Based on your previous research about the country’s economic development, the board has asked you to evaluate financial risks in doing business in this expanded marketplace. Competitive advantage is something that needs to be explored in this new market with the best possible implementation of strategies to differentiate a new product among new customers. In addition to strategic alliances, joint ventures, and other partnership opportunities, some companies prefer to operate within the selected country’s infrastructure versus from the home country’s headquarters.
As part of the evaluation, look at 3 international marketing models relative to your product. These include ethnocentric, geocentric and polycentric models.
This proposal will look at two sections: (1) international business model and strategy considerations, and (2) pricing strategies.
Include the following information in this proposal:
International Business Model and Strategy Considerations
- Describe 2 reasons why your company’s product should be introduced in this particular country.
- Research and describe the 3 international business models’ 3 dimensions—polycentric, ethnocentric, and geocentric. For more information, click here: http://www.free-management-ebooks.com/news/the-epg-model/
- Research and explain an international business strategy that can be applied to your company. For additional information, read more about these strategy options here: https://www.business-to-you.com/international-business-strategy/. Discuss why this is the best international strategy for your particular company and product.
- Decide which one could work best for gaining comparative advantage with your company’s product in this new market. Comparative advantage occurs if the country or company experiences the lowest opportunity cost in producing the good. Justify why this model is best for your company’s product.
International Product Pricing
- Research and explain 2 pricing strategies that would help your brand be as visible as possible in the new market.
- Explain how you will incorporate the pricing strategies into your promotional plan that you are working on next week.