall profitability of a business can be assed by examining change and firm or business profitability. An enterprise gross margin can be used to measure the contribution of the enterprise to a business. The sum of business…… [Read More]
Equilibrium and Barriers
Barriers to Entry and Long-Term Equilibrium in Monopolistic Markets: Strategy and Market Forces
Introduction Marginal Equilibrium
Barriers to entry can arise out of natural market forces as well as through careful strategic creation or enhancement by incumbent organizations that have a great deal of control over a given market and/or industry. When a specific organization has established a monopolistic or near-monopolistic control over its market and enjoys a great deal of stability and equilibrium with some price flexibility as well, it can be very much in its interest to erect or encourage barriers to entry that thwart the possibility of other entrants into the market, disrupting this equilibrium. As mentioned, many of these barriers to entry arise on their own out of market forces, but they can also be encouraged by strategic decisions within incumbent organizations that influence the market generally and at times explicitly.
Before examining…… [Read More]
This is significant because it shows how some critics of contrarian investing will often point to the various instances of speculation and assume that it is contrarian investing. In some cases the psychology of consumers can become so extreme, that the definition of what is speculative expands greatly. As a result, using contrarian investing in conjunction with other indicators / tools can help prudent investors and traders, be able to identify when the market condition are becoming more extreme.
Contrarian Indicators and Tools
When using the different contrarian indicators / tools in conjunction with one another, you can begin to see how this strategy can be used, to effectively determine if the market conditions are overbought or oversold. There are number of different tools that can be utilized to indentify major changes that are occurring in the trend of a stock or the market averages. These would include: headlines…… [Read More]
India is becoming a popular destination for foreign FDI as a result of that country's large and growing economy and economic reforms (Chakraborty & Nunnenkamp, 2006), meaning that capital inflows to India are not likely to meet with major challenges. The country can also be used as a springboard to the rest of Asia, with Indian production going to other Asian nations. Entering the market with a joint venture for both production and sales is important as well because it creates an operating hedge, thereby reducing the amount of foreign exchange risk faced by the company, important given that the rupee is not a hard currency and the derivatives markets for the rupee are relatively illiquid as a result.
Entering the U.S. market is the most straightforward. Hamilton is no more than 90 minutes from the border and the I-90. Shipping westward is also easy, due to the plant's proximity…… [Read More]
Competitive strategy is the bedrock on which companies base business decisions to reach their targets and achieve profitability. Formulating and implementing strategies in international business is much more complicated and difficult task than doing so in home or familiar markets. Competitive strategy deals with the development of abilities by a firm to keep ahead of competitors in the fields in which it operates. Firms develop competitive edge in global markets by possessing certain assets, abilities or characteristics. The primary elements of competitive advantage are the critical offer, the significant operating factors and the firm's strategic resources. (ennett and lythe, 2002) Corporate strategies and international marketing strategies are linked closely and have a bearing on business performance. (rown, 1994)
While some companies focus on a single source of competitive advantage, it is common for many firms to opt for a combination of options to be flexible and attain the…… [Read More]
Particularly, they share risks and they also capitalize on the market and industry expertise of local economic agents. egarding the specifics of these strategic alliances, the organizational structure would be established by the local partners, whereas the control would be joint.
Finally, a last element which needs to be addressed is constituted by the influence of individualism and collectivism on workers' behavior in the two countries. From this standpoint, it has to be argued that the issues do not raise problems as both the Chinese as well as the Mexican employees are highly disciplined. Additionally, their rights -- compared to the rights of the American worker -- are limited. The importance of individuality in the workplace is barely existent and the unions -- when they are formed -- have limited powers. Additionally, the power of minorities to make a difference or pose a threat is also virtually inexistent. The concepts…… [Read More]
" Concerning the type of complementary strategic alliance, it is a horizontal one, because it is formed "when partners who agree to combine their resources and skills to create value in the same stage of the value chain," it is focused "on long-term product development and distribution opportunities" and "the partners may become competitors which requires a great deal of trust between the partners."
The answer to the second question is "no," it's not a "competition response strategy" because the two companies are not really competitors, even if the profile for both company is pharmaceutical. Excel research can be consider in this case as an ally, a support for Century Pharmaceuticals, and even as a consultancy company that works for C.P.
The answer to the third question is "yes," it can be an" uncertainty reducing strategy" because if it functions as it is established, it can reduce the uncertainty about…… [Read More]
Comparing and Contrasting Resource-Based Strategies with Competitive Positioning Strategies
Competitive Positioning Strategies
Strategies For-Profit in the 21st Century
There are two schools of thought regarding the composition of a competitive strategy. The first is resourced based. This approach identifies key resources and seeks to leverage these in order to provide value to the consumer and achieve a competitive advantage in the marketplace. The next strategy begins with identifying a niche or more general opportunity in the market and aligning resources within the organization to achieve a competitive position in regards to the competition. The former strategy can be generalized as more of a push strategy while the latter is more of a pull strategy. Both have advantages as well as disadvantages and fit certain circumstances better than others. In this research project, a brief literature review of both vantage points will be provided follow by a…… [Read More]
It takes insightful analysis of the key success factors from the customers' perspective while a strong commitment to re-orient internal, back-office systems to support customer-driven criterion. The examples of the e-commerce industry, which is known for increasing returns and being highly differentiated on knowledge, show how quickly the network effect can serve as an accelerator for second movers to gain customer base in a relatively short period of time.
Jeffrey H. Dyer, & Kentaro Nobeoka. (2000). Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks, 21(3), 345-367.
Hsieh, T.. (2010, June). Why I Sold Zappos. Inc., 32(5), 100-104.
Isckia, T.. (2009). Amazon's Evolving Ecosystem: A Cyber-bookstore and Application Service Provider. Canadian Journal of Administrative Sciences, 26(4), 332-343.
Lieberman, M.B. & Montgomery D.B. 1998, 'First-Mover (Dis)Advantages: etrospective and Link with the esource-Based View, Strategic Management Journal, vol. 19, pp. 1111-1125.
Maida Napolitano.…… [Read More]
Ultimately the use of multiple forecasting techniques serves to increase the knowledge of a market and minimize market entry risk.
How would you forecast sales force size in a specialized industry, for example, aircraft?
As the demand for aircraft is defined by a select set of customers who have highly specialized information needs, defining the sales force size for aircraft would be easily accomplished by looking at the average sales cycles in this specific industry (which happen to be quite long) combined with the project management skills necessary to ensure a design win. A design win is the event where the aircraft is designed into the broader program of an airline, or in the case of military aircraft, purchased by a branch of the Department of Defense. Taking the average length of sales cycles and the total population of potential customers for the specific aircraft, calculating the size of the…… [Read More]
2.1. Separate Unification - Advantages
A specification has to be made in that this process would commence with the unification of Comsec and its affiliates' websites
In case of success, the websites of other Entrystop subsidiaries would be unified
As such, the unification of Comsec's website offers a prototype
The new website would offer sufficient information as desired by the customers
4.2.1. Separate Unification -- Limitations
Only offers one category of information
Customers may often search to protect themselves against general as well as fire risks, but the sole Comsec website would offer limited data
Lack of an offer for complementary products and services
4.3. No Unification -- Advantages and Disadvantages
No additional risks
No additional costs
No possibility for improvement
Reduced chances to adapt to the changing needs of the customers
Possibility to lose competitive position
5.1. Proposed Solution
Due to the current state of the company…… [Read More]