Global Market Entry Strategies Essay Example | Topics and Well Written Essays - 3000 words

Global Market Entry Strategies - Essay Example Ultravac started manufacturing the 'portable asthma pumps' under the brand name 'purepumps', when there was no other company in the Australian market, manufacturing such pumps. Two other companies were marketing these pumps by importing from Europe. Company assessed a huge market for the local product. In order to meet the Australian legal and medical regulations, Ultravac ended up investing heavily in the 'purepumps' venture, which saw huge cost overruns. On the other hand the two competitors, importing the pumps, made good use of economies of scale and were able to keep their customer base intact on account of the critical nature of the product; it being a medical aid product, customers appeared somewhat reluctant to use a new and unproven product. This forced the company to think about alternatives. The strategic alliance with Pharmacare, an Australian pharmaceutical chain, proved helpful for the company in that it offered a readymade market for asthma pumps through pharmacies, doctors' surgeries, hospitals etc. and company was able to increase its market share. The complex conditions of agreement between Ultravac and Pharmacare, did not allow the company to enter into partnership with other companies in the domestic market, which proved to be a serious setback for the company. Eager to come out of the alliance with Pharmacare, the company started winding up the p... Company was able to provide a dependable aftersales service support to the customers, which helped the company in gaining customer's confidence Eager to come out of the alliance with Pharmacare, the company started winding up the production of asthma pumps. But the strategy backfired on at least two counts. One, the factory workers were up in arms against the sudden decision of closure, which forced the company to shell out a hefty $850 000 in order to calm down the agitating workers. Secondly, customers became apprehensive about the service and repairs. In addition Pharmacare too slapped a legal suit on Ultravac. All this resulted in adverse publicity for the company and the once national fame started translating into national shame. Finally, Ultravac had to enter into out of courst settlement with Pharmacare by paying a good undisclosed amount in addition to assuring its customers that the company will indeed keep looking after the customers for repairs and maintenance. Ultravac had to reinvest huge amounts in brand building exercise to gloss over the damage done by the problematic tie-up with Pharmacare. The company continued to serve domestic as well as international markets for the next couple of years, but preferred to go for a change of brand identity once again, using it as a tool to tide over the bad publicity. Key external factors faced by Ultravac in the international arena include; Company entered into strategic alliances with supplies and distributors from abroad. On the one hand company entered into agreements with suppliers of component parts, guaranteeing unhindered flow of components for its asthma pumps market. On the