...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 to networks, access to market knowledge, reputation), one...
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...regarded as a leader in and expert in hearing innovation is a born global company that has reached over 100 countries. In order for a company to be considered born global they must have a quarter per cent share in foreign sales within two to three years of establishment (Kudinan, Yip and Barkema, 2008). When a company like Cochlear is born global the business must understand in depth each of the counties in which they market and sell their products, this can be done through the exploration of the countries macro environment. Discussed throughout this paper will be how different macro environmental factors in overseas markets and how each of them could potentially affect Cochlear’s global marketing mix. Borden, 1964 describes the marketing mix as a group of essential components or requirements that make up a businesses marketing strategy, in short it is made up of 4 components, product, price, place, promotion (Vignali, 1994). However, when entering into any market domestic of international, there are a number of factors that govern how the marketing mix is created, including trade behaviours, government regulations, competitors, and consumers purchasing behaviours (Grönroos, 1997). In order for the marketing strategy to be successful in any marketplace the correct mix of components must be chosen. This is the case for a born global company like Cochlear, as it is vital that when entering into overseas market places, they must look into the various political, legal, social, cultural...
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...Goods, a department store - focus on high quality feel at lower prices - Customers have a more pleasurable shopping experience • However, many customers are willing to forgo aesthetics for lower costs in tough economic times. o Because Target is following a “Cost Leadership” strategy, it is important to play the game, because the target market will not respond to largely excessively higher costs in the name of differentiation. • Additionally, it is important to make sure that an efficient supply chain is maintained and that inventory is turned over as quickly as possible. Target’s gross margin is higher than the industry average and Wal-Mart’s, which implies that Target is relatively efficient in this area. o Wal-Mart’s large amount of stores, both within the United States and internationally, help the low-cost retailer bring in revenues. ▪ Target could improve by stepping up against this strategy. • As the world becomes more inter-connected, Target needs to stay on board o For example, the potential revenues gained by reaching foreign markets can be seen as an opportunity. ▪ However, PEST analysis shows that this can also pose problems: • U.S. Export Tariff on Chinese goods • Risk of instability in other countries o Both politically and financially ▪ Labor strikes ...
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...entrepreneurship as “the discovery, evaluation, and explotion of opportunities across national borders” (McDougall, Oviatt 2005). Afterwards the authors introduce different motives and barriers of internationalization as well as factors that influence the foreign market selection and modes of entering new markets. To prove the stated characteristics the authors did a study using questionnairs which were sent to firms in Lithuania and Norway. As a result the authors get insights which internal and external motives and barriers as well as foreign market selection criterias and operational modes are most relevant for Norwegian and Lithuanian SMEs. There were many similarities among both countries like the “small domestic market” as a motive to expand their operations toward foreign markets as well as too much bureaucrarcy as one of the main barriers to enter new markets. On the other hand the authors found also differences, especially when it comes to internal barriers, selection criteria for foreign markets and modes of entering new markets. High start-up costs are the most important reasons that hinder Lithuanian SMEs from going international whereas Norwegian SMEs are more worried about limited management skills in their company. In the market selection process Lithuanian SMEs rely on exporting to neighboring countries while Norwegian...
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...Segment criteria for a global market There are four generic situations for segmenting a global market: “similar segments and similar positioning; similar segments but different positioning; different segments but similar positioning; and different segments and different positioning” (Johansson, 2009). In a micro-segmentation analysis, global marketers can compare similarities of consumer preferences in various countries by forming clusters. This process is critical to globalization of one product in its original form. For a known brand of bathroom tissue that is entering a market where consumers do not have a quality product that represents equal competition, the key element to penetration is changing consumer perception. Knowing that there “are no best products, all that exists in the world of marketing are perceptions in the minds of the customer where the perception is reality and the rest is an illusion” (Ries, 1994), a marketer must understand how the customer thinks. Changing consumer perception requires a cluster analysis that groups consumers with similar economic and social indicators in order to design the appropriate message to target that group of people. Market reaction to new global brands Market reaction to global brands is often positive, especially if the brand has global recognition but has not entered the market yet. A good way to gauge in on how consumers will react to a new product hitting the market is through focus groups, sampling, and surveys...
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...[pic] International Market Selection – Issues and Methodologies A Global Marketing Paper Conducted by Kai F. Mahnert, 03113060 Sarah McGauley, 00359157 Laura McGrath, 00453340 Liz McGrath, 03113094 Conducted for Dr Aidan Daly, Lecturer in Global Marketing, NUI Galway Date 22nd March 2004 TABLE OF CONTENTS Abstract 3 Introduction 3 Objectives 5 Limitations 5 Rationale for International Trade 6 Objectives of an organisation 6 The creation of stakeholder value 6 Internal factors in Foreign market selection 7 Personnel 7 Management 8 Customers 8 Capital requirements 8 Social assessment 9 Corporate social responsibility 9 Time and research 11 Methodologies 11 Preliminary screening 12 In-depth screening 12 Final selection 13 external factors in foreign market selection 14 Market potential 14 Market size 14 Market growth 15 Competitive intensity 15 Competitive entry 15 Entry barriers 16 Political environment 16 Political issues for consideration in market selection 17 Risk assessment 17 Legal environment 19 Legal systems 19 Economic environment 20 Economic development 20 Culture 22 Infrastructure 23 Conclusion 23 References 26 International Market Selection Issues and Methodologies Kai F. Mahnert, Sarah McGauley, Laura McGrath & Liz McGrath MBS in Marketing, NUI Galway Abstract International market selection is one of the...
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...outlined by a simple agreement or membership criteria. While there are undeniable benefits to some member states, great sacrifices must be made before, during, and after the integration process which eventually render a nation powerless over its monetary policy. Currently, every European nation is faced with the question of whether to join European Monetary Union; however, the eagerness with which new member states join is paralleled by the resistance of several holdouts to adoption of the common currency. With the unprecedented growth rate of the Euro-zone over the past decade and the number of nations currently making the required policy adjustments, core members need to be aware of the motivating factors fueling the growth in the number of new member states. The European Union is experiencing an adverse selection scenario in which nations seeking increased stability are willing to make the sacrifices that membership entails while the redistributive effect of wealth from existing to new relatively poorer member states is an implicit benefit of the current system. When Paul Henri Spaak of Belgium, Christian Pineau of France, Joseph Luns of the Netherlands, Antonion Segni from Italy, Joseph Bech from Luxemburg, and Konrad Adenauer from the Republic of Germany signed the Treaty of Rome in 1957 creating the European Economic Community(EEC), their long-term objective was the creation of a union bound by political integration with a market between members free from traditional barriers...
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...open up a production plant overseas to serve their market it attempt to lower transportation costs. We are deciding whether we should build the plant in Italy, Portugal, or Spain based on the information provided within the Chartbook of International Labor Comparisons. Portugal has 55% of its population working within their labor force, Spain has 47% of their population employed within their labor force, and Italy has 44% of their population working within their labor force. After carefully analyzing the data given by the Chartbook of International Labor Comparisons, we have decided to open up a plant in Portugal due to the fact that over half of their population is employed within the labor force. They have been consistent over the years with their compensation plans and over 60% of them are paid in salaries and wages. This demonstrates a highly skilled labor force that can handle the complex constructs of our product. Portugal is the best fit for a new production facility. 2. The International Association of Outsourcing Professionals (IAOP) ranks the world’s best global outsourcing service providers. The IAOP has a list of criteria that each company must meet in order to make the list, and in what rank they will be positioned. PG. 464 1. Companies are able to expand their companies through the act of exporting. Global Edge provides sources available to aid those who wish to enter into foreign markets through this route. Three sources will be discussed...
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... 2012 Sharon Rao-Farista Arcor: Global Strategy Local Turbulence (Case 9- 704-427, Harvard Business School) 1. Based on the data available, to which extent was the CAGE model relevant for the decisions taken by ARCOR until the crisis started in 1999? The CAGE model is relevant to the decisions taken by ARCOR up until the crisis in 1999, in the following ways: 1. ARCOR identified that Brazil had a fairly similar culture in chocolate and candy consumption to Argentina, hence in 1976, Arcor established itself in Brazil. 2. ARCOR also may have chosen to enter Brazil because of it sharing a border with Argentina. There was little geographic distance 3. With Brazil’s large population, Arcor had access to the economic benefit of a larger market 4. Arcor entered the US in 1993, since consumers accounted for one third of the global confectionary market. Again, there was economic benefit for Arcor. 2. Based on the AAA strategies, develop at least 2 different strategies for Pagani in 2002 in order to further develop ARCOR’s business strategy. Explain which is your preferred option The two strategies that I would propose are Adaptation and Aggregation. - Adaptation has worked so far for Arcor since it has identified differing tastes and consumer behaviour linked to chocolate and candy across different markets. - Aggregation has also proved useful to Arcor, since the cost of setting up plants and procuring raw materials in each new market proves to be costly. In terms of sustainability...
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...practical application. The highest amount of papers on the subject is focused on the American stock market, and mainly on stock performance in relation to changes in the S&P 500 index constituents. Unlike the several rules that apply for inclusion in the S&P 500, the criteria for the constituents of the British indices FTSE 100 and FTSE 250 are simpler – the decision is determined only by the market capitalization of the listed companies. Documented studies so far have focused only on stock performance based on inclusion/exclusion in the FTSE 100 – the index, consisting of the top 100 companies in the UK, arranged by market cap. They find an anticipatory effect, which proves to be temporary in contrast to the permanent effect, documented for the S&P 500. A possible explanation is increased investor awareness and monitoring, which accounts for positive prices effects for additions and negative for exclusions. The idea of my research question is to study the anticipatory effect of stock inclusion/exclusion in the FTSE 100, compared to the FTSE 250, measured by abnormal stock performance. The hypothesis of such an event study is that the anticipatory effect for changes in the FTSE 100 will be higher, due to limited investor attention and lower salience of stocks with smaller market cap, included in the FTSE 250 index. 2. Initial literature review Generally, the criteria for stock...
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...Strategic NPD issues and Problems This case describes how 3M Corp. introduces and learns a new and innovative methodology titled Lead User research to understand future customer and market needs. A team from 3M's Medical-Surgical Markets Division applies the Lead User Methodology to the field of surgical infection control and discovers that there exist new product concepts together with a new business strategy. The problem here is 3M should decide whether this new strategy will be a tool for 3M 's strategy towards corporate expansion and innovation. In the mid 90s, 3M realized the symptoms in its innovation approach that only incremental development is involved in its current product range instead of breakthrough ones. This approach limited the company’s competitiveness and financial performance and growing the business required to prepare the environment capable of delivering “breakthrough innovations“. Therefore, 3M’s management set a new goal: 30% of sales should be driven by new products. The new strategy focuses on understanding the real market needs to create possible developments and enhancements for a particular product which can eventually lead to a breakthrough in product offering that ultimately results in a competitive advantage. In this case, the suggested approach, Lead User Method, enables 3M to satisfy an important need (not spreading infections during surgery) by developing a specific new product or service. If there is not a new approach, the innovations...
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...that strategy •? Why your team selected the strategy you used My mission was to create a product that was efficient and cost effective. We chose a narrow portion of the market, and provided only online sales. While we may have limited ourselves, we also eliminated a lot of risks. Our goal was not to be the most profitable nor competitive company, but merely to make a profit and pay the bills while providing a quality product, which we did. 1. Evaluate the effectiveness of your strategy. In quarter 8, we had a gross profit of 3,430,644, and a net income of 1,027,792 while providing a quality product. Our goal was to make a profit, while providing a quality product, and we did. C. Evaluate your team’s ability to identify competitors’ strengths, weaknesses, and strategies during the simulation. 1. Discuss how successful your team was in predicting your competitors’ next moves. My team was not successful in predicting our competitors' next move. Our goal was not to out-gun other companies. Our goal was to create a product, based off the market analysis, provide that product at a competitive price, while keeping production and overhead costs low. D. Discuss how sustainable the most dominant competitive advantage achieved by any company within your industry was. I didn't utilize the market research. My goal was...
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...compared with other competitors? What are the weaknessess compared with other competitors? What's it opportunities compared with other competitors? What's it treatises in the future? (What?) What are the goals? In short-term ? long-term? What's our expected scope(scale) in the future? What's it future plan? Multinational?International?Local? What's it opening time? 24 hours? Before Entering /Entering the market: Is the service easy to be substituted/imitated or not? Is there any barriers/ threats to entry the market? Political? Legal? Permission? Permission: business license? Epidemic prevention certificates? Do we need specialist knowledge to set up this business? What kind of legislation would affect us? Employment laws? Taxes Laws? Safety Laws? Environment Laws? Epidemic prevention Laws? Co-operation? Contracts? Market: Customers: Who are our target customers? High/Low/Middle lever income groups? Age? Gender?Are they regular /not regular customers? What are customers' needs according to our service? What's the consumption power? Price: What's the criteria of the charges? What's the average charge of the competitors? Place: Where do we locate? Should we in the city center or not? Why do we choose here? Are there any competitors nearby? Do we need an office/physical store? People: What kind of employees should we hire? How? How many doing Fulltime/part-time/ jobs do we need? Why certain jobs models? Do we have requirements regarding...
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...Global Business Organisations D4X9 35 Table of contents I Introduction…………………………………………………………4 II Basic information about PepsiCo…………………………………4 2.1 Background PepsiCo……………………………………………..4 2.2 First step for entering international market………………………5 III Development of PepsiCo…………………………………………5 3.1 Business structure of PepsiCo…………………………………..5 3.2 Organization’s expansion ……………………………………….6 IV Products of PepsiCo………………………………………………6 4.1 Process of bringing a new product to market……………………6 4.2 Production Unit and its global position………………………….7 4.3 Influence of local market criteria ……………………………….8 4.4 Pricing and distribution policies and logistics…………………..8 4.5 Marketing of products…………………………………………..10 V Personnel of PepsiCo…………………………………………..…10 5.1 Recruitment policy………………………………………………10 5.2 Global salaries…………………………………………………..11 5.3 Labor relations…………………………………………………..11 VI Finance of company……………………………………………..13 6.1 Financial structure ………………………………………………13 6.2 Exchange rate ……………………………………………………13 6.3 Annual accounts …………………………………………………13 6.4 Influences of Financial information……………………………..13 VII Conclusion……………………………………………………….15 VIII Reference ……………………………………………………….16 IX Appendix……………………………………………………………17 Appendix I…………………………………………………………….17 Appendix II………………………………………………………….18 I Introduction The aim of this report is for outcome two to outcome five of Global business organization. This...
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...Global Marketing Level 6 44-6979-00L-A Module handbook 2014 to 2015 Module leader: Giovanna Battiston g.battiston@shu.ac.uk Stoddart 7241 0114 225 5260 Contents 1. | Welcome to global marketing | Page 3 | 2. | Code of conduct | Page 4 | 3. | About your module | Page 5 | 4. | Teaching and learning strategy | Page 6 | 5. | Resources for reading and research | Page 7 | 6. | Assessment | Page 8 | 7. | Lecture and seminar programme | Page 11 | 8. | Module prize | Page 37 | 9. | The SHU Marketing Student Society | Page 38 | 10. | Appendices:Task one assessment criteriaTask two assessment criteria | Page 39Page 41 | Welcome to global marketing Contact details Module leader: Giovanna Battiston g.battiston@shu.ac.uk Stoddart 7241 0114 225 5260 Your seminar tutor: Learning time: On the successful completion of this unit you will receive 20 credit points at level 6. As in all units you are expected to devote 150 hours learning time to this unit, some of which will comprise lectures and seminars. These will be important for introducing and discussing new materials and for you to gauge your level of understanding of the subject. You will need to spend several hours per week in private study getting to grips with the pre-seminar tasks and necessary post-lecture reading and the associated activities. It is expected that the remainder of the time will be spent on assessment related activities such as reading and...
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