Expanding Nz Business Into International Markets

Expanding New Zealand Businesses into International Markets

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Problem Statement:

A New Zealand business faces increasing competition in local markets and is looking at the potential of marketing their products internationally.

Key Case Facts:

A small business operating from Penrose, Auckland which currently holds a strong position in its market is facing increasing competition. These competitors source materials from China allowing them to create the same product (PLODOs) cheaper, and of the same quality. This increase in competition is making it necessary for the New Zealand business to consider alternative measures in order to maintain and increase market share. A product called FLIHIs are also produced which are more specialised, and are increasing in demand. This product especially, has the potential to do well in the overseas market which has been suggested to the firm.

Theoretical Framework: Regional and Global Strategy

Global leaders tend to focus on one product which they market to many different countries. The innovation involved with the product must be world leading as when supplying worldwide there is much more competition. The need for innovation is made even more necessary when considering that the product is one of the few (if not the only) being sold by the company and so if it fails to sell in the marketplace then the company may not survive.

When marketing the product to many different countries, many indirect dealers/retailers may be needed in order to introduce the product to the different cultures associated with those countries, as certain marketing strategies will not be effective with all cultures.

When the product is innovative and specialised, it is manufactured in New Zealand to ensure a certain level of quality is maintained. It could also be to preserve an image of being “New Zealand made” to maintain the reputation of the product being high quality.

If she is successful...