International MarketingEssay Preview: International MarketingReport this essay1.0 IntroductionAccording to the case study, PK Electrics is a manufacturing company which was established in 1987 in Zhejiang province. Over the years the organisation has developed a good reputation for quality and customer service.
But the rate of growth has begun to decline recently. As a result the management team are aware of big changes in international tradng with Chinese economy becoming more market-based. Now the company is looking outside China for new markets to enhance their growth and business performance.
2.0 Discussions1. Identify and explain why PK Electrics is considering entering international markets.As the PK Electrics is considering entering international markets, there are various reasons.domestic market saturationThe actual level of saturation can depend on consumer purchasing power as well as price and technoloy. Although PK Electrics has developed a good reputation for quality and service, it becomes more and more difficult to cater peoples living standards. Whats more the recently rate of growth has begun to decline with sales rising 5% and profits by 2% last year. In the domestic market the organisation has less development space to earn more.
fierce competition from domestic and foreign companiesPK Electrics should find further investments and seek for development in foreign markets. The PK Electrics pricing is competitive and in the past the Organisation has used price-based promotions to attract new customers. So competition at home reduce growth and profits.
Seek for more opportunities.Since China has joined the WTO in Decemeber 2001 and Chinese economy has become more market-based, Pk Electrics has more opportunities and the domestic market dose not offers any prospects for significant growth. PK Electrics can also see a growing demand in international markets. The firm may benefit from the image of being an international player.
2. Identify a minimum of two sources of information that PK Electrics should access before deciding which international markets to enter.When considering entering new international markets, PK Electrics needs to evaluate the effectiveness of strategy information on the potential markets.
The WTO exists to regulate international trade. It covers the information of trading goods, services, and intellectual property. PK Electrics could get information about tariff data, MFN exemptions and Trade Policy from it. So it can help PK Electrics choose a proper market to enter and how to trade in new international markets. Visit www.wto.org. for specific information.
The International Trade Centre is the technical cooperation agency for operational, enterprise-oriented aspects of trade development. It works in six areas–product and market development, development of trade support services, trade information, human resource development, international purchasing and supply management and needs assessment and programme design for trade promotion. It helps PK Electrics understand WTO rules, strengthen enterprise competitiveness, and develop new trade promotion strategies. (
ASEANPK Electrics has advantages to enter the coutries of Southeast Asian because there are some developing southeast Asian countries such as Singapore, Malaysia and Thailand near China. The Association of Southeast Asian Nations is to accelerate economic growth, social progress and cultural development in the region and to promote regional peace and stability. It can help PK Electrics. (
3. Identify the key opportunities and threats associated with entry into international markets. Give a detailed explanation of at least two key factors that PK Electrics would face.
The most common method of structuring and analying all the information gathered from a marketing audit is through SWOT Analysis.Strengths:The use of consumer advertising and promotion and the collection of consumer and trade feedback.The organisation has developed a good reputation for quality and consumer services.Weaknesses:with rising economic growth and disposable incomes, peoples demond improved. The organisation is facing difficulty.Over the two last years the rate of growth has begun to decline.Opportunitiesmore open market.To PK Electrics, since China has joined the WTO, it helps Chinese entrepreneurs have freedom to make win-win strategies, not only increase the sales and profits, but also acquire reputation in the international markets. It is possible for PK Electrics to explore a market with larger scale and reach more customers.
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