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International Marketing
December 2024 Examination
- An Indian textile company, known for its high-quality fabrics, is planning to enter the Japanese market. After initial market research, they have two options: partnering with a well- established Japanese retailer or acquiring a small local textile firm. If you were the company’s international business manager, which option would you recommend and why? (10 Marks)
Ans 1.
Introduction
Expanding into international markets is a strategic decision that requires a careful evaluation of multiple factors such as market dynamics, consumer behavior, regulatory frameworks, and competition. The Japanese textile market, known for its high-quality standards and discerning consumers, offers both opportunities and challenges for an Indian textile company. With the company already being recognized for producing premium fabrics, the goal is to leverage its strengths to establish a sustainable and profitable presence in Japan. The two primary strategies under consideration are partnering with a well-established Japanese retailer or acquiring a local textile firm. Both options offer distinct advantages and challenges. Partnering with a Japanese
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- A popular Indian smartphone brand plans to enter the highly competitive European market. They must decide whether to position their products as premium, high-end devices or as affordable, value-for-money alternatives. As the international marketing manager, how would you approach this positioning decision considering the European consumer market. (10 Marks)
Ans 2.
Introduction
Entering the highly competitive European market presents both opportunities and challenges for a popular Indian smartphone brand. The European market is known for its diverse consumer preferences, ranging from value-conscious buyers to tech-savvy consumers who prioritize premium features. For the Indian smartphone brand, the critical decision revolves around product positioning: whether to target the premium segment with high-end devices or the budget-conscious market with affordable, value-for-money alternatives. This decision will significantly impact the brand’s marketing strategy, pricing, distribution, and overall market acceptance. As the international marketing manager, the approach to positioning will need to be informed by a detailed understanding of European consumer behavior, competitor analysis, and the brand’s own
- Read the case & answer the questions based on the case:
An Indian automotive parts manufacturer is eager to expand its business into the South American market. However, the company faces significant barriers, including high tariffs, strict import regulations, and local content requirements in several South American countries. These challenges are causing delays in entry and increasing costs, making the expansion strategy less viable.
Questions:
a.What strategies can the company employ to overcome the high tariffs and strict import regulations in the South American market? (5 Marks)
Ans 3a.
Introduction
Expanding into the South American market presents lucrative growth opportunities for the Indian automotive parts manufacturer, but high tariffs, strict import regulations, and local content requirements are significant obstacles. These barriers can increase costs, delay market entry, and reduce the competitiveness of the company’s products. To overcome these challenges, the company must adopt strategic solutions that align with local regulations and market demands, while also
- How can the manufacturer adapt its operations to meet local content requirements while maintaining profitability? (5 Marks)
Ans 3b.
Introduction
Local content requirements are regulations that compel foreign manufacturers to use a certain percentage of locally sourced materials or labor in their products. For an Indian automotive parts manufacturer expanding into the South American market, meeting these requirements is crucial to avoid penalties and tariffs. However, adapting operations to comply with these regulations while