Overview of Allard Motor Company
Allard Motor Company Limited is one of the largest Canadian automotive industry players. The organization was founded in 1945 in South West London by a person called Sydney Allard. The company operates in London, Canada but has many sales branches in most countries of the world. It was initially intended to deal with low volume cars but has since evolved to deal with a variety of auto motives. Since its establishment, the company has grown a lot serving people from various parts of the world. The company existed during the world war period and therefore, had a privilege to produce army vehicles for both pre-war and post-war vehicles (“Allard Motor Company .co.uk – Allard Motor Company,” n.d.).
Allard Motor Company deals in various automobile products. The company has been in existence in the industry for a long time and has been producing various products models that are unique and robust for use thus remaining historic. Allard manufactures saloon cars, sports cars, the racing cars and many other products. The products of this company are trusted by many in the world today mostly because of its extended period of operation in the industry. Also, the company deals in the various motor scope components and equipment supplying to many other automotive businesses in the world. These include aluminum pipe sets, valves, intercoolers, motor engines, Pollock hose clamps, headers, fuel cells and many other engine components in the industry (“Allard Motor Company .co.uk – Allard Motor Company,” n.d.).
Currently, there is a huge need for Allard Motor Company to expand internationally to other parts of the world. The company has a lot of strengths factors that can be utilized to establish and grow in many areas successfully. Since the global economic state is changing rapidly, the world motor industry has grown so fast, and now many people are buying vehicles both as a need and as a luxury. Therefore, Allard should capitalize this state and thus reach more individuals in both developed and developing countries, and this will in turn help increase their market share, the profitability, and sustainability (Samimi & Buang, 2011).
Businesses operate in a given context. The success of every business lies in its understanding and right application of the various aspects of the business environment. Allard must, therefore, consider getting a clear state of the international countries where it is going to operate to establish the appropriate strategy to take. Most of these environmental factors are best explained using the PESTLE analysis; abbreviation for political, economic, social-cultural, technological, legal and ecological factors. This analysis plays a critical role in establishing and understanding the market context (Laszlo & Zhexembayeva, 2011).
Market Analysis of Allard Motor Company
The political state of a given country greatly determines the success of business ventures in that nation. If the political state is stable, there are many chances of nourishment of companies in that country. On the other hand, political instability can significantly interfere with normal business operation leading to little profit or a loss and even the business close up. Organizations have little influence on the political state f countries (Bremmer & Keat, 2009).
Allard should expand its business to Australia and other developing countries. The political state of Australia is right and favorable for the business and therefore, it is likely to impact the on the operation of this company positively. The government is stable, and it has recorded very few instances of political instability and has been mild in the few cases. Again, the organization is likely to benefit from the benefits of political stability which directly impact the business. Therefore, Allard Motor Company should continue with its venture internationally into Australia.
The world financial state and that of the country of operation have significant influence on the running of the businesses. The economic state determines the purchasing power of the market, thus has a direct impact on the running of the country. The country’s GDP influences many aspects of the business such as the tax imposed on the products sold in the country. When the financial state of the country is right, organizations are likely to enjoy the more sales unlike when the state is bad.
Australia, as one of the international market targets for Allard Motor Company, has a good economic state. Most of the Australians can afford cars and again several of them own vehicles, and thus they can purchase spare parts and even the Allard vehicles. Also, the GDP of Australia is favorable thus there are more chances of this business in this country. Therefore, Allard is likely to enjoy the good economic state of Australia (Verbeke, 2009).
The social-cultural state of people in a given country has an influence on the success of businesses in that nation. Nations that have social-cultural differences in its population usually affect the success of the operation of businesses negatively. Culture and beliefs also influence the business in many ways such as the consumption of the product and their buying behavior. Their culture usually influences human beings in a given region and thus has a significant impact on the operation of businesses operating in that particular country. Therefore, every business must understand and evaluate the social-cultural aspects of people living in the market prospect regions for this company (Daniels et al., 2008).
Political Factors
The social state of Australia seems right since there is a mutual understanding of various tribes of people living in the country. The social state of people this country is good for Allard Motors such as their beliefs and practices. Besides, there is no cultural beliefs of a group of individuals that is for the purchase of vehicles in the country. Therefore, the social, cultural state of Australia is likely to affect the operation of Allard Motors in this country positively. Thus the company should go ahead and invest in this country since it is probable to get a bigger market share (Agarwal et al., 2010).
Finance is the primary driver of every business project. Expanding a business operation requires a lot of money. The organization must be set with sufficient money needed to fund the project else there are a lot of chances for project failure (Soleymani, 2010). Allard Motors Company can raise the money required to support the international expansion to Australia. The company is old and has been in business for a long time, and thus right strategies can help it get the cash (Moghaddam & Redzuan, 2012). This can achieve through thorough and sufficient financial planning and budgeting for this endeavor.
Every nation has its legal system. Different legal systems have different influences on the businesses. Countries have different laws, regulations, and restrictions on its people and the organizations. Some of these legal factors can affect the business operation positively while others are likely to impact the functioning of undertakings negatively. Australia also has various laws and regulations, but they seem favorable to the functioning of the Allard Motors because no law is against the sale of vehicles or their spare parts. Therefore, the company is likely to operate comfortably within the Australian market because the country does not have any strange restricting legal aspects to the operation of the enterprise.
Allard’s venture into the international market presents many optional strategies that the organization can adopt. These include international, localization, global standardization, and transnational strategy among many others. As always, the choice of strategy is influenced by many factors within and outside the business (Gram, 2007). It is important to choose the rightful strategy to use because it has a critical influence on the profitability and also the sustainability of the business enterprise.
Allard Motor Company can best apply the international marketing for global competitiveness. This is an excellent strategy that the organization can implement successfully increase its world market share in the automotive industry. Globalization is usually defined as the tendency of business organizations to out the national and domestic markets to other markets in the world thus increasing interconnections, international trade and the cultural exchange (Hollensen, 2014). Globalization integrates the domestic economies, the cultures, industry, and the government policies. Usually, globalization is driven by two major factors; public policies and the technology. The public policy has enhanced globalization through the integration of the free market systems of the economy for the monitory policies, trade agreements and also the fiscal policies. Also, advances in technology have helped increase information sharing thus promoting and driving globalization (Mamman, et al., 2013).
Economic Factors
Allard Motor Company should consider international marketing globalization strategies. The company can achieve this by focusing on three most important aspects. Firstly, the company should focus on dimension. This entails increasing market participation of the target market to make their support. The product or vehicles and car-parts sold must be what the market demands thus increasing the market share. The company should also consider value added activities that are supported by the location. Also, the company should find the rightful market approach and the aggressive moves in the industry market (Hill, 2014).
The second strategy for international globalization that Allard can employ is to set for pure multi-domestic. This means there should be no pattern; the company should customize its vehicles depending on the needs and activities of each country thus increasing their satisfaction in the product. Also, Allard should consider setting a corporate policy as a global system (Heiba, 2011). This may entail increasing the market share in the primary markets, setting a worldwide standardization system for its products and global product quality uniformity in the entire word. This is likely to impact positively on the international marketing of this company.
In summary, when Allard Motor Company employs the rightful international globalization marketing strategy, there are many chances of the success of its endeavor. The strategy revolves improving the organizational structure of the company and adjustment of the management process to contain and accommodate the increase in the market size outside the domestic boundaries. Besides, the human factors (people) must also be considered for their effectiveness. Besides, there must be a focus on the organizational culture to ensure that it accommodates the corporate culture adjustments for the success in the endeavor (Rumelt, 2011).
The mode of market entry greatly determines the success of move to the international marketing of a given business organization. There are many market entry methods available for choice in the global market entry. However, choosing the appropriate strategy must be carefully evaluated to ensure that it fits the environment of operation. Many factors usually influence the market entry mode such as tariff rates, extend of product adaptation in the market, the transportation and also the marketing costs. Some of these market entry mode choices franchising, joint venture, exporting, turnkey project, licensing, merger and acquisition, strategic alliance and wholly owned subsidiary (Rugman & Collinson, 2008).
Allard Motor Company’s market entry method that seems appropriate is to first start with direct exporting then buy a company. In the beginning, Allard Motors should consider exporting its products directly to the Australian market and sell directly to people. This will give the opportunity to sell first instance vehicles to the clients thus delivering the standardized company quality. In this case, Allard should consider coming up with a sales program that will manage and control the export plan. The company should, therefore, partner with the sales agents and other distributors in the market for the effective trading chain. However, Allard will be forced to hire staff who will play a fundamental role in supporting exports by the company. This is likely to help Allard gain a bigger market size in the Australian automotive industry.
Social-Cultural Factors
However, in the long term, Allard Motors Company should consider a better market model because direct export has a limit of growth in the market size. Thus, direct is a better method laying the market foundation but not the best for term business. Establishing the brand quality through this process is hard. Therefore, Allard should look into buying a company in Australia. This is a very costly move but profitable in the long term. It will also help it establish market quickly, its sustainability and improve the profitability of the company (Doole & Lowe, 2008).
In buying a company, Allard should consider buying one of the existing local automotive markets in the Australian market. This is the most appropriate way of growing in the international market and faster way of building the brand. Allard should search for an existing company that has substantial market share in Australia and then buy it. In this case, the organization is likely to escape the government bureaucratic issues associated with direct entry into the market (Caves, 2007). The entry method is expensive to enter the market but has many benefits along with it. The strategy is likely to help Allard to get the benefits of local market knowledge and an established customer base for the industry which is good for the well-being of this company. It thus guarantees more sales, quicker market establishment and many other benefits to the organization.
If Allard will carefully consider these entry market strategies for its international market in Australia, the company is likely to succeed in the course. The direct export is likely to lay a good foundation to the market and thus orient them to the products of this company. On buying a company, Allard is liable to increase the market share to a significant extent. Also, the company is likely to grow faster on the move to this strategy and thus useful for long term operation. Therefore, Allard is liable to be successful in the course of international marketing and extension to Australia.
Conclusion
In conclusion, implementing successful international marketing requires careful planning and strategies. The primary step is understanding the organization and the products offered. This is helpful since it helps to identify the market where the company can conduct international marketing depending on the demand. Understanding the business context in an inevitable factor in going international. The organization must understand the political, economic, social-cultural, financial and legal factors and how they influence the operation of the business in the global market. This will give knowledge on the direction that the organization should take and thus make the right moves.
Further, the rightful international marketing strategy ids key for the success in the course. There are many strategies available for the organizations to choose from, but there must be a careful evaluation to arrive at the most appropriate move to take depending on the contextual factors analyzed. Taking a wrong strategy is likely to make the organization fail in the course thus there should include careful planning. Besides, the market entry mode also determines the success in the market. Therefore, companies should be careful to choose the most appropriate entry method into the international market after analysis of all determining factors.
References
Agarwal J., Malhotra K., & Bolton, N. (2010). A cross-national and cross-cultural approach to global market segmentation:
An application using consumers’ perceived service quality. Journal of International Marketing, 18(3), 18-40. doi:10.1509/jimk.18.3.18
Allard Motor Company .co.uk – Allard Motor Company. (n.d.). Retrieved from
Bremmer, I. & Keat, P. (2009). The Fat Tail:
The Power of Political Knowledge for Strategic Investing, Oxford University Press
Caves, R. E. (2007). Multinational Enterprise and Economic Analysis, New York:
Daniels J., Radebaugh L. & Sullivan D. (2008). International Business: Environments and Operations, Pearson Education
Doole I., & Lowe R. (2008). An Introduction to International Marketing. International marketing strategy:
analysis, development and implementation. (5th ed.,). London: Cengage Learning.
Gram, M (2007). “Whiteness and western values in global advertisements: An exploratory study”.
Journal of Marketing Communications.
Heiba, F. (2011). Future global marketing negotiations: A strategic scenario.
International Journal of Business and Social Science, 2(4), n/a. Retrieved from
https://search.proquest.com.proxymu.wrlc.org/docview/904523887?accountid=27975
Hill, CWL (2014). Global business today, 8th edn, McGraw-Hill Irwin, New York.
Hollensen, Svend (2014). Global Marketing, 6th edition, Pearson, ISBN 978-0-273-77316-0 .
Laszlo C. & Zhexembayeva N. (2011). Embedded Sustainability:
The Next Big Competitive Advantage. Stanford, CA: Stanford University Press. ISBN 0-804-77554-0
Mamman, A, Baydoun, N, Sulaiman, M & Ismail, I (2013). ‘Globalization and its consequences:
Malaysian managerial perspectives and implications’, Asia Pacific Business Review, vol. 19, no. 1, pp. 102–128.
Moghaddam A. & Redzuan M. (2012). “Globalization and economic growth: a case study in a few developing countries (19802010)”, Research in World Economy, vol. 3, no. 1, pp. 54–62.
Rugman, A. M. and Collinson, S. (2008). International Business, Financial Times Prentice Hall
Rumelt P. (2011). Good Strategy/Bad Strategy. Crown Business. ISBN 978-0-307-88623-1.
Samimi P. & Buang A. (2011). “Globalization measurement: notes on common globalization indexes”,
Journal of Knowledge Management, Economics & Information Technology, vol. 1, no. 7, pp. 197–216.
Soleymani M. (2010). ‘The heavy price of globalization: globalization and sustainable development’,
Perspectives on Global Development & Technology, vol. 9, no. 1, pp. 101–118.
Verbeke, A. (2009). Ikea Case. International business strategy:
rethinking the foundations of global corporate success. Cambridge, UK: Cambridge University Press.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
