How to Enter into a Foreign Market, Factors to Consider while entering into a foreign market, Global marketing,

1. http://www.free-powerpoint-templates-design.com
Global Marketing Assignment
Task Assigned by Dr. Nadia
Prepared by Syed M Numan

2. Brief Introduction
We collected data from retails and dealers of the Electric
fans in two different cities Lahore and Gujranwala. We
used random sampling size and visited almost 8 dealers
and retailers.

3. Objectives of the Study
As we were given the task by your kind authority to select a
product and explore it.
Product Selection
01
After selecting a product we have discussed the
product/company, introduction, mission, vision etc.
Explore the Product
02
In this section, we have devised a plan to launch it into the
foreign market.
Devise a Plan
03
We have described different strategies to enter into a foreign
market, such export, direct investment and joint venture.
How to enter into a Foreign Market
04
In order to know about the pros and cons of major business
decisions SWOT and PESTLE analysis are also accommodated.
SWOT & PESTLE Analysis
05

4. Factors to consider while Entering into a
Global Market
We can say that expanding the
operations of a local business to
international level is an attracting,
complex, and dynamic process.
Companies choose to expand their
operations globally to increase its
revenue, to get greater market share,
to get faster growth by producing cost
efficient products, in an effort to get
competitive advantage over their
competitors and to be in touch with
new technological developments.
66%
Although there as so many appealing factors of a
global expansion yet there are some critical
challenges as well, while deciding to take the
business into the global market
Companies will have to face challenges to find trust
worthy partners, to become familiar with the local laws
and regulations, to establish a fresh customer base and
to know about the local culture and traditions.
The experts of global market and economy suggest that serving
in a local market is better than serving poorly in several foreign
markets. A product which has a high demand in the home
country may not have the same appeal for the customers in the
international markets.
82% : $345.000
32% : $145.000
14% : $75.000
12% : $71.000
Approximity
A
B
C
D

5. Strategies to
Enter into a
Global Market
Continue on the Next
Page
Entering into a new and totally a different
market is not an easy task. The company
needs a strong and target oriented strategies
to achieve its goals. The formulation of the
strategy to enter into a foreign market is the
first step after a firm decided to sell its
products into an international market.
There are several strategies available that a
firm can adopt such as export, direct
investment and joint venture.

6. Strategies to
enter into the
Foreign Market
Export:
It is the most common and simplest way to enter into an international market. This
option is best suited when the production in a foreign country is costly and the political
risks are very high. Export is also useful when the production is higher than the
demand of a good/ product so companies decide to sell surplus goods to another
country.
Joint Venture:
It is also known as partnership. According to Brouthers (2002), firms usually go for
joint venture due to certain reasons for example, high level of investment risks
and when there are so many legal bindings or restrictions to enter into a foreign
market.
The advantages of joint venture are that the partners equally contribute to the
business which results in the reduction of resources. Joint venture also helpful and
works best when there is high political risks.
There are some disadvantages that are also exist in the joint venture, the experts say
that it can be a bone of contention as it is said that if a partner possesses less than
fifty percent ownership the other partners will dictate this partner that will be similar to
dictatorship.
A brief overview of the strategies

7. Strategies to enter into the Foreign Market
(Cont…)
Foreign direct investment
Foreign direct investment comes into a country when
there are low political risks are low and the economic
condition of a country is also stable. Foreign investment
brings prosperity in the developing countries because it
helps the government to provide more facilities to their
people and it also improves the living conditions of the
people.
“But there is also a risk that free capital flows may be
driven by speculative and short term consideration
and this strategy requires more resources and
commitments (Onkvisit & Shaw, 2004).
Foreign direct investment creates more new jobs in the
market, companies can buy raw material at a lower costs,
low workforce expenses and can get leverage in
transportation charges
Foreign Investment brings prosperity,
creates more new jobs in the market and
increase the living standard of the people.
01
Licensing
We can say that licensing is an agreement in which one
company (licensee) gets the permission to conduct their
business activities and to earn revenue from the property of
the owner company (licensor) by using it copyright and patent
materials. Logos, trademarks, software and technology etc are
fall in this category.
“In general, a licensing contract should include these
basic elements: royalty rate, length of the contract, quality
control, choice of currency and law, product and territorial
coverage, grant back and cross licensing (Onkvisit &
Shaw, 2004).
The drawbacks or disadvantages of the licensing include
agreement with a wrong company and losing organizational or
product reputation. Licensing is useful when a company
couldn’t manage and arrange enough capital and when the
import restrictions are high and it is difficult to enter into a new
foreign market.
Licensing is useful when a company
couldn’t manage and arrange enough
capital.
02

8. Electric Fans
Industry in
Pakistan
Electric fans are among one of those
inventions which are still very important and
an essential part of the people living in
urban and in rural areas. Electric fans are
usually energy efficient and help in lowering
down the temperature and also eliminate &
control humidity.
.
According to the survey of “Bureau of
statistics Pakistan 2019-2020” the Electric
fans industry will surpass more than $ 1
billion upto 2023. .
Parwaz Fans
GFC Fans
Royal Fans

9. Silicon Electrical Copper Wire
Introduction of Parwaz Fans
Vision of the company:
The vision of the company is to foster a culture
of innovation and to develop high quality, energy
efficient products and to make the Parwaz Fan
brand an icon and symbol of quality and
reliability.
Mission of the company:
The mission of the company is to fulfill the needs
of the customers, increase customers
satisfaction by providing them supreme quality of
the products at an affordable price.

10. Ceiling Fans
Company is offering different
types of ceiling fans such as
deluxe, decorative etc.
Bracket Fans
Keeping in view, the latest
trends pedestal fans are
designed with plastic body and
with steel.
Wall Fans
These fans include vast varies
and different prices.
The products offered by the company
have several types of fans. The
diversified product range and the
affordability are the hall mark for the
Parwaz fans.
Product Range
include Different and
Vast Variety of Fans

11. PESTLE Analysis
d
d
Political Environment
. Talking in the perspective of the relationship
between Pakistan and the Arab countries are
at its best. Pakistan always supports almost
every step of the Middle East countries and a
significant number of Pakistani people are
serving in the Middle East countries.
Economic Environment
Already too many Pakistani companies are
operating in the Middle East and stimulating
the local economy by utilizing the local
resources, hiring the local human resources
(although mostly labor work is done by
Pakistani labor).
Legal Environment
As there is no international business
law available to deals with the business
activities across borders. So the
business laws and regulations vary
from country to country.
Sociocultural Environment
It is general phenomena that trade is conducted
in a more cultural and traditional environment.
“A country may be classified as either a
high-context culture or a low context culture
in terms of in-depth background
information” (Hall, 1976).
Technological Environment
The region of the Middle East is strongly
linked with the Western technological and
most innovative firms. The latest scientific
and technological trends which are
introduced in the Western countries,
reach within a few days in the Middle East
region

12. SWOT Analysis
S W
O T
STRENGTHS
WEAKNESS
OPPORTUNITIES
THREATS
Growing Insurgencies and
Interventions
The growing interventions of the big
powers in the region such as America,
Russia, China and France is driving the
whole Middle East region towards the
uncertainty and political & economical
instability.
Lack of Showrooms and Distribution
centers
As a new entrant in the Middle East
Market, the Parwaz fans have not
enough showrooms, display centers or
the outlets where customers can visit and
buy the products of their choice.
Political and Economic stability
Political and economic stability is also
matchless which is the most important for
a successful business. World’s biggest
investors are also available in this region
so investment to conduct business would
not be an issue in this region
Quality and durability
The strengths of the Parwaz fans
includes, their good will in the market.
The company is offering high quality,
energy efficient products and there is a
series of the products which are offered

13. Conclusion and
Recommendations
After discussing the several factors in details we can say that Parwaz Fans is
doing well and only small adjustments are required to further improve their
products and services. As Parwaz Fans is now an establish business so
entering into an international market like Middle East would be a great
opportunity.
The company should focus on designing premium and decorative, high speed
and lower energy consumer fans which will attract more and more customers.
The advertisement policy of the company needs more attention because their
competitors are spending heavy amount on the advertisement to attract
customers to their product and in order to get greater market share so the
Marketing and sales department of Parwaz Fans should re-consider and take
advantage of the advertisement policy.

14. THANK YOU
Especially to our Teacher Dr. Nadia Nasir