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ABD’s product readiness to export
Evidently, ABD’s products are in a state of readiness to begin exporting to Europe. The success of the company in the United States suggests that the speedheals could hit the European market. The major reason is that consumer behaviors within the two regions are almost similar.
Besides, the economic state, legal requirements, and technological advances in many European countries reflect the United States. It can be argued that the consumption rate of and demand for healthcare products in Europe are relatively high. Additionally, the innovative nature of ABD products suggests substantial success in the European market. According to the case, none of the competitors has achieved the level of innovation associated with the speedheals.
The competitive advantage is likely to move European consumers especially because the products apply to the critical issue of healthcare. Moreover, the cost of the speedheals is quite acceptable in Europe and refining the cost as expected would be a great attraction to cost-sensitive consumers.
Likewise, the ABD’s products are ready to export to the emerging markets such as China, India, and Brazil. These markets are characterized by rapid economic growths and high consumer expectations.
Triggered by technological advances, the economic growth is compelling consumers to change their preferences towards the technology world. They are looking for chances to orient, adapt, and use new technologies as a way of improving lifestyles. Health is the priority for these markets and technological advances within this area are embraced.
The key factor that triggers demand for ABD’s products in foreign markets is innovation. Despite being superior to other competitors, the innovation increases convenience in transportation, use, and disposal. Cost and after-sales service are other factors that influence demand for speedheals in foreign markets.
Consumers out there expect to be given value for their spending. The value is reflected in the applicability of ABD products since speedheals satisfy a fundamental need that cannot be assumed by anybody despite the cost or complexity.
ABD’s management readiness to export
ABD’s management possesses the appropriate knowledge, skills, and capabilities to start exporting. Besides Richard Bentley exhibiting tremendous leadership skills and knowledge in management, the management team consists of individuals with diverse experiences. Some of them have worked extensively in foreign markets.
The team understands and acknowledges the important aspects surrounding internationalization such as competition, legal responsibilities, customer needs, and appropriate markets. They have ample knowledge about the foreign markets and the competitive advantage that can be capitalized. Therefore, they are strategy-oriented and risk takers. The management has the capacity to develop and implement strategic plans such as training and cost estimation that ensure a strong position in the international market.
Their strategies are targeted and benchmarks for achievement put in place indicating critical understanding of organizational goals. ABD’s management understands the operations relevant to internationalization such as inventory management, logistics, and marketing. The team is able to align company resources with strategy demands in a manner that reduces cost significantly.
However, ABD’s management should be systematic when preparing the firm, managers, and employees to internationalize. The first step is to assess the international environment and specify the markets to target. The evaluation will enable the management to identify the best entry strategy and the specific areas that require improvements.
Another critical step is to create an organizational culture such that the export initiative can be embraced. The step can be achieved through initiatives like training on foreign operations. Expatriation will be part of the strategy hence issues like cultural shocks must be addressed at this stage. Internal communication is essential as it reveals the strong and weak areas. For this step, it would also be important to expand the workforce and accommodate the new tasks arising from the initiative.
Secondly, the management should focus on expanding production capability and establishing new partnerships and acquaintances in order to meet the demand out there. It is also essential to set up new channels of distribution and communication to shore up the processes within. Prior to implementation, it is important to allocate responsibilities according to the capability of each employee.
ABD’s task accomplishment
According to “Key Tasks in Global Marketing Opportunity Assessment”, ABD has accomplished most of the tasks manifested in the self. For task one, the organization has analyzed its readiness to internationalize in terms of both the products and management.
The evaluation has considered the financial and resource capability, skills and competences, and the commitment of the senior management in the best way possible. For task two, the management has assessed the products readiness to export. However, the assessment lacks comprehensive analysis of the competitors’ products especially the characteristics that attract customers in foreign markets.
Apart from the weaknesses of the products, the management knows little about the positive side of these products. For task three, ABD management’s understanding of the target markets is vague. The firm understands these markets only in terms of consumer characteristics. There is little understanding of the impacts of politics, economy, infrastructure, market size and growth, and international relations.
Task three is well accomplished by ABD management particularly on the area of international standards and regulations. The company has assessed the degree of competition appropriately as well as consumer behaviors in the foreign markets. ABD does not accomplish the selection of qualified business partners properly.
The company only highlights the need to establish new business acquaintances with emphasis on inventory management and distribution. Indeed, the firm lacks a clear selection of the partners that might satisfy the demands associated with internationalization such as outsourcing services. Task six is accomplished especially on the area relating to competition and distribution accessibility.
However, little is estimated on pricing and financing in regard to target markets. The company needs to identify the sources of funds and resources as well as the pricing strategies for the different markets. Undoubtedly, each market exhibits different characteristics in terms of customers, business policies, and competitors. Generally, the initial stages of internationalization intent for ABD are in the right direction towards achieving the key tasks in Global Marketing Opportunity Assessment.
Recommendations for target markets
ABD’s products are relevant to a universal issue – healthcare. Likewise, all people are motivated to satisfy the fundamental need in any way that proves to be better than the existing solutions.
Therefore, all markets qualify the company’s intent to internationalize. The application of the products is also highly customized and requires little technological knowhow. Technological solutions are becoming the norm in healthcare settings even in developing nations. However, among the major goals for the initiative is to learn from global competitors and markets.
The learning can only occur if the products are offered in markets that exhibit substantial competition and growth in regard to technology. Such a market consists of consumers with the financial capability to purchase the product hence targeted by many manufacturers. As much as healthcare is concerned, consumer expectation is significant and people look for new and better solutions. For these reasons, ABD should target Western Europe countries such as Germany, France, UK, and Switzerland.
The Western Europe countries are evidently advanced in technology as much as the United States. They do not only host many manufacturing companies, but are the target markets for foreign manufacturers. These countries have the resources and infrastructures that can drive sales.
Thus, competition within them is intense and ABD has the opportunity to learn global competition. The Western Europe countries are close to the United States such that logistic operations can be facilitated appropriately and at a lower cost than other regions of the world. Transportation and communication channels between US and Western Europe countries are well established adding to lower costs during the exportation process.
At the same time, European consumers are insatiable because they have the financial capability to purchase healthcare products. If ABD Company targets these markets, it would not only meet the learning objective, but also capitalize on its competitive advantage. Consumers in these markets are used to hi-tech products therefore the innovative products from ABD will attract customers greatly.
The firm will certainly preempt the products offered by competitors. In addition, ABD’s management team consists of individuals with great experiences from these countries. They play a vital role in the implementation of the initiative hence can be considered as great determinants of success.
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