Experimental – Scientific Research Proposal:
1.1 Introduction:
According to johanson (2009) study, the internationalization process of a firm is a process which increases the international market involvement. Without the study about the international market of a country, any company should not start a business because it may lead to failure of market and business. So before starting a business in any country some strategies should be followed after analyzing about the particular country. A company is successful when it was successful in the global market.
Here Mazda Company is going to enter the Indian market in internalization process to extend its market successfully in global market. As it is Japanese company it was successful in European countries now it wants to enter Indian market. India is developing country the sales of cars increasing every year and heavy population is also an important consideration. So Mazda want to extend its market by entering Indian market. Some analysis should be done before starting the business to launch successfully.
1.2 Problem Statement:
Major research problem considered here is to establish a new market in new country which is new environment and unknown to the company. Now it should search the suitable place in india and company should search the dealers and distributors and exporting costs. It should analyze about the competition market.
Company Origin country Year
Studebaker India 1958
Stutz U.S 1934
Kaiser-Frazer U.S 1961
Pontiac Germany 2008
Oldsmobile U.S 2004
Fig.1 Adapted: www.popularmechanics.com
As stated above all the companies were failed in Indian market. So some strategies should be followed before entering the market.
1.3 Justification of Study:
This is detailed study on Maz...
... middle of paper ...
...sis if any company enters new market it may lead to huge loss and failure of the company. Because before many companies of different companies like Studebaker, Stutz, Pontiac, Oldsmobile entered new market without the complete market analysis and the result was failure of the companies. So many studies say that market analysis is most important for the product and market development. Market analysis also helps in analyzing about the country economic growth, competitor analysis, market segmentation, size of market, targeting market, development strategy and planning and market trends can be covered in new market analysis. So the impact of non-performing market analysis before new market development leads to the loss and failure of both company and its products and also it may affect the branding of the company and customers may lose value of company and its products.
There are many disadvantages associated with starting their own branch in India. First is that this option is the most expensive. They would have to pay for all the marketing, equipment, building, manufacturing, production, and staffing that they would need to operate. Mercan Systems would not be able to share any costs with another company. The financial investment needed would depend on the number of regions they choose to operate in (two, four, or nationally) and if they use a direct salesforce or dealers, but it would still be significantly higher than any other alternative. Starting another branch in an international market that they do not already have a location in, is a large change and project to take on. It requires an immense amount
Moreover, Ansoff suggested some main direction that companies should follow to develop market and product conditions. The market development and differentiation strategies suggest that in order to increase sales, WRSX have to offer their services in new developing markets such as China or India. The strategy for market development gives the opportunity to expand their service in order to attract competitors' clients and to expand in unreached markets (Barry, Witcher and Chau, 2010). Potential solution could be acquisition of UK agency competitor to assist WRSX to enter new market quicker and smoother go through the barriers of entry such as government regulations and different culture.
The view from Tata motors perspective would be more central to seek out companies with more business plans and The company has a long term benefit like access to market knowledge and the development of firm presence on the new market and advantage would be that it limits the possibility of technology or knowledge transfer. Market commitment and Decision understand the requirement of a new market also the decision and implementation concerning foreign investment are made incrementally due to market uncertainty. The company have different approaches and implementation which are seen in the background and has different prior knowledge acquisition (Johanson & Vahlne,1977, p.34).Tata motors have understood that the arrangement was based on its acquired about the market and industry dynamics. Consequently the company had to have the commitment to allow constraint in the case of its freedom with the supplier and surrounded technology. Current activities is somewhat fascinating on how precisely the crucial of Tata motors are consistent with Uppsala theory and the result was Tata motors acquisition and in the longer terms is to move up in the value chain as much as possible, with the
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
Ford is a major USA firm and Mazda is based in Japan. Mazda sold 25 percent of its stock to the Ford and a collaborative arrangement started.
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
In internationalization, the most challenging decision faced by the company to choose between standardization and adaptation in its operations, products or services. It has been one of the important and most popular research topics since 1960s to understand whether standardization is better or adaptation for marketing mix in international marketing. The increasing role of international expansion of business across the borders has also increased the focus of companies towards the international marketing strategies. It is also a biggest challenge for companies to better understand the different needs and choice of customers due to the huge differences among the cultures from various nationalities. This leads to the dilemma in the mind of marketers to understand which strategy is effective and good - standardization or adaptation. There is a significant impact of standardization or adaptation on all avenues of business such as research & development, structure, marketing mix, production, finance and marketing mix. The attitude of a company towards the culture of a particular country in which it is going to enter or start its operations decides to choose between standardization and adaptation. Consider the different views and arguments for each standardization and adaptation, this essay critically analyze which strategy is better to choose for international marketing.
We all know that comapanies go international for many reasons but always typical goal is comapny growth and expantions. When a company searches for new interesting markets abroad and also hires international employees, using well designed international strategy can for sure expand business on foreign markets. Internalization strategy of companies is now possible because is no problem to manage business by phone or e-mail. There is also no problem to travel by plane from Europe to Asia in few hours what was not possible in past.
Why would a company go international? There are many reasons why companies would go international, but generally a company goes international so they can seek opportunities in domestic markets, or they seek solutions to problems that cannot be solved through domestic operations. There are many profitable possibilities by going internationally and these include greater profit potential, offers new locations to sell products, it may provide better access to needed raw materials, it may access to financial resources from many nations, and lastly it may allow labour-intensive activities to locate in countries with lower labour costs. For a small business to become an international business they must use five guidelines the first is global sourcing, exporting and importing, licensing and franchising, joint ventures, and wholly owned subsidiaries. The first two are market entry strategies and the remaining are direct investment strategies.
In the case of India, retail industry is witnessing unprecedented growth and transformation (Malini 161). Organized retailing is becoming a norm as opposed to unorganized retailing, which was dominant in the past. For a direct investor from United States of America, who is interested in investing in consumer goods retailing and e-retailing in India, it is important to understand the macro environmental factors which can have a serious impact on the success or failure of a venture. According to Musgrave (38) India is the fourth largest economy in the world and it is expected that by 2050 it will become the most populous country in the world. Since the initial relaxation of barriers and encouragement of foreign direct investment in 1991, retailers have started making inroads into the Indian markets.
...Indian market to start business. India has many religions, skin colours, different languages and also India has abundance of a highly skilled workforce. According to the analysis and the study, India will be a good market place opportunity to start new business in this country. Indian legal system also creates excellent platform to continue new ventures. Most of the countries cannot produce goods themselves, cost advantages, to face globalization etc. by considering the political, economic and legal aspects India has vigour to provide those facilities. With the positive aspects there are some weaknesses and threats as well. India is a rapidly developing country and investing in India has lower risk than other emerging countries in the world. Finally India’s young population and growing economic power promises to be a magnet for foreign companies for decades to come.
Marketing Analysis is “the study and evaluation of market trends. The goal is to determine what products a company should produce and how to sell them. Business strategies and tactics
The company expects to develop and grow its business in India. In this view the company has been making heavy investment and expects to control Indian beverage market in the coming years. The various methods used by the company to stay in business are discussed in this research.
The Harvard Business School case study Silvio Napoli at Schindler India summarizes the various problems and issues facing Schindler India regarding its entrance into the new foreign market, India. Schindler Holdings Ltd. is a Swiss-based manufacturer of escalators and elevators which is looking for potentially entering into the Indian elevator market. Main executive committee members predicted that the Indian industry showed great promise in terms of future growth potential. The company’s objective was to manufacture standardized elevators at a cost lower than current customized elevator market. Silvio Napoli, who is vice president of Schindler in Asia, was chosen to lead the new entry into India. To successfully enter and penetrate the Indian market, Silvio and company needed to consider a variety of factors like but not limited to: mode of entry and type of strategy to implement, organizational structure, outsourcing and logistics approaches, marketing, and domestic and global hiring procedures.
International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...