The globalization of today’s market place has been subject to great attention. Whether or not a company participates directly in international business, hardly anyone can claim not to be involved in any way in the global market place. In fact, due to saturation tendencies in the domestic market, the dependency on international customers as well as the ever increasing pace of global competition, nearly all companies of any size and business level are faced with the impacts of the world market. Their performance, however, differs significantly. Especially for SMEs foreign expansion is the main challenge; minor foreign market knowledge, inexperienced staff and the dependency on day-to-day operations limit the possibilities for a systematic approach to foreign markets.
In the literature of international marketing and management there is a variety of theoretical approaches concerning the process of internationalisation respectively the entry into foreign markets as well as market development. However, in many cases especially Small and Medium Sized Enterprises (SMEs) fail to interpret the theoretical approaches according to their needs and thus are confronted with a considerable gap between theory and their business reality.
Being employed in a SME myself missing strategic planning and emotional decision-making has indeed been a part of my work experience during my cooperative studies. In my company I am now responsible as Area Sales Manager for the Scandinavian region, Austria and the United Kingdom and it will be my task to correlate the indications of theory with the necessities of the specific internal reality of my job assignment. As the company has started to re-organise export activities, the development of the British extraction technology market is a given task and at the same time the subject of my dissertation.
Outline
1. Introduction
1.1 Problem Definition
1.2 Objective
1.3 Methodical Approach
1.4 Definitions & Explanations
2. Theoretical Framework
2.1 Basics
2.2 Fundamental Elements
2.3 Integrated Strategic Planning – An Illustration
3. The Market Development Process
3.1 Targets
3.2 The British Market - Macro Surroundings
3.2.1 Market Characteristics
3.2.2 Politics
3.2.3 Regulations & Standards
3.2.4 Industry
3.3 The Extraction Technology Branch – Micro Surroundings
3.3.1 Market Size & Demand
3.3.2 Authorities Affecting Demand
3.3.3 Competitive Surroundings
3.3.4 Existing Distribution Standards
3.4 ESTA – A Characterisation
3.4.1 Company Profile
3.4.2 Products
3.4.3 Current Activities within the UK Market
3.5 SWOT Profile – An Interim Conclusion
3.6 Strategy Selection – Theory and Classification
3.6.1 Corporate Level
3.6.2 Business Unit Level
3.6.2.1 Generic Business Strategies
3.6.2.2 ESTA’s Business Strategy – Domestic and Abroad
3.6.3 Functional Level
3.6.3.1 Basic Marketing Strategy
3.6.3.2 The Marketing Strategy Path For ESTA
3.7 Marketing Planning – Basic Considerations for Implementation
3.7.1 Identifying Market Segments and Target Customers
3.7.2 Formulating a Product Strategy
3.7.3 Setting A Price Range
3.7.4 Establishing Distribution
3.7.4.1 Finding & Selecting Potential Sales Partners
3.7.4.2 Establishing a Relationship
3.7.5 Promoting the Development
3.7.6 Short – Term Schedule & Budget Estimation
4. Conclusion
Objectives & Topics
The dissertation aims to provide a systematic, practical approach for the SME 'ESTA GmbH & Co. KG' to successfully develop its presence in the British extraction technology market by bridging the gap between strategic theory and operational reality.
- Strategic market analysis (macro and micro environment in the UK)
- Company-specific SWOT profiling and internal analysis
- Strategic planning models and strategy selection for internationalization
- Development of an operational marketing concept (distribution, pricing, promotion)
- Practical guidelines for finding and establishing partnerships with local distributors
Excerpt from the Book
3.7.4 Establishing Distribution
Having referred to the relevant aspects of segmenting the market, formulating a product strategy and suggesting on prices, yet, the greatest challenge for ESTA is to find the right partner in the UK. Selling extraction technology requires profound customer knowledge and comprehensive service. Overall it requires a real relationship with the market. In contrast, the company has chosen an indirect way of selling to the UK. Despite all the advantages of exporting to distributors such as limited risks and financial needs the disadvantage is mainly that ESTA is at the “mercy” of foreign distributors.
There are existing export partners in the UK but their performance remains unsatisfactory and there is no evident indication for a sales effort that justifies a stronger support by ESTA. Indeed, the main challenge is to find potential distributors that can be set above the existing contacts to serve them but more important to build up the market on a larger scale by being more aggressive, more focused and more reliable to ESTA.
This includes offering a comprehensive sales and service structure as well as the willingness to build up specific market knowledge in terms of customers, competitors and overall market trends and demands. Thus, the following section takes a look on the alternatives within direct export and provides a hands-on approach on how to successfully find, select and treat potential candidates for the sales task as described above.
Summary of Chapters
1. Introduction: This chapter defines the problem, the objective of market development, the methodical approach, and provides essential definitions for the research.
2. Theoretical Framework: This section establishes the scientific basis by explaining the strategic planning process and the interdependency of corporate, business unit, and functional levels.
3. The Market Development Process: The main section of the paper, covering macro/micro analysis of the British market, internal company characterization, strategy selection, and practical marketing implementation steps.
4. Conclusion: The final chapter summarizes the findings and highlights the necessity of structured strategic planning combined with a courageous approach to international markets.
Keywords
Market Development, Extraction Technology, International Marketing, SME, Strategic Planning, British Market, Distribution, SWOT Analysis, Differentiation Strategy, Export, Industrial Air Pollution, Sales Partners, Marketing Mix, Competitive Advantage, ESTA.
Frequently Asked Questions
What is the primary focus of this dissertation?
The work focuses on developing a systematic and practical market entry and development concept for the German SME 'ESTA GmbH & Co. KG' specifically for the British extraction technology market.
What are the main thematic areas covered?
The themes include the analysis of the British economic environment, industry-specific market conditions, strategic planning methodologies, and the operational implementation of marketing and distribution strategies.
What is the core objective of the research?
The goal is to transition the company from random, opportunistic export activities to a strategic, focused market presence in the UK through professional partner selection and marketing.
Which scientific method is applied?
The author uses a strategic planning approach, integrating macro/micro environmental analysis (SWOT) with hierarchical strategy models to derive concrete operative actions.
What is discussed in the main part of the work?
The main part analyzes the UK as a target market, characterizes ESTA's internal capabilities, selects a differentiation strategy, and provides a schedule/budget for implementation.
Which keywords characterize this work?
Key terms include Market Development, Extraction Technology, International Marketing, SME, Strategic Planning, and Distribution.
Why is the British market considered a challenge for ESTA?
ESTA faces challenges such as low name recognition, the need for high-quality local technical support, and the limitations of its existing, underperforming distributor network in the UK.
What role does the COSHH regulation play in the market?
COSHH (Control of Substances Hazardous to Health) is a critical driver for demand in the UK, as it forces businesses to invest in extraction equipment to comply with environmental and work safety laws.
- Quote paper
- Thomas Drabner (Author), 2003, Developing The British Extraction Technology Market - Strategic Analysis and Concept for ESTA, Munich, GRIN Verlag, https://www.grin.com/document/53652
