Essays on An Indicator of the Firms' Ability and Increase Their Market Share: the Firms Performance in the Global Market Research Paper
When having to enter a new market, firms internationally need to take into consideration a series of issues. Most commonly, the financial status of the firms is an indicator of their ability to increase their market share; however, there are also other criteria that can affect the firms’ performance in the global market. More specifically, the support offered by the firms’ shareholders, the funding by organizations in the private or the public sector and the brand name of the firms’ can be decisive criteria of evaluation of the effectiveness of a firm’s strategic decisions. Current paper focuses on the promotion of a specific product (ChocoBar, Levinson Sweets Ltd, UK) in the French and the Italian markets. Both these markets have been found to offer many chances for the particular product. However, Levinson Sweets Ltd is a firm with no experience in the global market; the firm has worked only within the borders of UK; in the past there were many chances for expansion in the global community but the risk of failure was an obstacle for the firm’s managers to take such a decision. Now, it seems that the conditions in the Italian and French markets are quite good for the promotion of products of foreign firms. Commercial legislation in both the above countries has been recently updated in order to attract the interest of foreign investors. The examination of the potential effectiveness of the specific strategic decision – promotion of ChocoBar in the French and Italian markets – leads to the assumption that the promotion of the particular product in these markets will be a challenging task – there are many chances for success but a few points need to be taken into consideration as explained in the section that follow.
Levinson Sweets Ltd was first established in London in 1989. Since its establishment, the firm has managed to achieve a continuous growth competing under equal terms with important firms in the industry – like Cadbury. Through the years, the need for update of the firm’s product range has become emergent; the firm’s strategic managers tried to identify the organizational weaknesses and strengths.
2. Chocolate bars – current British and international market
3. Screening for new markets – criteria
When the entrance of a firm in the international market has to be investigated, then there are specific criteria that need to be met. We could indicatively refer to the following ones: a) organizational culture, b) the firm’s financial status- ability to respond to the needs of a specific marketing plan, c) the cost of the marketing plan under examination, d) the performance of similar products in the targeted market, e) the local commercial legislation, f) the support offered to foreign firms that wish to enter the particular country.
3.1 Selling performance of similar products
In order to evaluate the selling performance of similar products, we should primarily examine a series of issues: a) is the product under examination innovative? The specific issue occurs especially in highly developed markets – like the Italian and the French ones – where the existence of substitute products has to be expected, b) are the products under examination similar in all their characteristics – or there is only issue of similarity in certain of their aspects, c) which are the market trends of the particular country? d) which are the criteria on which the selling performance is evaluated?
3.3 Status of local economy
3.4 Support of the state – funding and legislation
4. Screening for new markets – short-lists
4.1 High income countries
4.2 Low income countries
5. Screening for new markets – limitation of short-lists
5.1 The two most appropriate markets for promoting the specific product
6. Promotion of chocolate mar in the French and the Italian markets
6.1 Profitability of the chocolate bar in the French market
6.2 Profitability of the chocolate bar in the Italian market