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Market Globalization
                       Study of Expansion in to Foreign Markets

                                                Team Presentation

                                                           Prepared by:
                                                    John Hansen
                                                    Mark Hazaert
                                                 Linda Soukhaphaly



                                               MIB560 International Business
                                                     Dr. Andrew Fleck
                                               Concordia University Wisconsin




                                                                                            This presentation is the intellectual property of the preparers.
NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012              Business entities, trademarks and ® are fictitious.
Outline
  Agenda
        • 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

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Africa



     Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_South_Africa.svg




                                                                                        Source: http://www.state.gov/p/af/ci/sf/




NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Africa

  Introduction
     • 50 million people
     • 470,693 Sq. Miles
     • World leader in Platinum, Gold and Chromium
     • GDP $554.6 Billion, $10,486 per capita (in US $)




NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Africa
  SWOT Analysis

                                                         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



NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Africa
  SWOT Analysis

                                                             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



NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Africa
  SWOT Analysis

                                                            Place

       Strengths                 Growth of supermarkets and hypermarkets


    Weaknesses                   Marketing experience to culturally diverse demographics


    Opportunity                  Underserved market


         Threats                 Product Theft, counterfeiting, and grey-market distribution



NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Africa
  SWOT Analysis

                                                      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



NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Africa
  Recommendation
     Final Recommendation is:
                                                                     PRIMARY FACTORS
                                                                       •   Minimum local adaptation
                                                                           strategy
                                                                       •   Comparative cost of laptop
                                                                           to average household
                                                                           expenses
                                                                       •   Laptop computing does not
                                                                           match consumer demands
 Not to proceed with this effort
                                                                       •   Increase of non-PC devices



NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Recommended Strategy
  Tablet Product Introduction
        • 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




NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Korea



    Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_South_Korea.svg




                                                                                      Source: http://www.state.gov/p/eap/ci/ks/




NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Korea

  Introduction
     • 48.8 million people
     • 38,023 Sq Miles
     • GDP $1.46 Trillion, $30,000 per capita (in US $)
     • Main industries: Electronics, Telecommunications, Automobile




NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Korea
  SWOT Analysis

                                                         Product

       Strengths                Tech savvy people

                                Language
    Weaknesses
                                Unneeded memory

                                Education
     Opportunity
                                Gaming


         Threats                Mobile devices/Tablets



NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Korea
  SWOT Analysis

                                                             Price

      Strengths                High price point


    Weaknesses No distinguishable difference


    Opportunity Free trade agreement with US


         Threats               Free trade agreement with China



NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Korea
  SWOT Analysis

                                                            Place
                               Large Cities
       Strengths
                               Infrastructure


    Weaknesses North Korea


    Opportunity Production Facilities


         Threats               LG/Samsung



NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Korea
  SWOT Analysis

                                                      Promotion

       Strengths                High internet usage


    Weaknesses Not a Korean product


                                Education system
     Opportunity
                                Credit


         Threats                After sale service, word of mouth


NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
South Korea
  Recommendation
     Final Recommendation is:
                                                                     PRIMARY FACTORS
                                                                       •   Great price point

                                                                       •   Free trade agreement

                                                                       •   Strong economy

                                                                       •   Great market

                                                                       •   Possible production facilities

                                                                       •   Excellent infrastructure
    To proceed with this effort




NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Entry Strategy

        • 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

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Thailand



       Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_Thailand.svg




                                                                                      Source: http://www.state.gov/p/eap/ci/ks/




NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Thailand

  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




NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Thailand
  SWOT Analysis
                                                          Product

        Strengths                Installed operating system


     Weaknesses                  Consumers are use to Linux

                                 Businesses
     Opportunity                 Education
                                 Internet infrastructure

          Threats                Tablets


NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Thailand
  SWOT Analysis

                                                             Price

       Strengths                 High price point


    Weaknesses                   Strengthening Baht against Dollar


    Opportunity                  Hot commodity


         Threats                 Income inequalities



NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Thailand
  SWOT Analysis

                                                            Place
                                No existing full assembly plants
      Strengths
                                Untapped markets


   Weaknesses                   Several competitors in the market

                                Education/ Schools
    Opportunity
                                Possible manufacturing plant for domestic consumption

                                Competition with Singapore, Malaysia, Philippines and China
        Threats
                                Increased labor wages


NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Thailand
  SWOT Analysis

                                                      Promotion
                               Customization at low costs
      Strengths
                               Include Microsoft operating system


   Weaknesses                  Saturated Market

                               Green technology
    Opportunity                E-commerce
                               Education system

        Threats                Competition with Singapore, Malaysia, Philippines and China


NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Thailand
  Recommendation
     Final Recommendation is:
                                                                     PRIMARY FACTORS
                                                                       •   Great relationship with Thailand

                                                                       •   Growing economy/ infrastructure

                                                                       •   Untapped markets

                                                                       •   Existing manufacturers of
                                                                           computer components

                                                                       •   No existing plants to complete
    To proceed with this effort                                            product assembly

                                                                       •   Increased disposable income


NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Entry Strategy

        • 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


NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
Conclusion
        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

NUBEStech® Electronics Division - International Market Introduction Study, February 27, 2012
Market Globalization
                       Study of Expansion in to Foreign Markets




NUBEStech® Electronics Division - International Market Introduction Study, February 27, 2012

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NUBEStech Market Expansion Study

  • 1. Market Globalization Study of Expansion in to Foreign Markets Team Presentation Prepared by: John Hansen Mark Hazaert Linda Soukhaphaly MIB560 International Business Dr. Andrew Fleck Concordia University Wisconsin This presentation is the intellectual property of the preparers. NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012 Business entities, trademarks and ® are fictitious.
  • 2. Outline Agenda • 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 NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 3. South Africa Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_South_Africa.svg Source: http://www.state.gov/p/af/ci/sf/ NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 4. South Africa Introduction • 50 million people • 470,693 Sq. Miles • World leader in Platinum, Gold and Chromium • GDP $554.6 Billion, $10,486 per capita (in US $) NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 5. South Africa SWOT Analysis 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 NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 6. South Africa SWOT Analysis 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 NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 7. South Africa SWOT Analysis Place Strengths Growth of supermarkets and hypermarkets Weaknesses Marketing experience to culturally diverse demographics Opportunity Underserved market Threats Product Theft, counterfeiting, and grey-market distribution NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 8. South Africa SWOT Analysis 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 NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 9. South Africa Recommendation Final Recommendation is: PRIMARY FACTORS • Minimum local adaptation strategy • Comparative cost of laptop to average household expenses • Laptop computing does not match consumer demands Not to proceed with this effort • Increase of non-PC devices NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 10. Recommended Strategy Tablet Product Introduction • 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 NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 11. South Korea Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_South_Korea.svg Source: http://www.state.gov/p/eap/ci/ks/ NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 12. South Korea Introduction • 48.8 million people • 38,023 Sq Miles • GDP $1.46 Trillion, $30,000 per capita (in US $) • Main industries: Electronics, Telecommunications, Automobile NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 13. South Korea SWOT Analysis Product Strengths Tech savvy people Language Weaknesses Unneeded memory Education Opportunity Gaming Threats Mobile devices/Tablets NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 14. South Korea SWOT Analysis Price Strengths High price point Weaknesses No distinguishable difference Opportunity Free trade agreement with US Threats Free trade agreement with China NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 15. South Korea SWOT Analysis Place Large Cities Strengths Infrastructure Weaknesses North Korea Opportunity Production Facilities Threats LG/Samsung NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 16. South Korea SWOT Analysis Promotion Strengths High internet usage Weaknesses Not a Korean product Education system Opportunity Credit Threats After sale service, word of mouth NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 17. South Korea Recommendation Final Recommendation is: PRIMARY FACTORS • Great price point • Free trade agreement • Strong economy • Great market • Possible production facilities • Excellent infrastructure To proceed with this effort NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 18. Entry Strategy • 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 NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 19. Thailand Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_Thailand.svg Source: http://www.state.gov/p/eap/ci/ks/ NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 20. Thailand 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 NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 21. Thailand SWOT Analysis Product Strengths Installed operating system Weaknesses Consumers are use to Linux Businesses Opportunity Education Internet infrastructure Threats Tablets NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 22. Thailand SWOT Analysis Price Strengths High price point Weaknesses Strengthening Baht against Dollar Opportunity Hot commodity Threats Income inequalities NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 23. Thailand SWOT Analysis Place No existing full assembly plants Strengths Untapped markets Weaknesses Several competitors in the market Education/ Schools Opportunity Possible manufacturing plant for domestic consumption Competition with Singapore, Malaysia, Philippines and China Threats Increased labor wages NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 24. Thailand SWOT Analysis Promotion Customization at low costs Strengths Include Microsoft operating system Weaknesses Saturated Market Green technology Opportunity E-commerce Education system Threats Competition with Singapore, Malaysia, Philippines and China NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 25. Thailand Recommendation Final Recommendation is: PRIMARY FACTORS • Great relationship with Thailand • Growing economy/ infrastructure • Untapped markets • Existing manufacturers of computer components • No existing plants to complete To proceed with this effort product assembly • Increased disposable income NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 26. Entry Strategy • 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 NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012
  • 27. Conclusion 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 NUBEStech® Electronics Division - International Market Introduction Study, February 27, 2012
  • 28. Market Globalization Study of Expansion in to Foreign Markets NUBEStech® Electronics Division - International Market Introduction Study, February 27, 2012