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A Golden Opportunity: Exporting Easy Flame Barbeques to Arge

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on 3 May 2015

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Transcript of A Golden Opportunity: Exporting Easy Flame Barbeques to Arge

Case over view
Which mode of entry has Mariano chosen in this case?
How will economic and financial conditions impact on Mariano's success?
What are the important decisions Mariano needs to make in formulating an export marketing strategy?
Questions:
Discuss the advantages of internationalization
A Golden Opportunity: Exporting Easy Flame Barbeques to Argentina?
Advantages
More control on product distribution
No manufacturing cost
Direct contact with local market and values
Opportunity to increase profit share.
Disadvantages
High financial risk
Barrier and tariff
Cost of market assessment
Legal Accountability
Risk of withdrawal
Other possible entry modes
Internet
Joint venture
Franchising
Licensing
Contract manufacturing
Decision 1
Decision 2
Decision 3
Indirect export
Internationalization:
Designing a product in such a way that it will meet the needs of different consumers in different countries or is easily adapted to do so.
Advantages:
Access to new markets
Access to valuable production processes
Control over operations
Avoidance of tariffs and other barriers
Networking
Collaboration
Product extension or adaption
Launching new products
Mariano is looking to export a brand of gas powered barbeques from Australia to Argentina.
The Argentinean economy has been in crisis but has turned around in the last year.
There are three gas models offered under the Easy Flame brand name.
Australia is increasingly exporting manufactured products.
Mariano has several concerns about exporting
Current Economic and Financial Status of Argentina
Characterized by natural resources
Second year of economic decline in 2015
Branded by high inflation, strong government intervention, unstable regulations, and excessively high taxes
High inflation and weakening government finances
In which other countries can you see Easy Flame Barbeques being a success?
How is Mariano going to internationally segment the market and who is the target market?
Which positioning approach will Mariano use in the marketing strategy?
How will Mariano analyse the competitive structure of the industry?
Economic and financial conditions impact
Different stages of economic development
Import-export trade
Inflation rate
Intellectual property
Do you think Easy Flame Barbecues will be successful?
Why/why not?
Should Mariano have chosen a different entry mode? If so, which mode, and why?
Full transcript