Market Threats Essay

Submitted By bcolli17
Words: 6047
Pages: 25
Open Document
INTERNATIONAL MARKETING
International marketing must take into account the laws of the home country and the host countries in which the firms operate. This is not risk free. Political factor is the third factor influencing foreign direct investments. International relations are influencing international marketing and vice versa. Political risks may emerge as serious barriers to Multinational companies. However, those effects are not out control of a well-trained international marketer (R.W Griffin et W. Michael. Pustay/2005).
As world is assimilated to a global village, many multinational companies are willing to invest in Africa in general and West Africa in particular. So, it might be helpful to look for what kind of political risks firms may face in West Africa? West Africa’s problem is that, African countries are not investors' nations; they rarely invest in other countries. However, all of them are host countries. It is necessary to focus on what investors should do to avoid African government-induced political risks, and how those countries can behave to preserve a safe business environment (R.W Griffin et W. Michael. Pustay/2005).
International marketing is the extension of marketing activities across national boundaries. It involves firms trading in two or more countries. International marketing retains basis markets tenets of satisfaction and exchange. The fact that in international marketing; transactions take places across national borders; highlights the difference between domestic and international marketing (R.W Griffin et W. Michael. Pustay/2005).
The basic principles of marketing still apply, but their applications, complexity, and intensity may vary substantially. Some adjustments are necessary in international marketing context. For example, a company looking for improvement in its present position by exploring market abroad, could do it only through international marketing analysis and perspectives. International marketing have forms ranging from import-export trade to licensing, joint ventures, owned subsidiaries, turnkey operations and managements contracts. With international marketing, some specific approaches have been developed. The approaches supply the answers of standardization and customization concerns (R.W Griffin et W. Michael. Pustay/2005).
The ethnocentric approach is a managerial approach in which a firm operates internationally the same way it does domestically. This approach avoids the expense of development of new marketing product. It is used by some firms experiencing first internationalization. Firms adopting this approach may fail because it does not take into account the needs of its foreign customers. Should there be an attempt to adjust the firm's marketing mix to satisfy customers using the polycentric approach? In this approach, the corporate customizes its operations for each market it serves. Polycentric approach is more costly. However, it may yield revenues, since it exactly meet customer’s needs. Multi-domestic international firms use to adopt this approach (R.W Griffin et W. Michael. Pustay/2005).

Finally, the firm may choose the geocentric approach, in which a firm analyses the needs of its customers worldwide and then adopts standardized operating practices for all markets. There is a nuance between ethnocentric and geocentric approaches. Both argue for standardization. However, ethnocentrism is stagnated on the basis of what the firm does in its home country, whereas geocentric starts without such home country bias. Instead, the geocentric approach considers the needs of all the firm's customers around the world and then standardizes on that basis (R.W Griffin et W. Michael. Pustay/2005).
How may the local ideas, goods, and services fit into the international markets? May supplies be domestically-based or from abroad? What are necessary adjustments the firm might do to overcoming global competition? These are some issues the international
Show More

Related Documents: Market Threats Essay

Shloke Draft Essay

industry. 2.0 THREAT OF NEW ENTRANTS The theory of threat of new entrants is dependent upon the extent to which the barriers of new entry are existent. This theory refers to how new companies can pose to be a threat to an existing firm in a specialized market. If the entry barriers are few it is simpler for these ne* entrants to become a part of the market. This in turn is a threat to already existent firms in the market. This is considered to be one of the forces…

Words 928 - Pages 4

Essay on Latin America

plant locations, capacity, management team structure) 2.Situation analysis (opportunities and threats). Develop a 5Cs SWOT Analysis with a written section on each component – strengths, weaknesses, opportunities & threats. Develop subsections for resources & capabilities under strengths and weaknesses. Develop subsections for customers, collaborators, competitors, and context under opportunities and threats. Start with an analysis of all countries but focus the marketing plan SWOT on targeted countries…

Words 689 - Pages 3

Food Industry In India

very high ranking when it comes to food consumption. Indian food industry is very vast ranging from agro food products to the processed food industry. India is 6th largest food and grocery market and expected to grow at 104% by 2020. Food industry in India contributes to 14% of the total GDP. The gourmet food market in India is estimated to be at US$ 1.3 billion and is growing at nearly 20%. It is expected to cross US$ 2.8 billion by the end of 2015. The reasons behind the growth of gourmet industry…

Words 842 - Pages 4

Summary: Strategic Management and Factors Analysis Threat Essay

1. SWOT analysis of Intel Company has focused on both negatives and positives of the organization. There are four aspects will be discussed. Strengths: Intel is the most valuable brand in the world and it has the largest market share all over the. Intel is looking for the information of microprocessor, and it has continued the developing of new growth area such as home entertainment and mobile. It is the largest number global technology corporation with revenues exceeding 37 billion. The customers…

Words 800 - Pages 4

Apple Research Paper

2013 To whom it may concern, This analysis was conducted as an external examination of Apple, INC. It is apparent that many threats and opportunities exist in the environment. These topics range from political and legal implications to major competition with in the market; this makes the external environment for Apple volatile, but favorable. Following are top threats and opportunities for the company in many of the macro-environmental and business ecosystem sectors, with a concentration on a…

Words 1544 - Pages 7

Essay on Michael Porter

strength and position of a business organization that formed by Michael E. Porter of Harvard Business School in 1979. Basically, the concept of this theory is actually based on the five forces model that uses to determine the intensity of competition and market attractiveness. Therefore, strategic analysts are often to use Porter’s five forces to comprehend whether new products or services are potentially profitable when they’re entering into new player. The five forces of Michael Porter’s are bargaining…

Words 1195 - Pages 5

Customer Service and Ebay Case Point Essay examples

in the market made the buying power high. Because buyers could go to various sites, and eBay’s income relied on attracting sellers to the site, customers dictated low prices. In addition to low prices, customers dictate product variety as well, which makes buyer power high. 3. Competitive rivalry During the time of the case study, eBay’s major competition was Yahoo! and their affiliates, and competition was increasing at an alarming rate. Prior to eBay’s entrance into the Chinese market, Japan…

Words 639 - Pages 3

Market Entry Strategies Paper

Week 7 Discussion 1 "Strategic Choices" Determine one key distinction between each of the following strategies: adaptive, market entry, and competitive. Provide one example of each strategy to support your response. Adaptive strategies are essential in achieving organizational direction given that they are the first decisions undertaken after determining the direction the strategy would take thus enable the organization to initiate approaches that bring about effective planning for the expansion…

Words 441 - Pages 2

Swot Analysis Chipotle

competes. There are five barriers that impact the markets profitability, depending on how hard they are to surpass. These five barriers are as followed: Threats of New Entrants, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitute Products, and Intensity of Rivalry among Competitors. To begin, the first threat is the threat of entrants, which looks at how easy it is for another competitor to enter that same market. This threat is high, because there are low entry barriers and…

Words 929 - Pages 4

Porter's Five Forces Essay

improved decision making, faster time to market, better productivity, improved competitive advantage, more profits and greater customer satisfaction. It also helps in achieving operational excellence. Porter’s Five Forces Model Threat of Entrants Porter's First force is the threat of Potential Entrants. Statistics have shown the industry to be slowing down, therefore making competition high and the threat of new entrants low. Broadway Cafe has a small market presence, but the presence of its competitors…

Words 981 - Pages 4