Question

As you learned in your reading of Chapter 7, when considering expansion into international markets, two of the most important issues a company’s executives face are: (1) which of the three main competitive approaches to take, and (2) which strategic option for entering a foreign market to employ.

GENERAL INSTRUCTIONS:

For the purpose of this Discussion, assume that you are in charge of recommending an international strategy for your U.S.-based company. Your company recently set a strategic objective to expand into each of the following three (3) markets within the next 3 years: Brazil, India, and South Africa.

In each of the scenarios below, you have to make and justify your recommendations to the senior executive team. In each instance, the reasons that support your recommendations must be grounded in relevant concepts covered in TPGS Chapter 7. AND, consideration must also be given to the sociocultural, technological, political, legal, and economic circumstances in each of the targeted markets. [NOTE: You should do adequate Internet research to acquire some understanding of the macro-environment elements in each of these 3 countries.]

SUGGESTION: You may find it easier to comprehend and compare your recommendations (by country) if you organized them in a table or chart format.

SPECIFIC INSTRUCTIONS FOR YOUR INITIAL POST:

Scenario #1: Your firm’s product is a new, highly innovative exercise machine. The machine is electric and weighs 30 pounds.

1. Which of the three main competitive approaches would make better strategic sense to employ in each of these 3 countries

2. Which strategic option for entering a foreign market would make better strategic sense to employ in each of these 3 countries?

Scenario #2: Your firm’s product is a high-energy, dry breakfast cereal that tastes best when mixed with milk.

1. Which of the three main competitive approaches would make better strategic sense to employ in each of these 3 countries?

2. Which strategic option for entering a foreign market would make better strategic sense to employ in each of these 3 countries?

Scenario #3: Your firm provides a bill collection service.

1. Which of the three main competitive approaches would make better strategic sense to employ in each of these 3 countries?

2. Which strategic option for entering a foreign market would make better strategic sense to employ in each of these 3 countries?

Answer 1

Scenario 1

• Firm should first establish mass market campaign to give consumers top of mind recall
• Introductory pricing with bundled products so target consumer can get high discount and increase willingness to pay
• Online and various distribution channels should be tapped snd tieups with various gym and fitness centres for sponsorship.

Best strategy in 3countries is to adopt global standardisation approach so consumers are aware of product andbrand value and its effectiveness .

Scenario 2

FmCg products like cereal and milk need multi domestic strategies to cater to different tastes and preferences. Market launch strategies :

• Mass market campaign and retail distribution of products
• Social media marketing for different segments
• Variety of flavors and different set of product depth

Scenario 3

Bill connection or service is more commiditized and hence global standardisation is best strategy. Strategic planning ideas below:

• Strategies like establishing distribution network and TV campaign about new service
• Lowest rates per unit and discounts on customer who switch
• Long term relationships management for acquired customers