Political Pressure

 political pressure

Proactive motivations represent stimuli to attempt strategic change. Reactive motivations influence firms that respond to environmental shifts by changing their activities over time. In other words, proactive firms go international because they want to, while reactive ones go international because they have to.

2. The setting of price strategy is influenced by both internal and external factors. Assess the pricing environment and tell Why Haier use low price strategy?

a) The internal factors:

 The goals of the company- The aim was to respond more quickly to U.S. retailers, make Haier a household name in the U.S. and Haier want to achieve high market share, claiming 50% of the U.S. market share.

 The nature of the products- home appliances are not new invented and high-tech products. They are more price-competitive.

b) The external factors:

 Target audience characteristics-the main target customers of home appliance are housewives. The price is an important factor in these customers decision making.

 Competition intensity in home appliance industry-very intensive

c) Haior use the strategy of Penetration pricing, which offer their products at a low price to generate volume sales and achieve high market share, to compensate for lower per unit return.

Case 2 : Telephone Surveys

The telephone survey is one of the most common methods of market research. It's also a fairly simple method. A phone survey provides a quick method for receiving information useful to the businesses. The U.S National Business Research Institute (NBRI) conduct phone surveys using experienced interviewers. With data entered immediately for expert analysis, the businesses can