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This study looks into the entry strategies that the company employs in new markets, especially the strategies that the company used in selecting the Chinese market. According to Wang (2008), coco cola entered the Chinese market in 1979 and ever since has been one of the most trusted brands in China
China is one of the largest economies in the world, with its market dominating in the world market system. Every company would like to have a link with Chinese economy due to various economic factors. Coca cola in this case has used its internationalization approach to thrust its brands into the Chinese market with a characteristic transitional organization that integrated a responsive framework with the global entry strategy. It is important to note that the major strategy that the company used, as described by Wang (2008), is that achieving high expansion using the economies of scale principle and adopting to the needs of the Chinese. In the end of every marketing program, the company is known to establish an independently owned foreign subsidiary.
One of the major experiences of the company in China is that, as stated by Piercy (2009), at some point, the transaction costs of executing, enforcing and writing contracts in a foreign country through the market may be higher than the cost of internationalizing the market. In this case, therefore, the company has opted to use its internationalization approach to expand its product niches to the extreme regions of Chinese market. Based on the company’s long history in China, the company has experienced myriad competition from like-companies in the highly versatile Chinese local market environment (Wang, 2008). The company has gained many experiences and marketing ability that does exceeds external circumstances hence its survival in the Chinese market thereby capturing the largest beverage market share among the multinational
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This essay discusses how companies in today’s competitive environment can not operate and expect to achieve sales growth unless they expand beyond their domestic marketplace. Technology along with the internet are also described in this essay as to the fact that e-commerce has become a widespread trend among global market players.
Organizations that aspire to enter into the global market must adopt an appropriate style of admission into the foreign market in order to render the finest utilization of their reserves. Nevertheless, in spite of its implication, the moves assumed by several organizations in highlighting gainful and serviceable markets amid the global milieu are regularly based on impromptu conclusions and intuition (at worst), instead of an orderly marketplace research to align organizations with fitting foreign markets.
However the general concept is that entry into an international market is for extending the existing business line which will then result in increased revenues for the products which are already available. It is important to also see the reason why market expansion is beneficial; one important reason is the unfulfilled needs and wants.
This is important from the fact that this industry is universal and consequently the importance of ensuring that people in different areas of the world benefit from these services. In the contemporary world, one of the most important aspects in an effort to increase sales of a commodity is technology, technological devices are very important in this industry for surveillance, book keeping and other related works.
As illustrated the primary goal in the moderately conservative risk-tolerance investment portfolio is capital protection. Based on this portfolio, long term strategic allocation will be 55 percent fixed income securities, 5 percent cash and equivalents and 40 percent equities.
Market researchers need to follow the same process that is followed by domestic researchers. The only difference is that domestic researchers have to research those markets which are homogenous whereas international researchers have to
Reputable markets in the developed countries are nowadays becoming more geographically concentrated as direct vertical relations and free information flows are developed within retailers, customers and suppliers. However there has been a dire need to
into passive and active concepts, of which the latter refers to expansion of companies in various forms, while the former is characterized by the entry of the company into economic ties sans relinquishing activities to these countries. Internationalization poses a substantial
The company constitutes of a single manufacturing plant located in Spain, where all products are manufactured (McAfee, Dessain, & Sjöman, 2007). Using centralized manufacturing, the company has maintained standards within the global arena as
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