Go East, Young People, Go East
1. I would recommend having a partnership with a local business. One has to ask themselves a key question, “Do we have the people and resources that can help us develop and sustain necessary Key Success Factors, or can we ACQUIRE them?” I feel that this entry and ownership approach certainly answers the question. It makes sense because the small electronic firm intends to find/acquire a partner in each market so that they have someone help with the marketing and financing of the product. Although, this is potentially a very lucrative market it is nevertheless still a foreign market. Therefore, it would make perfect business sense to join other ownerships that are acclimated with countries such as China, Malaysia, Thailand, etc. This approach is highly appropriate because, in general, strategies are dependent on local responsiveness in each country served.
2. The partners could implement ‘Product’ by offering one of sufficient value. As mentioned in the text, the industry is currently facing very competitive prices. Having a productive of great value would only assist to separate them from the rest of the industry. In terms of ‘Pricing’ I would definitely not sale at suggested retail price, because according to the text the competition is offering substantial discounts to generate sales. Therefore, I would suggest offering volume discounts or wholesale pricing. This would allow the partners to compete with opponents, especially if they offer a superior product. ‘Promotion’ itself is a very big concern, as the company itself has asked, “What type of marketing strategy will be most effective?” The partners should consider increasing the marketing communication budget, and attempt to penetrate the market with a promotional strategy that communicates information about the product that generates a positive customer response; that should be the goal. ‘Place’ has much to do with the distribution decisions. Inventory management...
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