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Operating in the new foreign market requires new methods of operation or operation procedures that require that the company adopt international system of doing business. The company therefore has to market its products through strong and competitive brands [link widoczny dla zalogowanych] that are appealing to the customers. Although the company has strong, brands that have been able to influence the local market the brands have little capacity in the international market. The company should therefore consider [link widoczny dla zalogowanych] the competitive power of its brand before venturing into the new markets.
The ability or the competitive power of a brand determines the ability of a product to compete in the international market with the already established products [link widoczny dla zalogowanych] and brands. At the local Chinese market, the company has well established brands that the customers identify it with or associate themselves with the company however lacks brands that can compete favorably in some foreign market. The brands of the company's products however can fit in some markets depending on the competitiveness of the available products.
Considering the three possible markets the company will find marketing its products in the Middle East market to be more attractive due to lack of strong brands. Foreign companies that are not well rooted in the market produce most of the dairy products sold in this market. These companies therefore lack well- established brands and therefore such market would be attractive to the new company. On the other hand, the European market has well established brands that offer a variety to the possible customers. The European communities are also closely associated with their brands and this makes them unwilling to venture into new territories.
Such markets would therefore be unattractive to the new company. Although the European market has people who are willing to [link widoczny dla zalogowanych] try new products the customers in such markets have a variety of products to choose from requiring them to make choices. For the new company to influence the available customers then it has to apply alternative measures such as sales promotion in order to attract or influence the customers. Such measures will add an additional cost to the operation and production of the products of [link widoczny dla zalogowanych] the company. The company will find the extra cost to be inappropriate and therefore the European market will be unattractive for its brands.
Marketing its products in the European market will add an additional operation cost to the company and therefore the company should consider other alternatives. Although the Middle East market lack well established brands and [link widoczny dla zalogowanych] a variety of the dairy products, the market has customers who are closely associated with their brands. Such customers are also loyal to their brands and to the supplier of the commodities. The company would therefore find it to be moderately difficult to enter into such markets. Finally, the regional market has a variety of competing brand that are new in the market (Hart, 1995).
Such market therefore lacks powerful brand and therefore the company would find it attractive to market its products. The company should therefore consider marketing its product in the regional market before venturing into the European and Middle East market. Emerald is a well-established Chinese company that deals with dairy products; the company is a well-established company in the local market due to its competitive abilities.
The company has strong [link widoczny dla zalogowanych] brands that the customer uses [link widoczny dla zalogowanych] to identify the company or associate themselves with the company. The company is therefore willing to venture into the international market anticipating for similar success. Before this venture, the company has to analyze the foreign market in order to determine its competitive abilities. As a company that deals with perishable commodities, the company will consider establishing production centers in the [link widoczny dla zalogowanych] foreign countries. The company also needs to establish marketing channels in the foreign countries from where it can market its products.
The Hofstede cultural dimensions are appropriate strategic management tool that the company should use to evaluate the new market and to determine the appropriate combination of its staff. [link widoczny dla zalogowanych] Using the Hofstede dimension the company should consider venturing into the European market due to the availability open-minded staff. Using the porters five forces, the company can determine the appropriate market for its products. The European market has well established brands and therefore unattractive to the new company.
Although The Middle East region lacks dairy [link widoczny dla zalogowanych] products with strong brands, customers in the market are closely associated with their brands and hence they are unwilling to try new products. Finally, the company should consider [link widoczny dla zalogowanych] the available government restrictions in these countries before introducing its products. In particular the European market has tight restrictions and therefore unattractive. On the other hand, the regional market lacks strict restrictions and this makes it attractive for the new company
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