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Sarabjeet answered on
Oct 18 2020
International Marketing
International Marketing
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Table of Contents
Contents
Title Page 1
Table of Contents 2
Abstract 3
Introduction 3
Question 1 5
Question 2 8
Question 3 12
Question 4 16
Question 5 19
Conclusions 22
References Appendix 22
Abstract
This report will present a client company of Billabong in Australia is considering expanding into one of the biggest emerging markets which is India by GDP. This report includes the main factors managers of Billabong need to address such as possible added difficulties and complexities Billabong might face when attempting to research the market for surfing and sports goods in India. MMIS Use, importance, and expense to marketing management; main factors Billabong would have to take into account when planning pricing decisions within India; possible differences and likely additional complexities in integrated marketing communications strategy when Billabong begins operations in India are also discussed in this report. Circumstances might Billabong consider using joint ventures to exploit business opportunities within the Indian market.
Introduction
The most important task of strategic management is to establish and maintain a dynamic dialogue between the organization and its environment in order to provide a competitive advantage to the customers by providing products. Therefore, marketing goals occupying one of the leading position in strategic management tasks. For many organizations, marketing is a key feature of ensuring their successful operation based on their goals and implementation strategies. In addition, the company turned to management philosophy, according to which the company must focus its activities on customer needs (market driver management) rather than trying to make “convenient” products try to sell it. Therefore, marketing is not just an independent function of management. Marketing is increasingly used in all areas of the company's business activities. Therefore, marketing plays a significant role in the strategic management, far beyond the sales as well as demand analysis scope. Due to global economic integration, companies operating in the domestic market can no longer rely on their home markets, as the domestic market is now the export market for everyone else. Earlier, people believed that in order to compete in the international market, companies need to be competitive in the domestic market. But given the free economic policy, companies also need to compete with international companies in the domestic market. Therefore, in order to maintain domestic competitiveness, companies need to be internationally or globally competitive. As a planned response to market globalization, business enterprises need to take a practical approach moreover learn to turn emerging marketing challenges and threats into viable business opportunities. Therefore, for managers, the importance of developing a thorough understanding of international marketing has become a prerequisite for managers not only to operate in the international market but also to succeed in the domestic business.
Billabong is an Australian clothing company which specializes in a production of apparel-related products as well as accessories. Billabong has a wide range of trustworthy customers moreover Billabong has strong marketing position in the Australian market. The level of competition in the apparel industry is extremely high because there are many players highly competing in this industry, including Country Road, Millers, Yakka, and Bonds. The
and name furthermore its status is very effective along with its diversification plan or strategy is making a positive contribution to growth. Billabong is considering expanding into India, one of the largest emerging markets in GDP.
India is a famous emerging market with a worldwide financial situation. Since the introduction of a policy of economic liberalization in the 1990s, India's successful investments have been successful, which has helped greatly boost the Indian economy (Bharucha, J. 2018). Simply put, emerging markets are used to assess the socio-economic state of the country, which includes market development and industrial development. According to a recent survey, 28 emerging markets are emerging around the world, India is the second largest. The main reason for this emerging market is economic liberalization and a fully competitive market, higher living standards and per capita income, health care facilities and infrastructure, and an increase in foreign investment. In the last few years, a significant rise in the Indian market, which has led to higher GDP growth? The average annual growth rate is between 6% and 7%. The fiscal year 2014-15 was a GDP growth of around 6.7%. The government has taken some positive steps to support the emerging markets in India (Export, 2017).
Question 1
India has experienced an unprecedented period of international liberation, which is opening up a major consumer base for international companies (Ajay Tita, 2011). Even though, this is a very difficult place to do its business, moreover to having local support is a key to simply unlocking the huge economic potential of the country. India is one of the big countries with huge economic potential, however without proper support on board; crossing a diverse and complex corporate environment might be an intimidating task. India is not only one quickly growing countries of the world, but it is likewise experiencing an unprecedented period of financial independence, enabling foreign investors to enter a vast and diverse market, which they have Never seen before. A large number of young people and a strong export sector are waiting for extended operations; potential consumer groups exceed most other countries in developing and developing countries.
Although India has opened its international trade limits, there are many obstacles to removing goods while importing and exporting (Banerjee et al., 2018). Many bureaucrats make the goods very challenging efficiently, as well as companies must submit a long list of different documents before the shipping goods beyond the boundaries. It takes almost 4.4 years to resolve bankruptcy in India, which is more than the average of South Asia moreover OECD. A cumbersome court system usually slows down the business relationship.
India is cultural warmth and more about building relationships with providing business numbers and money. Multiculturalism is difficult to adapt to outsiders, and it is important to work properly before traveling (Bhargava, Pandey and Bansal, 2012).
Exporters and investors have to face opaque and often unexpected regulatory as well as tariff systems. Despite the government law to improve international trade, and there are many obstacles to importing and export goods. Custom tax rates can be either specific.
Although Unity in Diversity is one of India's top strengths, it is also a major weakness in the company's business. Since most companies are Western companies, and top management is a foreign company from the outset, there are huge problems in dealing with the diverse culture of employees they employ. This can cause uneasiness for employees (Huff, 2010). In a single culture team and country, one can freely express their opinions, and in a multicultural country like India, Billabong is more likely to offend their thoughts and opinions.
In India, another problem facing companies is the mentality of people buying goods and providing services. India is more like a price-centric country, and it does not consider
and loyalty like
and prices (Khare, 2014). Therefore, the company not only needs to provide quality products but also needs to charge competitive prices. People will compare features without entering high-end depth, so choose a cheaper version. The decline of the telecommunications industry is a perfect example of people's price-centricity.
Overcome problems and complexity
A successful internationalization strategy requires companies to adapt to new markets, build new relationships and understand the demographics of the markets they wish to enter. By skipping these steps, companies will not be able to foster growth, which is critical to their long-term sustainability (Pal and Kapur, 2013). Planning for a gradual and sustainable growth overseas means, Billabong will be able to take a small step in the right direction rather than a huge leap in management. Quite simply, global expansion is a long-term project and should not be seen as a short-term opportunity. In connection with assessing the reasons behind the overseas expansion, companies need to spend time developing appropriate, tailored strategies for international expansion. Rather than rushing to encounter too many new opportunities a
oad, or trying to outperform competitors, you need to develop an appropriate plan to identify a core market that is well suited to the business (Abdullah Saif, 2015).
Without proper research and strategy to enter new markets, companies can easily find that they lack the expertise needed to meet the challenges. For example, not knowing the knowledge of foreign law can lead to serious penalties, but if you do the right research, you can avoid them. This is especially true for technical regulations involving foreign taxation frameworks - research that supports expansion strategies can address these issues and ensure that companies have strength from the start (Banerjee et al., 2018).
Of course, the business itself does not have to undertake all of this work; working with third parties or hiring good people with expertise in a particular country or region is often a more effective approach.
When deciding to conduct business in a new market, companies need to ensure that they provide answers to the above questions. It is not easy for companies to understand international expansion from the outset, rather than assuming that expansion will succeed immediately (Geete, 2017). As big companies such as Tesco, eBay and Wal-Mart encounter setbacks in their search for international growth, small businesses need to understand the challenges they often face when expanding overseas. This should not stop them; instead, it ensures that they can take advantage of the opportunities offered by foreign expansion (Hasani, 2015).
Question 2
All businesses work under risk as well as uncertainty. Depending on the success of the company or company or failure of financial condition, change in customer tastes, competition degree and nature, and competitive activity. Depending on the company's sales marketing,...