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Case study analysis - Essay Example

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Product internationalisation Course Instructor Product Internationalisation A company takes various approaches to consider the internationalisation of a product. In addition, internationalisation of a product should involve designing of an approach that will ensure that the product’s entry into the market is successful with the product registering maximum profits after venturing in new markets…
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Case study analysis
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Case study analysis

In this case, it is counter-productive for a company to internationalise a product without fundamentally seeking to acquire a large market segment of the local market. Despite these factors, a strategic analysis is crucial in the process of internationalising a product. To internationalise a product, an effective strategic analysis will involve the identification of the strengths that make the product a good option for new markets. Such strengths include the competitive advantage of the product over its competitors. Consequently, the competitive advantage determines whether the company will modify its product in order to be accepted in the new markets. In addition, the company may decide to introduce a new product for the new market or the company may decide to venture into the new international markets with the same product (Czinkota and Ronkainen 2007). In line with this, it is essential to point out that a good product does not require modification in order for the company to introduce it to new markets. As an alternative internationalisation of a good product should involve its introduction into the new market in its original form since it has the competitive advantages related to superior quality and a powerful brand name. The specific capability of a firm to produce a quality product is crucial in determining the internationalisation of a product. In this regard, efficiency in production and distribution systems determines whether the product will be offered to the customer when required (Lessard 2003). Case in point, investing in innovative technology was a crucial factor that helped Auer meet its customers’ demands since the company was able to offer its customers products when required due to continuous production. However, it is evident that the company failed to meet the demands of its customers once the distribution channels were affected. In this regard, the investing in effective distribution channels and innovative technology ensure that the company will be able to meet the demand of its customers by offering the products on time. A good product for internationalisation should be a differentiated product. By differentiation, a company should offer new customers a product that is unique in order for the customer to easily adopt the new product in place of the one that they were consuming. In this regard, it is challenging for a customer to adopt a new product without experiencing uniqueness of the product. In line with this, a company that internationalises a product should ensure that the product is distinct from its competitors since an inferior product cannot replace a superior product in an international market. Lessard (2003) identifies these factors as responsiveness to the demands of the local customers by ensuring that the product was in line with the tastes and preferences of the customer. Without responding to the tastes and preferences of the local customer, it is challenging to internationalise a product to new markets. A good product provides avenues for strategic partnership between various companies engaged in the international mar ... Read More
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