Experimental – Scientific Research Proposal:
1.1 Introduction:
According to johanson (2009) study, the internationalization process of a firm is a process which increases the international market involvement. Without the study about the international market of a country, any company should not start a business because it may lead to failure of market and business. So before starting a business in any country some strategies should be followed after analyzing about the particular country. A company is successful when it was successful in the global market.
Here Mazda Company is going to enter the Indian market in internalization process to extend its market successfully in global market. As it is Japanese company it was successful in European countries now it wants to enter Indian market. India is developing country the sales of cars increasing every year and heavy population is also an important consideration. So Mazda want to extend its market by entering Indian market. Some analysis should be done before starting the business to launch successfully.
1.2 Problem Statement:
Major research problem considered here is to establish a new market in new country which is new environment and unknown to the company. Now it should search the suitable place in india and company should search the dealers and distributors and exporting costs. It should analyze about the competition market.
Company Origin country Year
Studebaker India 1958
Stutz U.S 1934
Kaiser-Frazer U.S 1961
Pontiac Germany 2008
Oldsmobile U.S 2004
Fig.1 Adapted: www.popularmechanics.com
As stated above all the companies were failed in Indian market. So some strategies should be followed before entering the market.
1.3 Justification of Study:
This is detailed study on Maz...
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...sis if any company enters new market it may lead to huge loss and failure of the company. Because before many companies of different companies like Studebaker, Stutz, Pontiac, Oldsmobile entered new market without the complete market analysis and the result was failure of the companies. So many studies say that market analysis is most important for the product and market development. Market analysis also helps in analyzing about the country economic growth, competitor analysis, market segmentation, size of market, targeting market, development strategy and planning and market trends can be covered in new market analysis. So the impact of non-performing market analysis before new market development leads to the loss and failure of both company and its products and also it may affect the branding of the company and customers may lose value of company and its products.
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We all know that comapanies go international for many reasons but always typical goal is comapny growth and expantions. When a company searches for new interesting markets abroad and also hires international employees, using well designed international strategy can for sure expand business on foreign markets. Internalization strategy of companies is now possible because is no problem to manage business by phone or e-mail. There is also no problem to travel by plane from Europe to Asia in few hours what was not possible in past.
Ford is a major USA firm and Mazda is based in Japan. Mazda sold 25 percent of its stock to the Ford and a collaborative arrangement started.
The view from Tata motors perspective would be more central to seek out companies with more business plans and The company has a long term benefit like access to market knowledge and the development of firm presence on the new market and advantage would be that it limits the possibility of technology or knowledge transfer. Market commitment and Decision understand the requirement of a new market also the decision and implementation concerning foreign investment are made incrementally due to market uncertainty. The company have different approaches and implementation which are seen in the background and has different prior knowledge acquisition (Johanson & Vahlne,1977, p.34).Tata motors have understood that the arrangement was based on its acquired about the market and industry dynamics. Consequently the company had to have the commitment to allow constraint in the case of its freedom with the supplier and surrounded technology. Current activities is somewhat fascinating on how precisely the crucial of Tata motors are consistent with Uppsala theory and the result was Tata motors acquisition and in the longer terms is to move up in the value chain as much as possible, with the
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The company expects to develop and grow its business in India. In this view the company has been making heavy investment and expects to control Indian beverage market in the coming years. The various methods used by the company to stay in business are discussed in this research.
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