Quiz 13: Marketing Internationally
In the mentioned case, comics of Country J have estimated huge sales in the Country US in early 60s. The Comic book market was developed in the Country US by the concerted push from the Country J companies. In addition, people of Country US have pulled the comic anime into the market. Later, videotape and recorder allowed dubbing and sharing of comic anime in the Country US market. Entering foreign markets can be assessed by many methods such as export, turnkey project, licensing, franchising, etc. Piracy can also be the mode of entrance in the foreign or global market, as the technology is increasing. It can help a company to enter successfully and profitably in the foreign market as shown below: • As the technology has been increasing, the copying or counterfeiting of the software product has become easier. Thus, it helps companies to distribute their product wider in the market. • It helps companies to save the cost associated with manufacturing or development, distribution, and promotion of products through copying the original product at cheaper or less cost. One can develop a strategy for using piracy as a mode of entering foreign market for the product such as software or application are as follows: • The company should develop a " beta " version of the software to introduce in the market. Such beta version of the software is used for testing the response of customers. • The company should allow other companies to copy the software and distribute in the global market. It would increase the companies reach in the market. • The company could promote their other products, in the application or software while using it.
Case Summary: A manufacturer of soybean harvesters, Foley Company has an export from many years a substantial number of machineries to B, but from some years B starts to manufacture in his own country. When the president of the company comes to know this through his local distributors, he starts thinking to manufacture the machineries locally to maintain his share, after the suggestions from the local distributors. He has calculated the overall cost of manufacturing machines locally but his company lacks the expertise to manufacture outside. He asks his export managers to suggest some options to enter the foreign markets. The following options are available to Foley to enter into the foreign markets: 1. Wholly owned subsidiary: In this mode of entry, the company owns the foreign company either by established its branch in that country or by acquiring a foreign company. Later on, this company also acquired the distribution network of that company. 2. Joint Venture: A joint venture is a mutual agreement between two or more companies to share their financial and non-financial resources to achieve a specific goal. 3. Strategic Alliance: In this, two or more companies do agreement to achieve a specific task while remaining independent firms.
The commercial activities that cross national borders are known as international business. The goods, services, technology, personnel etc. all are moved from one country to another and also to many countries and vice versa. This movement is known as import and export in layman language. It is generally done through various modes of entry like licensing, franchising etc. Following condition increase the likelihood of success of a company when it wants to be a pioneer for entering into the market: 1. When the company is insulated with strong patent protection from entry by its competitors into market. 2. It also gets success when it has sufficient size of the firm. 3. It also gets success when it has sufficient resources. 4. It also gets success when it maintains its pioneer position from competitors. Following conditions would increase the likelihood of success of entry of the firm when it wants to be a follower: 1. When the firm has large number of resources. 2. When there are few technological, cultural, legal, or financial entry barriers. 3. When it offer lower price than its competitors.