Entering A Foreign Marketstudents Nameinstitutional Affiliationintr
Entering a Foreign Market Student’s Name Institutional Affiliation Introduction Different companies have different strategies for serving their customers. Customers are usually scattered all over. The major objective of international target marketing is to identify customers from different countries who are ready to consume the goods and services. Specific Foreign Target Market English-Reading Business Individuals Affluent European Customers. many English speaking countries can suit the business. This target is necessary because the company will not experience the problem of language barrier. The customers are more likely to react to the business in a local language. Therefore, the company is looking for target customers to obtain information locally from every country. 3 Choosing Lists and Providers The company will then choose the list of providers in the destination country. The list will include: 1. Lists of companies doing the same business 2. List of Providers. 1. This will include an international plan but will not assume that all the information is American-based. The company will write down the list of other companies in the same industry to determine the competition. 2. Since the business will be internationally based, a list of the suppliers in the local country will be needed to determine which providers are more appropriate. 4 Strategies for entering the target market Learn the business ethics of the foreign market. Gather information on the currency value of the country and the timelines of import/export.. Expertise on the foreign country's rules that govern businesses. Perform focus groups to experiment on the expected international market. Research on the strategies of the foreign competitors. It is important to know the values of a foreign country when entering an international market. For instance the communication skills in that country, the norms and the standards expected of business in that country. This is important in reaping the full potential of the company. Similarly, it creates an opportunity for bigger deals later in the business. Researching on the rates of the currency is essential for planning. . It is important to have someone who can represent the company locally to navigate through the unpredicted restrictions by the government in that country. Understanding the culture of the foreign country entails determining ways of reaching the demographics in that country. Focus groups in the foreign country will equip the business with the proper way of conducting business. This involves their approach of business and learning what the competitors did to be successful. The business can then strategize on a different approach that would boost its competition in the international market. 5 Pros and Cons of International Marketing Pros 1.Market Expansion 2. Brand Reputation 3. Global Networking 4. Creating opportunities for future business. Enables the company to expand its market. Foreign marketing can boost the reputation of the brand. International marketing enables corporations to connect with new stakeholders and customers. International trade can create possibilities for the expansion of the firm in the future. 6 Cons 1.Cultural diversity 2. War. 3. Infrastructure. 4. Strict government regulations. Cultural diversity can make it difficult for efficient operations. If there is an outbreak of war in the foreign country, the business might endure significant losses. Underdevelopment of infrastructure could be a great hindrance to the business operations. The government laws of the host country might not be welcoming. 7 References Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia. Hill, C. W., Cronk, T., & Wickramasekera, R. (2013). Global business today. McGraw-Hill Education (Australia). Verbeke, A. (2013). International business strategy. Cambridge University Press. Angstrom Real-estate STUDENT: INSTITUTION: COURSE: PROFESSOR: DATE: Expanding operations Presentation Outline Company overview Product Description Environmental analysis of market. References Introduction Introduction 3 International expansion is when a business extends it business operations and activities beyond the borders of its home country. When expanding internationally, a business needs to do extensive due diligence with regards to : Cost of growth (Legal costs, capital, labor, overheads, among others) Legal jurisdiction and requirements of the target country/region Culture of the locals (Employees and prospective clients Environment and climate of the target region Angstrom Real Estate wishes to expand its investment portfolio by entering the equatorial region of Africa. The UN department of housing and land has established that Africa is one of the various regions facing difficulties and shortage of affordable housing. By expanding its affordable housing portfolio, Angstrom real estate will be entering a relatively untapped market. 3 Company Overview 4 Angstrom Real Estate is a US based real estate corporation, concerned with developing, refurbishing and selling buildings and residential houses. The corporation’s headquarters are based in Washington, DC The company was created in 2003 with the purpose of developing and providing affordable housing to the middle class population of the American citizens. Company’s mission: The company envisions a better and decent lifestyle for every American citizen. We work towards our vision by building America brick by brick. 4 Product Description Low Cost Housing Low cost housing refers to housing units that are affordable to that population whose average annual income is either middle income or below the median for household income. According to the United Nations, people in Africa face a challenge of affording decent housing because most economies are still third world countries. Angstrom aims to introduce low cost houses in the equatorial regions of Africa i.e. Uganda, Tanzania and Kenya. Angstrom will achieve this though: The use of local materials for construction. Using the locals for labor instead of importing the workforce. Building simple homes which do not require a lot of logistics in planning and construction. Environmental Analysis 6 The political environment is quite attractive. The region is experiencing a stable political environment. The countries’ governments are also encouraging the entry of international investors into the market to stimulate economic growth. Currently, the inflation rate is very high and prices of commodities are very high. This will affect the procurement of raw materials such as cement, timber, roof covering materials among others. The climate is also very challenging because of the high precipitation rate which may interfere with the construction stage. However, the competition is quite ow, because of the high cost of housing in the region. Introducing affordable housing to the three countries gives us a competitive edge over the current market players. The region’s infrastructure is also in a poor state. Transportation of materials may therefore prove to be quite difficult and costly. 6 References 7 Joshi, Rakesh, M., (2009) International Business, Oxford University Press, ISBN Mulliner, E,, Smallbone, K., Maliene, V., (2013). An assessment of sustainable housing affordability using a multiple criteria decision making method. Omega. 41 (2): 270–79. doi : 10.1016/j.omega.2012.05.002 . Affordable Land and Housing in Africa. UN. Habitat for a better urban future. Retrieved from, on 26th May 2017. Kim, C., Hwang, P., (1992). Global strategy and multinationals' entry mode choice . Journal of International Business Studies, 23(1), 29. Accessed 30 September 2015. 7
