Imagine your company is launching a new form of technology y

Imagine your company is launching a new form of technology (your choice). Two countries that are targeted for international penetration are China and India. Suggest the strategic relationship you would utilize to gain entry into these two markets. Provide a rationale with your response.

Determine the strategy behind De Beers’ shift from controlling supply to building relationships. Speculate how much control over the market De Beers currently has with this strategy. Keep in mind to research operations outside of Africa as well.

Solution

Entering China market:

China has actively encouraged the setting up of industrial clusters in specific cities or regions, and in many cases entire industry supply chains can be concentrated in a small handful of cities. In many b2b markets, such clusters can help foreign companies to know where its target customers are, which cities to focus on and even where to base its operations (particularly where local manufacturing will take place).

The first step of any effective China market entry strategy is therefore to identify the geographical location of the target market(s) and the best specific location to target first.

Entering India market:

Direct export to India. The easiest way to serve the Indian market is direct export of manufactured products from abroad (direct distribution). However, this assumes that one already knows (potential) customers in India, that one has the appropriate import registrations and is able and keen to settle commercial invoices in a foreign currency instead of in Indian Rupees.

The advantage of direct distribution is that you have control over pricing, as there is no intermediary.