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Int’l Marketing Questions

XYZ president, Jane, is seeking to expand her company’s bicycle sales operations to include a European country in early 2022. A previous study had indicated that France, Croatia and Portugal as the top three candidate countries. Jane wants to act quickly while there are only a few competitors that approximate XYZ’s revolutionary braking technology. Jane has many questions and concerns that need to be resolved before XYZ can proceed with its market expansion.She is asking you as marketing vice president to provide answers to several key questions.

  1. First, Jane wants to know what XYZ is up against in introducing its bicycles into the European market. What inherent liabilities of foreignness does XYZ face against entrenched European manufacturers located in France. Page 8 second bullet
  2. Jane also wants to know what additions costs (price escalation) need to be added to her bicycles if they are exported.
  • Export Price Escalation If standard markups occur within distribution channels, lengthening the channels or adding expenses somewhere in the system will further raise the price to the consumer—a situation known as export price escalation. How can you use gap analysis to help Jane assess the potential demand for the foreign market? 37 and 40

  1. Question 3 . (typo because of weird format) How should XYZ go about the task of selecting among the three European countries? Comment on the use of scanning, weighting variables, matrices, etc. .Search for (Scanning search pg 10
  2. What value proposition could you use and who would be your likely target market?
  3. What factors should XYZ consider if it wanted to enter European market with a partner (which could include licensing, joint venture, distributors). Pg 25
  4. What marketing services could XYZ obtain from an outside vendor like Borderfree to more quickly sell its bicycles in each of the identified European markets?
  5. If Jane opens up store in Paris France with a strategy that is based on the superiority of the braking technology, she would like your advice on what type of employees she should hire (ethnocentric, polycentric and geocentric) and why? How would you employee hiring approach might change if Jane were to pursue a more local responsiveness marketing strategies?

Answer: The hiring approach should be hiring a polycentric staffing framework because it’s more suited for a local approach and makes sense for firms pursuing a localization strategy.

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