Pk Electrics Entry International Market

Introduction

PK Electrics was established in 1987 in Ningbo, Zhejiang province, China. After many years' development, it becomes a national supplier or a wide range of electrical supplier which includes cables,sockets,switches and light fitting and currently operating three factories all based in Zhejiang province.

This report is to discuss something which includes that the reasons of PK Electrics entering international markets，sources of information for deciding international markets, opportunities and threats associates with entry into international markets, process to select market, modes of international market, and the most appropriate market entry method for PK Electrics.

Findings

1. Reasons for entry international markets

In this case, there some reasons for PK to entry international markets. First, PK Electrics has realized the potential international markets. In the case, it have recently met with trade delegations form several different countries and are now looking outside China for new markets to enhance their growth and business performance. Secondly, in the case, although in the past few years PK continue to increase, the rate of growth begun to declining with sales 5% over the last two yeas and profits by 2% last year. So in pursuit of high profits, they want to entry international markets. The PK Electrics is considering entering international markets because these are fierce competition from domestic and foreign companies, their competitors are already there or planning to go and they don not want to be at a disadvantage, there may also be untapped markets or new opportunities.

2. Sources of information

For fear that led to the failure of the international market and improve access to international markets since the competitive advantage,PK should collect some information which is generally in two sorts as a preliminary job. One is primary research, another is secondary research. Primary data is information gathered first hand by the organization for a specific purpose. It is expensive, it includes postal survey,questionnaires,telephone survey,ect. Managers of PK could get it by participating in trade fairs and sending trade representatives to each other's country research. Secondary data is information that already exists. This information should always be checked first as it is readily accessible and saves time and effort being used in collecting primary. It is cheap, and can be conducted quite quickly. PK can get them by site collection, government websites, newspaper census data, company accounts, professional institutes and organizations and Global Investment department data and so on. Young managers of PK can get secondary information through this way. It is better way to entry international market.

3. Opportunities