Global Marketing - Pk Electrics

Explain the process PK Electrics would use to select which market(s) to enter.

To enter the international markets, PK Electrics could understand which international market offer the best opportunities for the products and services to succeed of the company. When the company is establishing and thriving the international market, these are the things that the company should know before entering to the international market. They are identification of the country, perform market analysis, know the competition, assess internal capabilities, and define the market.

Identification of the country: When the PK is going to enter the international market, they should find the country where the demand is strong but the supply is weak. They can also find the international market which is fit with the company’s mission and objective. At the same time, the company needs to collect information and sources to the market situation that they are going to enter. PK should also understand about the country’s cultural, economic development level and the people’s consume level and etc.

Collect market information and Perform market analysis: PK is expanding into the international market, so they need to do market research. In market research, it deals with the addition to target customers. They should also understand of market growth rates, forecasted demand, competitors, and potential barriers to entry and also they need to understand their target market’s demographics, market segment, needs and wants of the customer and buying decision. When the PK electrics is going to enter the international market, and also they need to see ranking in county ranking index. For example, BERI. They also need to understand the strength and weakness of the competition which is already in the country. In the collect information, PK has to identify the best placement or location that their product can distribute. They can also make the research similar products so that they can develop pricing strategy grounded in the market search.

Know the competitors: When it comes to enter the international market, the company should find out who is successful and who is just there? So that they can try to learn from success and failure. Therefore, the company will not repeat the mistakes that the competitors have done. If there are too many competitors in the country, PK can also negotiate with them to be partners.

Assess the internal capabilities: In this stage, PK can make the decision how to enter the international market. For example, building an industry, or buying an industry or partner with existing business. Another way is they can assess how much of their core competencies can they leverage? Do they have sales/channels/infrastructure/ relationship in place that they are entering? What time to market consideration exist?