HND国际市场营销 OUTCOME

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Contents

I.Introduction (2)

II.Discussion (2)

1 Why is the company comsidering entering international

markets (2)

2 Secondary sources of information (3)

3 The key opportunities and threats (4)

4 The process of Spain market assessment (5)

5 The modes of market (10)

6 Why select this mode (11)

III.Conclusion (11)

IV.References (11)

Report on PK Electrics

I.Introduction

PK Electrics was set up in 1987 in Ningbo, Zhejiang province, China. The company products cables, sockets, switches and light fittings and currently operating three factories all based in Zhejiang province. Over the years the organisation has developed a good reputation for quality and customer service. But over the last two years the rate of growth has begun to decline with sales rising 5% and profits by 2% last year. The management team are aware of big changes in international trading that have occurred over the last 10-15 years with the Chinese economy becoming more market-based and the more recent impact of China joining the World Trade Organisation in December 2001.

II.Discussion

1 Why is the company comsidering entering international markets

•Market saturation

•Market-related factors

•Production-related factors

•Personnel-related factors

•Risk-related factors

•Cost-related factors

•Product life cycle

In the case, PK Electrics is part of market saturation. With rising economic growth

and the rising disposable incomes, especially of the urban population PK Electrics has seen demand for its products grow as people seek improvements to their homes and living standards.

2 Secondary sources of information

PK Electrics enter Spain market. But the company need to consult information about Spain market. The company could consult from the following professional organization:

♦The World Trade Organisation

PK Electrics could get commercial information about Spain:

•Goods schedules and tariff data

•Services schedules and MFN exemptions

•Trade Policy Reviews of Spain

•Dispute cases involving Spain

•DDA negotiating documents from or mentioning Spain(WORLD TRADE ORGANISATION, 06/18/2011)

♦The World Bank

PK Electrics could get commercial information about Spain:

•Income level

•Economic policy and external debt

•Infrastructure

•Labor & social protection

•Private sector – merchandise trade(THE WORLD BANK, 06/18/2011)

3 The key opportunities and threats

PK Electrics has to understand PEST if it enter Spain market.

♦Political:

•Spain is a higher score signifies a less violent and politically more stable society.

•the government introduced austerity reforms aimed at reducing the fiscal deficit to sustainable levels that reduced government employees' salaries,

froze pension funds, and suspended public works.

♦Economic:

•interest rate stands at 1.00 percent

•Spain Gross Domestic Product is worth 1460 billion dollars or 2.35% of the world economy, according to the World Bank. From 1960 until 2009,

Spain's average Gross Domestic Product was 402.19 billion dollars reaching

an historical high of 1604.24 billion dollars in December of 2008 and a

record low of 12.07 billion dollars in December of 1960.

♦Sociocultural:

•There are few elderlyies and they have small pensions in Sapin.

•In daily consumption, Spanish larger demand.

♦Technological:

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