StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Foreign Market Entry and Diversification - Assignment Example

Cite this document
Summary
Foreign Market Entry and Diversification Abstract Diversification though foreign market entry, is often regarded as an advantageous step to facilitate a company’s market positioning and competitive conditions. This paper emphasizes the rationales or aims for which a company tends to penetrate the foreign market followed by the strategies, the factors and the challenges that might impose an effect on the success of the company diversifying in the foreign market…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.4% of users find it useful
Foreign Market Entry and Diversification
Read Text Preview

Extract of sample "Foreign Market Entry and Diversification"

Download file to see previous pages

Overview Foreign market entry and diversification are considered to be the two most important aspects of an organization as the brand name and the success of the organization completely relies on proper planning and strategies that would lead them to be the prime leader in the foreign market as well as in the domestic market. The main objective of this paper is to provide a clear view on the different factors, strategies and the measures that a company i.e. XYZ should consider while deciding to diversify in foreign markets.

Argument for Diversification Market entry and diversification is considered to be the major decisions in an organizational life cycle, not because it includes investment of huge amount of money but failure to establish the determined objectives would lead in decreasing the goodwill of the company and would also result in great financial losses, which might again hamper its sustenance in the long-run. In the modern day context, international diversification, through foreign market entry has become a vital concern for many companies to obtain competitive advantages (Czinkota & Ronkainen, 2009).

XYZ operates in the highly competitive market environment of fast food and beverage industry, which exhibits the characteristics of a free entry and exit trend, increasing the threats of new entrants along with substitution effects and bargaining power of the consumers (KPMG, 2012). Additionally, it has also been viewed that the company faces the challenges of narrow market segmentation, wherein almost all the markets of its home country have been already penetrated by the company. In contrast, the prevailing market opportunities in the global platform remain untapped by the company in comparison to its competitors (Nagel, 2012).

It is thus suggestible that the company i.e. XYZ focuses on diversifying in the form of foreign market entry in order to enhance its competitive positing in the industry and assure its sustenance in the long-run. Strategy for Diversification It is very essential that any diversification strategy is planned or made after analyzing the trends that are followed in the targeted market, rendering due significance to the needs and requirements of the prime customers of the company in the foreign market environment.

Apart from focusing on the market trends and the buying behavior deciphered by the targeted consumer segment, XYZ also needs to assess the competitors’ motives and their strengths as well as weaknesses prior to enter a foreign market. Accordingly, due consideration must be provided to identify and analyze the strengths and weaknesses of the company in compare and contrast to that of its large competitors in the targeted foreign market. It will also be very essential for XYZ to conduct a thorough research on the market structure, political and economic climate as well as other external business factors, which might affect its performance in the foreign market.

It is based on these inferences that the company should decide upon reforming its marketing strategies and making requisite changes in its product line or targeted customer segment, when entering foreign market (Czinkota, & Ronkainen, 2009). Identifying and discussing the foreign market and the suitable strategies of the company On the basis of the recent economic

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Foreign Market Entry and Diversification Assignment”, n.d.)
Retrieved from https://studentshare.org/business/1484154-foreign-market-entry-and-diversification
(Foreign Market Entry and Diversification Assignment)
https://studentshare.org/business/1484154-foreign-market-entry-and-diversification.
“Foreign Market Entry and Diversification Assignment”, n.d. https://studentshare.org/business/1484154-foreign-market-entry-and-diversification.
  • Cited: 0 times

CHECK THESE SAMPLES OF Foreign Market Entry and Diversification

Expanding Internationally

Expanding Internationally Name Institution Date Expanding Internationally The company has traditionally pursued a corporate strategy of unrelated diversification.... By definition, related diversification calls for the operation of several but fundamentally related businesses (Griffin and Pustay, 2010; Neelankavil, 2007).... Through a related diversification strategy, a company may be able to leverage competence in one market in order to achieve competence and competitiveness in the other markets....
3 Pages (750 words) Assignment

Citibank IN New Countries for Futures Markets Development

hellip; Similarly, market entry strategies refer to the pre-planned methods incorporated with the intent of delivering goods and services to targeted markets for instance, through distributions (Bhattacharyay 36).... These market entry strategies vary depending on the product or service in concern as well as the key objectives of the business.... Furthermore, the projected customer base also determines the market entry approach that best fits that target market....
3 Pages (750 words) Essay

Entry into Chinese and Indian Retail Markets

This essay "entry into Chinese and Indian Retail Markets" is focused on the peculiarities of Chinese and Indian retail markets.... or the purpose of this study, entry into Chinese and Indian retail markets is to be considered.... China's entry into the WTO on December 11, 2001 has ensured regular inflows of FDI.... For any company entering an international market requires it to penetrate and then develop the prospective market....
5 Pages (1250 words) Essay

Fiat Auto: The Italian Giant in Trouble

Under such circumstances, firms tend to diversify their products and diversification has been identified as a tool to tide over such situations towards the latter half of 20th century (Whittington and Mayer, 2000).... The importance given to innovations resulted in diversification and process continued through decades.... diversification is the process by which firms diversify their products or operation, administrative structure or managerial process or even their location for the purpose of growth and survival (Pearce, 1993)....
9 Pages (2250 words) Essay

Advantages and Disadvantages of a Market Entry Strategy for SMEs

In this paper, the benefits and the disadvantages of a foreign market entry approach about exporting of small and medium enterprises (SME's) as well as multinational enterprise (MNE's) are discussed.... In the paper “Advantages and Disadvantages of a market entry Strategy for SME's” the author analyses market entry strategy, which plays a pivotal role in ensuring success and sustainability for a company which intends enter into a new market with the aim of making growth....
6 Pages (1500 words) Essay

Diversification Strategy

This paper will critically examine the argument that firms in emerging economies should pursue a diversification strategy because this corporate strategy may have a positive impact on their organization as it generally contributes to wealth creation… This research will begin with the statement that due to stiff competition in the business environment globally, firms in emerging economies have commenced adopting diversification strategies.... The diversification concept implies that firms need to engage in something new and hence face various kinds of transformation....
9 Pages (2250 words) Essay

The Drivers of Firm Diversification

diversification defined as a growth strategy, includes actions by firms that involve their entry into new product categories, markets, and geographic locations.... One of the key factors… There are two types of diversification: product and international diversification.... Numerous factors Firm diversification is a central issue of importance to managers.... The research literature on the subject of diversification affirms that over the past two decades the growth in the globalization of markets and products by firms has been tremendous....
10 Pages (2500 words) Essay

Foreign Market Entry and Diversification: Grupo Modelo

"Foreign Market Entry and Diversification" paper aims to analyze the case about Grupo Modelo and its international business operations.... By analyzing the global beer industry—looking at barriers to entry, the strengths of the competitors, and different trends in the market.... That means, defining a strong positioning strategy for the brand, as well as identifying global market segments for its products.... Considerations like risks and returns are assessed, while the final recommendation is to pursue economies of scale by replacing the international with the global strategy, in order to increase the company's market scope and production capabilities....
7 Pages (1750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us