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Global Markets and Entry Strategy

   

Added on  2020-12-29

11 Pages2666 Words456 Views
Business DevelopmentPolitical Science
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Global Markets andEntry Strategy
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Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Critically analyse the global readiness of Volkswagen...............................................................1Micro and Macro environmental factors affecting the attractiveness of Australian market forstrategic entering..........................................................................................................................2Critical discussion of market entry strategies..............................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
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INTRODUCTIONWith the advancement of time, entering in a global market has become a major challengeand concern for the organisations. Operating the business activities on a global level will help incarrying out of the services and meeting needs of international customers on an effective level.The report will cover the international market entry strategy of German auto mobile enterprise,Volkswagen in Australian market. The report will analyse the global readiness, micro and macrolevel variables that can affect the international market penetration and market entry strategy thatwill be undertaken by German auto mobile enterprise.MAIN BODYCritically analyse the global readiness of VolkswagenVolkswagen is one of the most advance and largest auto mobile enterprise that aims to bea major market player in Australia. It has many major automobile brands as its subsidiary thatincreases its product portfolio to a greater level. Besides this ability to innovate in automobileindustry is the key advantage that help in proper planning of market entry measures which makesVolkswagen to be globally ready for market expansion measures. The high range of innovationand effectiveness to carry the product development measures on the basis of global markets willhelp in proper developing of a market operation strategy by the organization (Market EntryStrategies. 2019).Volkswagen will follow the Resource based view (RBV) theory that will lead to carryingout the frameworks that will assist the organization to evaluate their potential market and itscompetitive advantage regarding it. It will not only help Volkswagen to identify and evaluate itstangible and intangible resources but also to identify the organization's capability to carry out theinternational business operations at Australia. It includes the following components:Tangible resources: This are the elements that can be touched and felt like the products,infrastructure, engine technology, outlets etc. owned by Volkswagen and it subsidiary oninternational level. Intangible resources: This will involve the factors which can't be touched or felt, but can beseen by organization. Customer goodwill, loyalty, rise in market share, sales etc are theintangible factors which will play a crucial part in improving out the international presence of theorganization. 1
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Capabilities: This includes the work effectiveness and scale of operations possessed byVolkswagen to facilitate their internationalization on a greater level. Extent of innovation,resources available and extent of customer loyalty are certain capabilities measures which willinfluence the Volkswagen's market entry within Australia. All these factors indicates that Volkswagen is relatively ready to execute its operationsand trade activities on global level. It will guide the firm to operate within Australian market.As per the views of Lasserre (2017) , Presence of Volkswagen on global level indicatesits readiness and ability to enter within Australian market. It will help in carrying out of marketstrategies and developing the proper planning of operations. It also supports a good rise incarrying out of market development measures. The evaluation of Buckley and Ghauri (2015)suggests that Australia is a suitable market to enter for a company like Volkswagen as its has astable government, high GDP rate and purchasing power of customers. Besides this, thesupportive trade polices and other employment laws will assist an auto mobile firm to easilyenter and establish within market.Micro and Macro environmental factors affecting the attractiveness of Australian market forstrategic enteringEffective micro and macro environmental factors are required to look after byVolkswagen in order to effectively identify the effectiveness of Australian market that will helpin carrying out of the strategic entering within a market. The proper market penetration by thechosen enterprise will include the following factors:Micro environmental factors: SWOTStrengthWeaknessesWide range of product portfolio:Volkswagen has the widest range ofproduct portfolio that helps thecompany to cater a wider range ofcustomers with varied requirements.This will help the firm to promotevarious cars like SUV's, Sedan,hunchbacks and luxury cars inAustralia.Alleged for having high rate ofemission: Certain models ofVolkswagen are accused for faulting theemission standards to an extensivelevel. The diesel emission scandal isone such example that showcase thatsuch cases have relatively tarnished theimage of company to a greater level.Volkswagen will look after developing2
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