Business Report- How to enter the Asian market with the Dyson Airblade
- Current market and financial situation
- Strategy approach - The STP Model
- Organization's resources & Capabilities
- Brand awareness
- Production Capacity
- Environmental tasks
- Economic factors
- Social factors
- Technological factors
- Political Factors
- Environmental factors
- Legal factors
- Market Entry Mode for South Korea
- Criteria for market entry mode
- Sum up
Dyson Ltd. is already exporting its products successfully to 49 countries with an increased turnover of 23% within the last year (The Telegraph, 2010). As a marketing consultancy we would like to present to you possibilities to stretch out to new interesting markets to keep on with this story of success. According to The Telegraph twice as much profits is attributed to Dyson’s international expansion in the last years. ‘The company, which recently developed the Airblade hand dryer, has pointed out that its high results in 2009 were due to international expansion and multi-million-pound investment in research and development’ (The Telegraph, 2010).
Analyzing the business environment by considering the external macro-economic factors as well as evaluating Dyson’s internal company potential, we can show you a way to enter the interesting market of South Korea for the Dyson Airblade™. As Dyson is already selling the Hand dryer successfully in Japan it also plans to expand in China and India. (The Telegraph, 2010) This shows that an expansion to Asian countries is reasonable and the right investment.
Due to its market leadership in UK, USA, Canada, Australia, France, Belgium, Spain, Switzerland, Ireland and New Zealand (GfK, 2010) and recent successful business figures, Dyson can rely on a strong financial basis. Through investing a remarkable amount of profits into the company to ensure a high range of innovation and expansion of the company , the management board has decided to grow internationally. Also the recent raise in debts by £350m to finance the expansion plans underlines the management’s strong wish to act globally. We would like to identify the best opportunities to reach this objective. On the basis of the onion model we will analyze the wider dynamic marketing environment Dyson is dealing with. We will pay special attention to those factors, which affect Dyson immensely. Developing a strategy to deal with those influences we will show opportunities and risks when entering a new market.
It is a challenge for Dyson to enter a new market, as it has some really large competitors such as whirlpool or Electrolux. In order to succeed, Dyson has to play on its core capacities and competences to create a diversification. These innovations seemed to work in Japan, which is the only Asian country where you can find their products for the moment. Dyson’s product bases itself on style and innovations as well as a different market target than its competitors. One of its main strategies is to create stylish expensive goods. The main question to ask before any implantation is; will there be any of the target market in South Korea? To answer those questions, a market research has been made for this assignment.
[...] Markets such as Hong-Kong, South Korea, and Singapore seem to be the more likely to market the Dyson Airblade Hand Dryer. Indeed, these markets have high GDP per capita and are well-developed countries. They are also ready for innovative and electronic products. 4.4 Political Factors The political factor is important for a company because the government is the strongest entity in a country. It influences the economy and decides which products it wants to import and sell. All the decision it makes can impact on the education, the health, or the infrastructure. [...]
[...] But once they had marketed the product well it became successful. They did this by advertising on TV and other appropriate marketing. To move into South Korea, Dyson would not have many problems. Finding distributors similar to DirectSeed Distribution (LLC) (Oklahoma City) who is a distributor of green and clean technology products. This is consistent with the Dyson’s hand dryer, because of its three basic characteristics: speed, less costs to run and the Most Hygienic Hand Dryer. 3. 2 Competitors China forced non-Asian companies to move their manufacturing to Asia, because of lower costs (ex. [...]
[...] Market Entry Mode for South Korea To enter a market, 3 essential questions have to be answered in advance: If you want to act internationally? – Where to act in global context? – How to enter the market? After deciding those questions, a marketing mix should be developed. As we are asked to design a marketing strategy for an expansion to Asia we will answer the crucial three questions, which are the most important ones. As we have seen, Dyson Ltd has a good financial and market basis to expand to other foreign markets. [...]
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