BM 7037 International Marketing Assignment Sample

Module code and Title: BM 7037 International Marketing Assignment Sample

Introduction

As per the role of international marketing manager the assignment will discuss new market entry opportunities in South African Countries. Therefore, the report will be sent to the board of directors about depicting some factors that are the choice of market segments. Along with these opportunities to develop new markets in South Africa with their two threats will discuss. Later identification of relevant two market entry strategies is outlined with competitive measurement. The recommendation will give maintain the external and internal market sectors. After that brief on the impact of human rights and the COVID-19 pandemic is included to give the final solution to merging new market businesses.

Main body

1.0 Choice of the target market

One of the most popular rising markets on the planet is South Africa, which gives income with outstanding investments and quite well-mature banking infrastructures (Akhmetshin, et al. 2018). The consumer sector in South Africa is more regulated by the Reserve Bank of South Africa.

It has been considered a developing market since Africa possesses the money needed for such rapid developments of a stock market after the creation of a basic trade marketplace.

Large and located on the African continent would be South Africa. It is a success when it comes to market emerging since it is attractive, diversified, and smart. With a population of potentially 1 billion users, it is a major investment destination (Akhmetshin, et al. 2018). It is the point of entry into South Africa that gives the SA bordering it more new market opportunities.

It is a member of the BRICS bloc and has a fast-expanding middle class with rising purchasing power [refereed to appendix 1].

South Africa is effective for doing any kind of business entry segment as it is the top-ranking African country in the ease of conducting index of business, with a world-class banking industry and quite a better infrastructure to help corporate activity (Shankar, and Narang, 2020).

Not only that according to the collection of details it has been found that it is growing rapidly and catching up swiftly, and several of their marketplaces are growing their economies faster than the industrialized world. 5% GDP growth lies between 2013 and 2018 (Cilluffo, and Ruiz, 2019). Therefore, it will help to recover from the current financial crisis too. 11 African countries are expected to have growth of more than 6% in the year 2020, contributing to the continent’s anticipated 3, 8% yearly economic growth.

2 market opportunities

South Africa offers a plentiful workforce and has political and macroeconomic stability. It provides financial, legal, and telecommunication sectors that are highly developed (Medel, 2019). Therefore, in South Africa, major expenses are roughly half of what they would gain over their position in Europe. The law’s creation is to assist the development of skill and worker training, and expedited construction of centres that provides international training, which are ways in which the government provides the growth of the nation as a place to conduct international enterprise. The nation provides strong R&D capabilities, a stable manufacturing base, innovation, and first-rate infrastructure (Alam, Uddin, and Yazdifar, 2019). It is at the forefront of creating and implementing sustainable technology and industries. As a top location for organizational processes outsourcing, it seems to be well.
The government of South Africa assures can accommodate the unique investment and trade needs of prospective business investors (Maroun, and Cerbone, 2020). To promote commerce and trade activity, its region provides a variety of industry beneficial and fiscal incentives. It formed preferential trade relationships supporting domestic, and foreign enterprises and developed trade that was expressly designed to encourage the government’s degree of international economic growth (Siringi, 2018). It has been an ideal location for businesses in South Africa. These have first-rate tourism facilities, and a cutting-edge transit network as well as additional entry points and connectivity to more prospective markets inside the continent.

2 risks/threats in the South African new emerging market

A high employability rate can be merged with labour laws which will create problems in finding proper workers to innovate any kind of industry products. Governmental capital and operating investment have been drastically reduced since 2016, while the double deficit signals that the country’s economic fall may quicken in the near future due to seasonal, fundamental, and regulatory hurdles (Govender, and Jasson, 2018). Along with these issues of market, localization deals with management issues which will increase the cost and risk element of managers of foreign international markets for doing new market in South Africa is constantly changing by the government of South Africa.
Corruption and cultural differences are seen within the South African continent. The economic environment deals with the lack of educated labour in South Africa. Along with this language barrier has been seen which has diverse regional opportunities so far. Regulatory aspects and numerous political have a negative impact on companies overseas that are deliberating significant matters of concern (Meyer, and Pretorius, 2021). The pandemic of Covid-19 has released these issues worse, and they include accusations of governmental mismanagement, inadequate infrastructure, corruption rising unemployment, violent crime, and poor delivery of government service to vulnerable populations. The “State-Owned Enterprises” were damaged by poor management and corruption. Emergency plans are to deal with COVID-19 that have increased the higher GDP ratio and called into some typical questions that will deteriorate organizations’ new marketing more.

It has been seen that despite a continually rising rate of unemployment, it might be challenging to obtain competent workers in many professional and technical categories because of the status of the system of public education. After COVID-19 nominal unemployment rate is higher than 29%, but when those who stopped looking for work are included, it rises to 37% the regular way.

2.0 Identify two relevant market entry strategies

India

India needs a wide range of marketing tactics that take into account the many languages, geographical opportunities, cultural distinctions, norms, and industrial development levels. By forming a partnership with an Indian partner, global trade can begin to operate in India (Rao, Min, and Mastrucci, 2019). Indian market will be a south African competitive market which follows the same kind of multiple marketing entry opportunities and differences together.

Figure 1: Porter’s strategic planning (Source: Self-created)

According to the research, India outlines the necessary capabilities and products to reach or protect the goal of existing markets. In other words, a company strategy outlines the competitive edge that needs to be developed and sustained so at the level of offerings and resources.

A business can develop or retain a market advantage in a number of ways (Rao, Min, and Mastrucci, 2019). Conversely, a small number of fundamental company strategies developed from a classification of potential product differentiation are the focus of organization theory and strategy development practice. These are known as generic business plans or general strategic planning. The three fundamental competitive tactics, according to Porter, are differentiation, cost leadership, and focus.

Brazil

Brazil boasts the largest Latin American economy, a broad market, and numerous advantageous trade relationships that facilitate the integration and expansion of businesses.

As a manager of international marketing, the manager can show interest in the Brazilian market, as well as all of the usual importing channels, such as distributors, agents, and representatives (Ndlovu, and Inglesi-Lotz, 2020). Due to the size of Brazil, businesses must take into account important states and areas for exporting as they initially establish product offerings and a clientele there.

The creation of a business plan that is focused on Brazil and the readiness to forge close ties with significant partners and connections in the sector are additional crucial elements for success (Schwartz, Bar-El, and Bentolila, 2022). However, American goods are better described as being high-quality and trustworthy in Brazil, which makes it easier to meet external and internal partners and gives new exporters the chance to benefit from this image.

Recommendation market entry strategy

According to the author Schwartz, Bar-El, and Bentolila, (2022) the role of a “joint venture” should be demonstrated in a South African country which is more comparable to a contract created by two people or over who share a common interest or objective. Both are in charge of losses, profits, and expenses. Joint ventures would support increased internal factors like technology exchange, collaborative product development, and compliance with governmental regulations Schwartz, Bar-El, and Bentolila, (2022).

Joint partnerships also offer other advantages in maintaining the company’s internal factors, such as distribution networks and political influence, mitigating cultural distributions, import barriers, and government restrictions on “British ownership”. It will help to bring competitive interests that are different, the stated objectives of partners are to create a union. Whenever these partnerships are able to share knowledge and eliminate unnecessary capabilities to build connections with distinguished resources and market power from those of an industry leader.

Figure 2: Responsibility of Joint Venture (Source: Self-created)

To recommend direct exporting British companies should focus on maintaining their licencing policy and delivery strategy highlighting exporting factors. One of the most conventional and also well methods of entering international markets is by exporting. The advertising of products needs no direct manufacturing process that must be done in a foreign country, there seem to be major marketing expenses that must be made (Stoian, Dimitratos, and Plakoyiannaki, 2018). The direct export strategy will help the South African market in their direct sales to abroad customers also. Cost of exporting deals with lower costs therefore, it will boost entry modes of other business products by defining exchange rate currency [referred to appendix 2].

3.0 Impact of human rights and the COVID-19 pandemic on market entry strategy

During the pandemic South Africa constantly faced current financing lows, it deteriorates with 80 – 90% total trade-off. The COVID-19 pandemic will temporarily halt the development of South Africa. The uncommon “dual market correction” could cause significant ramifications across all worldwide financial sectors, adding insecurity to a country already struggling with pervasive political and financial instability. Mass industrial shutdowns with disruptions in supply chains were seen in SA (Meyer, and Pretorius, 2021).

Therefore, companies have to build a few strategies like technology manufacturing ways to strengthen the development of partners which will give the service of production more. Intra-regional trade must be increased to realize more opportunities for customer control product creation without non-traffic barriers. Therefore, it will be suggested that if the British organization will create a new market in South Africa it will lead to the effectiveness of entrepreneurship with remarkable ICT success too as employees have to work within this drastic situation of a pandemic.

The government’s SA response to the Covid-19 outbreak, severe inequality, unemployment, poverty, and corruption have all hindered South Africa’s efforts to strengthen the protection of economic and social rights. Many of the worst violence and looting in the county took place (Rao, Min, and Mastrucci, 2019).

According to the 2019 “World Report” on South African human right law, it will help to maintain poverty and corruption that can increase the level of unemployment further. Therefore, violence in crime will decrease, therefore, and the business climate will improve which will help to facilitate trade, skills for employees working, encourage market competition, etc. Not only will that it offer risk-taking experiments to improve the global market system (Siringi, 2018). Therefore, the potential for innovation will create a job role for South African people that can reduce poverty through service and goods commercialization.

Conclusion

The report has covered new market entrance potential within South African countries. In order to illustrate some of the elements that influence the selection of market segments, this overall discussion has been provided on the matter of the innovative production market. Additionally, the threats and opportunities for developing new markets in South Africa have been discussed. The recommendation has been kept both on the matter of developing new markets in the South African cultural context. Later in the final section of the report been discussed about the impact of Covid 19 and human rights in delivering a market entry strategy.

Reference list

Journals

Akhmetshin, E.M., Ilyasov, R.H., Sverdlikova, E.A., Tagibova, A.A., Tolmachev, A.V. and Yumashev, A.V., 2018. Promotion in emerging markets. European Research Studies, 21, pp.652-665.

Alam, A., Uddin, M. and Yazdifar, H., 2019. Institutional determinants of R&D investment: Evidence from emerging markets. Technological Forecasting and Social Change, 138, pp.34-44.

Cilluffo, A. and Ruiz, N.G., 2019. World’s population is projected to nearly stop growing by the end of the century. Pew Research Center, 17.

Govender, C.M. and Jasson, M.C.C., 2018. Measurable Operational Risk in Human Capital Development in the South African Service Sector. African Journal of Hospitality, Tourism and Leisure, 7(2), pp.1-16.

Maroun, W. and Cerbone, D., 2020. Corporate Governance in South Africa. In Corporate Governance in South Africa. De Gruyter Oldenbourg.

Medel, D., 2019. Essay on emerging markets (Doctoral dissertation, Thesis).

Meyer, J.A.M. and Pretorius, L., 2021. A systems thinkinpandem conceptual model for value creation in the african cement market. South African Journal of Industrial Engineering, 32(3), pp.10-18.

Ndlovu, V. and Inglesi-Lotz, R., 2020. The causal relationship between energy and economic growth through research and development (R&D): The case of BRICS and lessons for South Africa. Energy, 199, p.117428.

Rao, N.D., Min, J. and Mastrucci, A., 2019. Energy requirements for decent living in India, Brazil and South Africa. Nature Energy, 4(12), pp.1025-1032.

Schwartz, D., Bar-El, R. and Bentolila, D.J., 2022. Adapting Reverse Mentoring Strategy to SMEs: A New Pilot Model Implemented in Brazil. Sustainability, 14(15), p.9515.

Shankar, V. and Narang, U., 2020. Emerging market innovations: Unique and differential drivers, practitioner implications, and research agenda. Journal of the Academy of Marketing Science, 48(5), pp.1030-1052.

Siringi, E.M., 2018. Kenya-China Trade Relations: A Nexus of “Trade not Aid” Investment Opportunities for Sustainable Development. Journal of Economics and Development Studies, 6(2), pp.1-10.

Stoian, M.C., Dimitratos, P. and Plakoyiannaki, E., 2018. SME internationalization beyond exporting: A knowledge-based perspective across managers and advisers. Journal of World Business, 53(5), pp.768-779.

www.worldbank.org:// South Africa Economic Update: More Innovation Could Improve Productivity, Create Jobs, and Reduce Poverty. Available at: https://www.worldbank.org/en/country/southafrica/publication/south-africa-economic-update-more-innovation-could-improve-productivity-create-jobs-and-reduce-poverty [Accessed on: 20.11.2022]