Vietnamese Market - Essay Example

Enforcement is primarily in the form of agreed upon termination for non-performance. For Boeing, cooperation with businesses abroad is becoming significantly evident as an alternative response. In an alliance, both companies share some risk in the investments they have made, financially or otherwise, in the common activity. Technical training or startup assistance agreements require involvement of the two organizations over the period of time which covers the training period and can be terminated by prearrangement.

The degree of involvement is defined by that which is needed to support a small training team in a foreign location for what is usually a short time. A joint-venture strategy predicates a long and indeterminate lifetime for the alliance and requires only limited commitment. For Motorola, marketing subsidiary would help to penetrate the market and remain competitive for a long-time. Marketing subsidiary is an effective way for a company to overcome import restrictions and political instability.

Market penetration is likely to be greater than under exporting, and profit potentials are larger than with licensing. The costs of R&D are spread over more units, as are the centralized expenses. The parent company, in the process of producing and then selling overseas, learns about foreign markets and ways of doing business overseas (Tayeb 2000; Arnold & Quelch, 1996). 2. Vietnam is the third fast growing country in the world with the population 85,262,356 (International Data Base 2007). Statistical results suggest that Vietnam has a hogh rate of population growth in contrast to other countries.

In 2000, its population was 79,060,410, and it is predicted that in 2050 it reaches 107,772,641 (International Data Base 2007). An increase in population growth rate has both a positive and negative impart on three companies. On the one hand, an increase in the population growth rate has a negative, 'resource swallowing' effect that depresses the level of per capita income; since the propensity to save also has a positive impact on the level of per capita income, it becomes important to determine the influence of the population growth rate on the fraction of income saved; three companies need to consider that countries (like Vietnam) with higher rates of population growth should tend to have lower levels of per capita income.

For three companies, population growth proposes opportunities: entering the new market, they should take into account decreased consumption per capita income and increased labor market (Tayeb 2000). Also, the companies should be aware of cultural differences and strong corporate culture. In Vietnam HRM is the prerogative of senior management. HRM has elevated human resource issues to a position of key strategic importance. The main opportunity for the company is that the Vietnamese like to try something new.

In societies like Vietnam the power distance is large and formed the basis of social relations. It is important to note that collectivistic society shows concern for a much wider group and emphasize belongingness which can extend to organizations. Uncertainty avoidance is the extent to which members of a society feel uncomfortable with uncertainty. These variables shape the values and hence the behavior of people and their consumption patterns. Language differences and brand perception is another area of concern for three American companies. In global