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Paper代写-Entry strategy to introduce this product into Mexico

2017-09-13 | 来源:51due教员组 | 类别:Paper代写范文

本篇Paper代写-Entry strategy to introduce this product into Mexico讲了墨西哥的洗涤剂市场稳步增长,市场看起来并不那么有利可图。所以我相信出口一点渗透就够了。出口意味着风险较低,控制力较低。本篇paper代写由51due代写平台整理,供大家参考阅读。


I would use the export entry strategy to introduce this product into Mexico. The detergent market in Mexico is steady growing and the market does not look such so profitable. So I believe that a little penetration by exporting should be enough. Exporting means that there will be lower risk and lower control. I am risk averse and do not want to take too much risk. 

The economic factor that Moots needs to consider include the population in those markets, the percentage of population who rides bikes, the income level and whether they can afford high-end bikes, the general GDP growth rate in that country. I believe that the Chinese market is more lucrative because firstly the population in China is the highest. Second, there are many people who rides the bike every day, especially in cities such as Beijing. Every morning the streets will be crowded with students riding the bike to school and the bike lane in China is the widest. This can suggest that the number of bike riders in China is the highest. Third, the lucrative bike market should be profitable because nowadays students, the population that rides bikes most in China, like to compare with the other students and see whether their product is better than the other students’. Parents nowadays would like to provide the best materials for the students to study. So they are willing to buy those bikes. In large cities such as Beijing, the income is high enough such that luxury bikes are also affordable by most families. So I believe that China should be the best country to enter.

The political, economic, and legal systems of China, India, and the UK is different. In terms of economics, although the GDP growth rate in China is slowing down in these couple of years, it is still growing fast. The GDP in China is the largest amongst those countries. However, GDP per capita is higher in the UK. China might be more hospitable to Moots because there is not much policies and legal systems in China that prohibit the entrance of bike manufactures. There are many foreign factories in China because the labor is cheap.

The benefits of being able to offer a globally standardized product is that the product brand will be known across the globe. Nowadays with more internationalization, people prefer to buy products that are international because they associate international products with high quality. Many people believes that only those products selling well domestically can be exported to other countries. They would like to use those products to signal the others that they are in line with the globalization and look superior to the others if they use international products. If the brand name is big, customers will be willing to buy because they know the quality and standard can be rest assured. The types of products that can easily lend themselves to global standardization include fast food, such as McDonald, Starbucks and etc. Clothing stores such as H&M, Gap, and etc. and shoe brands such as Nike all exhibit global standardization. 

Part 1

First, my priority is to decrease the risk of my business. Second, using this criteria the lowest risk for my business should be exporting. However, I will not choose exporting because the data showed that the general trend of the amount of imports from Mexico to the US is increasing, but it is still smaller in amount compared to the amount of detergent exported to Mexico. However, the amount of detergent exported to Mexico is showing a decreasing trend. So I believe the market might not be beneficial for Moors. So the next low risk strategy would be to use franchises. This is similar to the business strategy as McDonald’s. 

Part 2

I would consider whether this country is developed or still developing. I would research on the GDP and gross national income of those countries to measure the purchasing power parity. I would then use the Big Mac Index to understand the real income levels of consumers. I believe that the UK is the right market for high end bikes because the UK has a large population riding the bike. What is more, compared with China or India, people in the UK are richer and can afford to buy high end products more. I have been to the UK before and I felt that the speed with which people ride the bike in the UK is much faster than the speed in China or India. High end bikes are needed for those who want to ride faster. So I believe that the UK is the most appropriate country to enter.

Part 3

In China, there is no strict policy or legal rules governing whether bike manufactures can enter the market or not. The economics in China is also appropriate for entering because it is a fast growing country and the purchasing power in China is increasing fast. The labor cost in China is also very low because there is a high population and many people can be spared to do the work.  

Part 4

The greatest advantage for globally standardized products is that the firm can cut down its costs and save some money in production to increase the profits given that the revenues are the same. Since the firm will be producing at such a large scale to satisfy all of the customers across the globe, they can easily reach economics of scale and decrease the marginal production cost with more and more units produced. The kinds of products that are easily globally standardized include those that does not need much legal and political approval, those that do not vary much across countries, and those that relies more on the quantity sold to generate revenue. One example of those kinds of products is Coca-Cola. Everywhere in the world it is known as Coca-Cola and every country accept this kind of drink. They can choose a place that is cheap in labor and factory rental costs to produce at a large amount and save more costs.

A. More and more international firms producing detergent are looking at Mexico and other countries in Latin America for further international expansion. Since we are still small, we can have strategic partnerships with those bigger firms to reduce our risk. Although our control will be smaller, we can use some of their resources and expand into Mexico quickly if we form strategic partnerships.

B. Some economic factors that will influence my decision in bringing the high end bike into different countries include the demographics, that is, how many people use the bike on a daily basis and what is the demand of the high end bikes like in that country. The income and the amount of income distributable to high end bikes is also important because a country may have a high income level while the other necessities in life such as food are already expensive enough such that they do not have much more money for high end bikes. The number of people biking for sports uses should also be considered because more people would like to use high end bikes for sports and competitions instead of riding it every day on the streets. Thus, I passed India first because the majority of people ride motorcycles. According to statistics, the number of mountain bike purchased in the UK since 1986 is 44 million and in the first half of 2015, the total number of bikes produced in China is 32 million. 11 million of those bikes are exported and the domestic demand in China is 22 million. So the Chinese bikes market is just about the right size with roughly equal amount of supply and demand. However, the current situation in China is that few bikes are imported. So those wanting to buy foreign bikes with high quality may not be satisfied. So I suggest that we go to China and target the high end of those customers in bigger and richer cities.

C. Factors that we need to consider are quota, competitive factors, tariff and etc. India has just increased their tariff for bikes imported from other countries. The UK is recommended because the US and the European Union have trade agreements and although the UK has voted to leave the EU, it will still take two more years for the entire process to settle. We can take advantage of this time gap and enter the market now. If other competitors cannot enter the market in the future, then we gain. Even if other competitors enter in the future, we entered earlier than them and should have some advantages.

D. Companies can save the time and effort in coming up with new marketing strategies if they adopt globally standardized products. Their reputation can be easily spread from country to country now that information technology is such so advanced. They can use the unified marketing framework and people all across the world will be familiar with their product. They can also save the salaries paid for different marketing teams to come up with different marketing strategies. Food is relatively easy to be globally standardized because people everywhere want to taste the food from other countries to add variety to their menus. Firms such as McDonald’s, Burger King, and KFC have globally standardized products with variations to suit the different condition in different countries. 


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