INTERNATIONAL EXPANSION: A FEASIBILITY STUDY
INTRODUCTION
The marketing team of International Consultants Inc. (ICI) began an analysis of the feasibility of expanding the sales of American Training Incorporated (ATI) products into international markets. Mexico and Canada appeared to be the logical initial markets; however, the study showed that other Latin American country should also be considered further
The marketing team determined strategies and media for advertising the products in each of the prospective countries, as well as locations of sales. The team also made a thorough study of workforce availability.
ICI’s Legal Department supported the research and investigated all aspects of international law as pertinent to this business proposal.
FINDINGS AND ANALYSIS
Markets and Stability
Potential markets considered for expansion fit into five general areas: Latin America, Canada, Western Europe, Japan, and China. The marketing team, along with Legal counsel, immediately disqualified other areas of Europe and Asia due to political instability. The following table lists the eligible countries, with political and economic stability ratings from Jones-Dillard Rating Service:
Table 1.1
Country Political
Stability Economic
Stability
Canada (all provinces) superior excellent
China excellent good
Columbia volatile fair
Finland good good
France fair good
Germany good good
Great Britain excellent excellent
Guatemala fair fair
Ireland good good
Japan fair fair
Mexico good good
Panama fair fair
Scotland good good
Switzerland excellent excellent
Because of the proximity of Mexico and Canada to the U.S. and there acceptable ratings. The team determined that international expansion should begin with th...
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...corporation to be filed with the consulate general before retail establishments may operate.
Very few permits will be required for entry into the Canadian retail market; however, the bylaws of the corporation must be filed with their Accountant General.
CONCLUSIONS
Mexican and Canadian markets appear strong economically and politically. In addition, Eastern European, Japanese, and Chinese markets will be logical markets in the near future.
The sales outlook in the Internet, catalog, and retail outlet markets remains very positive, with estimated rates on return above 25%. Capable and adequate workforce is available in all areas researched. Legal considerations will be minimal.
In summary, ATI should move immediately to enter the catalog and retail outlet markets in those areas. Further, Internet advertising should begin targeting these specific markets.
Kotabe, M., & Helsen, K. (1998). Global marketing management. Temple University. New York: John Wiley & Sons.
Target’s first foreign store investment was in Canada; American stores look to Canada as their first foreign investment because the differences between the two countries are relatively minor. Other stores that have expanded to Canada include Wal-Mart, and Sears, each of these companies proved to be prosperous in Canada. Canada is one of the wealthiest countries in the world and is dominated by the service industry, Wawa would have no trouble fitting into the culture Canada has and dominating the market as they do here, in the United States. After reading about Canada and Wawa, we have realized this move could only benefit Wawa and help their reputation and build their company.
A positive to expanding to Canada is that Canadian shoppers are similar to American shoppers, ideally making this a good target market for growth (Fiorletta, 2015). In an interview regarding expansion in Canada, CO-CEO Walter Rob said, “Our efforts in Canada are part of the effort to grow.” “We think the opportunity for fresh, healthy foods is larger now that it’s ever been”. “And we intend to grow as fast as we have ever grown — 40 new stores next year, 42-44 for the following year.” “That’s 10% square footage growth on top of 15 million square feet of retail we already have.” “People have said maybe we should stop our growth.” “I said, no, we are not going to do that because our strategy is working.” “There’s no reason to stop.” “There’s every reason to keep going.” (Vieira,
Currently majority revenue is generated by store sales but online sales from the stores’ websites are increasing. With US dollar getting weaker, international sales from these US based websites are increasing too. This creates significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
In the late nineteenth and twentieth centuries, the United States expanded its territory by going overseas. They acquired many islands in an attempt to expand their influence upon the world. This oversea expansion, however, was met with split opinions on the matter. The views upon overseas expansion were divided due to conflicting opinions upon the social impact, anti European imperialism, and the desire to become a factor in world politics.
Johansson, Johny K., Global Marketing: Foreign Entry, Local Marketing, & Global Management, Third Edition, Georgetown University, 2003
The ecommerce industry is growing faster than ever. TJ Maxx needs to start focusing more on ecommerce not only to keep up with competition, but also to make sure they do well during weak economic periods. ecommerce, overall, tends to do very well during lackluster economic times. TJ Maxx will be able to cut costs more easily the more they expand their ecommerce business. Our business idea will allow them to expand their ecommerce as we will take over their website and delivery. TJX Companies’ three ecommerce sites accounts for only about 1.0% of the company’s total sales. However, the online channel is a key growth driver and TJX is taking initiatives to improve its online business. The ecommerce sales
The next section will illustrate the way in which separate commerce businesses function in the international legal atmosphere and to recognize any of the domestic and worldwide matters, which affect the assorted industry configuration and how those concerns can be successfully handled. Lastly, the paper will contain information about Sport Bar Franchise documents that are needed to initiate the business in the state of Maryland.
Asian Market- As more students are coming to Canada for their further studies and they have now opportunity to increase more flights to those areas so that they are never short of their flight and all people are able to book with them.
exiting out of some international markets this leaves a larger market segment available for eBay
HOLLENSEN, S. Global Marketing. Harlow: Pearson Education Limited, 2014. 6th edition. 792 p. ISBN 978-0-273-77316-0.
...ries such as Spain, Belgium, UK, Japan, and China. Future growth can be obtained through positioning current brands in those emerging markets.
In order to satisfy this market needs, a well-rounded plan is needed to distribute the product. It is a perception that has to change internationally and the most appropriate way to approach this issue is indirectly. Through indirect exporting, the other intermediary companies can provide a range of services to include logistics and marketing tailored for that target market, likely making the product familiar, or
Regardless of the success of your company on a national scale, to engage yourself in a successful venture outside of your borders requires several critical elements that one must acknowledge and apply with great care. One of those requirements would be to thoroughly research the cultural environment in which you wish to launch your product no matter how popular and indispensable you believe it might be. In the past, many national giants have hit the wall when introducing a foreign market or launching a new marketing campaign because of the cultural gap they encountered on the other side of their borders. Another way of preventing a flop on an international market is to carefully study the economical past of this country, which might differ quite a bit from the one the company flourished in. In addition to the previous precautions, it Would be advise to make sure that your product will blend seamlessly within the spending habits of the consumers. Overall, meticulous market studies and patience often constitute the way to success on a foreign soil.
International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...