Globalization has led to multiple opportunities for the international brand to make an investment abroad. The Australian Brand AVASS has ample of opportunities to conquer the German Market. The German Government has made concrete steps toward replacing and reducing coal and nuclear products. The international market provide with opportunities to grow and expand business overseas. The developing technologies act as an important factor in Dealing with the organizational development (Debord, 2016). With advancement of Globalization, International trade and business opportunities have grown eventually. As a new brand they look out for different opportunities for market entry to introduce their product. The changes in the business model have created a major challenge for growing business internationally (DVD, 2017). The German Brands like BMW is penetrating in the Asian market is an example of global market strategy. Germany is known across the world as a leading exporter of luxury cars. In such a situation, it is suggested to gain competency in the German market as an electric car model (Abb, 2016).
The ever-growing German Market is creating ample of opportunities for the international brand in term of electric buses and cars. The reduction in the tax on the electric bus acts as a motivational factor to seek business opportunities in Germany. Among all the European countries, Germany has an effective safety laws regarding free emission car. Most of the countries advocates clean and green environment. The sustainability initiative is an important factor in current market condition. The gap in the public transportation over the years has developed opportunities for the International companies to make advancement. The Australian Electric Bus manufacturer has many reasons to invest in the German market. By supplying fuel efficient cars, the company can gain a competitive advantage over the years (Amcthebest, 2015). The brand has years of Experience in the market and it very well understood the needs of the customers in the international market. This will allow in managing the potential changes taking place in the external environment.
The business in this industry includes both benefits and challenges. One of the major challenges is related to the customer perception and brand equity. Germany provides with multiple benefits regarding the tax benefit on the use of Electric car. A reduction of 50 percent gives AVASS, a cost reduction incentive related to the business. The company is outperforming in Australia, but in order to gain competition it is necessary to manage market growth (Andrade, 2010). They can either enter the market by developing alliances with a local company. For gaining market competencies, it is evident for a business organization to market competencies. It takes a lot of efforts to open a company from scratch. There is different mode of market entry to take competitive advantage which includes developing an alliance, partnership with the local manufacturer. Industry statistics depicts promising market entry methods. Recent import of buses by the country depicts an increasing demand of international buses in Germany (AVASS, 2017). The company plans to manufacture automobiles in segments of busses, cars, vans motorcycles and trucks. AVASS already has a battery production unit In Turkey. It has a market in China as well that depicts an increase in Demand of battery vehicles. Germany professes Environment friendly products that has a potential of re-use and recycle. Electricity in Germany is cheaper than in any other country. In disparity to China’s public charging systems, Germany has home charging units. This will give AVASS self-assurance of infrastructural development. It has a reputation of producing quality contrasting its competitor Volkswagen. The company has to deal with ethical issues about answerability in greenhouse emission (Destatis, 2017).
Five stages of overseas market selection process- A screening approach & new millennium catering
Market selection in an international market plays a crucial role. Market selection is based on a thorough assessment of the different markets with orientation to convinced distinct criteria, given that AVASS has ample of resources and objectives.
The following are the procedure concerned in the market selection process:
(a) International Marketing Objectives: While entering into the German market it is important to determine or ascertain the export marketing objectives of the country. It is not necessary that the market selected to serve a particular international brand need not necessarily be the best fit some other international marketing objective.
(b) Parameters for Selection: In order to deal with the issues related to country selection, a proper market study is recommended. For proper evaluation and selection of the markets, all the point relevant to the solution needs to be made evidently. This will allow in creating effective parameters and criteria for assessment. The different parameters for the selection of a market are availability of resources, international environment, market situation, nature of competition, government policy, etc.
(c) Preliminary Screening: In the given situation it is evident for the business organization to manage preliminary screening in order to eliminate the competition. The Following parameters can be used for the preliminary screening that may vary. Germany has an effective per capita income, structure of the economy, infrastructural facilities that will allow the company in gaining competitive goals(Bullies, 2013).
(d) Short Listing of Markets: German market is known across the world for its eminent growth facilities. Preliminary screening allow in eliminating contingencies to meet the obvious result. They are further screened with the help of more in sequence information to meet the definite result (Cherubini, Iasevoli & Michelini, 2015). The company is Located at the heart of Europe, That makes it easily accessible for the business purpose. Apart from its strategic geographic location, it is also economic strategic. This has helped in gaining a name in the field of auto-mobile industry (Campbell, 2017).
Evaluation and Selection: All these short listed markets are evaluated with orientation to the cost-benefit analysis. The company is ranked as one of the most efficient Electric automobile provider. Among all the market, it is evident to choose for the introduction of product considering the company’s possessions and external environment. The country is manufacturing more than 15 million cars. This amounts to 19% of global production. The suppliers are worldwide recognized and makes 20 percent contribution to GDP making it the biggest industry
(f) Test Marketing: For a certain time-period it is evident to test the local market. Initially, it is recommended to conduct the test on a smaller scale. ith time it is recommended to expand in the market as per the market feedback. This will help the manufacturer in reviewing overall response of the consumers from a specific market. After that the company can manufacture buses on a mass scale.
(g) Commercial Production: After the successful test of the bus in Germany. Once it is tested “in the selected market. This will help in decision making whether the company can move forward with mass production or needs Minor modifications. Interestingly, In Germany, investment in automotive is higher than the electronics and telecommunication (Bohnsack, Pinkse & Kolt, 2014).
Germany is a developed economy with ample of business opportunities for the environment friendly products. One cannot ignore the fact that the county can attain desired growth and result due to the influence of technology. Over 60% of this population includes productive population between 25-69 years. Consumers in the transport segment are the public industry. This helps in improving the efficiency, and provides with an alternative modes of production. In Germany, Technology production plays an important role in managing the connectivity between the automobile industries (European Commission, 2012). The electric vehicle helps in providing a solution with hybrid vehicles that is light in weight, and high in safety and fuel consumption. Germany has a high investment in automotive than the electronics and telecommunication industries. Being a stable economy with a high rate of investment, it is possible For AVASS to gain a competitive advantage. The legal system in Germany is friendly with lower tax rates and facilitates quality infrastructural development. The company has a continuous access to business partners for business financing needs (Ewing, 2016). The German market is highly competitive and embraces best practice in a highly skilled population. Looking onto the current scenario, the only problem that the company might come across is related to electric vehicles business in the EU. There is an issue related to the battery-charging infrastructure and vehicle supply range. AVASS is a well-known battery manufacturer with years of experience. The country has a plan to have more than 1 million electric cars by 2020(DeMorro, 2014). The government institutions play a major role in leading the EV segment. It is helpful for the company for gaining opportunity for AVASS as the EU population is mostly unaware of the benefits of EV. Hence it is clear that the company will be making immense profit in coming years. The only struggle is to make an efficient investment on marketing and PR communication (Eurotransport, 2017). There is a need to target buyers who require:
Being a renowned name in the in the Australian market, AVASS has to create an effective market needs through its premium Electric Vehicle. This brand is popular in Australia for its innovation and quality assurance. It combines safety, high quality and environment friendly attributes to remain competitive in the market. Germany has 81 million consumers forming 16% of the EU population. Germany provides with multiple benefits regarding the tax benefit on the use of Electric car. A reduction of 50 percent gives AVASS, a cost reduction incentive related to the business (Handwerger, 2014).
Objectives
AVASS strives to improve customers’ lives through innovative intervention. They are driven by success and working hard to gain an effective result. Their vision statement is to represents the long-term direction of the company by signifying the continuation of AVASS. The company has a living philosophy that focus on delivering effectiveness to the customers, shareholders, dealers and employees (Garage, 2017).
Mission
AVASS offers a unique and innovative automotive products and services. The high quality and services provided by the company is of superior quality. Their mission represents the effective roles and responsibilities that they should play when chasing its aim. This clearly expresses the core business of and related servicing purposes and promises to offer stakeholders with pertinent values. They also promise to maintain highly innovative solutions filled with originality. The collaboration with strategic partnerships helps in adding exclusive opportunities for sustainable growth.
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SMART |
Justification |
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Specific |
Yes, they are focused on dealing with the concrete objectives through a concrete mission. |
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Measurable |
The goals are measurable in terms of continuous growth |
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Attainable |
Yes, The goals are attainable |
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Relevant |
Yes |
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Timely |
Yes |
For an international company like AVASS, it is prominent to enter the market through Greenfield investments. It is one of the greatest methods that involve international business. Greenfield investment involves lot of investment in terms of buying land, building the facility and operating the business on a continuing basis in an international market. This is one of the most costly and involves highest risk that requires assuming the cost and risking due to government regulations, transportation costs etc.
German Government has a favorable situation for the Electric car and buses. The favorable market conditions will allow in gaining competitiveness on a long run. It is the most prominent way to enter into the market and to gain market advantage.
The company should target the market from 25-69 Years. One cannot ignore the fact that the county can attain desired growth and result due to the influence of technology. Over 60% of this population includes productive population between 25-69 years. By positioning the product strategically in the market, it can gain market competencies. The company can place the automobile strategically in The German Market by combining with different opportunities. This will allow in strategic placing of the organizational goals. The purpose behind matching up the concept is to gain the competitiveness through definite marketing mix strategies (GTAI, 2017).
Social media tools can be used to gain attention of the young population. It is mainly because of the factors that are attached with the definite market segmentation. It is important for combining the marketing strategies with the organizational goals. The overall purpose is to manage the target and to align it with the macro level market strategy. Germany is a mature market and has all competent resources that can be used efficiently with a higher bargaining power. AVASS can provide with a low cost product with an effective market policies. It requires a strategic alliance that allows it to be competent enough in a strategic way.
The target market plan is to select the different segmentation of the product and to align it according to the local sustainable agendas. This provides with an effective agenda on focusing on the customers according to the local market needs. The company has a market segment where it focuses on the middle income group. The consumer perception varies according to the market needs. While comparing the brand with the others, it stands at a very critical position. On the basis of consumer perception, Irizar stands at a top-most place. In order to remain competitive in the market, it is important to secure significant market position (Cheng, 2017)
The current group includes a definite selection of process where the focus is over the efficient marketing selection process. There are definite marketing concept that involves concrete goals and orientation. For gaining market competencies, it is evident to maximize the opportunities and to deal with the ongoing selection (Dobson, 2017).
As per the current situation, the best suitable market strategy is through the joint venture strategies. There is a possibility to form a strategic alliance in order to meet the expenses. The overall purpose is to enter into the market by developing an alliance with the local automobile companies. This will allow in managing suitable market condition. The purpose is to measure the ongoing market need and to develop the interest accordingly (Dowling, 2017).
Target market selection
AVASS has a market strategy to gain market effectiveness by gaining market competencies. The electric vehicle provides an alternate solution to the problem. Oil being a scare resource requires an effectiveness that can only be managed through distinct marketing goals. There are several ways through which a company can target into the international market.
The possible market entry strategies are:
1) Single segmented: The Company can concentrate on one of the market segment. It is recommended that the company need to serve with a one marketing mix. This approach will help in developing a concrete strategy in order to gain competitiveness.
2) Selective specialization: In this target market strategy, the overall purpose is to enter differentiated market strategy. These market strategies will be helpful in managing the business through different segmentation strategy.
3) Product Specialization: While expanding in the international market, it is important to manage the product through a definite product specialization. At an initial stage it is possible to announce electric bus. After that they can enter the market into the other vehicle.
Based on the entry mode and structure, firstly it is suggested to draw a strategic alliance with the local brand. This will allow in meeting the definite target by constructing an effective marketing strategies. A manufacturing based company requires special efforts and depend upon the external environment. Germany has the favourable environment, allowing the company in managing the efforts. For the purpose of gaining long-term sustainable result, it is evident to manage the goals by dealing with the organizational objectives.
Cost: There is an extreme level of competition in terms of competitive market strategy. There are already different companies with a large market share. In such a condition it is recommended to keep a low price by focusing over the middle class group.
Product Differentiation: Product Innovation is the market need. In order to distinguish themselves from the other competitors, it is evident to manage effectiveness in product. This can only be gained through an effective product differentiation strategy (Graham, 2008).
Focus: The focus should be to attain long term sustainable goals with effective market strategies. For the purpose of gaining competitiveness, it is necessary to manage key goals by focusing over key competencies. This will allow the organization in dealing with the key issues (Guillermo, Keating & Hoppe,2005).
Under the given market situation, it is recommended to the company to enter into the market through a strategic alliance. They can form effective relationship with the local seller and can draw business accordingly. In this way they can reduce the overall cost related to the product (Garling & Thogersen, 2001).
They need to target the market especially on the middle class segment. By manufacturing low cost automobile, the company can gain competitiveness.
The brand needs to be placed effectively in the mind of the customers. The strategy is to focus on the market position that distinguishes the product from its competitors. The company will perform well only in the situation if it gains competitive market advantage.
The company need to focus on its core competency. By improving its product based strategy, the company can gain effectiveness. In this way it is possible to manage the competitiveness. There is a necessity to develop hard core competency in the German market that allow in dealing with extreme competition.
Conclusion
To conclude, AVASS, Germany has a lot of potential in terms of growing market opportunities. The international market provide with opportunities to grow and expand business overseas. The developing technologies act as an important factor in Dealing with the organizational development. It is possible to expand business internationally through Strategic alliances. Generally the reason is to run the target and to bring into line it with the macro level market strategy. Germany is a mature market and has all competent resources that can be used efficiently with a higher bargaining power.
References
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Cherubini, S., Iasevoli, G., & Michelini, L. (2015). Product-service systems in the electric car industry: critical success factors in marketing. Journal of Cleaner Production, 97, 40-49.
Graham, H., 2008. Marketing strategy and competitive positioning. Pearson Education India.
Andrade, S. (2010, March 26). 6 advantages of Workplace Diversity. Retrieved from https://saharconsulting.wordpress.com/2010/03/26/6-advantages-of-workplace-diversity/
DeMorro, C. (2014, July 22). BMW Willing to share battery technology. Cleantechnica. Retrieved September 14, 2017, from https://cleantechnica.com/2014/07/22/bmw-willing-share-battery-technology/
Handwerger, J. (2014, July 26). Tesla gigafactory and recent M & A boosting Lithium sector to new highs. Retrieved from marketoracle: https://www.marketoracle.co.uk/Article46609.html
Derek, B. (2015, March 12). Global Manufacturing: Made in China? Asia’s dominance in manufacturing will endure. The will make development harder for other . The Economist. Retrieved August 17, 2017, from https://www.economist.com/news/leaders/21646204-asias-dominance-manufacturing-will-endure-will-make-development-harder-others-made
Amcthebest. (2015, December 4). Strategic analysis report on Ford Motor Company. Retrieved from amc the best: https://www.amcthebest.com/blogs/post/Strategic-Analysis-Report-on-Ford-Motor-Company
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Ewing, J. (2016, July 20). For Volkswagen chief, toll of the emissions scandal rises. Retrieved from New York Times: https://www.nytimes.com/2016/07/21/business/volkswagen-profit-emissions-scandal.html?mcubz=1
Debord, M. (2016, October 13). Toyota could be making a big change to its China Strategy. Business Insider. Retrieved from https://www.businessinsider.com/toyota-market-share-china-2016-10?IR=T
Cheng, F. (2017, January 15). China vehicles sales to grow 5 percent in 2017 s tax cuts reduced. Reuteurs. Retrieved from https://www.reuters.com/article/us-china-autos-sales-idUSKBN14W0T6
Dowling, J. (2017, January 16). Is the electric car boom over before it began? Australinas shun electric cars, prefer hybrids instead. Herald Sun. Retrieved September 14, 2017, from https://www.heraldsun.com.au/technology/is-the-electric-car-boom-over-before-it-began-australians-shun-electric-cars-prefer-hybrids-instead/news-story/a6213d73c01820a90edd87e6c2fa1103
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