Development Studies Essay

904 words - 4 pages

Development StudiesMarketing strategy defined as a set of marketing goals, which target markets and describes how you will go about positioning the business to achieve advantage over your competitors (Brandly, 2002). Whether you are introducing a new product to the market or entering a new market with an existing product, a coherent market entry strategy is necessary because business needs to evaluate any barriers to entry. This essay explains market strategies would take to enter into new market system. These strategies are as follows, licensing, joint ventures, low price strategy and quality strategy, product adaptation strategy and time strategy.To begin with, licensing strategy is defined as the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor( Basche,2004 ). Coca Cola is an excellent example of licensing. In Malawi, Southern Bottlers have the licence to make Coke. Licensing involves little expense and involvement the only cost is signing the agreement and policing its implementation. Licensing gives the following advantages, good way to start in foreign operations and open the door to low risk manufacturing relationships, linkage of parent and receiving partner interests' means both get most out of marketing effort (Brandly, 2002). However licensing is important as a strategy to penetrate into new market but it has its limitations such as, limited form of participation to length of agreement, specific product, process or trademark, potential returns from marketing and manufacturing may be lost Partner develops know how and so licence is short, licensees become competitors overcome by having cross technology transfer deals and requires considerable fact finding, planning, investigation (Cunningham, 2006).Secondly, joint venture is another strategy whereby an entrepreneur can use to enter into new market in sense that two or more investors share ownership and control over property rights and operation (Korey, 2008). Joint ventures are a more extensive form of participation than licensing. In Malawi, Air Malawi Company has a joint venture agreement with Ethiopian Airlines Company. Joint ventures give the following advantages to both companies, sharing of risk and ability to combine the local in-depth knowledge with a foreign partner with know-how in Technology or communication, Joint financial strength and May be the source of communication for a third country(Basche, 2004 ). However joint venture is a strategy to use to penetrate into new market it has some disadvantages such as partners do not have full control of management may be impossible to recover capital if needed, disagreement on third party markets to serve and partners may have different views on expected benefits( Cunningham,2006 ).Furthermore, low price strategy and quality strategy, these are also another strategies use to...

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