Reliable point of contact and customer service Website with detailed product information Basic self-introduction phrases in Japanese Having an interpreter or bilingual assistant when appropriate Japanese Business Culture Basics An appreciation of Japanese business culture and social practices is also useful to establish and maintain business relationships in Japan. Finally, exporters must take time to understand the demands and expectations of the Japanese consumer, in areas such as product quality, appearance, packaging and display, delivery and after-sales service. Additional business culture concepts to keep in mind: Japanese society is complex, structured, respectful of age, hierarchical and group-oriented Group decision-making is important in Japan.
Concerning investment and control, the question really is how far the company wishes to control its own fate.
The degree of risk involved, attitudes and the ability to achieve objectives in the target markets are important facets in the decision on whether to license, joint venture or get involved in direct investment.
Cunningham1 identified five strategies used by Market entry stratege for entry into new foreign markets: In marketing products from less developed countries to developed countries point iii poses major problems. Buyers in the interested foreign country are usually very careful as they perceive transport, currency, quality and quantity problems.
This is true, say, in the export of cotton and other commodities. Because, in most agricultural commodities, production and marketing are interlinked, the infrastructure, information and other resources required for building market entry can be enormous.
Sometimes this is way beyond the scope of private organisations, so Government may get involved. It may get involved not just to support a specific commodity, but also to help the "public good". Whilst the building of a new road may assist the speedy and expeditious transport of vegetables, for example, and thus aid in their marketing, the road can be Market entry stratege to other uses, in the drive for public good utilities.
Moreover, entry strategies are often marked by "lumpy investments". Huge investments may have to be undertaken, with the investor paying a high risk price, long before the full utilisation of the investment comes.
Good examples of this include the building of port facilities or food processing or freezing facilities. Moreover, the equipment may not be able to be used for other processes, so the asset specific equipment, locked into a specific use, may make the owner very vulnerable to the bargaining power of raw material suppliers and product buyers who process alternative production or trading options.
Zimfreeze, Zimbabwe is experiencing such problems. It built a large freezing plant for vegetables but found itself without a contract. It has been forced, at the moment, to accept sub optional volume product materials just in order to keep the plant ticking over. In building a market entry strategy, time is a crucial factor.
The building of an intelligence system and creating an image through promotion takes time, effort and money. Brand names do not appear overnight.
Large investments in promotion campaigns are needed. Transaction costs also are a critical factor in building up a market entry strategy and can become a high barrier to international trade.
Costs include search and bargaining costs. Physical distance, language barriers, logistics costs and risk limit the direct monitoring of trade partners. Enforcement of contracts may be costly and weak legal integration between countries makes things difficult.
Also, these factors are important when considering a market entry strategy. In fact these factors may be so costly and risky that Governments, rather than private individuals, often get involved in commodity systems.
This can be seen in the case of the Citrus Marketing Board of Israel. With a monopoly export marketing board, the entire system can behave like a single firm, regulating the mix and quality of products going to different markets and negotiating with transporters and buyers. Whilst these Boards can experience economies of scale and absorb many of the risks listed above, they can shield producers from information about, and from.
They can also become the "fiefdoms" of vested interests and become political in nature. They then result in giving reduced production incentives and cease to be demand or market orientated, which is detrimental to producers.
Normal ways of expanding the markets are by expansion of product line, geographical development or both. New market opportunities may be made available by expansion but the risks may outweigh the advantages, in fact it may be better to concentrate on a few geographic areas and do things well.
This is typical of the horticultural industry of Kenya and Zimbabwe.The chapter begins by looking at the concept of market entry strategies within the control of a chosen marketing mix.
It then goes on to describe the different forms of entry strategy, both direct and indirect exporting and foreign production, and the advantages and disadvantages connected with each.
A study by Gurumurthy Kalyanaram and others in Marketing Science suggests that the new entrant's forecasted market share divided by the first entrant's market share equals, very roughly, one divided by the square root of order of entry of the new entrant.
A market entry strategy is the method in which an organization enters a new market. Busy Tech quickly realizes that they have several options, each fit for a variety of business scenarios.
For new-to-market exporters, developing a suitable market entry strategy is a key to success in the Japanese market. Industry, company objectives, and a number of other factors will determine the best market entry strategy.
A market entry strategy is the planned method of delivering goods or services to a target market and distributing them there. When importing or exporting services, it refers to establishing and managing contracts in a foreign country.’’.