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1、l introductionthe report is analysis some information about the pk electrics. the pk electrics was established in 1987 in ningbo, zhejiang province, china. and pk electrics was a national supplier of a wide range of electrical supplies. and increased their sales volume. distributed using specialist
2、retailers, department stores and outlets. or has used price-based promotions and set up a good image for quality and service. pk electrics has a young dynamic team of managers, and with rising economic growth. but over the last two years. the rate of growth decrease with sales. so, the pk electrics
3、will into the international market and broaden new market. improve their growth and business performance. l reason that pk electricsless competitionin the international markets, pk electrics faces to less competition (ppt p6). therefore, pk electrics obtain and expand the new market in the internati
4、onal markets. and increase their sales. in the china market, more and more companies into the electrical market, the electrical market is competitive and pk electrics face to more trouble in it. the sales of pk electrics began to decrease. no prospects in domestic marketno prospects for significant
5、growth in domestic market (ppt p6). in the pk electrics, over the last two years, the rate of growth has decrease with sales rising 5% and profits by 2% last year. an opportunity for pk electrics it is an opportunity for pk electrics to extend the life cycle of its products (ppt p6). the pk electric
6、s expand the new market in the international markets. and china joining the world trade organization in december 2001. this is a great opportunity about pk electrics into the international market. l sources of information that pk electricsprimary data- questionnairequestionnaire is use formal system
7、 of questions record the investigation content (). though the questionnaire, pk electrics obtain the information of the customers in abroad. the time and expenses are saving, and the labor power saving in the questionnaire. the result of questionnaire is quantification easily. the qu
8、estionnaire convenient for processing and analysis the statistics. and the questionnaire convenient for to implement and adjustment. the questionnaire can be to conduct large-scale investigation. primary data- observational methodobservational method is according to the respondents, the investigator
9、 to use their eyes or ears to survey firsthand, research and collect the material (). pk electrics should mission investigator to competitors in international market, observe the brand of goods, commodities packaging and sales volume. the use of observational method is more wide and
10、handy. it is a basic investigation method in primary data. the observational method is an observation in the natural conditions, can be to obtain vivid information. and the observational method is doing not need to conversation. the expense of observational method is cheap. the data of observational
11、 method is more objective, true and reliable. the observation is timeliness. and the observation can be collecting some unspeakable data. secondary data- world trade organization (wto)wto is an organization that intends to supervise and liberalize international trade (). pk electrics
12、 could understand some information of international market and to know the needs of customers in the world in wto. because wto has reciprocity, transparency, market access, binding and enforceable commitments, safety valves and non-discrimination. secondary data- governmentgovernment is the means by
13、 which state policy is enforced, as well as the mechanism for determining the policy of the state (). pk electrics could understand the policy of the country in government. because government can be issue useful information, pk electrics should according to the information to change
14、their marketing methods. l opportunities and threats that pk electricsthe plest analysis helps pk electrics obtain some opportunities, but the analysis has some threats too. opportunities the political is important for pk electrics. because the pk electrics entry into the international market must c
15、onsider to the local polity. some polities could give more opportunities to pk electrics in local market. increase their new customers and sales volume. in the technological, pk electrics has some advantages and characteristics in technological. for example, the price of products is low and has deve
16、loped a good reputation for quality and service. the advantages would help pk electrics develop a new market in international market. threatsthe legal influence pk electrics. the tariffs and non-tariff are one of the legal. the tariffs could affect pk electrics import, and the non-tariff could affec
17、t export. but the import quotas will limit the cost and total number, so the pk electrics export was limited. in socio-cultural, the language is a universal trouble. because in every country, the language is different. the pk electrics should have more difficulty with local customers or retail trade
18、r to communication. l pk electrics to select market in the process step 1the sources of information have two sources, primary data and secondary data. step 2the plest analysis helps pk electrics something in market. in the politics, pk electrics must consider the local political situation is stable
19、or not, and the local polity require to the new company of pk electrics. in the legal, the legal is some protectionist policies in country. and pk electrics should understand the economic constitution in local country.in the economic, pk electrics should consider the size and growth of population an
20、d the urbanization. in the social, pk electrics should consider the religious culture and language culture in local country. in the technology, pk electrics should has a good reputation and has a low price, or technique improvement in electric. step 3the michael porters five forces has five types. s
21、uppliers bargaining power, buyer bargaining power, potential entrants, threat of substitute and competitive rivalry (book p66). suppliers bargaining power: pk electrics through its ability about increases the factor price and decreases the quality of unit value, to influence the profits of pk electr
22、ics.buyer bargaining power: customers through their ability about demand a low price and require pk electrics to supply upper quality of products or services, to influence the profits of pk electrics. potential entrants: the new companies carry the new production capacity and new resources into the
23、electrical market. the new companies probable happen the competition about starting material and market share with pk electrics. it influence the profits have a decrease in pk electrics. threat of substitute: pk electrics and the company of other industry, probable due to its products is succedaneum
24、 in both sides, so pk electrics and the company to come into being a competitive practice. it influence the profits have a decline in pk electrics. competitive rivalry: pk electrics and other companies have competition in the electrical market. so companies would like its own products and services b
25、atter than other companies. in the process, must to come into being conflict. it declines the profits of pk electrics. step 4product is a good or service produced by human or mechanical effort by a natural process. in product, pk electrics should has a good quality of products and services. the desi
26、gn is new and unique. pk electrics has all kinds of products, not monotonic electric products. price a value that customers will purchase a good or service by money.in price, pk electrics should appropriate to give some discounts when customers expend. promotion is the companies in order to deliver
27、information of products, to persuade or attract buyers purchase goods of the company and run up to the purpose that to enlarge sales volume. in promotion, pk electrics could advertise or personal selling, and direct marketing. place is a location of the market and methods of distribution used in rea
28、ching it.in place, the factory of pk electrics should has a building in outskirts. and company should has more retail trader. pk electrics is wide in overlay area of the local city. l the modes of market entry available to pk electricsthere are two international market entry modes available to pk el
29、ectrics.exportingexporting is perhaps the most commonly used entry mode and the initial stage in the internationalization process for a majority of companies. but there are many different. these different modes are indirect exports, direct exports and service exports. in indirect exporting, pk elect
30、rics is not involved in the actual export process. have an export agent. for example, an export management company or an export trading company. the export intermediary can help pk electrics decrease risk in international markets. in direct exporting, pk electrics is firsthand find a foreign buyer f
31、or its products and make all arrangements to deliver these products to the buyer. in service exporting, all services rendered by residents to non-residents. therefore all expenditure by foreign buyers buy the products of pk electrics is regarded as part of the exports of services of that pk electric
32、s. overseas productionoverseas production is include producing goods in the host country, that the location of pk electrics. these modes are licensing, franchising and contract. the licensing is a agreement that the sale of knowledge, and make use of it. the licensing includes all kinds of arrangeme
33、nts in the contract where by pk electrics make use of their invisible assets to foreign companies in come back for royalties and payment. franchising is a form of market approach in which a company, the franchisor is grants pk electrics the right to do business in a particular way. contract manufact
34、ure is pk electrics agreement with a low-cost manufacturer in a high-cost country reaches to provide the products. l evaluate the methods of market entry available to pk electricsaccording to the definition and methods of exporting and overseas production, the franchising is better than other method
35、s. in the cost, the franchising is low. in the commitment, the franchising is high. in the control, the franchising is high. in the speed, the franchising is slow. in the risks, the franchising is low (book p110). the advantages of franchising are the franchising has a high level of control. in the cost and risks of franchising are low. has highly knowledge of business contact with market. the franchising protects the patents. the disadvantages of franchising are the franchising has some problems with local legislation. in the marketing packages has high cost to support franchise
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