Pk Electrics's International Marketing Analysis
PK Electrics’s international marketing analysis
Contents
Introduction 3
The reasons of entering international markets 3
Market Saturation 3
Market-related factors 3
Product Life Cycle 4
Two sources of information 4
The World Trade Organization 4
The International Trade Centre 5
Key Opportunities and Threats 5
Key Opportunities 5
Key Threats 6
The Selection Process PK Electrics would Use 6
Modes of Market Entry 7
Most Appropriate Mode for PK Electrics 8
Conclusion 8
Reference 9
Introduction
Since PK Electrics was established in 1987 in Ningbo, Zhejiang province, China. It has grown from a local supplier producing a limited range of electrical cabling and switches to a national supplier of a wide range of electrical supplies including: cables, sockets, switches and light fittings. It has three factories based in Zhejiang province and good reputation for quality and customer service and competitive price.
This report aims to demonstrate the reason of considering entering international markets and the sources of information they should access before entering it. Following by that, it will identify the key opportunities and threats associated with entry into international markets and the process of selecting market to attempt. Then, it will show the advantage and disadvantages of different entry modes and will choose a best method to follow.
The reasons of entering international markets
Market Saturation
Fierce competition from domestic and foreign companies, high cost of production and shortage of the required managerial and technical skills are some reasons why firms might find further investments in home markets less attractive than foreign markets. In PK Electrics, the past few years have seen continual growth, but over the last two years the rate of growth has begun to decline with sales rising 5% and profits by 2% last year. It implies the domestic market tends to be saturation.
Market-related factors
Because the management team are aware of big
Contents
Introduction 3
The reasons of entering international markets 3
Market Saturation 3
Market-related factors 3
Product Life Cycle 4
Two sources of information 4
The World Trade Organization 4
The International Trade Centre 5
Key Opportunities and Threats 5
Key Opportunities 5
Key Threats 6
The Selection Process PK Electrics would Use 6
Modes of Market Entry 7
Most Appropriate Mode for PK Electrics 8
Conclusion 8
Reference 9
Introduction
Since PK Electrics was established in 1987 in Ningbo, Zhejiang province, China. It has grown from a local supplier producing a limited range of electrical cabling and switches to a national supplier of a wide range of electrical supplies including: cables, sockets, switches and light fittings. It has three factories based in Zhejiang province and good reputation for quality and customer service and competitive price.
This report aims to demonstrate the reason of considering entering international markets and the sources of information they should access before entering it. Following by that, it will identify the key opportunities and threats associated with entry into international markets and the process of selecting market to attempt. Then, it will show the advantage and disadvantages of different entry modes and will choose a best method to follow.
The reasons of entering international markets
Market Saturation
Fierce competition from domestic and foreign companies, high cost of production and shortage of the required managerial and technical skills are some reasons why firms might find further investments in home markets less attractive than foreign markets. In PK Electrics, the past few years have seen continual growth, but over the last two years the rate of growth has begun to decline with sales rising 5% and profits by 2% last year. It implies the domestic market tends to be saturation.
Market-related factors
Because the management team are aware of big