...212439261 Date: January 28, 2014 Case Overview In 1992, in order to make a quick entry into Indian market, America giant P&G set up a joint venture (“JV”) with an Indian local manufacturer Godrej Soap. The high-profile JV only lasted four years and was bought out by P&G in 1996. The breaking-up was caused by several reasons including differences in strategy, expectations, management style, and the changes of environment. Analysis on the Alliance (Motivation-Why, Partner-Who, and Form-How?) * Motivation - At the time, an alliance proved to be the best option for both parties, because: * It helped both parties to gain greater market power in a quicker and cheaper way. P&G at that time was trying to enter into Indian market, but its local resources, brand awareness and market share in Indian were unable to support that strategy. So finding a partner and leveraging its existing capacity to make a quick entry seemed to be the best option for P&G at that point. On the other hand, Godrej, the second largest soap producer, who had already built its brand and distribution network in Indian, was hoping to broaden its product range and extend to international market. Given the risks and uncertainties it might face when going international, partnering with a multinational giant was a less risky way. * The alliance combined complementary resources and therefore minimized entry cost. In this case, each of the parties has resources complementary to the other...
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...Why are firms increasingly seeking alliances for their R&D activities? For many years firms have always invested great amount of money and time into their research and development activities. It is considered a major aspect for every business and a crucial point for success. It is seen as so important that some firms have created their own R&D departments. However in recent years many firms have continuously sought out alliances for their R&D activities. Alliances have been defined as all forms of collaborative relationships between separate companies that involve joint contributions and shared ownership and control. These alliances take place inter firms within countries and also inter-firms internationally. Firms who decide to enter into alliance do so to reduce the cost of technological development or market entry, reduce the risk of development or market entry, achieve scale economies in production, reduce the time taken to develop and commercialise new products and promote shared learning. Many R&D and product managers recognise that no company can continue to survive as a technological island. It has become necessary for firms to enter the global market because of the limitations of the domestic market and also because in a globalised world, the market shares in a domestic market becomes threatened by foreign competitors. The liberalisation of trade and investments flows in the 1980’s was a drive for the globalisation of markets and enterprises...
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...-Analyze differing viewpoints of foreign market strategies -Take 5 key points to being successful in FMS and get each as a reference 1- International Market assessment a. Market Segment Screening for a global marketing strategy. b. (Griffith, 2010) -necessary to understanding market segment convergence and its influence on global marketing strategy. - While market segments have often been viewed as having clearly defined boarders within a nation-state, the movement toward integrated markets due to globalization has created the need for conceptualizing market segments in new ways. - research suggests that the more dissimilar the country profiles, i.e., institutional environments, the more difficult it is to understand the requirements of the collection of operations and responses appropriate to local demands 2- Strategic Alliances (trading companies, piggybacking, export management co.) c. Whether cultural differences affect trust, commitment and cooperation in international B2B export channels and their foreign distributors. - Trust, commitment, cooperation are the main items of focus -Entering foreign markets is no longer just something to think about, but rather an action that must be taken without delay by more and more U.S. companies. (Mehta, 2006) -The use of such overseas distributors as an entry strategy for international marketing is usually quicker, less risky, and less capital- intensive than setting up joint ventures or...
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...any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. DAF/COMP(2014)14 TABLE OF CONTENTS Introduction ................................................................................................................................................. 3 1. Features of the airline industry ............................................................................................................. 4 1.1. Liberalisation of the air transportation industry .......................................................................... 4 Business models and industry consolidation............................................................................... 6 1.2. a. LCC entry and new business models...
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...A PROJECT REPORT ON “CARTELS IN AVIATION INDUSTRY” (Report submitted on July 12, 2011) SUBMITTED TO: COMPETITION COMMISSION OF INDIA BY: PREETI MECHAN Vth YEAR GUJARAT NATIONAL LAW UNIVERSITY Email: preeti.mechan@gmail.com 1 DISCLAIMER This project report/dissertation has been prepared by the author as an intern under the Internship Programme of the Competition Commission of India for academic purposes only. The views expressed in the report are personal to the intern and do not necessarily reflect the view of the Commission or any of its staff or personnel and do not bind the Commission in any manner. This report is the intellectual property of the Competition Commission of India and the same or any part thereof may not be used in any manner whatsoever, without express permission of the Competition Commission of India in writing. 2 TABLE OF CONTENTS I. II. III. IV. Acknowledgement.........................................................................................4 Objective........................................................................................................5 Research Methodology.................................................................................5 Chapter I Introduction...................................................................................................6 V. Chapter II Aviation Industry in India............................................................................7 History of Aviation Industry...
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...Modes of Entry into International Markets (Place) How does an organization enter an overseas market? Background A mode of entry into an international market is the channel which your organization employs to gain entry to a new international market. This lesson considers a number of key alternatives, but recognizes that alteratives are many and diverse. Here you will be consider modes of entry into international markets such as the Internet, Exporting, Licensing, International Agents, International Distributors, Strategic Alliances, Joint Ventures, Overseas Manufacture and International Sales Subsidiaries. Finally we consider the Stages of Internationalization. It is worth noting that not all authorities on international marketing agree as to which mode of entry sits where. For example, some see franchising as a stand alone mode, whilst others see franchising as part of licensing. In reality, the most important point is that you consider all useful modes of entry into international markets - over and above which pigeon-hole it fits into. If in doubt, always clarify your tutor's preferred view. The Internet The Internet is a new channel for some organizations and the sole channel for a large number of innovative new organizations. The eMarketing space consists of new Internet companies that have emerged as the Internet has developed, as well as those pre-existing companies that now employ eMarketing approaches as part of their overall marketing plan. For some companies the...
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...When these stores search for new products abroad, they practice another form of international marketing. A whole range of service industries are involved in international marketing; many large advertising firms, banks, investment bankers, public accounting firms, consulting companies, hotel chains, and airlines now market their services worldwide. International marketing encompasses some activities that only indirectly result in international transactions. Entry Strategies Before a firm considers expansion into international frontiers, it must make three strategic decisions; which Markets to enter, when to enter these Markets and What will be the scale of entry. An international business can create in a market suitability of products for a market. It can also create in a market, a nature of indigenous competition which are not widely available and yet satisfies an unmet need. There is also a greater value translated into the ability to charge higher prices and increase sales volume more rapidly. The timing of entry by a firm into a foreign market becomes very important. Early entrants initiate a first mover advantage over the competition. This creates the ability of the firm to pre-empt rivals and...
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...Executive Summary This report provides an analysis and evaluation of Air New Zealand. Method of analysis this report is SWOT analysis and five forces module. Other analysis includes deep investigation on company profiles. The report founds the weakness and strength in the company and examines internal and external factors that might influence the survivability of Air New Zealand. The report will explain how Air New Zealand handles the pressure from every competition they faced until today. All strategies will be discussed in evaluation section of this report. In addition to the conclusion of evaluation; this report will also answer the case studies that being related to Air New Zealand, they are: 1. Discuss how barriers to entry in the airline industry have changed in the past decade. 2. In light of such lowering of barriers, what opportunities are there for there for Air New Zealand to pursue? 3. Air New Zealand must consider different stakeholders in its pursuit of corporate strategies. Identify the key stakeholders and their concerns Introduction Air New Zealand Limited, is the national airline and flag carrier of New Zealand. Since the appointment of Ralph Norris as Managing Director and CEO of Air New Zealand in February 2002, Air New Zealand has been working on its new strategic direction. Structural changes in the marketplace made a new direction indispensable and Air NZ is now turning away from inflexible service offerings to align its route...
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...1. Technology & Globalization * Globalization is the inexorable integration of markets,nation-states,and technologies.In away that is enabling individuals,corporations and nation-states to reach around the world farther,faster,deeper,and cheaper than ever before. * Globalization has led to an intensification of the role of international trade in the economies of the world.For example,many Canadian and U.S. Companies have shifted their customer service and data entry operations to areas with lower labor costs in and outsde North America. * Technology include 4 key areas: communication,minaturisation,delivery and obsolescence. * Communication:You see an advert on TV, and decide that you want to buy the product. You call on the number mentioned on your TV screen and get to speak to a customer service agent. The agent gives you the product details, verifies your address, takes down your credit card details, and gives you the time-frame by which the product would be delivered to you. * (小型化)Minaturisation:Now days, is the tend to manufacture ever smaller mechanical, optical and electronic product and devices.Example include miniaturization of mobile phone, computer. Delivery: looks at working with clients to develop and implement technology solutions. * （退化）Obsolescence: When a technical product or service is no longer needed or wanted even though it could still be working order. Technology obsolescence generally occurs when a new product has been created...
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...their own boundaries. The concept of strategic alliances has become widely used in the business language to refer to the types of partnerships agreements between two or more companies that pursue a clear strategic collaboration objective, with different levels of possible integration among the members. In today’s competitive global economy strategic alliances are a crucial option for achievement of competitive advantage. By developing strategic alliances, organisations can share their excess or complementary resources and capabilities so as to strengthen their position in the market and gain competitive advantage. When such alliances are effectively and efficiently managed the partnering firms can gain immensely towards mutual profitability. In any cooperative relationship trust is key for success. Where mutual trust and synergies exists, partnering organisations can benefit substantially from opportunities that can be exploited through maximum utilization of combined resources. On the other hand, where there is no trust, extensive monitoring systems become necessary to monitor each partners’ contribution and this results in increased cost of operations that ultimately hamper the competitiveness of the alliance. Definition A strategic alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent. Partners may provide the strategic alliance with resources such as...
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...Vol. 5, No. 1 International Journal of Business and Management International Market Expansion Strategies for High-Tech Firms: Partnership Selection Criteria for Forming Strategic Alliances Øystein Moen (Corresponding author) Norwegian University of Science and Technology (NTNU) Department of Industrial Economics and Technology Management N-7491 Trondheim, Norway Tel: 47-7359-3505 E-mail: Oeystein.Moen@iot.ntnu.no Ottar Bakås SINTEF Technlogy and Society, Department of Industrial Management N-7465 Trondheim, Norway E-mail: ottar.bakas@sintef.no Anette Bolstad Norwegian University of Science and Technology (NTNU) Department of Industrial Economics and Technology Management N-7491 Trondheim, Norway Vidar Pedersen Investment Office Nordic, Telenor Nordic Finance Snarøyveien 30, N-1331 Fornebu Tel: 47-9823-2599 E-mail: vidar.pedersen@telenor.com Abstract Newly established, technology-based firms entering international markets often have limited resources in terms of capabilities, time, and capital. As a consequence, these firms often use entry modes characterised by low resource commitment, including partnership agreements (strategic alliances). This paper, investigates which partner selection criteria that are important for this group of firms when they are selecting partners. Based on case studies of three Norwegian firms targeting the UK market, five selection criteria have been identified as important (trust, relatedness of business, access...
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...a Strategic Alliance by: Jason WakeamIssues: May / June 2003. Tags: Strategy. Categories: Strategy. • Share on LinkedIn • Share on googlePlus • Share on facebook • Share on twitter • Share by email [pic] “Strategic” may be one of the most over-used words in business today. This observation is especially valid in the world of alliances, where managers must distinguish between those alliances that are merely conventional and those that are truly strategic. This author outlines the five factors that make an alliance “strategic.” As companies gain experience in building alliances, they often find their portfolios ballooning with partnerships. While these partnerships may contribute value to the firm, not all alliances are in fact strategic to an organization. This is a critical point, since, as this article will explain, those alliances that are truly strategic must be identified clearly and managed differently than more conventional business relationships. Due to the levels of organizational commitment and investment required, not all partner relationships can be given the same degree of attention as truly strategic alliances. The impact of mismanaging a strategic alliance or permitting it to fall apart can materially impact the firm’s ability to achieve its core business objectives. The five criteria of a “strategic” alliance What is it that makes an alliance truly strategic to a particular company? Is it possible for an alliance to be strategic...
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...and also first class. dustry will be low as there are high barriers to entry. Due to high cost of planes, entering airline industry requires high capital investment to commence operations. The airline industry is extremely capital intensive, due to the cost of buying and leasing aircrafts, safety and security measures, customer service and creating a brand people can trust. In order to achieve economic of scales, many airlines creates alliance with each other therefore creating efficiency in joint purchase of aircraft, cost of maintenance and parts thus save hundreds of millions of dollars such as the Jetstar/AirAsia alliance. This creates further barriers whereby new entrants will not be able to compete in term of cost and price. (1) Power of suppliers to the industry - Medium to High The airline supply business is mainly dominated by Boeing and Airbus therefore they have high supplier power. For this reason, there is not a lot of competition among suppliers. Also, it is also unlikely that of a supplier integrating vertically. Airlines are also unable to materially affect fuel prices from suppliers as the oil market dictates the fuel costs. They also aim to use their combined scale to help influence the design of the next generation of narrow-body aircraft from both major manufacturers Boeing and Airbus, and secure more purchasing power via joint procurement orders. Strategic alliance aim is to reduce supplier power. (2) Power of buyers - Low (Future increasing...
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...entails giving most of the value to the customer and keeping a small margin. The objective is to gain as much market share as possible. It is often used as part of an entry strategy for a new product and is particular useful for preventing completive entry. The opposite of penetration pricing is skimming. Skimming gives more of the cost-value cap to you than to the customer. This strategy is appropriate in a variety of situation. For example, if there is a strong price-perceived quality relationship and the value proposition includes a position of the product at the high end of the market, then this objective makes sense. Financial Objectives * Reach profitability by year two. * Reduce store overhead by 5% each year. * Have a double digit growth rate for the first few years. The product-line approach involves offering both a high-priced and a low-priced brand. For example, this is a classic strategy that Procter & Gamble use. Just for Women Shoes strategy would be running and work out sneakers at the premium level and everyday work pumps (black, navy, brown) at the low end. Value pricing is related to customer expectations: It gives more value than they expect for the price paid. Just for Women Shoes Differential pricing or competing against private brands is to reduce the price gap to the point where consumers are willing to pay and therefore value the brand name. Just for Women Shoes will develop new market segments that are less price sensitive and build stronger...
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...Management Formulating Strategy ng Outline Opening Profile: Global Companies Take Advantage Global Integrative Strategies Using E-Business for global Expansion E-Global or E-Local Entry Strategy Alternatives Reactive Responses Exporting; Licensing; Franchising; Contract Manufacturing; Of/shoring; Service Sector Outsourcing; Turnkey Operations; Management Contracts; International Joint Ventures; Fully-Owned Subsidiaries; e-Business Proactive Reasons Management Focus: Mexico's Cemex Reverses Course to Comparative Management in Focus: Strategic Planning for the EU Market Strategic Choice of Opportunities in South Africa Reasons for Going International Respond to Global Downturn Strategic Formulation Process Steps in Developing International and Global Strategies Mission and Objectives Environmental Assessment Institutional Effects on International Competition Sources of Environmental Information Internal Analysis Competitive Analysis Strategic Decision-Making Models Global and International Strategic Alternatives Approaches to World Markets Global Strategy Regionalization/localization Ali Sulaiman 71859876 aassbk@gmail.com Timing Entry and Scheduling Expansions The Influence of Culture on Strategic Choices Conclusion Summary of Key Points Discussion Questions Application ic Exercises Experiential Exercise Internet Resources Case Study: YouTube LLC: Going Global by Acting Local AUL_KASLIK – MBA Helen Deresky International...
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