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Developing an internationalization framework : case study that outlines the development of an internationalization strategy for the company XX to enter the Singaporean market

Smit, Maarten (2015) Developing an internationalization framework : case study that outlines the development of an internationalization strategy for the company XX to enter the Singaporean market.

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Abstract:PITT cooking is a Dutch company that has developed a unique concept of cooking at which several gas burners are integrated on a special way in the working top of a kitchen, known as integrated cooking. The company started about 5,5 years ago and by now it has developed a market share on the Dutch market. Due to their ambitions and the potential the company sees on the international market, it is looking for opportunities for international expansion. A first aim is to establish a market share on the Asian market, and Singapore is seen as the ‘gateway’ to the Asian market. The goal of this research is to find an answer on the main research question: What would be a suitable internationalization strategy and accompanying marketing approach for PITT cooking to introduce its products on the Singaporean market? The first step in the process of finding an answer on this research question has been a literature study. Based on a literature study I have investigated what internationalization is, what it includes to develop an international strategy and what factors should been considered when develop an international strategy for a young innovative company as PITT cooking. This has resulted in a framework for international market entry, which is presented in chapter 2.7 The internal analysis learns us that PITT has limited resources in both human capital, financial capital and management, which make entry options that call for a small resource commitment more feasible, as exporting and contractual agreements. Equity entry modes are not feasible at this moment because of limited resources in financial capital and management resources. The vision of the company is strongly export oriented, which makes the willingness of the company to internationalise high. The external analysis learns us that the Singaporean market is an attractive market in terms of external environmental factors. Singapore can be characterized as a political stable country, with a high control on corruption and a very open international trade policy. The economic indicators show that Singapore is a healthy international oriented and growing economy with one of the highest GNI per capita in the world. Further Singapore is a country in which the rule of law is strictly preserved and with one of Asia’s best IPR regimes. There is a socio-cultural distance between the Netherlands and Singapore, but these can be overcome by introducing an Asian product line. The in-depth external analysis concludes that there is serious competition within the Singaporean market for PITT cooking, but according to insiders in the industry PITT’s distinctive character, its network, and a suitable marketing approach will lead to a successful introduction on the Singaporean market. Whether the Singaporean market is not huge in numbers, it can be considered as the ‘gateway’ to the rest of the Asian market for PITT cooking. Both the internal analysis and the external analysis have been taken into account in the choice of entry mode decision. This analysis concludes that cooperative export seems to be the most feasible entry mode for PITT to introduce its products on the Singaporean market, because of the company’s limited resources, it’s contacts with Reginox B.V. and the network and reputation Reginox has established already on the Asian market. The marketing approach outlines how PITT should structure the marketing mix elements (product, price, promotion, place) in order to successfully introduce PITT on the Singaporean market. Based on interviews with experts and in-depth market research is concluded that PITT should introduce an Asian specific product line. Further it concludes that PITT should adapt its pricing policy, should be active in promotion in order to overcome the image-damage, and that there are several ways (distribution channels) to get it products to the end-consumers.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/66999
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