Module: LV4002 Marketing Management

Assignment 2: Tapping into global markets

Submitted to; Submitted by;

U Atar Taung Htet Swe Zin Lin Lae
Level-4, Batch-4
Digital Campus

Date of submitted
2/2/2023

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Contents
1. Executive summary.......................................................................................................3
2. Introduction....................................................................................................................3
3. Factors that the company should review before going abroad..................................4
4. The major ways of entering a foreign market and the advantages of entering a
global market.....................................................................................................................4
5. Evaluating and selecting to enter specific international markets.............................6
6. Adidas’ main strengths over other brands in the global market..............................6
7. The difference between marketing in a developing and a developed market..........7
8. Conclusion......................................................................................................................8
9. References.....................................................................................................................10

1. Executive summary
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 This assignment include includes when a company decides to expand overseas
and the company needs to define its international marketing goals and policies. Having
decided whether to sell in a few or many countries, a company must then evaluate the
candidate countries based on three criteria, market attractiveness, risk and competitive
advantage. Companies choose the overseas locations they need to go based mainly on
goods and items, geography, income, population and political climate. The main methods
of entering foreign markets are indirect export, direct export, licensing, joint ventures and
direct investment. Entry into foreign markets accelerates a company's growth. Expanding
the company's global footprint will allow new audiences to experience its products and
services, leading to further expansion. Adidas, the world's second-largest sporting goods
company, is a sporting goods company with primarily categories of apparel, shoes and
other accessories. Adidas' strengths focus on key aspects of its business, giving it a
competitive edge in the market. One of the most obvious differences in global marketing
is between developed and developing markets such as Brazil, Russia, India, China and
South Africa. Developing markets offer great opportunities for foreign investment, but
can also expose investors to significant risks. Investments in developed markets may
benefit from more reliable accounting and financial reporting.

2. Introduction
Communications, transportation, and finance flow faster and faster, the world is
shrinking rapidly. Countries are becoming increasingly multicultural, and products and
services developed in one country are enthusiastically received in other countries.
Engaging in international business activities, commonly referred to as "globalization", is
a process. The process of globalization varies somewhat from company to company and
even from industry to industry. In a global industry, a competitor's strategic position in a
major geographic or national market changes with the overall global position. Global
companies operate in multiple countries and enjoy R&D, manufacturing, logistics,
marketing, and financial advantages unavailable to purely domestic competitors. In the
broadest sense, companies go international to expand their competitive advantage and
look for development and revenue opportunities.

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3. Factors that the company should review before going abroad
If the business is booming in home country and want to grow it, it can cross
borders. But while the idea of expanding business internationally may sound exciting, it
can also be chaotic. From site feasibility analysis to corporate compliance, knowing all
the rules need to follow and all the plans need to execute can be a headache. But if we've
taken the necessary steps, worked with compliance firms, conduct market research, and
planned for the long term, the business expansion can be as successful as we want it to
be. As such, there are several factors to consider before going abroad. When deciding to
expand overseas, companies need to define their marketing goals and policies.
Companies also have to choose which countries they want to enter based on their
products and factors such as geography, income, population and political climate.
Competitive considerations also play a role. It's beneficial to enter a market that
competitors are already in, defend the market share, and learn from them how to market
in that environment. Before a company goes abroad, it must decide how it wants to enter
the market. A wide range of options for entering the market are indirect export, direct
export, licensing, joint ventures and direct investment. Companies must decide to what
extent they adapt their marketing strategies to local conditions. According to the
marketing concept, the company believes in the needs of different consumers and tailors
its marketing to each target user. Companies must looking for viable markets need to
ensure that economists and marketers can stay in promising markets for the long term.
Companies should also assess the economic conditions and stability of the countries in
which they plan to operate. All the above explanations are points that companies need to
check before going abroad.

4. The major ways of entering a foreign market and the advantages of

entering a global market
In today's market, more and more companies are looking to expand into global
markets to grow their business and increase their profits. Exporting is usually the easiest
way to enter the foreign market, which is why most companies start their international
expansion with this entry model. Exporting is the sale of goods or services procured from
the home country to a foreign country. The advantage of this type of entry is that
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companies can avoid the costs of setting up operations in a new country. Licensing is also
one of the major ways to enter a foreign market. Licensing occurs when one company
transfers the right to use or sell a work to another company. Some companies try to
minimize the risk of entering the foreign markets by forming joint ventures with other
companies that plan to sell in global markets. Joint ventures can generate more revenue
than individual companies because they often function like large independent companies
rather than two smaller companies combined. Franchising is also one of the ways to enter
a foreign market. A franchise is a retail chain where individual or group purchasers pay
for the right to manage a business unit on behalf of the company. Franchises are most
common in North America, but they exist all over the world, providing companies with
opportunities for international expansion. Franchising usually requires strong brand
awareness and it provides an opportunity to generate profit while taking. These are the
major ways of entering a foreign market. (Indeededitorialteam, 2021)
Companies must use efficient global marketing to avoid failure and build strong
global brands. The expansion of global markets is impacting not only the movement of
goods, but also the way companies operate, their employees and how they are contacted.
The primarily advantage of entering a foreign market is access to new markets. If a
company is successful in its home country, it makes sense to move its operations abroad.
With access to new markets, companies have the potential to build new customer bases.
In addition, open borders allow companies to quickly access untapped markets. For
example, companies expanding into Europe can access more countries and customers
through open borders. Finding professional talent in home country can be difficult.
However, entering a foreign market gives companies access to a pool of potential
workers with unique skills. As an extra bonus, local talent with these skills will provide
an edge over the competition. Entry into foreign markets accelerates a company's growth.
By expanding the company's global footprint, new audiences will experience the products
and services, leading to further expansion. Another benefit of expanding the business into
a foreign market is the ability to reduce the cost of manufacturing products. Low costs
also help people in developing countries find better solutions and products for less.
Clearly, one of the biggest advantages of entering a foreign market is new sales. New
sales means more sales, which can often lead to further business expansion. (Rowe, 2021)

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5. Evaluating and selecting to enter specific international markets
International markets can present exciting opportunities for many companies, but
focusing on the markets with the highest potential is critical to a successful
internationalization strategy. Identifying the right market to enter can be a major factor in
success or failure, especially in the early stages of internationalization. Expanding the
business to new countries requires research and without research the business expansion
can be jeopardized and their money wasted. Companies should conduct detailed research
before entering the international market. Without proper research, it is difficult to
understand customer interests and demands. So if the customer is not interested in the
product, this becomes a barrier for the company. When a company wants to move from
domestic to international markets, companies need a process for evaluating potential
countries. It begins by analyzing both macroeconomic and microeconomic factors from a
list of countries in which companies are interested in investing. Macroeconomic factors
relate to the economy as a whole and include factors such as inflation, growth rate,
unemployment rate, gross domestic product, national income, cultural barriers, language,
trade factors and cost of entry. Microeconomic factors focus on more tangible factors that
influence consumer decisions, such as Pricing driven by supply and demand. Companies
should consider a variety of factors to make a rational decision. In general, after choosing
a target market that offers the most opportunities for their business and products,
companies should conduct a deeper analysis of that market and its characteristics.
Companies should also analyze their internal capabilities and resources and set clear
goals for what they want to achieve in their target market. Companies must identify their
main competitors because their descriptions is very important. The economic
development of competitors in recent years should also be analyzed. Product pricing
structure, network, market maturity, financial situation, planning and expansion
strategies, and development potential should also be analyzed. This analysis should
reveal a more suitable to enter.

6. Adidas’ main strengths over other brands in the global market

Adidas, the world's second largest manufacturer of sporting goods, is a German
multinational company founded by Adoft Dassler. Adidas is primarily a sporting goods
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manufacturer with categories of apparel, shoes and other accessories. Adidas’ strengths
focus on key aspects of its business, giving it a competitive edge in the market. Key
components of brand strength include intangible assets such as financial position,
experienced employees, product uniqueness, and brand equity. Adidas is reflected the top
product in sports. Adidas is a favorite brand for all sports enthusiasts. It is ranked the
third position according to Forbes, its brand value is about $6.8 billion. In 2019, Adidas
took his 61st place in the world's most valuable brands. Brand value is its core strength.
Adidas is an iconic brand with a prestigious legacy. The brand has a long and strong and
prestigious legacy. It also has a real legacy and a glorious history that has influenced and
shaped many facets of the world. Since its inception, Adidas has always prioritized
product quality above all else. It also invest heavily in research and development to create
the highest quality products. Their products are the driving force for expanding customer
base. Adidas is more of a sportswear brand, but its products are diversified. They offer
many products designed for many sports, shoes, accessories and apparel. Adidas sponsors
major sporting events, including the Olympics, as well as leading athletes and teams. The
company has a global presence and enjoys international recognition. Products can be
purchased worldwide through the company's website and major e-commerce websites.
Adidas succeeds in winning the hearts and minds of young customers who prefer Adidas
products. The brand's focus on customer experience and product quality has earned it a
large number of loyal customers. One of the most important strengths is supply chain
management. They outsource most of their manufacturing and have strategic partners to
ensure control over the entire supply chain. Adidas' marketing strategy is a perfect blend
of promotion, advertising and digital technology advancements. This is a key strength as
it easily reaches a large audience. (Mehta, n.d.)

7. The difference between marketing in a developing and a developed

market
Marketing is one of the most complex areas of running a business and requires a
wealth of expertise to succeed. Marketing includes virtually everything that happens in
the marketplace between a company and its customers. A company's success depends on
its marketing strategy and marketing efforts. Moreover, as companies enter new
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international markets such as developing markets, the complexity of marketing and
reliance on business success becomes increasingly important. Developing country leaders
want to improve the quality of life for their people. They are speedily mechanizing and
adopting a free market or mixed economy. Developing markets are those in rapidly
growing and industrializing developing countries. Developing markets offer great
opportunities for foreign investment, but they can also expose investors to significant
risks. Developing markets require a different internet marketer strategy than developed
countries. Developing markets are transitioning from low-income, underdeveloped, often
pre-industrial economies to modern, industrialized nations with high standards of living.
Examples of developing markets are Brazil, China, India and Russia.(Amadeo, 2021)
Developed countries have more advanced economies, more developed
infrastructure, more mature capital markets, and higher living standards. Developed
markets are large, stable and liquid economies with some degree of market regulation.
The most developed markets are North America, Western Europe and Australia. As with
all investments, investing in developed market equities carries both risks and rewards.
Investments in developed markets may benefit from more reliable accounting and
financial reporting. Equity market valuations in developed markets are now well above
their historical long-term averages, making it more difficult for these markets to absorb
unexpected shocks. In most cases, developed markets have a lower risk of sudden
political or economic instability. In developed markets, suppliers are encouraged to focus
on quality of service, knowledge and people while maintaining high quality standards.
(Jackson, 2022)
All markets, whether developed or developing, offer investors both strengths and
weaknesses. In fact, it's these differences that make any type of market worth investing
in. When developed markets falter, developing markets boom and vice versa. By building
a diversified holding portfolio in both developing and developed markets, we are more
likely to weather market storms. (Kolter&Keller, 2016)

8. Conclusion
In conclusion, businesses can sell and ship products and services to consumers
around the world in days. It's easy to forget how the market worked before the digital age
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and transportation innovation. International trade increases sales and profits, enhances
corporate reputations, creates jobs, and provides entrepreneurs with a valuable means of
cushioning seasonal fluctuations. Expanding business into cross-border markets makes
developing and executing a single marketing strategy almost impossible. To succeed in
any market today, marketing strategies must be managed locally.

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9. References
Amadeo, K. (2021, October 25). Retrieved from thebalancemoney:
https://www.thebalancemoney.com/what-are-emerging-markets-3305927
Indeededitorialteam. (2021, July 27). indeed. Retrieved from indeed:
https://www.indeed.com/career-advice/career-development/market-entry-
strategies
Jackson, N. M. (2022, September 12). Retrieved from acorns:
https://www.acorns.com/learn/investing/developed-markets-vs-emerging-markets
Kolter&Keller. (2016). Marketing Management. In Kolter&Keller, Marketing
Management.
Mehta, R. (n.d.). digiaide. Retrieved from digiaide: https://digiaide.com/swot-analysis-of-
adidas/
Rowe, R. H. (2021). chron. Retrieved from chron:
https://smallbusiness.chron.com/advantages-disadvantages-launching-global-
business-effort

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