Global Business Study Set 3
Quiz 10 :
Entering Foreign Markets
Companies must do a proper market research while entering into new markets, especially when the new markets in international then the sensitivity of such analysis becomes higher. To serve the perfect requirement it is very necessary. Doing a proper market research allows companies to satisfy the customer and make desired profits. It is very important for the business to design products and services to be offered in a country based on the nature of the market. Company Walt D is a very renowned organization which has served more than 50 years in the entertainment segment. It has several theme-based fun parks across the globe. The company made several mistakes when it opened the parks at different locations. Some of the notable mistakes are: 1. Cultural faux pas in D resort in Paris in 1992: The company did not serve wine with the meals which hampered the food sales. 2. Customer arrival was not properly forecasted in the theme park in Hong Kong location which led to a loss of $92.3 million since the customers request was not fulfilled. 3. Not adding the local people to its imagineering team led to more focus on American culture in the Hong Kong theme park which was not appreciated by the local people. 4. Keeping the area of the theme park shorter than the expected customer requirement led to declining the customer service. 5. The company had to cut the number of hot dogs to increase the sales of dim-sums in Hong Kong. The company committed the above-mentioned mistakes and faced economic losses. Hence , to avoid repeating the same mistakes and face losses again, the company felt compelled to make significant changes while entering China.
The most active industries in United States are as mentioned below: • Electronics • Automobile • Oil equipment • Services industries Firms are most active in service industry. The service imports are made in the country from countries such as China. Germany, Japan, Netherland etc. The country has the advantage in international trade of both merchandise and services. However, it has more advantage in trading of services because of easy acceptance of services in different parts of world. In addition, this industry operates a reduced cost as compared to other industries.
Based on the export market report, the top five potential markets that mid-sized firm can focus to develop are as follows: • SIGPOR • HO_G KO_G • NTHRLNDS • FNLND • UK It is very important for a firm to do research before developing export markets to know whether it will be beneficial, cost effective for the firm or not. The above five potential countries have been selected for starting export business as these are better performers in enabling trade index, and are considered as the most important open market for trade. These markets do not levy any custom tariffs, and there are no tariff quota or surcharge taxes on the products being exported or imported. These markets also offer a friendly operating environment for firms, and provide favorable access to the markets. As the markets have proper boarder administration, foreign market access and operating environment, these are considered as potential markets for the firms to start their business.
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