nubes tech global market expansion

Market GlobalizationStudy of Expansion in to Foreign Markets

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012This presentation is the intellectual property of the preparers.

Business entities, trademarks and ® are fictitious.

Team Presentation

Prepared by:

John HansenMark Hazaert

Linda Soukhaphaly

MIB560 International BusinessDr. Andrew Fleck

Concordia University Wisconsin

Agenda

Outline

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

• South Africa• Introduction• SWOT Analysis - Product, Price, Place, Promotion• Recommendation

• South Korea• Introduction• SWOT Analysis - Product, Price, Place, Promotion• Recommendation

• Thailand• Introduction• SWOT Analysis - Product, Price, Place, Promotion• Recommendation

• Conclusion• Questions

South Africa

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Source: http://www.state.gov/p/af/ci/sf/

Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_South_Africa.svg

South Africa

Introduction

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

• 50 million people

• 470,693 Sq. Miles

• World leader in Platinum, Gold and Chromium

• GDP $554.6 Billion, $10,486 per capita (in US $)

South Africa

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Product

Strengths More value-added features

Weaknesses Delivering customized product direct to consumer

Opportunity Increasing infrastructure development

Threats Improper fit for current market habits and trends

South Africa

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Price

Strengths Moderately priced against comparable competing units

Weaknesses Weakness of Rand against U.S. Dollar

Opportunity U.S. discussions with Southern African Customs Union

Threats Fluctuating currency concerns

South Africa

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Place

Strengths Growth of supermarkets and hypermarkets

Weaknesses Marketing experience to culturally diverse demographics

Opportunity Underserved market

ThreatsProduct Theft, counterfeiting, and grey-market distribution

South Africa

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Promotion

Strengths Established web presence in domestic market

Weaknesses Minimum local adaptation strategy

Opportunity Growing trend in eCommerce

Threats Current buying habits of South African consumers

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

South Africa

Recommendation

Not to proceed with this effort

PRIMARY FACTORS

• Minimum local adaptation

strategy

• Comparative cost of laptop

to average household

expenses

• Laptop computing does not

match consumer demands

• Increase of non-PC devices

Final Recommendation is:

Recommended Strategy

Tablet Product Introduction

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

• Product fits corporate strategy

• Transnational strategy• Centralized production and R&D• Decentralized service, support and marketing

• Greater profitability potential

• Positions company for sustainability and future trends

South Korea

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Source: http://www.state.gov/p/eap/ci/ks/

Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_South_Korea.svg

South Korea

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Introduction

• 48.8 million people

• 38,023 Sq Miles

• GDP $1.46 Trillion, $30,000 per capita (in US $)

• Main industries: Electronics, Telecommunications, Automobile

South Korea

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Product

Strengths Tech savvy people

WeaknessesLanguageUnneeded memory

OpportunityEducationGaming

Threats Mobile devices/Tablets

South Korea

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Price

Strengths High price point

Weaknesses No distinguishable difference

Opportunity Free trade agreement with US

Threats Free trade agreement with China

South Korea

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Place

StrengthsLarge CitiesInfrastructure

Weaknesses North Korea

Opportunity Production Facilities

Threats LG/Samsung

South Korea

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Promotion

Strengths High internet usage

Weaknesses Not a Korean product

OpportunityEducation systemCredit

Threats After sale service, word of mouth

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

South Korea

Recommendation

Final Recommendation is:

To proceed with this effort

PRIMARY FACTORS

• Great price point

• Free trade agreement

• Strong economy

• Great market

• Possible production facilities

• Excellent infrastructure

Entry Strategy

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

• Exporting first then establish production in country

• Transnational strategy• Centralized production and R&D• Decentralized marketing and operations

• Marketing strategy• Local marketing firm• Internet/Gaming/Education

• Localization• Keyboard• Hardware

Thailand

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Source: http://www.state.gov/p/eap/ci/ks/

Source: http://www.newworldencyclopedia.org/entry/Image:Flag_of_Thailand.svg

Thailand

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Introduction

• 198,115 Sq Miles

• 69.1 million people

• GDP $326.6 Billion, $9,700 per capita (in US $)

• Main industries: Tourism, Garments, Textiles, Tobacco, Agricultural

Processing, Cement, Jewelry, Electronics

Thailand

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Product

Strengths Installed operating system

Weaknesses Consumers are use to Linux

Opportunity

BusinessesEducationInternet infrastructure

Threats Tablets

Thailand

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Price

Strengths High price point

Weaknesses Strengthening Baht against Dollar

Opportunity Hot commodity

Threats Income inequalities

Thailand

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Place

StrengthsNo existing full assembly plantsUntapped markets

Weaknesses Several competitors in the market

OpportunityEducation/ SchoolsPossible manufacturing plant for domestic consumption

ThreatsCompetition with Singapore, Malaysia, Philippines and ChinaIncreased labor wages

Thailand

SWOT Analysis

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Promotion

StrengthsCustomization at low costsInclude Microsoft operating system

Weaknesses Saturated Market

Opportunity

Green technologyE-commerceEducation system

ThreatsCompetition with Singapore, Malaysia, Philippines and China

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

Thailand

Recommendation

Final Recommendation is:

To proceed with this effort

PRIMARY FACTORS

• Great relationship with Thailand

• Growing economy/ infrastructure

• Untapped markets

• Existing manufacturers of

computer components

• No existing plants to complete

product assembly

• Increased disposable income

Entry Strategy

NUBEStech® Electronics Division - International Market Expansion Study, February 27, 2012

• Transnational strategy• Centralized R&D• Decentralize marketing and operations

• Wholly Owned Subsidiaries• BOI (Board of Investments) for FDI• Build manufacturing plant in strategic location• Create logistics strategies domestically• Customization strategy• Localization

Conclusion

NUBEStech® Electronics Division - International Market Introduction Study, February 27, 2012

South Africa• No Go with laptop computer

•Recommend R&D of tablet computing device

South Korea• Go

•Export at first then produce locally•Transnational structure with centralized R&D and production•Localization strategy

Thailand• Go

•Transnational strategy with decentralized marketing•Wholly Owned Subsidiaries Mode of entry•Capitalize on BOI and treaty incentives

NUBEStech® Electronics Division - International Market Introduction Study, February 27, 2012

Market GlobalizationStudy of Expansion in to Foreign Markets