Driving And Restraining Forces Analysis

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Driving and Restraining Forces Analysis Driving Forces Driving forces means which factors are influencing a company to go into another country and start doing business there. Here are some important driving forces that interests Fonterra to expand business to South Korea: technology, government appreciation for foreign direct investment, communication and logistic support. South Korea is already advanced in technology sectors and they have the availability of modern equipment for establishing a new factory. Also, Korean government appreciates the foreign direct investment and provide good incentives for their investors. As the country has a large number of population, it is also a positive site on getting opportunity for doing vast marketing. Since South Korea is a developed country and its technology is already developed, hence they have good communications and logistic support indicating that smooth business functions can proceed on. Restraining Forces The current situation of South Korea is favorable for doing foreign direct investment however, restraining factors such as bargaining with local supplier, inflexible labor markets, customer bargaining were the factors that needs attention also. 5. Marketing approaches and justification There are several marketing approaches available for doing international marketing, but for Fonterra’s expansion in South Korea, foreign direct investment is favourable because of the country’s facilities and future expansion. In South Korea, many organizations enter because of the facilities being offered by the government and the market is quite big and people have high levels of income. It’s easier for Fonterra to establish the factory over there and go for huge mark... ... middle of paper ... ...esearch suggests that Foreign Direct Investment in South Korea will be a great opportunity for Fonterra because of the facilities, technical advancements and the vast market environment that the selected country has to offer. 7. Conclusion Based on the above analysis with the use of various tools, it is then concluded that Foreign Direct Investment marketing approach is the easiest way to enter in country. It will be easy to first let the brand well known to South Korea through one product line or brand and then go for bigger expansion because South Korea have available resources for production. But doing business by producing one product makes it easier to introduce it and run the company under minimizing cost. But then again, it is totally positive and feasible for the Fonterra – Fresh ‘n Fruity yoghurt to expand its business to South Korea.
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