Market Entry Strategies For Guest Tek Marketing Essay

October 5, 2017 Marketing

Guest Tek ‘s chief selling scheme is its international enlargement. It is proved by its assorted path records on the planetary graduated table. It has both direct and indirect selling ; its direct gross revenues force is positioned in assorted locations of their international markets. It has been attracted most of the major international hotel trade names by supplying better services in footings of procurance, execution and post-sale client support. International selling provides a company more chances to transform their cognition around the Earth and through which its endurance and growing. International selling scheme helps a house to vie efficaciously in the planetary markets. Today, as internet entree is increasing worldwide Guest Tek ‘s High velocity cyberspace services in the cordial reception industry of class is supplying high category services to its clients. Marketing scheme plays an of import function in international selling it is non that much easier as in a house ‘s place state. For selling in a foreign state it needs to understand the assorted types of environments that exists in that state such as technological, economical, socio-cultural, political environments.

Market Entry Schemes

Once a house decided to come in in to a new market it has to choose an appropriate scheme for the intent of effectual concern activities. Some of the more normally used market entry schemes are Exporting, Licensing, joint venture, Franchising, contract fabrication and service proviso, and puting up of a entirely owned subordinate. Three different entry schemes that can be suited for Guest Tek to come in in to African market are Joint Venture, Franchising and puting up of a entirely owned subordinate.

Joint Ventures

Joint venture is an understanding formed by a foreign company and a company in the host state in order to bring forth and administer together. It requires equity engagement so the chief job associated with the joint venture is acquiring a right spouse ( Volker, 2009 ) . It can be any relationship, where two or more concern entities with their combined attempts and assets for making a new entity. If the spouses can non understand each others civilization, they do non hold a common linguistic communication, common purposes about the result of joint venture the opportunity for a successful joint venture is less. Some of the aims of the joint venture can be achieved to the full, some may be merely marginally, and some others are non at all achieved. The joint venture needs the engagement of both of the companies in the procedure of determination devising, aims puting, be aftering procedures etc. A joint ownership venture may be involved more than two parties like public engagement, or partnership with the authorities that will be utile for acquiring favourable interventions from the authorities organisations ( Charles, 2000 ) . The chief advantage of this joint venturing scheme is that through this a house with merely limited resources can easy come in into more foreign markets than in puting up of a entirely owned subordinate. Joint venture with local houses has certain other advantages as the local spouse may be in such a sort of place to cover successfully with the authorities ( Julian, 2005 ) . Sometimes both the spouses engaged in a joint venture will be dominant market participants so besides the joint venture scheme will go successful. The major hotel trade names in South Africa will be good for Guest Tek as these advanced technological systems are non familiar at that place, it will be more attractive for them.

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Franchising is an understanding between the franchiser and franchisee. Franchiser sells the rights to utilize its trade name name to the franchisee and the franchisee has to pay a ball amount sum and the portion of its net income ( Robert, 2002 ) . The chief advantage of franchising that the franchiser does non hold any hazards related to the costs involved in the development and enlargement in to a foreign market. If a company wants a speedy enlargement with low capital investing franchising will be the best manner of entry. Other advantages of franchising are the franchiser has the cognition from the local market, and about the capital and engagement of the direction of the franchisee ( Morrison, 2000 ) . The franchiser may hold some control over the franchisee. There are besides certain disadvantages the of import among them is the trouble of quality control. There should be consistence in the quality degree from the portion of franchisee for doing success globally. The franchiser should give full support by giving sufficient preparation on how to run the concern, assisting in puting up the concern, and giving all the on-going advices. Franchising enables an organisation to turn more quickly than any other method and from a socio-cultural position ; it helps in making employment, net incomes and entrepreneurships in the expanded market. Guest Tek through following a franchising scheme can portion its technological cognitions and architectural designs, rational belongingss etc ( Sidhpuria, 2007 ) . The enterprisers with higher dreams and money at interest may take much more attempts in the running of the concern and hence will bring forth greater consequences than an employee working for a salary ( Joe et al. , 2006 ) . Franchisors will non turn if the franchisees are non doing money and non accomplishing great consequences. Therefore the franchiser should hold involvement in assisting the franchisee in going profitable but they do n’t hold any duties towards the franchisee if it fails.

Puting up of a entirely owned subordinate

Wholly owned subordinates means the operations in a host state that are to the full owned by a foreign state. It is hard to keep a significant market in a foreign state without holding a physical presence in that market ( Francis, 2007 ) . The chief advantage entirely owned subordinate is that it provides full control over the production, distribution and quality control. It avoids more hazard than that of joint venture and franchising. The disadvantages of this scheme are sometimes the cost of production in the foreign market is high and there may be jobs like limitations sing the type of engineering, non-availability of skilled labour, infrastructural jobs. If the market size is little, a separate unit will be wasteful. For this type of scheme the company needs sufficient fiscal and managerial resources. The scheme of entirely owned subordinate as it includes assorted stairss such as geting store locations, doing a PEST analysis, the authorities policies sing these types of organisations etc ( Meyer, 2007 ) . Therefore, this scheme is more clip consuming or it has merely a really slow market entry velocity. Sometimes the costs involved in procurance, execution and planing etc. will be higher in the foreign market than in the local market. So the company has to bear all these costs by itself in this manner of entry scheme. In some of the states there may be limitations in instance of to the full owned subordinate or it may non be favourable to some states peculiarly in some low precedence countries.

Market Entry Strategies for Guest Tek in South Africa

Guest Tek Interactive Entertainment Ltd, as it is financially sound organisation and Africa is such a large market it can choose one of these three market entry schemes of joint venture, Franchising and entirely owned subordinate. The other market entry schemes such every bit such as exporting, licensing, contract fabrication etc are non suited in the instance of Guest Tek as it is non a mere merchandise fabrication organisation. Guest Tek is a managed service suppliers and the demand of exporting, contract fabrication are less in instance of Guest Tek. Joint venture scheme can be utile if the company is successful in acquiring a right spouse from the local market as it enables the company to do a move in that market. The company can besides utilize this scheme because the company is non that much aware about the political and socio-cultural environment in the African market. So through joint venture the company can set up its market in Africa with maximal local support. With respects to other factors, for illustration, linguistic communication barrier is non at that place as the Guest Tek provides client support installations in three linguistic communications ; English, French, Spain that are normally used in Africa. As Guest Tek is a managed service suppliers the company can utilize this joint venture for merchandise distribution and client service individually.

While sing the instance of puting up of a entirely owned subordinate, the company as it has sound fiscal and managerial resources it will besides be a suited scheme of marketing entry. Guest Tek in all of its international markets provides high quality client service with its high quality merchandises. For retaining its quality in all these operation, the company can utilize this system of market entry scheme. As the company is holding complete control over its major maps such as web design, procurance, execution, station sale client support it can do a successful market enlargement in Africa. The company can besides utilize the market entry scheme of franchising. Franchising can be another efficient manner of scheme for the company to come in in to the African market. The African market is holding a really broad web planing companies in South Africa but they are missing these systems such as HD-video-on-demand, IP services such as Voice and Converged Media ( IP Telephony ) etc. Some of the IT companies are supplying high velocity cyberspace installations and web planing but these techniques are non that much familiar in Africa. Franchising can be more economical and efficient market entry scheme for Guest Tek for come ining in to the South African market. As the company needs a speedy enlargement, it can non travel for puting up of a entirely owned subordinate and it involves more hazard compared to franchising.


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