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Summary of SWOT analysis of an organization
Summary of SWOT analysis of an organization
Summary of SWOT analysis of an organization
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2 THE INTERNATIONAL MARKET SELECTION PROCESS
The market selection process is important part of decision making whether company should go abroad or not. According to Hollensen (2014) is market selection “a formal structured process of opportunity evaluation leading to the selection of foreign markets in which to compete.” (6, p. 271)
Finding the right market to enter is important decision: (6)
• It can be major determinant of success or failure and we can predict future of our internationalization ideas.
• This decision influences the nature of foreign marketing programs in the selected countries.
• The nature of geographic location of selected markets affects the firm’s ability to coordinate foreign operations.
Picture 1 Potential determinants of the firm’s choice of foreign markets
Source: Hollensen, 2014
According to the scheme before we will make market segmentation we need to think about the firm and the environment.
Our company Skagen Denmark is on good level of internationalization and have a lot of overseas experiences, they are selling their products in Europe, USA and Asia and we can consider them as international company. Also they have resources to enter more countries, they are still growing.
Watch industry globally experienced growth in last 5 years but the sales of luxury watches declined especially in China and Europe because of global economic recession. Globally sales fell by 3.6 percent. The biggest purchasers of luxury watches still remain Hong Kong and China where is exported 52 % of watch production. (2)
Picture 3 International market segmentation
Source: Hollensen, 2014
First step of market-screening model is selecting of the relevant segmentation criteria; we can choose more types of criteria. We need ...
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...e from: .
[3] Euromoney Institutional Investor PLC. Euromoney Country Risk. 2014. Available from: .
[4] European Commission. L’analyse SWOT. European Commission: 2014. Available from: .
[5] FranExcel. Advantages And Disadvantages Of Franchising. 2014. Available from: .
[6] HOLLENSEN, S. Global Marketing. Harlow: Pearson Education Limited, 2014. 6th edition. 792 p. ISBN 978-0-273-77316-0.
[7] HOLLENSEN, S. Global Marketing: A decision-oriented approach. Harlow: Pearson Education Limited, 2011. 5th edition. ISBN 9780273726227.
[8] Skagen Denmark. Skagen Denmark. 2014. Available from: .
Kotabe, M., & Helsen, K. (1998). Global marketing management. Temple University. New York: John Wiley & Sons.
Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.
Fletcher, R., & Crawford, H. (2011). International Marketing: An Asia –Pacific Perspective, 5th Edition, Sydney: Pearson Education Australia.
Segmenting the market will allow the company to focus more clearly on targeting the right customers with the right product that better satisfy their needs.
There are many ways to segment the market. Major variables used to segment the
“A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segment and decide ...
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
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.
Segmentation is a marketing strategy that involves separating a wide target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed. Market segmentation strategies are utilized to identify these groups of consumers and strategies are designed and implemented to make the product or service appeal to them. Support and also the product will be strategically placed in order to successfully achieve the ultimate marketing goal. Businesses and organizations may come up with different type of strategies involving different products and catchy phrases depending on the product or the target segment.
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Rahman, S. H. (2006). International Market Selection Process: An Investigation of the Relevance of Business Operating Environment. Journal of International Business Research, 5(1), 73-86.
Oesterie, M. J., Richta, H. N., & Fisch, J. H. (2012). The influence of ownership structure on internationalization. International Business Review, 22(1), 187-201.
Because in case of global marketing analyze the factors that need to be taken into account are significantly more, including the economics, environment, cultural differences that is going to affect the analysis of situation. The issues of marketing strategy were covered in detail during classes and this knowledge was cemented with the report I had to write as a part of project assessment that marketing analysis .It was very challenging and interesting at the same
Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill.