International Market Re-Evaluation

Table of Contents

EXECUTIVE SUMMARY 3

REPORT INTRODUCTION 4

MARKETANALYSIS

Political environment 5

Economic environment 5

Social environment 6

Technological environment

Competition Analysis, Strategic decision 7,8

International Market Re-evaluation

Executive Summary

Marketing analysis in a company is fundamental as it enables the stakeholders and the shareholders to get vital information that they can use in making decisions for the company. The information may also be used to make the company better. The first of the market analysis is to determine or establish the reason for the study. The aim is to get the essential information needed to take the company forward. The second step to look at the company’s outlook, whereby the PEST analysis comes in. The political, economic, social, and technological environments are appropriately analyzed. The third step is to pinpoint the target customers, whereby the people who come to buy or order the products should be known. The fourth step is to do the competition analysis, whereby the competitor’s firms’ strengths and weaknesses are known (Cutler & Campbell-Meiklejohn 2019). The fifth step is to Gather data from the lee kum kee company. The sixth step is to analyze the findings. For example, some of the findings were; the company’s technology should be improved to manufacture quality products, the subsidiaries in some of the countries are making a lot of losses. Then the last step is to put the analysis obtained into action.

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Report Introduction

International marketing is defined as the trade of goods and services in more than one country. Thecompany involved in international marketing uses the same planningprocedure, promotion, and distribution of products, and execution of rates worldwide. A company like LeeKum kee is an international company specializing in manufacturing various Chinese and Asian sauces. The company is headquartered in HongKong, and it’s a private company. Internationalmarketing provides a lot of benefits, like it raises people’s way of living. People can get jobs through the establishment of various company subsidiaries in different countries in the world. Marketing abroad is important because it increases the company’s market share, and it also gives the company an upper hand in terms of reputation. The international company also opens the door for better and profitable opportunities in the coming future. International marketing is affected by various factors, like internal and external factors. The international marketing environment consists of the internal, domestic, and global marketing forces that affect its international marketing mix (Ozturk et al. 2015). The manager of an international company like the lee kum kee needs to adopt a marketing strategy that suits its products and how it operates. The purpose of this essay is to bring on board the impact of coronavirus disease to lee cum company, perform a country market analysis using the PEST model, perform a competition analysis to assess the ongoing viability of lee kum kee company, and provide a justified market decision to the lee kum kee company.

Market Analysis

Market analysis is critical to every company for it to continue to perform to its best. Market analysis is vital in helping the company obtain relevant information about all the internal and external factors affecting them. The information obtained from the market analysis can restructure the company’s strategies and come up with better decisions that will enable the company to make a lot of profit. Market analysis is also critical because it involves a qualitative assessment of a particular market whereby it looks into the customer segments, its competition, and the economic environment in terms of the barriers they might have to the company (Cutler &Campbell-Meiklejohn 2019). A PEST analysis is a framework used by marketers to monitor the external marketing environment, which might affect the company like the lee kum kee. Pest analysis involves the political, economic, social, and technological environment.

 Political Environment

The political environment is very crucial when it comes to the area of international marketing. The stability of the involved governments in the countries where subsidiaries have been established is crucial. Thecountry’s policies towards the business should be considered in the evaluation of international marketing. Various factors like the trade and tariff policy, taxstructure, anti-trust, and consumer protection should all be considered when performing the international marketing analysis. Countries have different regulations in terms of their entry into their markets. Some have a unique tax structure that is very demanding (Cutler & Campbell-Meiklejohn, 2019). The lee Kum Kee company generally generates $46.67million in sales(Ozturk et al. 2015). The revenue therefore must have been affected by the coronavirus pandemic. However, when doing international marketing analysis, it is essential to consider coronavirus’s effect on the political environment. Coronavirus has led to increases in taxes. It has also led to a tight establishment of trade tariff policies.

Economic Environment

The economic environment is vital when it comes to the evaluation of international marketing. A country’s economy will inform an investor whether to spend his vast money or to move to another country.An economic environment is affected by different factors like inflation, interest rates of the specific country, exchange rate income distribution, and unemployment in a specific country. The developed countries’ whole world has a good chance of having investors in their countries (Ozturk et al. 2015). The presence of fast inflation rates and interest rates attracts many investors to invest in a particular country. Analysis of a particular country’s economic environment is crucial because it provides information on the country’s state, and one can know whether to invest in that country or not. Coronavirus has also affected the economic part of the businesses and countries. Acompany like a lee kum kee has been affected by the inflation rates and exchange rates manipulation.

Social Environment

              The social environment will also have an impact on investment in various countries. The attitude of the people in a particular country should be considered when evaluating a particular country. The characteristics of a country’s population, beliefs, and customstowards work are crucial things that should be considered when doing the market analysis. Thedemographics and the forecasts of the population growth in a particular country should be considered. Some of the social indicators are UNESCO, which offers statistical data and also the country profiles. Coronavirus has alsoaffected the social environment, affecting the people’s beliefs in their countries.Some of the customs cannot be performed due to the pandemic (Ozturk et al. 2015).

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Technological Environment

The technological environment affects raising or lowering some of the entry barriers into a particular country for investment. The technology involves issues like communication in a specific country. Theinternet, intellectualproperty, technology incentives, and technology growth rate in a particular country should always be considered. Some of the technical indicators are the global information technology report, which measures the network readiness, factors, and policies the information technology capacity in various countries (He et al. 2016). A lee kum kee is also affected by technology factors like the internet and communication infrastructure since it specializes in food manufacture. Coronavirus has also impacted the technology of various companies negatively. A company like a lee kum kee was affected by the pandemic because it could not operate. The machines and the developed technology infrastructure could not be used due to lockdown, meaning many losses were reported during the pandemic.

Competition Analysis

 Competition analysis is the process of utilizing competitive intelligence to develop the strengths and weaknesses of a company’s market place competitors. A company like a lee kum kee ought to perform a competitive analysis which will show the strengths and weakness the other companies have in terms of the food manufacture’s competitive analysis gives a general overview of what the other companies are capable of doing and also what they are not able to do. The information obtained in the competitive analysis enables the company to put more effort into the weakness of the other companies and also continue to embrace their strengths for better and good performance of the business is essential also for a company to know the type of competitors he or she is dealing with( He et al.,2016). There are direct, indirect, and replacement competitors in a market. For a company like a lee kum kee to perform best, it is essential to have the right marketplace. A company specializing in food manufacturing should always be located in an area where the population is very high. A city will be a good location for lee kum kee company. A competitive analysis procedure should be followed whereby a company like a lee kum kee should identify the top ten competitors, analyze and make some comparisons of the competitor’scontent, look at the social media analysis engagement of the competitors and identify areas of improvement in the company.

Strategic Market Decision

            The strategic market decision should be made regarding the present competitors, political, economic, technological, and social environment. Lee Kum kee is affected by all the external factors like the economic factor. Lee Kum kee company should develop a strategy the capitalizes on the weaknesses of the various competitors. The Green code, which emphasis upscale market operations, should be used. This is where the decision was taken should be to increase and intensify market operations. Forexample, the company still uses the old machines to manufacture their food products. Therefore, the company should ensure they use the new machines to manufacture the quality food products that the customer needs. The company should also continue to deliver the food products to its customers at their convenience. Thecompany should improve on the customer services were some of the competitors fail to do it well (Zhao et al. 2020)

References

He, X., Lin, Z. and Wei, Y., 2016. International market selection and export performance: a transaction cost analysis. European Journal of Marketing.

Ozturk, A., Joiner, E., and Cavusgil, S.T., 2015. Delineating foreign market potential: A tool for

international market selection. Thunderbird International Business Review, 57(2), pp.119-141.

Zhao, R., Xie, X., Li, X., and Li, G., 2020. Game-theoretical models of competition analysis and pricing

strategy for two modes for repairing damaged marine structures at sea. Transportation Research Part E: Logistics and Transportation Review, 142, p.102052.

Cutler, J., and Campbell-Meiklejohn, D., 2019. A comparative fMRI meta-analysis of altruistic and strategic decisions to give. Neuroimage, 184, pp.227-241.