International management assignment : Ninja Van
Added on - 24 Apr 2021
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Running head: INTERNATIONAL MANAGEMENTINTERNATIONAL MANAGEMENTName of the Student:Name of the University:Author Note:
1INTERNATIONAL MANAGEMENTExecutive Summary:The report consists ofproduct positioning, pricing strategy, distribution and logistics, promotionand advertising, estimated sales/ sales mix and production/ service strategies about a Singaporebased logistics and delivery service company Ninja Van. The company set out to expand itsbusiness into new regions. In the report, it will be discussed whether they should expand theirbusiness to international markets and what strategies they will adopt in that case.
2INTERNATIONAL MANAGEMENTIntroductionNinja Van is technologically updated logistics service provider which are chiefly focusedon serving e-commerce products. Lai Cheng Wen was 27 year old when he founded the companyalong with Shaun chong and Tan Bo Xian, both of whom are of the same age (Ninja Van 2018).They would deliver parcel themselves in the initial days. The company was established in 2014and it ripped $45 million as profit within the first couple of years. After competing with otherrivals in its field, in 2016, it became the second in the industry right after Singapore post(Channel NewAsia 2017). Although they are leading in logistics services in Southeast Asia, theywant to expand into new territories.Mode of EntryJoint Venture is more feasible in the operations in Hong Kong as the Ninja Van wants thecontrol over the facilities it promises to provide the different consumers. The Joint venture studyis more feasible in this context as it gives a better control over the operations in the country.Hong Kong is one of the tourist hotspots of Southeast Asia. Any giant player of Southeast Asiawill find it lucrative to invade into the Hong Kong market. These qualities will enable them tobecome a top notch in Hong Kong’s logistics industry. Ninja Van already has a British firm, aJapanese firm and a Saudi Arabia firm as their big investors.As their partner, a private equity firm The Abraaj Group reports, Singapore and SoutheastAsian countries’ e-commerce sales are expected to observe an explosive growth of three times itsprevious sales in just four years, that is, by 2020 (Ninja Van Case Study 2017). Ninja Van hasscaled up their business and invaded almost every other Southeast Asian countries as they areculturally and geographically identical according to the Uppsala model. They have started with
3INTERNATIONAL MANAGEMENTtraditional sales strategies but now they are differentiating their services (Agarwal and Wu2015).Product/ Service positioning(Speed of Delivery)(Price)Graph 1: Speed and Price comparison of delivery services(Source: Self)1.) Place:The place of operations of the service is Hong Kong it has a number of service providersalready providing the facilities in the area. Hong Kong is one of the highest corporatelydeveloped economies and the Ninja Van is targeting a majority market offering facilities ofFedex and DHL at the price of SF express.