Download - Nubes Tech Global Market Expansion
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Market GlobalizationStudy of Expansion in to Foreign Markets
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012This presentation is the intellectual property of the preparers.
Business entities, trademarks and ® are fictitious.
Team Presentation
Prepared by:
John HansenMark Hazaert
Linda Soukhaphaly
MIB560 International BusinessDr. Andrew Fleck
Concordia University Wisconsin
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Agenda
Outline
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
• South Africa• Introduction• SWOT Analysis - Product, Price, Place, Promotion• Recommendation
• South Korea• Introduction• SWOT Analysis - Product, Price, Place, Promotion• Recommendation
• Thailand• Introduction• SWOT Analysis - Product, Price, Place, Promotion• Recommendation
• Conclusion• Questions
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South Africa
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Source: http://www.state.gov/p/af/ci/sf/
Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_South_Africa.svg
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South Africa
Introduction
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
• 50 million people
• 470,693 Sq. Miles
• World leader in Platinum, Gold and Chromium
• GDP $554.6 Billion, $10,486 per capita (in US $)
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South Africa
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Product
Strengths More value-added features
Weaknesses Delivering customized product direct to consumer
Opportunity Increasing infrastructure development
Threats Improper fit for current market habits and trends
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South Africa
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Price
Strengths Moderately priced against comparable competing units
Weaknesses Weakness of Rand against U.S. Dollar
Opportunity U.S. discussions with Southern African Customs Union
Threats Fluctuating currency concerns
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South Africa
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Place
Strengths Growth of supermarkets and hypermarkets
Weaknesses Marketing experience to culturally diverse demographics
Opportunity Underserved market
ThreatsProduct Theft, counterfeiting, and grey-market distribution
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South Africa
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Promotion
Strengths Established web presence in domestic market
Weaknesses Minimum local adaptation strategy
Opportunity Growing trend in eCommerce
Threats Current buying habits of South African consumers
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NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Africa
Recommendation
Not to proceed with this effort
PRIMARY FACTORS
• Minimum local adaptation
strategy
• Comparative cost of laptop
to average household
expenses
• Laptop computing does not
match consumer demands
• Increase of non-PC devices
Final Recommendation is:
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Recommended Strategy
Tablet Product Introduction
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
• Product fits corporate strategy
• Transnational strategy• Centralized production and R&D• Decentralized service, support and marketing
• Greater profitability potential
• Positions company for sustainability and future trends
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South Korea
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Source: http://www.state.gov/p/eap/ci/ks/
Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_South_Korea.svg
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South Korea
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Introduction
• 48.8 million people
• 38,023 Sq Miles
• GDP $1.46 Trillion, $30,000 per capita (in US $)
• Main industries: Electronics, Telecommunications, Automobile
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South Korea
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Product
Strengths Tech savvy people
WeaknessesLanguageUnneeded memory
OpportunityEducationGaming
Threats Mobile devices/Tablets
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South Korea
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Price
Strengths High price point
Weaknesses No distinguishable difference
Opportunity Free trade agreement with US
Threats Free trade agreement with China
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South Korea
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Place
StrengthsLarge CitiesInfrastructure
Weaknesses North Korea
Opportunity Production Facilities
Threats LG/Samsung
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South Korea
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Promotion
Strengths High internet usage
Weaknesses Not a Korean product
OpportunityEducation systemCredit
Threats After sale service, word of mouth
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NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Korea
Recommendation
Final Recommendation is:
To proceed with this effort
PRIMARY FACTORS
• Great price point
• Free trade agreement
• Strong economy
• Great market
• Possible production facilities
• Excellent infrastructure
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Entry Strategy
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
• Exporting first then establish production in country
• Transnational strategy• Centralized production and R&D• Decentralized marketing and operations
• Marketing strategy• Local marketing firm• Internet/Gaming/Education
• Localization• Keyboard• Hardware
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Thailand
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Source: http://www.state.gov/p/eap/ci/ks/
Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_Thailand.svg
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Thailand
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Introduction
• 198,115 Sq Miles
• 69.1 million people
• GDP $326.6 Billion, $9,700 per capita (in US $)
• Main industries: Tourism, Garments, Textiles, Tobacco, Agricultural
Processing, Cement, Jewelry, Electronics
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Thailand
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Product
Strengths Installed operating system
Weaknesses Consumers are use to Linux
Opportunity
BusinessesEducationInternet infrastructure
Threats Tablets
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Thailand
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Price
Strengths High price point
Weaknesses Strengthening Baht against Dollar
Opportunity Hot commodity
Threats Income inequalities
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Thailand
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Place
StrengthsNo existing full assembly plantsUntapped markets
Weaknesses Several competitors in the market
OpportunityEducation/ SchoolsPossible manufacturing plant for domestic consumption
ThreatsCompetition with Singapore, Malaysia, Philippines and ChinaIncreased labor wages
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Thailand
SWOT Analysis
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Promotion
StrengthsCustomization at low costsInclude Microsoft operating system
Weaknesses Saturated Market
Opportunity
Green technologyE-commerceEducation system
ThreatsCompetition with Singapore, Malaysia, Philippines and China
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NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Thailand
Recommendation
Final Recommendation is:
To proceed with this effort
PRIMARY FACTORS
• Great relationship with Thailand
• Growing economy/ infrastructure
• Untapped markets
• Existing manufacturers of
computer components
• No existing plants to complete
product assembly
• Increased disposable income
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Entry Strategy
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
• Transnational strategy• Centralized R&D• Decentralize marketing and operations
• Wholly Owned Subsidiaries• BOI (Board of Investments) for FDI• Build manufacturing plant in strategic location• Create logistics strategies domestically• Customization strategy• Localization
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Conclusion
NUBEStech® Electronics Division - International Market Introduction Study, February 27, 2012
South Africa• No Go with laptop computer
•Recommend R&D of tablet computing device
South Korea• Go
•Export at first then produce locally•Transnational structure with centralized R&D and production•Localization strategy
Thailand• Go
•Transnational strategy with decentralized marketing•Wholly Owned Subsidiaries Mode of entry•Capitalize on BOI and treaty incentives
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NUBEStech® Electronics Division - International Market Introduction Study, February 27, 2012
Market GlobalizationStudy of Expansion in to Foreign Markets