FOR ESSAYS GURU ONLY 60A

Reply to this Post (200)

The six ways that a company can expand into a foreign market are; Exporting, Turnkey Projects, licensing, Franchising, Joint Ventures, and whole subsidiary (Hill,2017). Although there are many pros and cons to each of the entry methods, it is too hard to say how a country will respond to what product and vice versa. The best thing to note is that each culture should be thoroughly researched and without violating any laws, or cultural norms, should be thoroughly examined. Market entry is also dependent on a firm’s core competencies (Hill, 2017). How a company views its product and what it measures its product in comparison to the local culture it is trying to win over, will likely also play a role in success. While some countries are keen to try new things, others are offended at the level of sarcasm some cultures put into certain products and in all likely hood would feel offended that we would try to push our culture on them. According to Courtney Connelly at CNBC 10 companies that are still expanding in 2018 are; Amazon, Home Depot, Liberty Mutual, Panda Express, Deloitte, Kohls, Geico, Whole Foods, IBM, and Target (Connelly, 2018). In the U.S. names such as Kohls, Target and Panda Express are synonymous with consumer’s preferences and show that these companies would likely continue to expand operations in the U.S. The best likely method for this is exporting, because it is already an established operation with full logistical and supply chain support in the U.S. Furthermore, companies like target also operate in the U.K., Australia and some parts of Europe. For Target exporting into new foreign markets would be the best example of expansion. The only set back would be high transportation costs. In the latter, Australia and the U.K. Target likely choose these markets because the named brand and culture was similar to some of its previous new market cultures. Exporting to countries like Japan and Korea might require studying of the local culture to compare preferences in products. While I myself was in Korea, I saw many 7-Elevens in many of the towns I traveled to. A lot of the products I saw were similar to what we would find here In America, things such as snacks, drinks, and beer were very common. However, a majority of the snacks were Korean culture products such as fried silkworm chips, Soju Rice Wine drinks, Korean Pear candy, and typical small household food items but packed with kimchi and foods from the local culture. While this is the same operation we would expect to see here, stocking local stores would require procuring items from within Korean snacking culture, to be competitive against other local firms. Some countries also do not take well to the introduction of competition against small local firms. Caution should always be considered and if a product does not catch at all in some countries, swap them out for something more suitable for the people and culture. Furthermore, understanding is level of intrusion and taking care to not invoke too much bad public relation would also be advisable. Therefore exporting to countries with conservative cultures would probably not be as successful as Licensing.  References  Hill, C., Hult, G. (2017) International Business: Competing In The Global Marketplace, 11th Ed.   New York, N.Y. McGraw-Hill Education  Connely, C. (2018).10 companies that will be hiring thousands in 2018. Retrieved from  https://erau.instructure.com/courses/77085/discussion_topics/1139727?module_item_id=4133442