HND-國際營銷導(dǎo)論-report

1、Contents1.0 Introduction2.0 Findings2.1 Why is PK Electrics Entering International markets?2.2 Sources of Information2.3 Opportunities and Threats2.3.1 Opportunities2.3.2 Threats2.3.3Opportunities and threats PK Electrics faced2.4 the Process to Select a Market to Enter2.5 the Modes of Market Entry2

2、.6 Why Select This Mode3.0 Conclusion4.0 Reference 1.0 IntroductionPK Electrics has grown from a local supplier producing a limited range of electrical cabling and switches to national supplier. It is considering entering the international market. This report is aimed to show the reasons why it need

3、 to enter the market and how to select a mode which suitable to it. 2.0 Findings2.1 Why is PK Electrics Entering International markets?International marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to c

4、reate exchanges that satisfy individual and organizational objectives. According to the case, we could know that over last two years the rate of growth has begun to decline with sales rising 5% profits by 2% last year (/terms/m/marketsaturation.asp). So entering international mar

5、ket is good way to improve the current situation.There are five reasons why the PK Electrics should enter the international market. The first is excess capacity and home market saturation. In an attempt to minimize its fixed costs per unit the firm may undertake foreign orders. And if the domestic m

6、arket is fully occupied, there is no or little potential market, no or little profits, the international marketing seems to be the prior choice to make more profits. The next reason is the intense competition. Intense competition in price and market share may occur in home market, and may cause low

7、growth and profits. PK Electrics, the firms may choose to be internationalized, to avoid such competition. The third one is there will be more opportunities in international market. In a highly flexible and changeable international market, new opportunities and chances will frequently occur. Normall

8、y, International marketing, with more risky, could also bring more chances. Therefore it will be a opportunity to realize the long term goal profit maximization for PK Electric again. The fourth one is competitive advantages. Some countries possess unique natural or human resources that could give t

9、hem comparative advantages, such as price or quality when it comes to producing particular products. For example, PK Electric could enter the country with enough metal and plastics.The last reason is that entering international market could reward employees of PK Electrics experience International m

10、arketing is an opportunity to let both employees and managers learn different ways of thinking and looking at things. It increases problem solving skills as it forces you to look at a problem from different angles. This way would help PK Electrics develop better. 2.2 Sources of InformationInternatio

11、nal marketing managers must pay great attention to the quality, quantity and relevance of the information that they seek. So does PK Electrics managers. They should collect sufficient information to help they decide which international market to enter. On the one hand we should collect the primary i

12、nformation. On the other hand, secondary information is needed.Primary information is information gathered first hand by the organization for a specific purpose, such as from the representative of the organization in person, commissioning research to be undertaken on behalf of the organization. PK E

13、lectrics shall get some effective information from the trade fairs. A trade fair is an exhibition organized so that companies in a specific industry can showcase and demonstrate their new products and services. Generally speaking, a trade fair is not open to the public and can only be attended by co

14、mpany representatives and members of the press. If PK Electric could attend or even hold some trade fairs, they would get much information they wanted.Secondary information is information that already exists and should always be checked first as it is readily accessible and saves time and effort bei

15、ng used in collecting primary information. You could achieve this information from the world chambers network, regional trade organizations like APEC, EU and commercial organizations. The Organization for Economic Co-operation and Development (OECD) is an international economic organization of 34 co

16、untries founded in 1961 to stimulate economic progress and world trade. It is a forum of countries committed to democracy and the free-market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and internatio

17、nal policies of its members. Thus PK Electric could know which countrys market deserves entering. 2.3 Opportunities and Threats2.3.1 OpportunitiesPolitical FactorsIt has some significant influences to enterprise supervision, spending power and other relevant activities with enterprise produced. Poli

18、tical factors include tax policy, labor law, environmental law, trade restrictions, tariffs, etc. The policy may help the organization avoid the bankruptcy in the competition. If governments support companies enter into international markets, it must provide a lot of opportunities. China is playing

19、a significant role in world trade, which is also the opportunity for PK Electrics to enter international markets.Economic Factors It refers to the total national economy development, the form of international and domestic economy and Economic development tendency, the enterprise faces industry envir

20、onment and competitive environment, etc. The weak currency could make PKs export easier because price of goods can be reduced in the foreign markets.Social FactorsIt includes the cultural aspects and includes health consciousness, population growth rate, age distribution, career attitudes and emphas

21、is on safety. Trends in social factors affect the demand for a companys products and how that company operates. For example, the level is high of consumption in India, India have strong desire in buying so PK will be interested in those countries in Africa.Technological FactorsIt refers to the total

22、 level of the social technology and changing trends, technical change, Technological breakthroughs that influence the development of the enterprise. At present, the technology is growing at a high speed. Some new skills benefit for PK Electrics, for example, the Internet, multimedia and the commerci

23、al infrastructure. Environmental FactorsIt include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting

24、 how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones. If the PK Electrics select the country that is vulnerable to natural disasters, it also isnt helpful to the entering the international market.Legal Factors It includes some laws

25、 about discrimination, consumer, antitrust, employment, and health and safety. These factors can affect how the running of a company, its costs, and the demand for products. Some countries trading barrier is low; it can attract PK much more. Developing countries barrier is lower than developed count

26、ries.Demographic Factors It also play important role in international trade. Large population can lead to more demand of the electric products. Residents of high income countries are another opportunities for PK to enter the international market. 2.3.2 ThreatsThe policy may hinder the organizations

27、development if the organization has a strong power that may become a monopoly in the industry. And if some governments carried out protectionist measures, which limit foreign companies to enter their markets to protect national industry, it is difficult for PK Electrics to enter into international m

28、arkets. The economic factor can influence the organizations benefit by the change of economic transition and the exchange rate. It is obvious that the tax rate now is very high and employees need higher wages and higher welfare. So this is a threat for PKs entering.As for social threats, if do not u

29、nderstand their local culture and customers, it is hard to get into their markets without any rejection and disrespect.Also consumption habit will influence market demand, residents in some countries are used to saving money in bank, it will do harm to companys market performance.Refer to environmen

30、t factors; the harsh climate of the area is not suitable for the development of foreign trade and economic. Like some countries with extreme weather. Legal threats mean some lows which prevent foreign investments. 2.3.3Opportunities and threats PK Electrics facedOn the political factor, if PK Electr

31、ics enter a developed country, the opportunities contain high political stability. Generally, developed countries have their complete law system, such as anti-trust laws, and these countries have perfect industrial safety regulations, also the intellectual property protection is mature, and their pr

32、icing is competitive and in the past the organization has used price-based promotions to attract new customers, thus there are probably many favored trading partners. In addition, if PK Electrics enter a developed countries, they can become the biggest electrics company in the country, this firm hav

33、e not intensive competitor. And the markets possibly have been not developed; this firm can acquire enormous customers. Maybe the government gives some political awards to PK Electrics in order to developing their poor economy. On the economic factor, it mainly covers macro and micro 2 aspects. Macr

34、o economic factors mean a countrys national income, GDP and the relevant changes, and all the information that could illustrate the speed and level of the economic development. The type of economic system in countries of operation is an opportunity for the firm, and the business cycle stage of a cou

35、ntry is significant to PK Electrics, if a country are experience prosperity, it definitely an opportunity for the firm. The economic growth rate of a country is important to the company, These factors directly determine the market. 2.4 the Process to Select a Market to EnterThere are 6 stages of the

36、 market selection process. The whole selection process will take into account number of other steps to ensure that the company considers, is prepared for and has a plan for the whole operation.The first stage is collecting information from a variety of reliable sources. At this stage such techniques

37、 as PEST analysis can be used. PK Electrics should know the information about the policies, risk assessment and terrors for which countries to enter.The second step is screening the collected information using set criteria. For example as in the Business Environmental Risk Intelligence (BERI) index.

38、 And a company should look for International organizations and identify the standards of international organization, such as GDP, tariff, customer groups and population.Next, select top-scoring countries.The forth step is applying secondary screening criteria by using data from markets and the busin

39、ess. And then PK Electrics should learn about market attractiveness and competitive advantage.Then select best countries to enter. Comparing with some standards, and analyze the data, choosing the best country for PK Electrics,Before entering the international market, PK Electrics should prepare an

40、international marketing plan which is helpful to selecting a most appropriate entry mode, because PK Electric is a medium company, it doesnt have much funds and cant bear strong risk. So the indirect export is suitable for PK Electrics. At last, selecting the most appropriate target market and marke

41、ting mix which suits to the country and the target market. 2.5 the Modes of Market EntryThere are several entry modes, including exporting, turnkey projects, and licensing, franchising and foreign direct investment. Typically, there are modes of market entry available to PK Electrics: exporting (dir

42、ect and indirect), joint venture and foreign direct investment.Exporting is divided into direct exporting and indirect exporting. Direct exporting occurs where the producing organization itself performs the export tasks rather than using an intermediary. In direct exporting, PK Electrics can have a

43、direct relationship with its overseas buyers. Mainly PK company will be pushed by core competencies and will improve their performance of value chain. Direct exporting is considered to be the most popular option for PK Electrics to develop its own international marketing capability.In indirect expor

44、ting, the market-entry technique that offers the lowest level of risk and the least market control is indirect export, in which products are carried abroad by others. The firm is not engaging in international marketing and no special activity is carried on within the firm; the sale is handled like d

45、omestic sales. Therefore, firms may not increase its understanding of the export market. In this case, PK Electrics just wants to expansion their market to abroad. It does not have enough power to establish a new company that can become a channel with oversea market. So if choice the indirect export

46、, PK Electrics can buy offices in other countries, or piggyback which means using its own established international marketing channels to market the products of another producer as well as its own.Joint ventures entry takes place when an international company shares the ownership of an enterprise in

47、 a target country with local private or public interests. PK Electrics will have less control over a joint venture than over a sole venture, particularly when it has only a minority equity position. So if PK Electrics select this mode to enter into an foreign market, the profits it gains must be sha

48、red with others. (/wiki/Foreign_market_entry_modes)Licensing the transference of knowledge between the parental company and the licensee is strongly present, the decision of making an international license agreement depend on the respect the host government show for intellectua

49、l property and on the ability of the licensor to choose the right partners and avoid them to compete in each other market. Licensing is a relatively flexible work agreement that can be customized to fit the needs and interests of both, licensor and licensee.Franchising agreements tends to be longer

50、and the franchisor offers a broader package of rights and resources which usually includes: equipment, managerial systems, operation manual, initial trainings, site approval and all the support necessary for the franchisee to run its business in the same way it is done by the franchisor. The interna

51、tional licensing firm gives the licensee patent rights, trademark rights, copyrights or know-how on products and processes. In return, the licensee will produce the licensors products, market these products in his assigned territory and pay the licensor royalties related to the sales volume of the p

52、roducts.A turnkey project refers to a project in which clients pay contractors to design and construct new facilities and train personnel. A turnkey project is way for a foreign company to export its process and technology to other countries by building a plant in that country. Industrial companies

53、that specialize in complex production technologies normally use turnkey projects as an entry strategy. (/wiki/Foreign_market_entry_modes)Contract manufacturing business model is that hire firm approaches the contract manufacturer with a design or formula. The contract manufactu

54、rer will quote the parts based on processes, labor, tooling, and material costs. Typically a hiring firm will request quotes from multiple CM. After the bidding process is complete, the hiring firm will select a source, and then, for the agreed-upon price, the CM acts as the hiring firms factory, pr

55、oducing and shipping units of the design on behalf of the hiring firm.Foreign direct investment can take a number of forms. It can take the form of joint ventures, international acquisitions or the establishment of a wholly-owned subsidiary. If PK Electrics want to investment overseas directly, it c

56、an set up a local sales company with warehousing from which to attack a market from inside for the first time.A management contract is an arrangement under which operational control of an enterprise is vested by contract in a separate enterprise which performs the necessary managerial functions in r

57、eturn for a fee. Management contracts involve not just selling a method of doing things (as with franchising or licensing) but involve actually doing them. A management contract can involve a wide range of functions, such as technical operation of a production facility, management of personnel, acco

58、unting, marketing services and training. (/wiki/Management_contract)PK Electrics has little international influence, and the company scale is very small, so agent will be suitable. An overseas export agent is an overseas firm hired to facilitate a sales contract between the exp

59、orter and their customer. Agent do not take title to the goods, they work on commission. Agents have expensive knowledge and experience of market, and require little investment and low political risk. PK Electrics need international market experiences and foreign electric technology. So that is no doubt select agent enter mode.2.6 Why Select This ModeWhen PK Electrics ente