Main case study is the Netflix Company
Identify a global business opportunity
A company that expands into the global market is affected by several factors both internal and external factors. Internal factors that are includes in identifying such opportunities include the financial structure or resources of the company. External factors include the tariffs and non tariffs in the host country. Other factors that need consideration according to them are; investment needs of each market, the manpower requirements, levels of political and financial risk, the administrative needs, the marginal marketing cost, and the degree of flexibility and control that is possible. All these and many more guide international marketer in his entry strategy decisions.
Assessing international competition
Japan been a developed economy has made itself an investment haven for many foreign markets. This been so Netflix company face stiff competition mostly locally as they also offer online channels. The international competition comes from penetration of other companies offering the same services at cheaper prices. Such companies include Pandora, Hulu and HBO who do not yet have rights on the market.
In this proposal the main focus is Netflix Company which intends to expand their services to Japan. Some of the strategies that Netflix can apply to ensure their product is well introduced in the market may be picked from three major strategies. The three strategies apply in entering of foreign markets this includes direct exports, licensing/franchising and foreign direct investment. Direct exporting entails the sale of products made by entrepreneurial firms in their home country to customers in other countries. Licensing refers to a firm’s agreement with another to use their proprietary technology such as patent or trademark. Franchising represents the same idea except it is typically used in service industries. Another mode of entry is the foreign direct investments which entails strategic alliances with foreign partners, foreign acquisitions or wholly owned subsidiaries.
International marketing environment
The difference between local marketing and marketing on an international level is the extensive market dimensions and intricacy of the many foreign country markets a company may operate in. International marketing environment trends through the social/cultural, legal, economic, political and technological dimensions. World currency movements, stimulated by worldwide trading and foreign exchange dealing, are an additional compilation in the international environment.
Economic-geographic environment
Economic environment tends to evaluate the economy as a whole this includes an assessment of the economy as a developed economy or a developing economy. This also tends to analyze the currency movement which is an important aspect in international marketing environment. The geographic environment is a factor that affects the movement of goods from one point to the next this could also include infrastructure.
Social cultural environment and political legal environment
The socio-cultural environment influences on the international markets are immense. This determines the extent to which consumers across the globe are either similar or different and so determines the potential for global marketing. Legal systems vary both in content and interpretation. A company is not just bound by the laws of its home country but also by those of its host country and by the growing body of international law. Political environment includes any national or international political factor that can affected the organization operation or decision making. This is linked to a government attitude to business and the freedom within which it allows firms to operate.
International Financial Risks
Companies that speculate faultily as to which way a currency moves will witness their international business deals rendered unbeneficial overnight which will affect the outcome of entering foreign market.
Develop Global Company Structure
It is important for the company to develop an international office in the foreign market. This will ease service delivery and customer communication is enhanced internationally.
Human Resource Needs
The company will need a team set up in the global office that will cater to sales, customer care and in the distribution of the service to new markets. This will require an established human resource department to help in recruitment of personnel.
Product and Target Market Planning
Netflix as a company requires working on their target market putting into consideration the international marketing environment factors. By doing so the target market is simplified making the distribution strategy much easier to comprehend. In this case Netflix need to look into factors such as language barriers and technological factors that may include internet connection of its consumers. This will help Netflix provide the client with an increased customer satisfaction which will then cause a chain reaction to the rest of the country.
Global Distribution Strategy
Netflix company uses through assessing their markets they can be able to conclude on the marketing strategy by assessing their environment. This will relate to the kind of demographic that is well defined from the population of the country to the social status of the target market. Netflix may use franchising as a way of distributing the service to the country and been able to reach the intended companies. Competing and penetrating in this industry will require a lot of research and development which requires more human resources to provide important information.
Measures for International Business
International marketing is an aspect that creates and develops a company in the way of expansion and product manufacturing and development. Consumers in different countries may buy different products to satisfy different need or buy identical products to satisfy different needs. In the case of Netflix it is will be important for the company to understand its environment in order to well execute a marketing strategy. This will go a long way in providing the company with available and sensational provision of services to satisfy the new customer base and relations.
References
Brady, D. L. (2010). Essentials of International Marketing. M.E Sharpe.
Hans Mühlbacher, H. L. (2006). International Marketing: A Global Perspective. Cengage Learning EMEA.
Isobel Doole, R. L. (2008). International Marketing Strategy: Analysis, Development and Implementation. Cengage Learning.
Kate Gillespie, J.-P. J. (2010). Global Marketing. Cengage Learning .
