Marketing International Business: Slovakia - Case Study Example

International Business al Affiliation: International Business Introduction The success of the product in the market depends heavily on the relationship between the company and the supplier. With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information and integration of economies, the level of competition has increased tremendously in the market. This is because of the entry of multinational firms which have a huge financial base to segment the market, position their products strategically in the market, and attract customer loyalty towards their products. Therefore, in order for the company to succeed in Slovakia, it has to ensure that it incorporates the local culture in its operations and develops a positive relationship with the suppliers. Trust Trust measures the willingness of some people to be vulnerable to the actions of the other. Relationships are based on the mutual trust. Trust affects the expectation of the people. Unlike other global markets, Slovakian people have trust on their local products. Therefore, it is hard for a foreign product to penetrate in this market. Therefore, in order for the product to penetrate this market, it must include the cultural aspects of the local population. For instance, the company must have ensured that it employs the local population in order for the people to feel that the firm takes care of the interests of the people. In addition, the Slovakians do not trust foreigners (Claycomb & Frankwick, 2010). Therefore, in order for the product to penetrate the market, the supplier must have employed a large number of local populations in order to have a local image. Experience Experiences are an amalgamation of people’s opinions, perceptions, and feelings. It is developed over a long period of time. Experience mainly arises after a number of interactions. Experience is very significant in maintaining a good relationship between the business and the market. The largest market segment in Slovakia composes of the young people. These are people who have a disposable income which they are willing to use on luxurious goods. However, unlike other markets which are static and not prone to changes, the Slovakian market keeps on changing. This is because the young generation has access to the internet. Therefore, they are able to assess the new products in the market. Furthermore, they are easily influenced by the rest of the population in the world. This explains why their consumption behaviour keeps on changing (Magnusson & Boyle, 1984). As a result, for the subordinates to spearhead growth and development of the company, they must have adequate experience on the market. In addition, they must have enough experience on various cultural elements that affect the tastes and preferences of the target market. Cultural Affinity Cultural affinity is understood in terms of likeness between cultures. This is mainly in terms of language, legal environment, and work ethics. Cultural affinity is associated with high levels of mutual trust and psychic closeness which builds a strong relationship. Slovakians are very fond of their culture. Although people have adopted the modern culture, they still hold on their culture. For instance, Slovaks culture asserts that people should be less assertive and confident (Lohita, Bello, & Porter, 2009). This is because the culture states that being assertive and self-confident is mainly perceived as being self-centred. Understanding this cultural element by the employees would be significant in interacting with the target market. This would make the employees understand that they must observe the cultural aspects in every activity that they undertake. Privacy Slovaks share the same culture of privacy with the American people (Cravens, 2006). The local population likes to remain private and any form of infringement of their privacy might rub them the wrong war. Therefore, when conducting market research or any other operations that might try to retrieve information concerning the private life of the people, a lot of care should be taken in order to ensure that the interview or research does not change the perception of the people towards the product. Communication Communication is not just the act of speaking or writing. On the contrary, it involves also the process of transmitting information. In order to create a strong relationship with other parties in Slovakia, a good rapport with partners must be created. It will also be significant to communicate regularly in order to understand the needs of the market in order to translate them into business opportunities. Social Classes Social classes are very important in Slovakia. When marketing the products, this element must be considered in order to reach the target market. Many companies have failed to penetrate the market because of ignoring this important aspect. This is through producing a product that serves the interests of the whole market. In such cases, people in a higher social class feel that the product is for the rest of the population (Hurn, 2007). Therefore, they do not purchase it. This has a major impact on the overall sales of the company. Appendix Author Year Variables discussed Description Claycomb, C., & Frankwick, G. L. 2010 1 Culturalaffinity-Slovakians do not trust foreigners. Cravens, C. S. 2006 1 Privacy-Slovakians are individualistic Hurn, M. 2007 1 Social Classes-People of a higher social class want products that address their interests Lohita, R., Bello, D. C., & Porter, C. E. 2009 1 Slovakians believe that someone should be confident and assertive Magnusson, P., & Boyle, B. A 1984 1 Experience-Consumption behavior keeps on changing Stages of Creating a Relationship Pre-Contact At this stage, the parties have not been in contact. Therefore, the perception of both sides relies on the second hand appreciations of the whole country. During this stage, both parties lack experience on each other. Therefore psychic difference is at the medium level. This is because without the experience of each other, the decision to build a strong relationship is based entirely on the attitudes which are mainly influenced through direct exposure. Some of these include word of mouth, reports that has been drafted by others, etc. The main aim of this stage is to create awareness of the potential partners which can be of great mutual benefit. As a result, the stage is built through information (Claycomb & Frankwick, 2010). This stage involves a detailed introduction in order to understand how the companies have been operating in Slovakia. In addition, during this stage, it is crucial for the other parties to understand each other’s motive. This is through explaining to each other the long-term strategy of the company and different procedures that will take place in order for the supply work to commence. Initial Interaction Before the parties conduct any further activities, the prospective partners must engage through series of meetings. This initial interaction continues over a specified period of time. During this stage, both parties must create an impression of mutual benefit. Therefore both the interaction and communication should be done with a lot of confidence. This stage provides both parties with a common platform to discuss various elements which are of great to the business activities. Some of the common elements include initial inputs, priorities, communication process, mutual goals, and objectives, etc. Of great importance to note is that differences at this stage are very rampant because both parties are yet to integrate effectively. At this stage, the psychic difference is higher than the initial stage. The difference may result from cultural differences. Therefore, efforts should be focused towards resolving these problems. Development At this stage, the relationship is developing. However, problems are likely to arise as the focus of the partners shift from relationship development to the main objectives of the relationship. However, the parties become closer to each other and communication strengthens the relationship, an aspect that creates positive experiences. However, commitment and trust are critical to the success of this relationship. This is the most critical stage of the whole relationship development cycle. The level of interdependence has increased. Therefore, uncertainty and psychic distance has been reduced to the minimum levels possible. Nevertheless, there is a possibility that the relationship might not progress beyond this level. As a result, both parties still continue to assess both the performance and actions of the other. Mature Relationship Reaching this stage is an indication that the parties are familiar to each other. Therefore, they are able to anticipate each other’s needs and wants. At this stage, they are comfortable with each other and they work towards a common understanding. They have accepted each other’s strengths and weaknesses. The psychic distance that existed in the earlier stages of the relationship reduces significantly when the relationship reaches the maturity stage (Claycomb & Frankwick, 2010). This is mainly because of mutual awareness, knowledge, cultural affinity, and clear understanding. Communication at this stage is at peak level. Each party is open to each other. There is no bad attitude towards each other at this stage. As a result, there are high levels of interdependence between the parties. Furthermore, the level of trust and commitment are the most valuable ingredient towards the success and maintenance of the relationship. The success levels can be measured by satisfaction levels (Babichenko, 2006). It has been suggested that in order for the parties to continue the relationship into permanent bases, the business partners need to develop or modify their strategies and actions in order for them to remain competitive. This is vital in ensuring that there is a healthy relationship. Appendix Author Year Stages discussed Description Claycomb, C., & Frankwick, G. L. 2010 2 Pre-contact stage is developed through sharing information The psychic distance reduce in maturity stage Babichenko, J. 2006 1 Communication is at peak at relationship management stage Culture and Linguistic Requirement In order to establish and maintain a relationship for a very long time, one will be required to understand the local language, different etiquettes, and ways of communicating. In addition, one must be conversant with various cultural elements such as values, beliefs, and cultural restrictions (Claycomb & Frankwick, 2010). This is to avoid any form of friction with the local population and the partners. References Babichenko, J. (2006). Psychic distance effects for Russian market: Estonian and western experience. Baltic Journal of Management, 1(2), 213-236. Claycomb, C., & Frankwick, G. L. (2010). Buyers- seller relationship development. industrial Marketing management, 39(2), 252-263. Cravens, C. S. (2006). Culture and customs of the Czech Republic and Slovakia. Westport, CT: Greenwood Press. Hurn, M. (2007). The foreigners guide to living in Slovakia. United States?: Modra Pub. Lohita, R., Bello, D. C., & Porter, C. E. (2009). Building trust in US-Japanese business relationship. Magnusson, P., & Boyle, B. A. (1984). A Contingency Perspective on Psychic Distance in International Channel Relationships. Journal of Marketing Channels. Read More