Analysis and Evaluation of Market Entry Modes into the Asia-Pacific Region

Based on the Example of a German SME in the Industrial Goods Business

Diplomarbeit , 2006 , 168 Seiten , Note: Sehr Gut

BWL - Beschaffung, Produktion, Logistik

The business world at the beginning of the 21st century is characterised by a steadily increasing globalisation and the growth of international business operations. The proceeding dynamism of the global markets creates new chances not only for multinational enterprises but also for small- and medium sized companies (SMEs). Particularly, the above-average economic potential of emerging markets, especially in many countries of the Asia-Pacific region, is amongst others the leading incentive for the increasing number of cross-border expansions. In this context, the decision for the appropriate market entry strategy is already one of the most difficult ones within the broad topic of international marketing, whereas the choice of target countries with tremendous cultural differences and the specifics of the industrial goods business respectively, lead to an even higher degree of complexity in the decision for the most suitable form of organisation for the international market entry.
The main task of this thesis was to break down the untargeted theory of the market entry modes to the evaluation of a situational context of a genuine company with the help of abstract focus areas in a step-by-step approach. Starting with a general overview to the topic area of interational marketing and further the alternative market entry modes, the thesis introduces three focus areas with an anticipatory relation to the case study: ‘The Asia-Pacific region, SMEs and the industrial goods business’ stand in the centre of the examination. The core of this thesis represents a feasibility study related to the focused perspective, in which every market entry mode is investigated in its compatibility with the focus areas. The result of the study, in other words the identification of all feasible entry mode alternatives regarding the focus areas, establishes the basis for the implementation of the case study of the German AdPhos Plc., a medium sized company in the industrial goods business and its penetration of new markets in Asia. As the second core part of this thesis follows the evaluation of AdPhos’ market entry decision with means of a scoring model, whereas AdPhos’ decision for a strategic alliance is confronted with all other feasible market entry alternatives. The hereby extracted results deliver information to the suitability of the chosen organisation form regarding the individual situation of the company and finally enable the derivation of appropriate recommendations.

Inhaltsverzeichnis (Table of Contents)

• Part 1: General Introduction and Theoretical Context
  • Chapter I: The Discussed Topic
  • Chapter II: The Framework of the Thesis
    • Methodical Approach
    • Content Structure
    • The Boundaries of this Discourse
  • Chapter III: Introduction to the Case Study and the Writer's Motivation
• Part 2: Introduction to International Marketing
  • Chapter IV: The Trend Towards Internationalisation
    • Internationalisation of SMEs - Key Players in a Global Economy?
  • Chapter V: The Definition of International Marketing
  • Chapter VI: The Process of International Marketing
    • Market Entry Strategies - The Focus of this Thesis
    • International Marketing and its Link to International Strategy
• Part 3: International Strategy - Market Entry Modes
  • Chapter VII: Incentives to Go Global
    • Company Internal Factors
    • Company External Factors
  • Chapter VIII: International Corporate-Level Strategy and its Correlation to Market Entry Strategy
    • Multidomestic Strategy
  • Chapter IX: International Market Entry - An Overview
  • Chapter X: Three Chosen Focuses
• Part 4: Feasibility Study of the Market Entry Modes
  • Chapter XI: Introduction to the Feasibility Study
  • Chapter XII: Feasibility Study of the Market Entry Modes in Consideration of the Three Chosen Focuses
  • Chapter XIII: The Result of the Feasibility Study and Resume
• Part 5: The Asia-Pacific Market Entry of a German SME
  • Chapter XIV: The AdPhos Plc
  • Chapter XV: The Asian Coil-Coating Market A Short Digression
  • Chapter XVI: AdPhos' Market Entry into the Asia-Pacific Region
  • Chapter XVII: The AdPhos Plc. and Serwik Co., Ltd. in Bangkok, Thailand - A Strategic Alliance
• Part 6: Outlook, Evaluation & Resume
  • Chapter XVIII: Outlook
  • Chapter XIX: Evaluation of AdPhos' Market Entry into the Asia-Pacific Region

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis aims to provide a comprehensive analysis of market entry modes for small and medium-sized enterprises (SMEs) entering the Asia-Pacific region. It focuses on a German SME in the industrial goods business, analyzing its market entry strategy and evaluating the feasibility of different options. The key themes explored include: * **Internationalisation of SMEs**: This thesis highlights the increasing importance of internationalization for SMEs in a globalized economy. * **Market Entry Strategies**: The thesis examines various market entry modes and their suitability for SMEs, focusing on those relevant to the Asia-Pacific region. * **Feasibility Study**: It conducts a detailed feasibility study to assess the viability of chosen market entry strategies, taking into account the specific context of the case study company. * **Strategic Alliances**: The thesis explores the importance of strategic alliances as a market entry strategy, focusing on the case study company's partnership with a Thai company. * **Cultural Considerations**: The thesis acknowledges the importance of understanding cultural differences and adapting strategies accordingly when entering the Asia-Pacific region.

Zusammenfassung der Kapitel (Chapter Summaries)

This thesis is organized into six parts, each focusing on specific aspects of international marketing and market entry strategies. **Part 1: General Introduction and Theoretical Context** introduces the topic of internationalization and the framework of the thesis. Chapter I establishes the research question and outlines the key issues to be addressed. Chapter II provides an overview of the methodological approach, the structure of the thesis, and its limitations. Chapter III introduces the case study company, AdPhos Plc., and outlines the writer's motivation for undertaking this research. **Part 2: Introduction to International Marketing** delves into the broader context of international marketing. Chapter IV discusses the trend towards internationalization, highlighting its impact on SMEs. Chapter V defines international marketing and its key concepts. Chapter VI explores the process of international marketing, with a focus on market entry strategies. **Part 3: International Strategy - Market Entry Modes** explores the different market entry strategies available to companies seeking to enter international markets. Chapter VII examines the incentives for going global, including company internal and external factors. Chapter VIII explores the relationship between international corporate-level strategy and market entry strategy, discussing different strategic approaches. Chapter IX provides a comprehensive overview of international market entry modes. Chapter X focuses on three specific market entry strategies chosen for analysis in this thesis. **Part 4: Feasibility Study of the Market Entry Modes** examines the feasibility of different market entry strategies in the context of the case study company, AdPhos Plc. Chapter XI introduces the concept of a feasibility study and its importance in decision making. Chapter XII conducts a detailed feasibility study of the three chosen market entry strategies, considering the specific context of the Asia-Pacific region and the company's resources. Chapter XIII summarizes the results of the feasibility study and outlines the next steps for the company. **Part 5: The Asia-Pacific Market Entry of a German SME** focuses on the case study company's market entry into the Asia-Pacific region. Chapter XIV introduces AdPhos Plc. and its operations. Chapter XV provides a brief overview of the Asian coil-coating market. Chapter XVI examines AdPhos' market entry strategy into the Asia-Pacific region, focusing on the specific challenges and opportunities. Chapter XVII explores the company's strategic alliance with Serwik Co., Ltd. in Bangkok, Thailand, and analyzes its impact on market entry success. **Part 6: Outlook, Evaluation & Resume** concludes the thesis by offering an outlook for the future, evaluating the chosen market entry strategy, and summarizing the main findings. Chapter XVIII presents a forward-looking perspective on the company's future in the Asia-Pacific region. Chapter XIX provides a critical evaluation of AdPhos' market entry strategy, analyzing its strengths and weaknesses.

Schlüsselwörter (Keywords)

This thesis focuses on the themes of internationalization, market entry strategies, feasibility study, strategic alliances, and cultural considerations, with a specific focus on the Asia-Pacific region and the industrial goods business. Key terms include: SMEs, international marketing, market entry modes, export, joint ventures, strategic alliances, feasibility analysis, cultural adaptation, and Asia-Pacific market.

• Note: Sehr Gut
• Autor: Dipl.Ing.(FH) MSc. Thomas Andexer (Autor:in)
• Erscheinungsjahr: 2006
• Seiten: 168
• Katalognummer: V114088
• ISBN (eBook): 9783640143962
• ISBN (Buch): 9783640144075
• Sprache: Englisch
• Schlagworte: Analysis, Market, Entry, Modes, Asia-Pacific, Region, Thailand, China, Risk, Intellectual Property, Scoring Model, FH Steyr, University of Applied Sciences Steyr, Risk Analysis, Barriers, Strategic Model, Evaluation, Marketing, Country Analysis, Strategic Management, Core competencies, Import, Export, Expert, Diploma, Asia, Trade, East, Emerging Markets, Advantage, SME, German, Plc., Organization, Unique, Exceptional, Profitable, Management, Strategy, Mission, Vision, Model, Thesis