国际营销

International MarkingWriten by: Zeng, ChaonaClass:Business 1SCN NO. : 075423462Words: 2,672Executive SummaryThis report will explain why PK Electrics is considering entering international markets; give two sources of information that Pk Electrics should access before deciding which international makets to enter; show the key opportunities and threats that PK Electrics associated with entry into international markets and two key factors that it would face; explain the process that PK Electrics would uset to select which market(s); show the available modes of market entry to PK Electrics and evaluate which method of market entry would be most appropriate for PK Electrics and give the criteria to it.To sum up, the domestic market does not offer any prospects for significant growth and competition may be less intense in international markets and so on are PK Electrics is considering entering international markets. Before deciding which international markets to enter , International Business Forum (IBF) and the International Trade Centre (ITC) would provide infornation to PK Electrics. The two key threats and opportunities that PK Electrics could face are access to distribution channels,government policy,and China joining the World Trade Organisation(WTO) and the cheap raw materials. The process to select which markets is that fist, PK Electrics should collect the secondary Research.Second,using PESTLE to analyse environment then use Porter’s 5 Forces Analysis to analyse the environment and take the primary research to find out the entry modle which fit the company.Finally, Eequity joint ventures would be most appropriate for PK E lectrics.Contents1.Introduction2.The reasons for entrying international market3.Sources of information that should access before deciding which international makets to enter4.Opportunities and threats and two key factors for the key organisation5.The process for market selection6.The available modes of market entry7.Recommanded entry mode8.Conclusion1.IntroductionPk Electrics is a Chiese company that was established in 1987 in Ningbo,Zhejiang province.These years it has grown to be a national supplier of a wide range of electrical supplies including cables,sockets,switches and light fitting from a local supplier producing a limited range of electrical cabling and switches.And now currently operating three factories all based in Zhejing province.The company’s profit has seen continual growth in past few years,but over the last two years the rate of growth has begun to decline with sales rising 5% and profits by 2% last year.And the company’s management team are aware of big changes in international trading as China joining the WTO,so they are new looking outside China for new markets to enhance their growth and business performance.In this report,I will explain why PK Electrics is considering entering international markets; give two sources of information that Pk Electrics should access before deciding which international makets to enter; show the key opportunities and threats that PK Electrics associated with entry into international markets and two key factors that it would face; explain the process that PK Electrics would uset to select which market(s); show the available modes of market entry to PK Electrics and evaluate which method of market entry would be most appropriate for PK Electrics and give the criteria to it.2.The reasons for entrying international marketThere are some reasons below that why PK Electrics is considering entering international markets:The domestic market does not offer any prospects for significant growth. For example, the company’s profit has seen continual growth in past few years,but over the last two years the rate of growth has begun to decline with sales rising 5% and profits by 2% last year. Competition may be less intense in international markets.For example,Vietnam,their market is developing rapidly and it is not diffeculd to entry and PK Electrics have more advantages to compete with Vietnam’s companies based on Chinese market.The firm may benefit from the image of being an ‘international player’. For example,if PK Electrics joint venture with a famous international company,it would benefit from the image of that famous company.3.Sources of information that should access before decidingwhich international makets to enterBefore deciding which international markets to enter PK Electrics should access these two infornation below:International Business Forum (IBF),it aims to provide information about business opportunities in the international marketplace.It is intended for companies wishing to export or expand into foreign markets as well as those intersted in acquiring products and services from other countries.The searchable site features a directory of business,notices related to business opportunities,an education area,and links to business resources sites.The International Trade Centre (ITC),it is the technical cooperation agency of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organisation (WTO) for operational,enterprise-oriented aspects of trade development.The ITC supports developing and transition economies,and particularly their business sector,in their efforts to realise their full potential for developing exports and improveing import operations.It works in six areas—product and market development,development of trade support services,trade information,human resource development,international purchasing and supply management and needs assessment and programme design for trade promotion.And its technical assistance concentrates on the three issues for which it believe the need for national capacity-building is most critical:helping businesses understand WTO rules,strengthening enterprise competitiveness,developing new trade promotion strategies.4.Opportunities and threats and two key factors for theorganisationPK Electrics would face some opportunities and threats when entrying into international markets.The threats,for example, are: economies of scale—this may deter any likely entrant by forcing such firms to choose between entering the industry to a large scale or facing a substantial cost disavantage; Capital requirements—the need to invest large amounts of financial resources in order to compete effectively creates a barrier to entry; Access to distribution channels—thiswill be exclusivly secured by exising competitors within the industry,thus denying access to any new player;Government policy—it regulate competition within an industry,provide legislative constraints on methods of opetation within an industry,some may totally preclude entry to an industry or market,or at the very least result in the costs of entry being prohibitively high; Retailation from Existing competition—they will be so high that it may prevent entry or result in entry being too costly,the barriers to entry will be high.The opportunities,for example,are: China joining the World Trade Organisation(WTO)—it brings together 23 countries to lower customs tariffs and give a boost to world-wide liberalisation; Chinese economy becoming more marketbased; China has cheap labor—this factor could make PK Electrics’ product have more cheaper cost to entry international markert to complete to foreign companies; China has cheap raw materials—this factor also could make PK Electrics’ product have more cheaper cost to entry international markert to complete to foreign companies; China has good technical human resource—this could make PK Electrics easy to sell the marketer’s product and to satisfy the customer,and its manager from Triad markets often take for granted the availability of distribution systems made up of good roads,railways,waterways and air cargo systems.The two key threats that PK Electrics could face are access to distribution channels and government policy. Any new entrant,of course include PK Electrics,must secure distribution channels for the firm’s products or service.the more limited the availabiliy of wholesale or retail channels,the greater the likehood that these will be exclusivly secured by e xising competitors within the industry,thus denying access to any new player;So PK Electrics secure its distribution channels for the it’s products when it entry the international market. Government policice regulate competition within an industry,provide legislative constraints on methods of opetation within an industry or are designed to protect indigenous companies from foreign rivals,can provide a significant barrier to entry for many international markets around the world.Some may totally preclude entry to an industry or market or at the very least result in the costs of entry being prohibitively high.So PK Electric must learn these,aviod violate that country’s policies,and brings some unnecessary problem.The two key opportunities that PK Electric could meet are China joining the World Trade Organisation(WTO) and the cheap raw materials. WTO was established to succeed the GA TT which had long been the mechanism for international trade negotiations.It brings together 23countries to lower customs tariffs and give a boost to world-wide liberalisation;agrees to accept some of the trade rulds of the draft ITO Charter ahead of its agreement,to protect the gains made from the tariff reductions.These could give a good opportunity to PK Electric to entry the international market. China has cheap raw materials,this factor could make PK Electrics’ products have more cheaper cost to entry international markert,so that it have good oppotunity to open the foreign markets and complete with foreign companies.5.The process for market selectionTo ensure an efficient and effective evaluation process,companies wanting to enter international markets should follow a systematic screening procedure.By taking this sort of logical approach the number of markets being analysed will be decreased.So PK Electrics would use the process to select which markets is:Fist, PK Electrics should collect the secondary Research.The secondary research include the surf internet for the countries’ which it want to entry situations,and its future competitors’ and so on.Second,using PESTLE to analyse environment.P means the political factors.A country’s political system is particularly important,it has four main categories to evaluate—how stable is the government; the potential market government’s relationship with their home government; the potential country’s ideology,as this is likely to affect the way in which it trade; and that in many countries it is the informal relationships that are formed between government officials and companies that are most important. E means economic factors.The economic welth of a country is based on its human,natural and technical resources.These resources affect a country’s ability to produce globally competitive goods and services and to offer a viable market for such products.S means socio-cultural factors.Culture may be defined as the standards or beliefs,perception,evaluation and behaviour shared by the members of a social group.T means technological factors.Nowhere is there greater chang than in the environment of ICTs.ICTs include the various types of computers,local and wide telephones and the various software applications.L means Legal factors.A country’s legal system determines the rules that govern the conduct of business in that country as wee as the standards that products and services have to panies have to concern themseleves with legisilation,which may affect their trading operations at a number of levels.This E meanse-commerce,it is the pre-eminent buzzword of the online business revolution.It captures the excitement and focus of this fast emerging market.But it is more than a slogan or glib party line.At its core it embodies a concept for doing business online. Then use Porter’s 5 Forces Analysis to analyse the environment.Here are five key forces are identified as drivers of competition within any industry,they are the degree of rivalry among existing competitors,the threat of new entrants to the industry,the threat of subsititute products or services,the bargaining power of customers and the bargaining power of suppliers. And then taking the primary research to find out the entry modle which fit the company.6.The available modes of market entryThese modes that direct goods exports,indirect goods exports, ,agents and equity joint ventures could be available to Pk Electries.Direct goods exports,it means where the producing organisation itself performs the export tasks rather than using intermediary.Sales are made directly to the overseas customer who may be the wholesaler,retailer or end user.Sales may increasingly be made via e-commerce on the Internet.In direct exporting, Pk Electries has a direct relationship with its overseas buyers.It has a source of competitive advantage and so there is a desire to focus upon domestic production and service foreign markets through direct exports.And this way can switch from direct exporting to overseas production without having an adverse impact upon sales so that it save a lot of money for the company.But this way means that the company is investing time and resources in export marketing.Consequently its costs will rise initially as it needs to employ persons with the requisite exportise to either process export orders in-house or deal with freight forwarders,banks etc.Indirect goods exports,the exporters is not involved in the actual export process.Instead the export process is undertaken by a third party—an Export Management Company or an Export Trading Company—normally assumes responsibility for finding overseas buyers,shopping products and getting paid.In this situation, Pk Electries is able to concentrate on the management of its business,and utilise the expertise of export intermediary.But there are disadvantages in this way too.It denise the company the opportunity to gain an understanding of its export markets as this knowledge is in the prossesion of the export managementcompany.It also means that the company is not learning about this activity.Agents is an overseas firm hired to facilitate a sales contract between the exporter and their customer.Agents do not take title to the goods,and they work on commission. Pk Electries in this way to entry international markets do not need spend a lot of money to open the foreign markets,and agents are the local person,they are well know the distribution to sale,so that good to Pk Electries to entry that country’s market.Equity joint ventures,it take place when an international company shares in the ownership of an enterprise in a target country with local private or public intersts.Most commonly an international company agrees to share capital and other resources with a single local company in common endeavour.Depending on the equity share of the international company,joint ventures may be classified as majority,minority or 50-50 ventures.They may be started from scratch or by the foreign partner’s acquisition of partial ownership interest in an existing local company.There are political and competitive advantages to PK Electrics if it use this way.7.Recommanded entry modeIn deciding upon the choice of international market entry mode,companies need to consider carefully each mode some dimensions—commitment,cotrol,speed and risks.Equity joint ventures would be most appropriate for PK Electrics.It take place when an international company shares in the ownership of an enterprise in a target country with local private or public intersts.Most commonly an international company agrees to share capital and other resources with a single local company in common endeavour.Depending on the equity share of the international company,joint ventures may be classified as majority,minority or 50-50 ventures.They may be started from scratch or by the foreign partner’s acquisition of partial ownership interest in an existing local company.These are some advantages to use equity joint ventures for PK E lectrics: The political imperative—The legislation in the host country requires that the investor establishes a joint venture.In Big Emerging Markets(BEMs),the political imperative has often compelled the formation of EJVS.Although MNCs might have once preferred full ownership of their foreign subsidianries,they increasingly recognise that in some markets an EJV is necessary,due to competitive considerations,if they are to enjoy success; The competitive imperative—often the local partner controls all the key distribution channels in the country as a whole or in thoseareas where demand is strongest.The MNC thus might be willing to surrender full ownshiper in order to form an EJV with a local partner that has local market knowledge,plus strong competitive advantage in the market. And if the firm joint venture with a famous international company,it may benefit from the image of being an ‘international player’.That is why I choose the modle joint venture to entry international market for PK E lectrics.8.ConclusionTo sum up, the domestic market does not offer any prospects for significant growth and competition may be less intense in international markets and so on are PK Electrics is considering entering international markets. Before deciding which international markets to enter , International Business Forum (IBF) and the International Trade Centre (ITC) would provide infornation to PK Electrics. The two key threats and opportunities that PK Electrics could face are access to distribution channels,government policy,and China joining the World Trade Organisation(WTO) and the cheap raw materials. The process to select which markets is that fist, PK Electrics should collect the secondary Research.Second,using PESTLE to analyse environment then use Porter’s 5 Forces Analysis to analyse the environment and take the primary research to find out the entry modle which fit the company.Finally, Eequity joint ventures would be most appropriate for PK E lectrics.。