international expansion

Page history last edited by Brian D Butler 1 yr ago

 

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Table of Contents:

  1. market entry (strategy) 
    1. US market Entry
    2. First comers advantage:
  2. Tech Companies - expanding globally:
    1. Success Stories:  Yahoo enters Japan the right way:
    2. How to take a product global.  Case study: iPhone
    3. iPhone coming to Japan's NTT DoCoMo?
  3. Product Expansions:
    1. MySpace vs. Facebook
    2. Best Buy
  4. Troubles going global
  5. Country Analysis
  6. Links from KookyPlan:

 

 

 

Market Entry Strategy:

 

The decision to enter a foreign market is one of the most daunting strategic challenges a manager must face. What makes this so is the magnitude of the financial commitment the firm must assume and the degree of complexity and, correspondingly, the uncertainty that attaches to most efforts to enter foreign markets. No element of this process is more important than the choices firms make with respect to what markets to enter and what market entry strategies to employ.  

 

market entry (strategy) 

 

Once a company decides to market their products overseas, and enter the global competition, the next obvious questions is "how do I do it?".  The essence of a well designed market entry strategy is to know your target audience.  Measure the size of the potential market, figure out how many cities you need to target, work on you product differentiation, local adaptations, segmentation and positioning.   Then, conduct a breakeven analysis to figure out how many units you will need to sell to cover your fixed costs (which includes advertising, promotions, etc).

 

 

US market Entry

see our discussion on:   Entering the US market from overseas 

 

First comers advantage:

http://www.strategy-business.com/press/16635507/18881

 

 

 

Tech Companies - expanding globally:

 

 

 

Success Stories:  Yahoo enters Japan the right way:

 

 

 

How to take a product global.  Case study: iPhone

 

iPhone coming to Japan's NTT DoCoMo?

Posted Dec 18th 2007 

 

According to the Wall Street Journal Asia, Jobs and Co are in Japan working out the details for a domestic iPhone launch. It's no surprise then that Jobs was rumored to have just met with NTT DoCoMo's president, Masao Nakamur, to discuss the deal with the largest carrier in the world's second-largest economy. As usual, Apple seems to be playing the carriers off one another with rumors that The Steve is courting Softbank as well. However, "people familiar with the situation" say that DoCoMo is the first choice. While the revenue sharing is a sticking point as usual, WSJA says that Apple doesn't expect to have any difficulty closing the deal. Funny, that's what everyone was saying about Vodafone in Europe.

 

P.S. -For what it's worth, NTT DoCoMo does not run a GSM / EDGE network. Any iPhone released on DoCoMo's FOMA service will be UMTS / HSDPA -- right, the 3G iPhone.

 

 

Product Expansions:

 

 

 

MySpace vs. Facebook

 

Facebook is now the largest social network in the world. But they continue to trail MySpace by a massive 36 million users in the U.S., and at current growth rates it will take them 18 years to overtake them.  Most of Facebook’s growth is international, where they’ve executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace, by contrast, expands via a command-and-control infrastructure that puts people on the ground in each new international market). But the commercial value of some of those international users is far less than the U.S., the UK, Japan and a handful of other countries with robust online advertising markets.

 

 

 

 

Best Buy

 

article from FT.com

 

Brad Anderson, the 58-year-old chief executive of Best Buy, says the leading US consumer electronics retailer has been "extraordinarily concerned" about the risks of rapid international expansion.  But last week, Mr Anderson announced a $2.2bn investment in a retail Joint Venture in Europe with the UK's Carphone Warehouse, with stores in nine different European countries, alongside initial plans for its own-brand larger-format stores in Europe. Best Buy will also open stores this year in Turkey and Mexico, adding to stores in Canada and China.

"We've looked at the history here," says Mr Anderson, who argues that the record of US retailers going to Europe is "arguably worse" than that of Europeans who have expanded to the US.

 

In an interview with the Financial Times in New York yesterday, Mr Anderson maintained that Best Buy has reduced some of the risks of its latest international expansion by following a strategy it has pursued before in Canada and China - slowly developing its own-brand stores alongside joint ventures or acquisitions run by experienced local management.

"We're not intending to come in and tell them how to do it; we're intending to provide resources to help them do it," he says of the joint venture.

 

 

"If you've got genuinely independent management teams that function in a highly independent way, we don't think there's the same-scale problem as if you are trying to transplant a given specific strategy."

 

While there is ongoing speculation among investors in Europe that Best Buy might be interested in taking over all of the retail venture, or making further retail acquisitions, both Mr Anderson, and Bob Willett, head of the group's international division, argue that the retailer needs to continue its cautious strategy.

 

Mr Willett says that the retailer "knows how to open stores, once we are clear about what we are doing".

 

"If you get in right in those first few stores, then you can scale fast. The danger is - and I think this is where others have gone wrong - is to try to scale too quickly."

 

For Mr Anderson, the international expansion marks a long journey from 1976, when after deciding not to follow his father into the Lutheran church, he started working at a hi-fi store in Minnesota that eventually became Best Buy. He drove 80 miles to install a set of speakers in the home of his first customer, so desperate was the young Mr Anderson to make the sale.

He has argued that that first sale established a theme that eventually translated into the embrace of customer centricity (see box) at Best Buy's large stores, which dot shopping plazas across America. This year the strategy is entering a second phase, expanding the concept to increasingly specific groups of local neighbourhood customers.

 

read more here 

 

 

Troubles going global

 

please see our discussion on troubles going global (business)

 

 

Country Analysis

The first step, of course it to conduct a thorough country analysis, including culture, political risk, product adaptations, and more...

 

 

 

Links from KookyPlan:

 

 see also: entering the European market from overseas,    Marketing,  strategy , Exports , Import Export business models,  export subsidy ,  Spain market entry for cachaca , barriers to entry  , 5 forces analysis  , Entering the US market from overseas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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