Mkt630 Assignment No. 1 solution
Friday, April 15, 2011 Posted In Mkt Edit This1. What kind of difficulties would the Vermont Teddy Bear meet if it were to Internationalize its business?
The difficulties that can be faced by the company to go in international market is
1. Size
2. Financial resources,
3. The nature and power of the competition,
4. The nature of the product or service itself
5. The timing of the move relative to competitors should be considered.
The company’s major area of expertise is logistic and operations so in order to penetrate in the foreign market company must understand the difficulties and they challenges they have to face in the international market first of all they have to see if the size of geographical area they going to expand. How are they going to cover this area how the market segmentation will take place in order to be efficient? Then the financial resources required to carry out such kind of operations how they are going to arrange the finances either collaboration with other companies or the sole investment will take place. Loans, equity providing firms are also one of the options. Now as they were not be the only company in that region there must be competition which will prevail in the market. They have to see if the market and competition is strong enough or the weak what will be their deficiencies and what are their strengths and how they are going to compete with existing companies. Also they have to analyze the power of their product if it is generally acceptable in that market or they have trends for these kinds of things. If it is not socially appreciated or adopted then that market will be totally useless they must have trend for the services the company is providing. Last but not the least they have to see if their competitor is not thinking the same think as of them. They have to consider the idea will be the unique and they will be the one who are going to introduce it in the market so they can get a good response. Because if they are not the one to introduce it then their competitor will get the benefits which they have to reap and ultimately become the competitor.
2. How should the company penetrate the foreign markets? Justify your selection.
1. by internet?
2. by physical stores?
3. by a combination of two?
4. by other means?
The answer to this question is kind of a difficult one but according to knowledge we have the following strategy will be best to adopt. First the company has to go by
Indirect Approach:
In indirect approach they have a wide range of selection how they have to do the following:
Piggybacking:
Piggybacking is the procedure in which one company uses the other already established company which is already offering services in that area and has all the resources and contacts. And by using their already established resources they can introduce their own products. E.g. small courier companies like OCS uses big companies like TNT, FedEx for their international parcel services also sometimes have arrangements with local courier companies of native countries to deliver the parcels and products.
So by this method they can get to the international market. And by the passage of time when they have enough response from the market then they can go towards
Direct Approach:
In Direct Approach they first use internet then they can make their own stores in the region.
First they advertise properly with the indirect approach i.e.; piggybacking so people got to know that who is the real company and which company is providing the services only. When they get the enough response from market and through internet ads they get the recognition, they must go towards physical stores so people can be diverted to what they must have to be in the end. By adopting this strategy the company can satisfy all the requirements and achieve the goals for which they worked so far.
