A business has access to a huge market in the European community and would like to enter other markets. Tariffs may make this prohibitive unless products are manufactured locally which eliminates tariffs. Determine what changes should be made to this approach.
Include marketing and sales strategy, outline of an operations plan and a strategic planning approach. Consider various economic theories, strategies, and practices for global environments influencing marketing and sales operations, technology and strategic planning.© BrainMass Inc. brainmass.com October 2, 2020, 1:25 am ad1c9bdddf
The changes you should make is to find the sources/ ingredients for the making of your product in the local area, by that way you will not need to ship your goods and it will save some time and money. You probably still need to purchase and ship the main equipment or machines to produce your goods, unless you can find them at the local area. You also have to fly your engineers to set up and start up the equipments at the local area. Most importantly, try to get a patent (so the domestic companies will not copy your product) and find a consultant to discuss about your business plan with the Department of commerce of that country. Do not forget to have your own lawyer. Hire someone who is an expert doing export and import, or an experienced consultant that deals with export and import.
If you have been planning on how to fare well in the international market, then you might like to start by doing country market analysis to see the market of your product in that country. After that you could start exporting first. Office could be built in foreign countries if the exports are becoming successful but the costs of doing business, labor costs, different laws, currency risks, freight laws, time differences, language barriers, and cultural ignorance could prevent the company's competitiveness in the foreign market.
The nature of the company's competitive are:
1. Cost: Differences in currency value, location of the resources, potential for economies of scale. freight/shipping cost
2. Targeted customers: Common customer needs for global products and their level of satisfaction, targeted customers from different countries (immigrants or race counts), local distributors channel, transferable marketing mix such as brand names and advertising will require little local adaptation to get the customers ready for a new product.
3. Competitors: the numbers of global competitors in the area and how open the local people accepting the new products, how long the other global competitors exist, and where are their distribution channels.
4. Government policy: Trade policies, tax policy, technical standards, government regulations
Global strategy is the method that a company uses to enter their targeted foreign market. There are some possible ways of entry: exporting, joint venture, licensing (includes franchising), acquisition, and foreign direct investment. Sometimes companies are doing acquisition with other firms in the foreign countries so they can take the advantages of relationships, storefront, factories, and experienced personnel that are already in place. These offices still ...