Explain How To Adapt A Product To The Needs Of A Foreign Market

Words: 3052
Pages: 13
Open Document
1.0 Introduction
Nowadays, the market is becoming progressively globalized, it is therefore imperative for a company that wants to compete globally to have a strategy concerning the adaptation of its product to the needs of the foreign market. In fact, it is claimed how fundamentally important it is for a company to choose the correct product to plan the internationalization process (Valdani and Bertoli, 2006). The choice of the product it is extremely important because it can allow identified market areas, including the clients and the rivals. Actually, the product’s choice affects the way it enters into a foreign market as well as other decisions regarding the other variables of the marketing mix.
This paper will present the factors …show more content…
A good example to describe this strategy comes from the multinational Nestlé, particularly in its strategy toward its controlled Buitoni (Italian famous firm in particular for the production of pasta). According to Bertoli (2003) Buitoni through Nestlé has divided its production into two main sites: The headquarters in Evey and the other in Italy at San Sepolcro (Tuscany) that has the job to R&D and tasting products. The production is mainly switched in 4 sites; each one specialized in a different type of production.
4.1.2 Learning effect
The experience that comes from production creates correct tools to improve product characteristics and production efficiency
4.1.3 Consistent brand image
Due to an increase in consumer mobility around the world. It means that nowadays, there are more tourists around the world that want to find the same product wherever they go. (Theodosiou and Leonidou, 2003)
4.1.4 Market homogeneity
With new technologies such as the Internet, increasingly more individuals can have access on the same time to the same product. Moreover, Internet has allowed sharing the same design and same model through different countries. To have a good example, just think about
Show More

Related Documents: Explain How To Adapt A Product To The Needs Of A Foreign Market

The Context Of Globalization

of all businesses in the world, which face an opportunity to create value with their resources, team and expertise in a foreign market. These markets, companies are targeting on might be underserved or even if they are served with a certain product or service, still some companies see their chance to gain market share by adding value to their “imported” and “not-local” product. This is caused by demand; demand people like you and me create, following trends and comparing themselves to a more global…

Words 567 - Pages 3

Essay on wal-mart south korean

consideration when looking into opening up a business, especially when there are foreign elements involved. First of all, the companies must observe the culture of the area in which they want to open a business. The first problem in Wal-Mart’s attempt to occupy South Korea was location. Most Wal-Mart outlets in South Korea were placed outside instead of inside the cities, and most people willing to buy foreign products would, obviously be in big cities because they are typically less traditional and…

Words 417 - Pages 2

International Trade and Global Business Environment Essay

standards for conduct in foreign nations is among the highest priorities. This will include factoring in the environment, political, cultural, language and religious barriers, and also the standard of living. Values, beliefs, expectations and manners may differ with location. Dumping is sometimes used as a tactic to win over foreign customers, by selling large quantities of a product at a price lower than the cost of production or below what the company would charge in its own market, which could result…

Words 620 - Pages 3

Essay on Chapter 1

Marketing • Global marketing has become important to companies around the world for three reasons: 1. Foreign markets constitute an increasing portion of the total world market, leading to sizeable international sales and profits for many companies. 2. Foreign competitors are increasing their market share in one another’s markets. 3. Foreign markets can be essential sources of low-cost products, technology, and financial and human capital as major economies are increasingly interdependent. Chapter…

Words 1217 - Pages 5

Student Name Essay

illustrates the target market segmentation not only in China, but also in US. Facing the different countries ‘conditions, IKEA adapts the appropriate tactics. Besides, the essay highlights the way that IKEA initially take the joint venture strategy, and then makes the transition to the Greenfield investment. On the basis of this main theory, the essay maintains how the strategy is formulated and implemented, which examines IKEA’s activities in detail. Although the way of entering China market has its limitations…

Words 2629 - Pages 11

International Marketing Ch 1 Essay

|Foreign uncontrollables | | |Controllable elements |Marketing relativism | | |Uncontrollable elements |Self-reference criterion (SRC) | | |Domestic uncontrollables…

Words 1690 - Pages 7

International Business Essay

digital camera market and the shrinking film business. It also highlights the strategies adopted by Kodak to embrace the new technology to sustain its leadership position. 2. On December 5, 1997 the US lost its first major trade dispute in the newly formed World Trade Organization (WTO). The high-profile case pitted photographic paper and film giants Kodak and Fuji against one another along with their respective governments, the US and Japan. Kodak claimed that Japan's photographic market &distribution…

Words 1258 - Pages 6

Whirlpool Case Study Essay

Question 1: What is the nature of Whirlpool’s domestic and international business environments? What type of risk does the firm face? Domestic market * Maturity of the US market in the 90s accompanied stiff competition, more demanding buyers which resulted in low profit margin and the need for management to consider internationalising. International market * Fall of trade barriers, customer affluence grew and capitalism flourished. * Management was quick to understand that a more global…

Words 1233 - Pages 5

Sharp Corporation Essay

emerging markets such as South Korea and Taiwan are…

Words 1644 - Pages 7

Chapter 3 Business Environment 2015 1 Essay

Transfer risk: Government interferes with a firm’s ability to shift funds into and out of the country Economic risk: i) economic cycles: booms and downturns ii ) exchange rate fluctuations iii) Changes in foreign direct investment policies Legal risk: i) Enactment of laws with respect to foreign investment/joint ventures ii) Infringement of intellectual property rights and patents Examples of political risk Example of political risk - case of Venezuela: http://www.youtube.com/watch?v=02YfNO1tp…

Words 644 - Pages 3