Question

What does Entry Strategies and Strategic Alliances AND Global Marketing and R&D mean? When do these show up? Please provide an example.

Answer 1

Entry Strategy and Strategic Alliance

Market Entry Strategy is the process or method when an organization will use different plans for the distribution and delivery of goods and services to a new target market. This term is basically used when an organization wants to expand its business in foreign countries with different available strategies. When an organization wants to expand its business into different countries, there are multiple options that are available for the organization. Each strategy has its own advantage, risks, and cost that the organization will choose after careful analysis and assessment of the foreign country and demand of its product. The various strategies used for entering into a new market are as per below,

• Exporting.
• Licencing.
• Franchising.
• Joint Venture.
• Greenfield Investments.
• Direct Investment.
• Strategic Alliances
• Merger and Acquisition.

Strategic Alliances

Strategic Alliance is one of the methods or processes for entry into a new target market or foreign market. Strategic Alliance is an agreement between two or more organizations where organizations collaborate with each other to achieve a common goal by sharing their expertise, resources, and other strength. Both organizations will remain independent with each other but only focus on the project they are doing collectively. These organizations will choose a project with a common beneficial goal to each other and share their knowledge, resources, and share profit from time to time. It is a win-win situation for both organizations.

Two or more organizations can collaborate with each other for any reason but the main areas are design, technology, manufacturing, distribution, product, or services.

For example, UBER and Spotify have used strategic alliances and collaborate with each other to increase business for each other by using each other resources to achieve a common goal to provide stereo control to uber customers. In this strategic alliance, a uber customer will have a Spotify account and use Spotify stereo service while in the uber car. In this way, both companies are using their core competencies and promote each other businesses.

Global Marketing and R&D Strategy

Global Marketing is very essential when it comes to the market and promotes products or services into other countries where it operates its business or planning to enter into other countries. Global marketing is different when doing marketing activities in the local market. Today business has reach globally and it is difficult to sell a product or service in different countries due to the different culture, attitude, demand, level of competition and pricing strategies needs to be different in different countries. Global Marketing is the activity or process of marketing and promoting a product or service in different countries.

Global Market is very competitive where for a single product or service there would be an end number of companies that will compete in the same market. The marketer needs to understand the different markets, people's attitudes, product demand, historical sales of products or services, etc. The marketer has to control and improve the international market share as well.

Global Research and Development (Global R&D) is the process and methodology to design the research and development for global marketing to understand and analysis of the culture, demand, historical sales, competition, etc before entering or developing in the international market. When an organization is planning to enter into a new market or want to develop its product that it is already selling in different countries, the organization needs to improve the product or service as per the market demand and market culture where it is operating. The same product or product design would not be able to sell more in different countries but the organization has to improve it and develop it as per the country it is selling.

Global research and development can help in achieving these goals. Global R&D needs huge data about the country and significant planning and coordination with different departments. Global R&D helps in new product development and create new opportunities in different target markets. Product innovation should be a priority of any organization and Global R&D can help in giving proper insights about the requirement and different cultures to make an innovative product for the different target markets. There is a close relationship between the global market and R&D as it helps the organization to launch and create new products for different markets by integrating marketing and R&D strategies together.

For example, Colgate is a global company that manufactures and sells toothpaste in different countries. But we can see that packaging, language and ingredients will be different in each product in different countries. In India, people prefer to have Ayurvedic ingredients for the FMCG products and due to Research and Development, the company is able to develop a product with ayurvedic ingredients for the Indian market. But the same product will not be able to sell in other countries where people do not prefer to plants and herbs as healthy ingredients. So Colgate needs to develop different products for different countries and promote them as per the culture in that country.