1. Briefly identify the level of international marketing involvement (see text) of each of these firms. Provide rationale to support your answer.
As per research Bombardier has already been investing heavily to modify its products accordingly to meet the standard of global economy. To increase their procedures, they have joint various strategic alliances with businesses and formed several joint ventures. Bombardier has formed multiple alliances with different companies throughout the world, to ensure steady growth and sales. It has many engineering and manufacturing sites in many countries. Bombardier succeeded to expand its operations in: Europe, Asia-Pacific, North America and South America. In order to successfully strive in growing markets,
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Bombardier will continue increase their existence and capture opportunities in fast-growing countries like Russia, India, Brazil and China. 2. Outline one significant business environmental driver and one firm specific driver that have directed these firms towards international markets. Explain your answer. With the expansion of new markets, Bombardier will generate new opportunities in the future- such as selling jets, research and development will create opportunities for improving their existing products, and will also contribute to the development of new products as well.
Overall it will help the corporation to stay ahead of its competitors. Bombardier must differentiate its products as being high quality and not as low-cost. The manufacturing process and fuel-efficiency are what will make the product cheaper to manufacture and produce. Bombardier can focus on safety measures, excellent quality and high-class service.
3. Discuss one significant obstacle each firm would face if they were to market their products in China. (Please note these obstacles may be different in each case.)
The current situation of Bombardier is very critical and its needs all the help for global expansions and Chinese market penetrations is at high alert. Although they are government barriers such as high tariffs and limitations to enter with the proper strategic plan and research it can penetrate the Chinese market due to high demand of the aviation industry although cultural and regulatory differences may have different requirements. China has a very strong set of rules associated with informal institutions. The Liability of foreignness is reduced with the strategy but it will still
exists Thomson Maple Products Company sales comes from USA and Canada which is 75% and rest 25% comes from international exports to countries like China, Korea, Japan and New Zealand. Looking at the percentage company should focus more on the domestic market its holds the largest prospect for the development of the product. Still there are opportunities to expand its global market by focusing in technological aspects which it has start by monitoring system which helps to reduce labor cost and increase productions which leads to satisfy more demand of domestic as well as international markets. Due to emerging global markets demand for organic products company has certified itself in 2004 so that it can distribute its products as an organic brand so that it can stay ahead with the international competition. Due to nature of the product sometimes it critical to set the pricing, the price should be high to make enough profit but low as to compete with its competitors. The significant barrier the company will face if they market their products in China is Government barriers. For international companies in China there are strict rule and regulations the companies has to follows such as limiting import license where there are limitations which company has to follow. To save its domestic companies its will impose high quotas and tariff so multinational companies can’t enter the markets. Before expansion in the china these things are to be research deeply and thoroughly and most important is the study of the culture and its people needs which will help company to enter the market with good strategies and goals.
Air Canada has deliberately set its self around the domestic and also worldwide market of carrier industry. The aircraft has substantiated itself as a superior Canadian brand becoming a part of Star Alliance, joined different famous carriers such KLM, Lufthansa carrier, Thai aircraft and so forth. Moreover, Air Canada has code offering consent to in excess of 26 aircrafts including Swiss Airlines, Singapore Airline, Etihad Airways et
Global competition- As more companies are coming into this airline market so there can be a threat to Air Canada from these
... amid nations (Gerber 2002, p. 29). Although there has been a major decrease of barriers to trade liberalisation concerning flight amenities in the last century, there are imperative uncontrollable external factors a business must assess and weigh before entering international borders and becoming a prosperous globally identified firm (Ramamurti & Sarathy 1997). Qantas, a highly esteemed patriotic and iconic Australian brand has demonstrated accomplishment intercontinentally. The ultimate success of their business, in order to sustain competitiveness in their global market, will rely heavily on their continuous assessment of combined political and legal reforms, economic dynamics, sociocultural influences, technological modifications and environmental concerns and their interlocking marketing strategies to gain the most beneficial opportunities that come their way.
Air Canada should aim at expanding internationally, growing its market share and increasing its traffic through international gateways such as the U.S. Air Canada is a widely recognized brand and holds a strong position in the...
This paper analyzes the goals and actions of Boeing by analyzing its critical success factors as well as its strategic roadmap.
Business Strategy of Virgin Atlantic Airlines Contents 1) Introduction to airline industry 2) Drivers of globalisation using yip’s model 2.1 Market globalisation 2.2 Cost globalisation 2.3 Globalisation of government policies 2.4 Globalisation of competition 3) Localisation- arguments against globalisation 4) Pestle Analysis 5) Porter’s 5 forces analysis and their application to Airline industry 5.1 Rivalry amongst Existing Firms 5.2 Threat of substitution 5.3 Threat of new entrants 5.4 Power of customers 5.5 Power of buyers 6) Opportunities and Threats of Airline industry 7) Internal analysis of Virgin Airlines: Strengths 11) Bibliography *1) INTRODUCTION TO *AIRLINE INDUSTRY http://www.investopedia.com/features/industryhandbook/airline.asp 2) DRIVERS OF GLOBALISATION USING YIP’S MODEL draw:frame 2.1 Market Globalisation: 2.2 Cost globalisation: http://adg.stanford.edu/aa241/intro/airlineindustry.html 2.3 Globalisation of Government policies: http://findarticles.com/p/articles Domestic fares are strictly regulated, but international fares are less so.
Government Support: - Boeing might seek government intervention in preventing Airbus from being able to sell to American airline companies thereby reducing the market availability for Airbus. But this could prove counter productive for Boeing as EC governments may retaliate in a similar manner
Both of these companies are really great and they have a lot of support from their consumers but they continue to compete to see who can come out on top as the market share leader.
JetBlue’s marketing strategy focuses on offering a high-quality customer attentive low-cost product that provides amenities other airlines are unwilling to provide on their low-cost fares. The goal is to attract new customers while retaining current customers and to bridge the gap between low-cost fares and quality air travel, which JetBlue believes need not be mutually exclusive (JetBlue Airways Corporation, 2015). Overall this strategy has been very successful, attracting new customers and earning repeat customers through its innovative additions to its aircraft and by having more free amenities than any other airline. Additionally JetBlue Airways has been ranked highest in customer satisfaction among low-cost carriers in North America by J.D. Power for the last 11 years in a row (JetBlue Airways, n.d.).
Shirley Ye, Sheng, and Yan Ma. "China Vs. The United States: Market Connections And Trade Relations." International Journal Of China Marketing 2.1 (2011): 45-57. Business Source Complete. Web. 13 Dec. 2013.
Since the Jet Age, airlines have been entering and existing the airline industry. Some have been in business since the very beginning. For example, United airlines was founded almost twenty-five years before the jet age took off, and due to an incredible amount of money that the airline had by being one of the first airlines predating the Jet Age, was able to buy new jets and assert itself as one of THE giants of air travel by the late 1950’s. But the introduction of new technology paved the way for issues regarding externalities, and production of these new technologies. ("Assessing the external environment - Responding to a changing external business environment - United Airlines | United Airlines case studies and information | The Times 100", n.d., p. 1) The beginning of the Jet Age offered an intense opportunity for new firms to open or expand, producing new products from jet engines to structural parts, from radar technology, to reclining seats. According to research done by the Air Transportation Action Group, “It has been estimated the airline industry supports a grand total of 29 million jobs” (Hanlon, 2007, p. 1). This statistic proves how dependent the world is on the airline industry, for jobs and travel, as well as r...
Additionally, deregulation and liberalization has accompanied the globalization of the airline industry, so that companies have had to compete against each other in new markets, as well as to gain entry into new territories. The rise of low cost local and regional airlines has made the competitive environment difficult to maneuver for large, formerly-state-subsidized national carriers. This has resulted in the need for strategic alliances between airlines in order to attempt to protect market shares and profits (Friehe and Curti, n.d.).
China has also expanded their trading industries with countries such as South Korea, Japan, Taiwan, ASEAN, India, Russia and Hong Kong. This has not satisfied the Chinese greed for income as they also export and import goods to American countries, name...
Air travel is a huge and tremendously flourishing industry. Globalization can be defined as the integration of national and local economics, culture and societies through a web of communication, transportation and trade. The current era considers globalization as the dominant driver of almost all business due to the influence or the international market. The emerging prosperity of the global aviation industry plays a substantial role in economic growth, tourism, global investment and world trade, which are the impacts of globalization. This essay portrays the negative and positive effects of this globalization on the airline industry.