Question

write a paper that describes one of the three typical marketing strategies that firms use to obtain a foothold in a foreign market. Choose from either differentiation, cost leadership or focus strategy. Use an example of a real-life situation where a firm used one of these strategies and describe whether or not they were successful.

Answer 1

Cost leadership has always been strong and effective for the firms to enter the foreign markets and make their presence felt to the brick and mortar stores. Usually, cost leadership strategy is adopted by the firms with good efficiency, large-cap and higher experience.

Cost leadership works by:

· Reduction in cost will push the sales to earn higher revenue

· Market share increases will increased sales

Cost leadership gives edge to the firms to be ahead of their competition in comparison to general policies and strategies. One of the examples is Amazon who have strongly used the laws and reference to grow well into the foreign markets using the cost leadership. In the last few years, Amazon have expanded substantially into the markets of India, Mexico, Australia, Turkey and Brazil.

The market in these said countries was undiscovered opportunity for any e-commerce player and Amazon used it in the best interest by following techniques of cost leadership:

· Selling by amazon and FBA centers were launched in the countries to maximize the reach

· Amazon web services have prime focus on the customer needs

· Amazon believe to differ both by cost and product quality

· Value creation is the focus rather than on competition style

· The one-click platform and easy return policies