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Research proposal - Dissertation Example

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Strategic Market Directions for Foreign Firms in Ecuador 1. Introduction 1.1 Background of the study During the third quarter of the twentieth century, globalisation was considered a largely political issue, with implications concerning foreign dominance and power wielded by rich, developed nations over the developing and underdeveloped Third World countries…
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Download file to see previous pages The advancements in digital communications technology and the further strengthening of multilateral trade ties have created an environment in the 21st century more receptive than that which characterised international business a few decades ago. A greater understanding and familiarity with other countries’ cultures, laws, and social institutions has greatly diminished the uncertainty and distrust that held countries back from openly participating in international trade and business. Furthermore, the faster pace of technology transfer and development of productive capacity in less developed economies have created new markets that provide added impetus for cross-border trade. The United Kingdom is one such developed economy that may itself benefit from, as it may benefit others through, increased participation in other markets. A country which presents attractive opportunities for expanded trade relations is Ecuador. The prospects have to be examined further, however, and a basis for the formulation of a viable marketing strategy has to be established before concrete plans could be drawn. 1.2 Research aim This study aims to examine implications and directions for strategic marketing that U.K firms may explore in their effort to establish a presence in the Ecuadorean market. Existing macroeconomic and industrial data for Ecuador, industry information on U.K. firms, and the use of established strategic theory in a competitive environment shall provide the context and constraints within which the aim is to be attained. 1.3 Objectives In order to satisfactorily accomplish the above-stated aim, the proposed study seeks to attain the following objectives: 1.3.1. To describe the social, political, economic, technological, ecological, and legal situations in Ecuador that may impact upon the business opportunities of foreign firms wishing to enter the market, using the PESTLE country analysis framework; 1.3.2. To identify industries in Ecuador where U.K. firms may successfully enter and create a significant impact, citing particular advantages and disadvantages, through use of Porter’s Diamond Framework. 1.3.3. To suggest strategic directions that U.K. firms may take for the industry or industries identified, in order to initially effect entry, and thereafter to sustain competitive performance in the Ecuadorean market, through the three fundamental marketing strategy paradigms, namely (a) standardization-adaptation, (b) concentration-dispersion, and (c) integration-independence. 1.4 Research questions The study shall strive to achieve the aforestated objectives, guided by the following research questions to which it shall provide relevant answers: 1.4.1 What are the social, economic, political, technological, ecological, and legal conditions existing in Ecuador that may influence the business environment? 1.4.2 On the basis of the results of the environmental scan on Ecuador, what possible industries may be engaged in by U.K. firms seeking to enter the market in this country? 1.4.3 In relation to the industries identified, what possible strategic marketing directions may U.K. firms adopt in entering into and sustaining performance in these markets? 2. Literature review 2.1 International marketing strategy In deciding upon entering a foreign market, a firm takes on considerable risks, but foresees that there is an opportunity to earn considerable returns as ...Download file to see next pagesRead More
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