Malaysian Smes Go Global

Topics: Marketing, International trade, World Trade Organization Pages: 14 (4830 words) Published: December 18, 2012

The decision on how a firm to penetrate foreign market segment is one of the most important decisions that can be made by the management of the company. Once the penetration method was chosen, its implementation will have significant implications on the firm that makes the decision, as well as on the market segment that it wishes to enter. A firm's program of penetrating a foreign market is mostly determined by the method chosen in penetrating that market. In this write up, FAMA- Federal Agricultural Marketing Authority which has been set-up by MOA- Ministry of Agriculture and Agro-based Industry and responsible is responsible in the supervision, coordination, regulation and improvement of the marketing of agricultural products, which include fruits and vegetables, for domestic, export and import markets. Further discussion are focus on the objective, the identification of its internal and external factors, the consideration on all possible options, positions, the possibilities of losing control over how the product is presented to the final consumer and all the risks involved in penetrating foreign market, the selection of the method of penetration (mode of entry), the marketing management strategies and finally the conclusion and recommendation of the decision.


Entering a new country-market is very like a start-up situation, with no sales, no marketing infrastructure in place, and little or no knowledge of the market. Despite this, companies usually treat this situation as if it were an extension of their business, a source of incremental revenues for existing products and services. Two aspects of the typical approach are particularly striking. First, companies often pursue this new business opportunity with a focus on minimizing risk and investment—the complete opposite of the approach usually advocated for genuine start-up situations. Second, from a marketing perspective, many companies break the founding principle of marketing—that a firm should start by analyzing the market, and then, and only then, decide on its offer in terms of products, services, and marketing programs. The Federal Agricultural Marketing Authority (FAMA) is an agency under the Ministry of Agriculture and Agro-based Industry. It had been set up as a statutory body in 1965, FAMA is responsible in the supervision, coordination, regulation and improvement of the marketing of agricultural products, which include fruits and vegetables, for domestic, export and import markets. As the Government’s marketing arm for agricultural products, FAMA organizes marketing activities, set targets and product standards, monitor performance, develop marketing strategies and tools as well as initiate innovative programs to promote Malaysian agricultural products. Apart from helping the government to lay the foundation and strategic planning for agriculture sector, market information produced by FAMA Market Intelligence Department can also be used by farmers and agriculture entrepreneur to understand their market, particularly potential market domestic or international for produced products. Market information gathered by this department includes plantation price information, raw material wholesale and retail price, processed product retail price, consumption per capita, institution consumption, manufacturing consumption, factory consumption, agriculture area, total production, agriculture produce entry to main wholesale markets and international business data. All the market related information is very useful to predict price and market acceptance for a certain product and to enable producer and marketer plan their activities efficiently. The analysis of possible risk and SWOT analysis will be determine to facilitate FAMA to choose the best and most cost efficient strategy before penetrating foreign market.

FAMA has its own market intelligence with aims to identity the market opportunity as well...
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