International Marketing Assignment: Case Analysis of Bosch
Question
Task: For this international marketing assignmentyou are required to prepare a short report for the selected Australian organisation/ company to expand overseas. You need to evaluate the international environment, identify market factors and risks and to assess the viability of international marketing opportunities. You must select an entry mode for entering an international or export market for the first time.
The report will describe how the chosen business can meet current and emerging needs of targeted international markets.
Answer
1. Introduction
International marketing is an essential element of consideration for several different companies. It is the main method of developing relationships with consumers in the 21st century. It can be viewed as using a singular methodology to determine the international marketing tactics of Bosch. The overall strategies that will be used are through the means of implementing a wide range of frameworks to understand the implication of marketing on the company’s current potential. Recommendations are to be provided according to the findings
1.1 Overview of Business
The ferret products that Bosch sells include the items of engineered and manufactured products that are available. It can be understood that it sells electrical drives, automotive electronics, automotive steering devices, chassis, powertrain solutions, etc. The company is baked in Germany, but its expansionary bae in Australia is huge as this is a separate dedicated segment of the company. This helps to identify and actually implicate that the company in an overall perspective is quintessentially drawn out by its overall impact through engineering goods. The need to look at the international segments of Bosch is imperative in the case of this study.
1.2 International objectives
The company has set out the international objective of developing connected living products that can be made with ease and contain AI systems to integrate them into the new methodologies of the world. This indicates that the company is seeking to aim for entry into the smart technology market. It is rendering to develop solutions that can be implemented in this market using their existing technology integrated with newer software systems and infrastructure upgrades. This means that the company will be looking to expand its base of operations to make it sustainably suitable for them to engage in higher scale operations.
2. International marketing opportunities
2.1 International trade patterns
There are varying patterns that can be noticed in the market as of now. However, some of the most important elements of consideration are brought out through the means of focus on areas of smart cities. It can be viewed that even though most of the process of Bosch is based on the case of the automobile industry, an element of convergence between the automobile industry and the current technology market is quite apparent. This indicates that the company needs to be developing systems to suit its needs and enhance its effective potential through its market scope. Countries like the US and Germany are more focused on the development of technology that is going to be sustainable. The trade between the US and Germany is based on EU treaties that have been established. However, between Australia and the EU, there are different agreements available.
2.2 International market trends
In terms of the international market, it can be viewed that the trade agreements that are present essentially revolve around the case and concept of the different technological innovations that have been brought around. It can be assessed and assumed that for the case of the company in question important factors of consideration would be industry 4.0, transportation technology, IT technology and communications and smarter cities and manufacturing systems implemented to keep up with the rising demand of different commodities.
2.3 International business opportunities
2.3.1 Country assessment
Opportunities between the US and the EU are being looked at currently. However, as considerations are drawn out it can be understood that the major consideration and factors of importance need to be drawn out of the case of the markets that reopen and are free to trade based. Thus, we have selected the EU market essentially. The reason for this is that the EU market is essentially a better market for sustainable and smarter technology. This helps in ensuring that the overall implication of the EU technology can be implemented and assured with a greater element of effectiveness. Thus the country we have selected is France.
2.3.2 Micro-environment
The micro-environment for business in the country of France is quite innovative and fresh. It can be understood that the country has one of the highest rates of education with an extremely talented youth population. Along with this, the culture of sustainability is deep-rooted in the country of France. Additionally, it can be reviewed that the expansion into France is a good option as it is a business-friendly economy with one of the major markets in the world. It also indicates that France is very technology-friendly and this plays a major role in accruing that the business will be able to sustain itself in this country effectively.
2.3.3 Risk Analysis
The French economy has a major potential risk of competition. It can be understood that the economy of France is not well suited for foreign entry. This plays a major role in how the company will be able to enter the market of France effectively (Cagá?ováet al. 2019). This can also be understood that the French technology market has a lot of competition currently and the trade treaties between the countries of EU do not form a conducive environment for foreign countries to conduct business. Thus for companies coming from Australia, it may be difficult for Bosch to capture the French market. French consumers are also known to be nationalistic and this plays a major role in how the marketing of the products need to be manipulated to suit the needs of the market.
2.3.4 International trade policies
According to international trade policies, the treaties between the EU and Australia regard a very free trade policy. The key benefits of such a policy are numerous. It can be understood that the Australian export gets significantly greater access to your markets including the country of France, they also get guaranteed access for Australian service providers and expansion of two-way investment flows. This more predictable and seamless business environment is formed were rules to support a digital economy and innovation are encouraged (dfat, 2020). The costs of business are reduced and red tape particularly for small and medium enterprises is also significantly reduced. The goal of sustainable development is a coagulated effort between Australia and Europe.
3. International marketing
3.1 Areas of improvement
Determination of the current marketing potential of the company in its own country indicates the company positions itself in a B2B manner. Due to functioning in the ancillary industry of technology the main customer segment of the company lays with the corporates, small businesses and medium businesses. Functionally it can be understood that the business can improve by marketing itself to its customers directly. It is determined that if the company uses a direct positioning approach it is possible to reach out to a greater number of small businesses that are run by average daily customers. This would allow the company to get a look into the main consumer market that the B2B companies function in. Expanding a product portfolio like a smart City concept for industry 4.0 extended to small businesses helps in ensuring that the accessibility of resources is equally divided.
3.2 Objectives
In terms of the international marketing objectives, it is recommended that the company of Bosch essentially strategy to enter into the market. For this purpose, the company will be required to develop different product solutions on smaller scales and larger numbers to appeal to the majority of customers in terms of the market of France. Being an extremely Nationalistic customer base it is required that Bosch use a market penetration strategy that sets it apart from its competitors and gives it leverage in the market. This is prone to helping the company develop a sound market entry strategy and potential.
3.3 Target market
It is recommended the target market of Bosch remains within a B2B spectrum edging on a B2C sphere. The reason for this is that Boss needs to target small businesses that make up the majority part of the EU economy and France. Thus, it can be understood that the company essentially needs to be able to apply its theoretical knowledge of marketing and past strategies to its new market segment. The method of development we are discussing is developing a new segment in the market by targeting small businesses irrespective of their capacity by means of product innovation.
3.4 International marketing strategies
The fundamental advantages of e-displaying is decreasing costs and further developing reach. The expense of an e-displaying stage is regularly lower than other promoting stages, for example, very close salesmen or arbiters/wholesalers. Likewise, e-promoting grants firms to show up at customers that may not be accessible due to momentary and locational cut-off points of existing dispersal channels. E-publicizing stages increase reach and lessening costs by giving three spaces helpful for customers. Regardless, the advancing firm can give boundless information to customers without human intervention. This is an advantage over various kinds of contact considering the way that the proportion of information that can be given is much more noticeable than in another design of correspondence. Moreover, and even more fundamentally, the information can be given in a design that customers can without a very remarkable stretch communication and appreciate.
For instance, aircraft arranging and reservation structures are incredibly difficult to make and stay aware of to serve individual prerequisites. Besides, in this extraordinary circumstance, the choices are tremendous and irksome to make in any plan that is superior to the e-publicizing or electronic association. Second, the e-advancing firm can make joint efforts by tweaking information for individual customers that grant customers to design things and organizations that meet their specific requirements. For example, electronic checking and seat undertakings ought to be conceivable on the web. Finally, e-promoting stages can allow trades among customers and firms that would routinely require human contact by virtue of compelling firms like Dell and amazon.com. It is suggested that Bosch can utilize a comparable strategy.
4. Foreign market entry strategy
Specifically, the firm should figure out what is the best possession construction and how best to deal with the property in combination with nearby assets. Scholastic examination recommends that the best passage methodology adjusts the contestant's qualities and shortcomings with the neighbourhood market's current circumstance just as with the association's own primary and vital qualities. Without a doubt, in pondering unfamiliar market passage, a firm should isolate proprietorship choices from control choices. The housing industry has since a long time ago isolated possession and the executives in its global areas. In any case, we note that the current industry structure implies that the choices with respect to proprietorship and the executives include two steps (Akolaa, 2018).
The technique for moving systematized a commonly useful association that consolidates the organization's information with that of neighbourhood financial backers. An entering firm can fill holes in its comprehension of a neighbourhood market by teaming up with neighbourhood accomplices, while simultaneously the neighbourhood accomplices tap into the association's expertise to foster an upper hand for themselves (Shcherbakovaet al. 2020). The less the arrangement of information or assets by neighbourhood accomplices the more noteworthy the degree is that the firm will require to practice command over its activities in that market. By a similar token, when an entering firm has little involvement in or information about an unfamiliar market or potential accomplices there, the organizations' assets and abilities are in danger and the firm might fall victim to nearby advantage (Zahoor and Al-tabbaa, 20201. To secure itself under such conditions, the firm will probably keep up with command over its tasks also, responsibility for assets. Thus it can be assessed that the use of local channels is the best pathway to enter into a market that is difficult to enter into directly.
5. Evaluation of international marketing performance
5.1 Market progress
In terms of the market progress, it can be assumed that the company has not been able to make much progress. The elementary impact is brought around by competition and saturation of the market. This is causing a slow down of the system of the company and also the lack of opportunities to expand. In this case, it can be understood that expanding the product offering will be quite difficult and thus this needs to be ensured through the means of developing a larger rate of effectiveness to be brought in. It can be viewed that the web-based strategy is up for major considerations. This may be an effective way in which the company is able to generate an effective rate of potential that can be implemented into the crux of the strategy.
5.2 Performance gaps
Performance gaps lie in aspects of relativity that are present for the firm. In addition to this, it can be viewed that there is an effective rate of importance which needs to be ascribed to the context of the development of products. The investment is outrunning the costs that are repent and this is causing major problems for the business and its overall sustenance. It can be reviewed that there is an effective rate of importance for news to be established through the means of the overall potential accrued.
6. Recommendation
By and large, the outcomes support the meaning of three of the five inward determinants of section methodology. The discoveries feature the significance of global involvement in deciding the methodology used to enter unfamiliar business sectors. The outcomes additionally make a significant commitment to the banter encompassing mystic or social distance and passage procedure. It may very well be contended that where firms see the unfamiliar market to appear as something else, as far as both the social and business climate, they will take on passage systems that require less monetary responsibility and bear lower levels of control. It is likewise clear that the dynamic design of the firm is a key determinant of passage methodology decision. This is perhaps because of the way that control is characteristically connected to section procedure. Some section procedures, for example, diversifying and concessions require firms to appoint specific key liabilities to the board in the unfamiliar market and at last give up a serious level of control. Other passage systems, like entirely claimed adventures, empower firms to hold control of the unfamiliar activity.
Thus, it is recommended that the company use a more approachable form and take up franchises that would support French businesses in the process of market entry. This would help the company to achieve the effective rate of potential that it needs to engage in a better prospect of developmental efficacy that can be engaged within and ensured.
7. Conclusion
The conclusion of this study implies that the company of Bosch is unable to develop the elective potential and needful assurance that it can generate the overall system of marketing. It is recommended that core franchise models be used for the purpose of the same and this would help in assuring a larger rate of the impact that can be brought around and engaged within. It also helps to ensure a larger rate of importance that can be generated and induced.
Reference
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Akolaa, A.A., (2018). Foreign market entry through acquisition and firm financial performance: Empirical evidence from Ghana. International marketing assignmentInternational Journal of Emerging Markets.
Cagá?ová, D., Balog, M., Knap?íková, L., Soviar, J. and Mezarc?öz, S. eds., (2019). Smart Technology Trends in Industrial and Business Management.Springer International Publishing.
dfat.gov.au, (2020).Australia-European Union Free Trade Agreement fact sheet.https://www.dfat.gov.au/trade/agreements/negotiations/aeufta/australia-european-union-fta-fact-sheet
Shcherbakova, N.S., Nazarova, Y.A., Kirichenko, O.S., Gorunov, O.A. and Dubrovsky, A.V., (2020).Evaluation of gas industry competitiveness in the foreign market. International Journal of Energy Economics and Policy, 10(6), p.272.
Zahoor, N. and Al-Tabbaa, O., (2021). Post-entry internationalization speed of SMEs: The role of relational mechanisms and foreign market knowledge. International Business Review, 30(1), p.101761.
