International business Essay
In today’s world, trade is increasingly global in scope. Customers and firms have access to markets and products in many countries which have resulted to international marketing. International market is a market where firms can trade across the border. Firms expand to operate at global level, and apply their marketing strategies and principles to win customers. Companies enter into global markets in different ways; selling directly (exports), opening overseas branches, using overseas agents or distribution channels, or joint venturing with other firms (Cateora, Gilly & Graham, 2002).
When a firm performs its activities, that direct its products to users in more than one country, there is global marketing. EBay is a firm that operates online dealing with auctions of services and its business model is suit to the net. EBay operates by giving out information via net and that’s where it gets its income i.e. it does not store stocks, sell or transport goods and services. The company has penetrated various markets successfully in the international level and among them being: England, France, Germany, etc. In Asian countries like China, Japan among other markets, eBay has failed to reach a recommendable success.
For a company to penetrate to international outlets, various decisions
Need essay sample on "International business"? We will write a custom essay sample specifically for you for only $ 13.90/page
To satisfy customers’ needs and the company to achieve its desired objectives, marketing tools need to be designed to suit competition and the aims of the business (Sinkovics, Gilly & Ghauri, 2009). Many companies have seen Asia as very profitable and important market but Ebay was unable to control its marketing mix to penetrate. The major problems faced by eBay in Asia were; the four global marketing mix concepts, method of entry, entry decisions, but the biggest problem was on cultural differences between Asian and American countries.
International business products need to suit needs of a customer. Products are either physical or offers on parts of services to a consumer. Ebay needed to offer products and services which would satisfy customers in Asian markets.
Prices should take profits margin and the reactions of competitors. Ebay was faced with stiff competition in Asians market especially from China and Japanese firms e.g. yahoo from Japan (Mangalindan, 2006).
Ecommerce environments differ from one country to the other, place of marketing your products is associated with distribution channels and the environment in which your target market operates. Thus products should be available at the place where environment suit firms’ operations.
Promotion decisions are very important because they make aware the targeted customer of the available products, places, and the price of such products. It entails communication and selling products to the potential customer and in many firms, it makes the largest portion of costs.
From the case of ebay in Asian market, international marketing / business pose a lot of challenges to a firm. Thus, a firm should minimize its threats of competitions by controlling its marketing tools to suit needs of the targeted market. Use of appropriate marketing mix i.e. four p’s of marketing, in international business is very important.
Cateora, P. R., Gilly, M.C. & Graham, J. L. (2002). International marketing. Irwin McGraw-Hill, Boston.
Mangalindan, M. (2006). China May Be eBay’s Latest Challenge as Local Rivals Eat Into Market Share, Wall Street Journal, New York, N.Y.; October 12, 2006
Sinkovics, R. R. & Ghauri, P. N. (2009). New Challenges to International Marketing: Advances in International Marketing. Emerald Group Publishing. West Yorkshire.