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International Marketing: An Introduction

Contents

1.0 Introduction------------------------------------------------------------------P3
2.0 The reason for PK Electrics entering international markets ----------P3
3.0 The sources of information for PK Electrics before enter international markets ---------------------------------------------------------------------------P4
4.0 The opportunities and threats for entering into international markets
-------------------------------------------------------------------------------------P5
5.0 The process used by PK Electrics to select apposite markets --------P6
6.0 Available modes of market entry for PK Electrics ---------------------P7
7.0 The most appropriate method and the criteria of market entry for PK Electrics --------------------------------------------------------------------------p8
8.0 Conclusion-------------------------------------------------------------------P8
Bibliography--------------------------------------------------------------------P10

1.0 Introduction
This report is writing for otcome1 and 2. PK Electrics is a company produces cables, switches, sockets and light fittings. It was set up in 1987 in Zhejiang, China. In the prime stage, it is just a local supplier, now it has grown into a national supplier. It has three factories in Zhejiang and has an idea of entering international market at present. And there are some problems about international market entry for PK Electrics has to face and solve, include the reason, the sources of information, the key opportunities and threats, the process of markets selection, Available modes of market entry, The most appropriate method and the criteria etc. And those all are the topic of this report.

2.0 The reason for PK Electrics entering international markets
There are mainly four reasons.
Firstly, the market in Chinese Electrics industry is saturation, this will cause fierce competition, high cost of production, shortage of managerial and technical skills, and many regulation. For PK Electrics there are so many supplier provide cables, switches, sockets and light fittings to market, its sell amount growing slower than before, may caused by the fierce competition. For more Market space and profit, international market entry is a good choice.
Secondly, it is depends on market-related factors. Reflected in competitors already there or planning to go and can not to be at a disadvantage, untapped markets provide new opportunities. Economy globalization make the global smaller and smaller, many company has already do their business all over the world, they enter Chinese market, and other country markets, they are the powerful opponents, so for exist PK Electrics should expand its business, because over the last two years, the rate of growth has begun to decline with sales rising 5% and profits by 2% last year, this maybe caused by competition. And as China joining WTO affect our economy, Chinese firm can get more chance to enter international market, PK Electrics should expand its business into other country before more Chinese firms do the same. And PK can occupy oversea untapped markets, and get its new opportunities.
Thirdly, the production-related factors involved close proximity to raw materials, availability of resources, advanced technology. For PK Electrics, it can learn advanced technology from the oversea firms.
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