Business Plan: International Business Strategy in Vietnam

Pages: 3 (965 words)  ·  Bibliography Sources: 3  ·  Level: College Junior  ·  Topic: Business  ·  Buy This Paper

International Business

Strategy in Vietnam

Based on the product life cycle, the sports equipment is in an incipient stage and this specifically restricts the strategy which can be selected to support its manufactory in Vietnam. In this order of ideas, the best means to identifying the strategy is that of assessing the nature of the product as well as the features of the market in which the product would be introduced, and then selecting the adequate strategy from the Ansoff matrix, which is depicted below:

In the particular case of the Australian organization entering Vietnam, the product is a new one, obtained through a new technology and a new manufacturing process which significantly reduces operational costs. At an overall level however, the product is already existent within the market in other forms. Nevertheless, for the purposes of strategy identification, the product would be perceived as a new addition to the market. Then, similar to the product, the market onto which the company would sell the item is also new in the meaning that the firm has to not yet sold any items in Vietnam. Given this context of a new product sold within a new market, the adequate strategy is that of diversification.

At a basic level however, in which the firm is now only interested in manufacturing and the sale of the products in Vietnam remains yet undecided, the entry strategy would the localization strategy. This virtually means that the company would make intense efforts to customize its products as well as its operations to the specific requirements of the Vietnamese market.

"A localization strategy focuses on increasing the profitability by customizing the company's goods or services so that they provide a good match to tastes and preferences in different national markets. Localization is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences and where cost pressures are too intense. By customizing the product offering to the local demands, the company increases the value of that product in the local market" (Hill and Jones, 2009).

As the company decides to implement a localization strategy in Vietnam, it finds itself in a situation in which it strives to increase its revenues through the manufacturing and potential sale of new products within a new market. The approach to this endeavor is however characterized by a series of elements, some of the most important of them being presented below:

It requires the commitment of the firm in efforts related to both products as well as adaptation to the foreign markets as well as legislation and labor force operations

It might imply that the company product efforts are outside the organization's core competence areas and also that the firm is unprepared to operate under the pressures of cultural differences.

Due to the need for a dual focus and the globalizing features, the localization strategy is extremely risky

In… [END OF PREVIEW]

International Business Foreign Direct Investment Project Thesis


Management Problem Identification Expanding the Business Overseas Research Proposal


Business Strategy Report for Nike Research Paper


International Business Law Research Proposal


Business A. What Are the Key Elements Term Paper


View 192 other related papers  >>

Cite This Business Plan:

APA Format

International Business Strategy in Vietnam.  (2011, February 4).  Retrieved August 18, 2019, from https://www.essaytown.com/subjects/paper/international-business-strategy-vietnam/1454649

MLA Format

"International Business Strategy in Vietnam."  4 February 2011.  Web.  18 August 2019. <https://www.essaytown.com/subjects/paper/international-business-strategy-vietnam/1454649>.

Chicago Format

"International Business Strategy in Vietnam."  Essaytown.com.  February 4, 2011.  Accessed August 18, 2019.
https://www.essaytown.com/subjects/paper/international-business-strategy-vietnam/1454649.