Question

9B16A001 IVY PIBLISHING- BUILDING A GLOBAL BRAND THROUGH INTERNATIONALIZATION SEMINAR

ASSIGNMENT QUESTIONS

1. What is Walton’s internationalization pattern with regard to entry mode selection, location choice, ownership advantage, and internalization and externalization strategies?

2. How does Walton position its brand in both local and global markets?

3. What challenges does Walton encounter in international market management? How can Walton overcome them?

4. What are the main recommendations for Walton to achieve its ambitious global marketing vision?

Answer 1

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What is Walton’s internationalization pattern with regard to entry mode selection, location choice, ownership advantage, and internalization and externalization strategies?

Internationalization Pattern

Walton internalization pattern has been enhanced by the expansion of its research and development, selling, production and other business activities in the international markets ventured by it. Serving a universal corporate sector or international market through imports and exports the company has been able to enter various international markets. For instance, Walton initially imported raw material from European countries that they used to make CI sheets.

Such activities were appealing for them in that it offered them both low financial risks and access to significant and substantial local and global market operating knowledge. According to Rana & Islam, the company worldwide entry mode was facilitated by the exportation of its products, for instance, in 2007 Walton started international marketing though it had been involved in contract and import manufacturing. Rana & Islam (2016), maintains that the company internationalization was limited to indirect export to its neighbors.

Additionally, the company adopted direct franchising and export to African and Persian Gulf countries. It is worth to note that the company ownership advantage gave them the opportunity to learn overseas market before investing and making investments decisions. The location choice of the company was appropriate as they were able to tap into new, existing and developing markets that had numerous global opportunities for them.

Rana & Islam , asserts that Walton used the knowledge and relations gathered from their import activities to engage in their export activities to other countries such as India and Myanmar. The technological skills and capabilities that it had acquired from Thailand, Germany and Japan enabled the company to venture rapidly into the international market and indeed acted as its internationalization and externationalization strategy. In summary, the company got into inward activities (imports) and later outward activities(exports) as a primary strategy for its internationalization.

How does Walton position its brand in both local and global markets

Walton Brand Position in both Local and Global Markets. The positioning of a company brand in its target market is imperative to the attainment of their goals in regards to the sale of their products and services. Walton has positioned its brand in the mind of its customers. It has guaranteed that all its brand movement/activities have a common point/aim; is guided, coordinated and conveyed by the brand's advantages/motivations to purchase; and it focusses at all points of contact with their customers.

\For instance, it has introduced products that are price competitive and that gives them a competitive advantage over their rivals. Furthermore, the company has ensured that its brand is appropriate for its major geographical businesses and markets. Walton has also made sure that its brand is encouraging and significant to their niche markets. The brand that is being utilized by the company has ensured that it meets and the needs and wants of various people in different social classes.

Rana & Islam, alludes that through the promotion of its brand's consumers' mind, psyches have been immersed with messages each day, making their brand position stable. The company has researched on its markets well and thus it has enhanced the positioning of its brands in this markets. Moreover, Walton has ensured that its brands are sustainable and can continuously be delivered to all its consumers thus positioning its brand effectively. Lastly, the company brand positioning proposition is validated with original, appropriate and unique products lines.

What challenges does Walton encounter in international market management? How can Walton overcome them?

Challenges Encountered by Walton in International Market Management.

Companies at their initial stages and processes of venturing into international markets always face certain challenges like stiff competition. Rana & Islam, elaborates that Walton international market management is always hindered by non-tariff barriers that have slowed its entry to new international/global markets. The policies and regulations that have been put in place by various markets and countries have immensely influenced the way in which the company is transacting its businesses operations.

Lack of strategic marketing plan for each of foreign or international market they have entered and wanted to join has affected its global market management. It is worth to note that international markets need to have their individual marketing plans. These strategic plans will enable Walton to gain global market information and conduct markets research's that will allow it to face stiff competition and manage its markets effectively. Furthermore, lack of proper understanding of its markets also proved a challenge for the company has it failed to reflect changes in the market demand, institutions, and consumer's behavior.

According to Rana & Islam, overreliance on franchisees and managers is another challenge that the company faced as it led to increased levels of bounded rationality. Lastly, Walton had a more local challenge of an institutional problem in Bangladesh. Conclusively, the weak marketing research, competition, and use of reverse engineering instead of a scientific invention are challenges that face the company. Walton can overcome these difficulties by venturing into markets that offer favorable non-tariff barriers.

The company ought to make products that meet the quality and standards of the foreign markets that it has ventured. Furthermore, Walton needs to incorporate and introduce strategic marketing plans that are easy and robust to integrate into the 60 countries that it has entered. Moreover, the company needs to conduct thorough marketing research in the foreign markets it has ventured so as to understand the changes in market demand’s, consumers’ behaviors and institutions conditions that may occur .

What are the main recommendations for Walton to achieve its ambitious global marketing vision?

Main Recommendations for Walton to achieve its Ambitious Global Marketing Vision. The company needs to establish product research centers in Germany and Thailand so that it can be able to distribute its products and understand the needs of its consumers well. Secondly, the company needs to establish their franchise and retail stores with their foreign partners and Bangladeshi in diaspora in international markets. Such collaborative moves will enable the company to effectively position and promote itself in this markets.

Also, the company ought to make agreements with the world's leading retails stores for instance Walmart so that they can be able to sell and market their products brands. Moreover, the company should focus on global reach through competitive prices during this recession period so as to acquire large market segments in the various global market opportunities.

Conclusively, Walton is a well-established company that can attain its goals through internationalization of its business operations. The company has the resources and a strong brand that will thrive in international markets. Understanding of it markets through a well-coordinated market research will enable the business to build a global brand through internationalization.

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