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International Marketing In this paper I would like to summarize an article about International Marketing current events. With this purpose, I chose the article by Carmel Rosato Oil and gas companies urged to go global to secure future success published on March 29, 2005. Penetrating and evolving international markets is a very essential question in the modern marketing world. Carmel Rosato writes about the importance to accelerate the speed of growth through globalization and use the large opportunities existing for oil and gas enterprises abroad.
This question was discussed at a conference at the Aberdeen Exhibition and Conference Centre on 23 March. This article touched serious questions about the international market entry. During the entry, the position taken by most worldwide entrants is a position of danger minimization, market research, and these outcomes in great dependence on a local associate. But during the long periods many companies would like to fulfill greater supervision, have the involvement. Various forms of entry manner have various levels of supervision early, but more control is usually coupled with more investment and engagement and that is why more danger and risk. Moreover, various forms of partnership imply different kinds of risk: for instance, licensing is usually associated with risk of completion connected to demolition of goods and technology benefit; franchising makes the market danger of proposing an unadapted product higher; and agreement with an self-governing distributor gives more supervision of the product but is connected with the danger of losing control in marketing mix areas.
Karen Tolmie, manager of Global Connections at Scottish Enterprise Grampian states: Expanding into the international market-place can be a daunting prospect and many companies find it difficult to adapt their business knowledge, administration and planning processes to seize overseas opportunities. Companies are often unsure about whether or not they are ready for export, thinking theyre either too small or that their products or services dont have an international market. Business Gateway International was established to help North East companies analyze their preparedness and identify how we can help them enter the global market-place. The classical tactics of international market entry offered by the market theory is: Full possible structure of the distribution channel at export activity Manufacture Export Intermediary Import Intermediary in foreign country Wholesale Dealer in foreign country Retail Dealer in foreign country Consumer or Industrial User Organizational export activity may have the following forms: - The export trade, basing at home - Indirect export trade - Licensing - Joint ventures - Joint distribution - The local trading organizations - Intermediaries / agents. At the export trade, basing at home, all management goes from the office located in the same place. It is necessary, if operations are limited, trade is not connected to sea transportations, trading are carried out with the foreign government offices or other foreign groups of consumers and after-sale service is not required.
At indirect export trade foreign-made operations are subcontracted by export-import houses. Licensing - a way of fast, cost effective entry of the many markets, including service cost. It does not demand investment of resources (for example Pepsi-Cola). Its advantages consist in no necessity for highly skilled experts in the local market. Its lack is the restriction of the further development of companys positions in the market. Licensing may be accompanied by creation of joint ventures.
In the big, most attractive markets in conditions of the significant competition and necessity of after-sale service it is essential to create the local trading organizations. Agents or distributors are most widely used (agents are independent intermediaries who receive the commission for sale Distributors buy the goods under their name and the indemnification of expenses depends on the advantage of their bargain with the consumer). Classic theory can be helping, but sometimes it cant be used or the company cant choose or fulfill necessary operations itself. In order to facilitate this process and give the companies all necessary assistance in different countries there are special economic development agencies. Scottish Enterprise is the economic development agency for Scotland assisting 93 percent of people from Grampian to the Borders. The Scottish Enterprise Network includes Scottish Enterprise and twelve Local Enterprise Companies.
The company works together with the private and public areas. It wants to create more and improved businesses, to build up the skills and awareness of Scottish people, and to promote modernization to make Scottish business globally competitive. Another company helping to enter international market is Business Gateway International. Assisting available through Business Gateway International and its associates contains help with the scheduling procedures, market entry and expansion support, getting exportation business information and networks, help with moving and other expenses, and the opportunity to take part in learning trips and exhibitions.
I agree with the author of the article and the experts that entering the new market abroad is extremely important but not very easy thing. Creating special common-used helping organization is a right step that can be adopted by other countries. Bibliography Carmel Rosato Oil and gas companies urged to go global to secure future success Scottish Enterprise, March 29, 2005
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