If an industry has decided to conquer the international market, there are many choices that will be opened. These options may include the cost, risk and the degree of control that the company will encounter ( 2001). In entering an international business, it is important that the management of the company should be able to choose a marketing entry strategy so as to make the company be more competitive ( 1986). Primarily, the purpose of this paper is to provide an analysis of the marketing entry mode that British Petroleum may use to enter the Hong Kong Special Administrative Region (SAR) market. In this manner, the discussion of the current situation of Hong Kong will be analyse as well as the international management approach that can be used by the company to sustain competitiveness within the international market.
Overview of the Company
British Petroleum known today as BP Amoco is a petroleum industry based in London. It is recognized as one of the top four oil and petroleum companies throughout the world. The company started in 1901when William Knox D’Arcy was given the permission by the Shah of Persia to explore the land for oil and founded one in May 1908. Because of this discovery, the Anglo-Persian Oil Company was established so as to expose these findings. The company has grown gradually because of this as World War I is happening; the British Government shows intense interest to the company which became the source of fuel oil of Royal Navy during WWI. In 1917, the war gives permission to the British Government to have full control of the company and named it British Petroleum ( 2006). The company has continued to become one of the largest oil companies in Europe and because the company wanted to expand its market, BP merged wit the American Oil Company (AMOCO). The strategies used by the management have been the major factors for the company’s success. In addition, the ability to include international marketing has made the company become one of the most successful oil companies all over the world. Today, the company operated in more than 100 states in 6 continents. The main goal of this company is to drill and find oil. The major activities of BP Amoco is exploration and production of natural gas and crude oil; refining or decontamination, marketing, supply and transportation and production and marketing or petrochemicals. In addition, the company also engaged itself in solar power. The strategic use technology and strategic management can be considered as a factor for this achievement. The company also acquires (Arco) and has been able to launch a combined global branding. The company offers products and services which are divided into three categories; on the roads which include fuels and stations, fuel cards, Liquified Petroleum Gas (LPG), lubricants, roadside assistance and route planners, for the home which consists of products like LPG, online store and solar and renewable; and for business which include air BP, Bitumen, BP Marine, BP open books, BP shipping, petrochemicals, power, natural gas, lubricants Liquified natural gas (LNG) and LPG, fuels, fuel cards and solar and renewable. In order to easily reach their customers, BP also uses the internet through its website ( 2006).
Analysis of the Choice of Foreign Market
In the business arena, it is important that an entrepreneur must be knowledgeable about the different marketing strategies that must be utilised in order to make the business prolong its competitiveness and stay in the marketing world, locally and internationally. The management of an enterprise that are considering entry into a foreign market must be able to make decisions focusing on uncertain and changeable circumstances that might be faced ( 1997). To successfully enter international market scene, it is important that the management should determine which country to choose ( 1997, 1992). It...