BUAD 327: International Business Group Project

BUAD 327: INTERNATIONAL BUSINESS GROUP PROJECT This is a RESEARCH project. That means it requires EXTENSIVE OUTSIDE RESEARCH . Please use the library databases EXTENSIVELY. No ordinary Google searches (although scholar.google.com is allowable). WHAT TO DO: You are assigned a company and a host country of interest.

You must now engage in new product development/new market development in your given host country. PHASE 1 (Complete by Nov 6): 1) Look through the existing major product lines for your company. Pick the new product and/or new market development in your given host country. 2) Do a SWOT analysis on your company. 3) Complete an assessment of the given host country (i)cultural, (ii)legal-political, (iii)competitive, (iv) technological and (v)economic environments. 4) Discuss what you believe to be the interactions/links between part 2 with part 3. Be sure to support your arguments. PHASE 2 (Complete by presentation day): 1) Select Mode of Entry. Explain and support your rationale. 2) Explain the channels of distribution in your country as they relate to your product/industry. 3) Identify and explain specific product and promotion concerns. 4) Identify goals and objectives of your market entry. Explain how you would measure success. Meet with professor as a group and ask specific questions in order to complete preparations for your presentations (You may come during office hours at any point from now till the end of semester, as many times as you like). Then: PRESENTATIONS!

Paper For Above instruction

The following research paper aims to synthesize a comprehensive approach to international business development by focusing on a specific company entering a designated host country. The process involves a meticulous analysis across multiple dimensions including product line selection, SWOT analysis, country assessment, mode of entry, distribution channels, and promotional strategies. These elements are fundamental in formulating an effective international market entry plan that aligns with the company's strengths and the country's market conditions.

Initially, selecting the appropriate new product line or new market within the host country is crucial. This decision should be based on a thorough review of the company's existing major product lines, identifying opportunities where the company’s capabilities can meet unmet or underserved needs in the target market. For example, if the company specializes in consumer electronics, emerging markets with growing middle classes may offer opportunities for new product launches such as smart devices tailored to local preferences.

Following this, a detailed SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of the company provides insight into internal capabilities and vulnerabilities. Strengths might include brand reputation, technological innovation, or resource availability, while weaknesses could involve limited market experience or supply chain constraints. Opportunities could encompass market gaps or strategic alliances, whereas threats might include intense local competition, regulatory barriers, or economic volatility.

Simultaneously, a comprehensive assessment of the host country must be conducted across five vital environmental domains: cultural, legal-political, competitive, technological, and economic. Cultural analysis involves understanding local consumer behavior, language, social norms, and religion, which impact marketing and product adaptation. The legal-political environment assesses regulatory frameworks, trade laws, tariffs, and intellectual property protections. Competitive analysis reveals the landscape of existing players, potential entrants, and market saturation. Technological assessment considers infrastructural readiness, digital penetration, and innovation capacity. The economic evaluation examines currency stability, income levels, inflation rates, and overall economic growth prospects.

Understanding the links between the company's internal strengths and the external environment is essential. For instance, a company's technological edge can be leveraged in a country with advanced technological infrastructure, or its weaknesses can be mitigated through strategic partnerships. A strong brand might facilitate entry in culturally similar markets, while weaknesses in logistics could be offset by local joint ventures or franchise models, thereby supporting smoother market penetration.

In the second phase, choosing an mode of entry such as exporting, licensing, joint ventures, or direct investment must be justified based on the prior analyses. For example, a company might opt for a joint venture to mitigate risks associated with unfamiliar legal environments or to benefit from local knowledge. Distribution channels must be tailored to the specific market context, considering whether direct sales, distributors, or e-commerce platforms are most effective, given the country's technological infrastructure and consumer behaviors.

Product and promotion strategies should align with cultural preferences and regulatory constraints. For instance, promotional messages may need localization, respecting cultural sensitivities, or adhering to advertising standards. Additionally, identifying specific goals such as sales targets, market share, or brand awareness, and establishing metrics to assess progress, are pivotal for evaluating success.

In conclusion, entering a foreign market demands a strategic, research-informed approach that considers internal strengths and external opportunities and threats. A well-executed plan enhances the likelihood of successful market penetration, sustainable growth, and competitive advantage in the international arena.

References

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