Research Articles Base: Emerging Market Opportunities

The Emerging Technology of Wireless

WIRELESS LAN Introduction             This paper is about the emerging technology of Wireless LANs that are being used in many businesses today. A historical overview will start the discussion as it moves on to the discussion of its application and technology. Wireless LANs will be defined and describes in details in the following sections. Historical Overview             They say that back in 1971, at the University of Hawaii, researchers developed ALOHA net, the world’s first ever wireless local area network. The system was a bi-directional star topology that included seven computers. These computers were deployed over four islands. The central computer was deployed at Oahu island without using any phone lines.             Back then, wireless LAN hardware were so expensive. Due to this, WAN was only used as an alternative for cabled LAN. Ultimately, it was used for places that were only difficult or impossible for cabling.             Moreover, according to Wikipedia, “early development included industry-specific solutions and propriety protocols.”  But as the end of 1990s neared, these solutions and protocols were replaced by standards, mainly the various versions of IEEE 8012.11 (Wife). There has been an alternative developed  like the ATM-like 5 GHz standardized technology, HYPERLINK. But so far, it has not succeeded in the market. Apparently, it never will with the release of the faster 54 Ambit/s 802.111 (5 GHz) and 802.11g (2.4GHz) standards.             As of last year, The Australian Commonwealth Scientific and Industrial Research Organisation (CSIRO) have been in battle with other software and hardware giants for royalties on the patents that are allegedly held by CSIRO regarding these technologies. CSIRO claims to have been the first to develop wireless networking. Application/Technology             Wireless networks include several technologies, each with its own optimal use. Wireless LAN technology, mainly the 802.11 set of standards, helps create wireless networks similar to organization-wired Ethernet networks.             Wireless LANs also can provide a cost benefit. Installing and configuring wired communications can be costly, especially in those hard-to-reach areas. Ladders, drop ceilings, heavy furniture, kneepads, and a lot of time are often necessary to get all components installed and connected properly. By comparison, wireless LAN installations are a breeze. Plug in the access point, install a wireless network interface card (NIC), and you are all set.             An access point is the device that acts as a gateway for wireless devices (Andres, 2003). Through this gateway, wireless devices access the network, as shown in Figure 1.                                                                                   Stations – are referred to as all components that can connect into wireless medium in a network. All stations have wireless network interface cards (WINCES). Wireless stations fall into one of two categories: access points and clients.             Clients – can be mobile devices such as personal digital assistants (Pads), laptops, fixed devices such as desktops and workstations, or IP phones. All which are equipped with Winces.             Basic service set – or BSS is a set of all stations who communicate with each other. Two types of BSS are: infrastructure BSS and independent BSS. BSS has an identification called the BID. The BID is the MAC address of the access point in service of BSS.             Extended service set – or LESS is a set of all connected Basses. LESS also has an identification called the SAID. The SAID is a 32-byte (maximum) character string. All access points in an LESS are connected by a distribution system.             Distribution system – as mentioned above, the distribution system connects all access points in an LESS. Usually, a distribution system is a wired LAN but can also be a wireless LAN. What Is It, Including Technology Overview             A wireless local area network (WAN) is said to be a set of network components. These network components are connected by electromagnetic (radio) waves instead of the more commonly used wires. Weans are used as a substitute for wired computer networks. It adds freedom of movement and flexibility within the workplace. Oftentimes, it is also used in combination with wired computer networks. Clients who use Weans enjoy the easy access on their respective company networks and even the Internet from almost anywhere within and throughout the boardroom, campus or store. They do this without relying on any wired cables and connections available.             There are two modes that the proposed standard 802.11 works on: (1) in the absence of base station and, (2) in the presence of base station. In the first case, computers that communicate with each other through this mode is called ad hoc networking. The latter case on the other hand is called the infrastructure mode. All communication goes through the base station, which is the access point in 802.11 terminologies.             IEEE (working committee) 802.11 indicates set of wireless WAN/LAN standards. Some challenges that they met as they developed these standards were: “dealing with the fact that radio signals have a finite range; building a system with enough bandwidth to be economically feasible; ensuring users privacy and security; finding a suitable frequency band that was available, preferably worldwide; and finally, worrying about human safety.”             During the standardization process, 802.11 was decided to be made compatible with Ethernet above data link layer. Inherent differences existed eventually which had to be taken care of by the standard.             Foremost, before transmitting, a computer on Ethernet always listens to the ether. This is not possible in case of Weans. Collision may take place as the range of a station may not be able to detect transmission that is taking place between two other stations.             Another problem that were to be solved was the interference resulting in what we call Multipart fading. This was a result of radio signals being received a multiple times because they can be reflected off solid objects.             The last dilemma was is a notebook computer were to be moved away from the base station to another, a way of handing it off must be done.             Eventually, the committee came up with a standard to finally address these concerns. The amendment 802.11i also enhanced the security. Among the most popular of amendments are 802.11a, 802.11b and 802.11g to original standard. Service enhancements and extensions are in other specifications from (c-f, h, j). Who Does/Might Use It             Basically almost every establishment and organization that is spread over an area uses WAN. WAN however are more for the persons on the go. Outline of Development/Uptake Challenges             Before we move on, let us discuss the standards that are the basis for communication. In June 1997, the IEEE (Institute of Electrical and Electronics Engineers) finalized IEEE 802.11, the initial standard for wireless LANs. This standard specifies a 2.4GHz operating frequency with data rates of 1Mbps to 2Mbps and the capability to choose between using frequency hopping or using direct sequence, two incompatible forms of spread-spectrum modulation. In late 1999, the IEEE published two supplements to the initial 802.11 standard: 802.11a and 802.11b.             Like the initial standard, 802.11b operates in the 2.4GHz band, but data rates can be as high as 11Mbps, and only direct-sequence modulation is specified. The 802.1 la standard specifies operation in the 5GHz band using orthogonal frequency division multiplexing (FORM) with data rates up to 54Mbps. The advantages of this standard include higher capacity and less radio frequency (R.F) interference than with other types of devices.             802.1 la and 802.11b operate in different frequencies, so they are not interoperable. They can coexist on one network, though, because no signal overlap exists. Some vendors provide a dual-radio system with 802.11a and 802.11b.             The latest wireless standard is 802.11g, and (like 802.1 la) it provides data rates of 54Mbps, but (like 802.11b) it operates in the 2.4GHz range. The 802.11g standard is also backward compatible with 802.11b networks, providing a more cost-effective upgrade and rollout plan for organizations.             To complicate issues, Europe has developed the Hyperlink/2 standard, led by the European Telecommunications Standards Institute (ESTE). Hyperlink/2 and 802.1 la share some similarities: both use FORM technology to achieve their data rates in the 5GHz range, but they are not interoperable.             Anyway, before the discussion goes further, the approval of the initial IEEE 802.11 standard back in 1997 spurred rapid growth in Weans beyond the traditional, low-bandwidth vertical applications and into mission-critical general-office applications. In September 1999, however, 11-Mbps 802.11b standard was approved and the horizontal WAN market achieved some impression of legitimacy, followed by rapid acceleration.             Analysts have long anticipated the fever that surrounded WAN. Yet with the success, according to Mathias (2003), Weans are still not immune to the rip currents that pervade essentially ever high-technology market. He states the following observations:             (a) There is a constant demand in price and performance. (b) There is a need to deal with rapid technological change and continuing 802.11 evolutions. (c) Security. And, (d) there is a requirement to lower operational and other recurring expenses.             It comes as no surprise, then, that wireless-LAN vendors have been sparing little effort in building additional tools and now entirely new architectures to address the above needs. The primary goals today are to improve manageability, security and the costs of both equipment and operations. In short, what we are seeing is the result of a very natural evolutionary process, which is endemic to high technology. Current Technical/Business Status (where relevant)             Wexler (2006) observed that the subject of 802.11 has ignited controversy during the past year ranging from whether municipalities that deploy mesh networks have an unfair advantage over competing service providers, to whether strangers who piggyback on unsecured home networks are abetting terrorists.             However, although Wife has been phenomenal, market analysts sense a proverbial lull before the storm. Wexler states the following reasons:             (a) The lion’s share of the current installed Wife base comprises Cisco Systems’ older AirNet equipment. This gear consists of individually managed, intelligent access points (Apes) that are also called “thick” or “traditional” Apes. Many of the customers operating these systems are just beginning to learn about the newer, centrally managed (“thin” or “dependent”) Apes, and the accompanying switched Wife architecture. (b) Many mainstream enterprises are waiting for dual-mode handsets that support both Wife and cellular voice calls before they make commitments to deploying voice over IP (VOID) over Wife networks. And, (c) Established enterprise WAN deployments are still catching up to Wife technology advances, particularly in the area of security.             Wexler explains that despite the continuous progress with standards development and product features, particularly in the area of intrusion detection and prevention, that the Wife industry makes, enterprises can only move so fast. She says that the verticals in which wireless and mobility have always been a must are keeping up with trends like voice over Wife, yet they struggle with the latest iterations of security, which are most difficult to deploy on small handheld clients, because 802.11i supplicants simply aren’t available for them yet.             She explains further that the direction of Wife provisioning, administration and R.F management is toward centralization, but it will take awhile until the masses that now use Cisco traditional distributed Apes move onto the bandwagon. And until converged devices supporting both Wife and cellular voice capabilities are widely available, mainstream enterprises seem to be postponing large commitments to voice over Wife.             Furthermore, the enterprise WAN, in general, is in a bit of a holding pattern until full 802.11e QUEST-enabled implementations are Wi-Fi-certified and available, dual-mode phones hit the market, interoperability and deployment issues associated with 802.11i security components get cleared up, and it becomes apparent whether 802.11a is ever going to be a real network player, or will be leapfrogged by 802.11n.   Technical Details In Depth Explaining Total Value Chain Benefits of wireless LANs include: Convenience The wireless nature of such networks allows users to access network resources from nearly any convenient location within their primary networking environment (a home or office). With the increasing saturation of laptop-style computers, this is particularly relevant. Mobility With the emergence of public wireless networks, users can access the internet even outside their normal work environment. Most chain coffee shops, for example, offer their customers a wireless connection to the internet at little or no cost. Productivity Users connected to a wireless network can maintain a nearly constant affiliation with their desired network as they move from place to place. For a business, this implies that an employee can potentially be more productive as his or her work can be accomplished from any convenient location. Deployment Initial setup of an infrastructure-based wireless network requires little more than a single access point. Wired networks, on the other hand, have the additional cost and complexity of actual physical cables being run to numerous locations (which can even be impossible for hard-to-reach locations within a building). Expandability Wireless networks can serve a suddenly-increased number of clients with the existing equipment. In a wired network, additional clients would require additional wiring. Cost Wireless networking hardware is at worst a modest increase from wired counterparts. This potentially increased cost is almost always more than outweighed by the savings in cost and labor associated to running physical cables. Source: http://en.wikipedia.org/wiki/Wireless LAN#Historie   Disadvantages on the other hand include: Security Wireless LAN transceivers are designed to serve computers throughout a structure with uninterrupted service using radio frequencies. Furthermore, because of space and cost, the “antennas” typically present on wireless networking cards in the end computers are generally nothing more than the most naive of reception devices. In order to properly receive signals using such limited antennas throughout even a modest area, the wireless LAN transceiver utilizes a fairly considerable amount of power. What this means is that not only can the wireless packets be intercepted by a nearby adversary’s poorly-equipped computer, but more importantly, a user willing to spend a small amount of money on a good quality antenna can pick up packets at a remarkable distance; perhaps hundreds of times the radius as the typical user. There are even computer users dedicated to locating and sometimes even hacking into wireless networks, known as war drivers. On a wired network, any adversary would first have to overcome the physical limitation of tapping into the actual wires, but this is not an issue with wireless packets. To combat this consideration, wireless networks may choose to utilize some of the various encryption technologies available. Some of the more commonly utilized encryption methods, however, are known to have weaknesses that a dedicated adversary can compromise. Range The typical range of a common 802.11g network with standard equipment is on the order of tens of meters. While sufficient for a typical home, it will be insufficient in a larger structure. To obtain additional range, repeaters or additional access points will have to be purchased. Costs for these items can add up quickly. Other technologies are in the development phase, however, which feature increased range, hoping to render this disadvantage irrelevant. Reliability Like any radio frequency transmission, wireless networking signals are subject to a wide variety of interference, as well as complex propagation effects (such as multipart, or especially in this case Rican fading) that are beyond the control of the network administrator. In the case of typical networks, modulation is achieved by complicated forms of phase-shift keying (PS) or quadrate amplitude modulation (AM), making interference and propagation effects all the more disturbing. As a result, important network resources such as servers are rarely connected wirelessly. Speed The speed on most wireless networks (typically 1-54 Mbps) is far slower than even the slowest common wired networks (100Mbps up to several Gaps). There are also performance issues caused by TCP and its built-in congestion avoidance. For most users, however, this observation is irrelevant since the speed bottleneck is not in the wireless routing but rather in the outside network connectivity itself. For example, the maximum ADSL throughput (usually 8Mbps or less) offered by telecommunications companies to general-purpose customers is already far slower than the slowest wireless network to which it is typically connected. That is to say, in most environments, a wireless network running at its slowest speed is still faster than the internet connection serving it in the first place. However, in specialized environments, the throughput of a wired network might be necessary. Source: http://en.wikipedia.org/wiki/Wireless LAN#Historie   Any Other Relevant Topics             Morozoff (2004) seems to agree that Weans still needs improvement. She states that:             “WLAN adopters are clearly committed to the technology, as evidenced by their plans to deploy to more end users and to add functionality. But what about the suppliers? Will the areas that need improvement be addressed?             There is plenty of reason to conclude that the answer is yes. Products from wireless specialist companies like Reef edge and Trapeze Networks are aimed at helping enterprises design and manage increasingly complex WAN deployments, while industry leaders like Cisco and 3Com continue to introduce enhancements to their products. Since so many industry players see wireless as one of the few shining spots in the industry, you can be certain that R & D investments will continue.” Credit:ivythesis.typepad.com

The Emerging Technology of Wireless

WIRELESS LAN Introduction This paper is about the emerging technology of Wireless LANs that are being used in many businesses...

EMERGING MARKETS REPORT

H&M   Introduction             If an industry has decided to conquer the international market, there are many choices that will be opened.  These options may include the cost, risk and the degree of control that the company will encounter. In entering an international business, it is important that the management of the company should be able to choose a marketing entry strategy and carefully choose the product that the company will market.  Exporting, is the simplest form of marketing entry strategy which includes direct or indirect method such as using an agent, in the case of direct method and counter trade if the company opted to implement an indirect method. Moreover, if the business firm wants to be known globally, there are many other ways to choose from like joint venture or export processing zone.  If the management of the company has decided to choose the export strategy, they must include in their operation the specific channels to market their product.    Since, fashion has invading people style of living the product that has been chosen to go international market is the fashion cosmetics such as clothes, denims and other beauty cosmetics.  Hence, this paper will provide a marketing entry strategy for the clothing company using Porter’s Five Forces model (, 1980) (See Appendix 1) and SWOT analysis.  The company is a new entrant to the Chinese Market, thus, this paper will provide a marketing entry strategy analysis for the company as it invade the market of China.   Competitors Analysis             Competitor’s analysis is very important when a company will be considered as a new entrant within the market place.  It is essential so that the company will be able to know their competitors and the possible strategy that they may use to level up such competitors and know the needs of the target market.  There have been several clothing and cosmetic companies in China.  These companies have spent three years to increase their levels. Actually, there have been 4 leading clothing companies in China (i.e. Baoxiniao, Bosideng, Dayang and Ever-Glory International). Thus, this means that H&M will enter the China as a beginning industry considering many competitors within the market place.   Marketing Entry Analysis   Utilising Marketing Mix Traditionally, marketing has been utilised by the private sector in decisively increasing the capabilities of an organisation. Marketing can be considered as one of the most important element underpinning successful business creation (1994). Perhaps because of its complex applications, marketing has been defined in a variety of ways ( 1988). The marketing concept was first promulgated in the late 1950’s (1990). The importance of marketing concept incorporates oft-repeated elements such as: customer orientation; integrated marketing efforts; and resultant profitability ( 1990).  Part of a marketing strategy is the utilisation of the marketing mix.    The marketing mix principles is controllable variable that is why it can be adjusted on a frequent basis to meet the changing needs of the target market and other dynamics of marketing environment (, 2004). In relation to marketing plan, marketing mix includes both short term and long term strategies makes for a more profitable marketing mix. Long term strategies build brand/company awareness and give sales revenue a permanent, gradual boost. Short term strategies create a temporary, immediate revenue boost by giving buyers an incentive to purchase. By implementing both long and short term strategies, you can attend to immediate sales goals while building your business reputation and goodwill (, 2004). (See Appendix 2)   1.1.           Product             H&M AB (originally known as ), is a Swedish clothing company, known for their inexpensive and fashionable clothing offerings. It was established in  in Sweden in 1947 by , though at the time it only sold women’s clothing and was called . Swedish for “hers.” In 1968,  acquired the premises and inventory of a Stockholm hunting equipment store named . Included in the inventory was a supply of men’s clothing, prompting  to expand into menswear. Accordingly, he renamed the store   later abbreviated to H&M ().                         H & M is considered as one of the world’s favourite and preferred designer of apparels and clothing for man and women. In addition, H & M is also known not only for their fashion cosmetic but because of the quality of the clothes designed durability and the funkiness of its clothes. Through the online stores, H&M provides the US, UK and European Market an exclusive clothing designs. The main goal of this company is to provide innovative designs of apparels and clothes for different types of people in different countries all over the world.  The company has been known because of its strategy of providing clothing designs exclusively for each country’s preferences and needs.   1.2.           Pricing             One of the advantages of the H & M is when it comes to its pricing tactic.  In order to be known into the market place and as a new entrant, the company will provide its target market with an affordable cost while providing them a high quality products and services.  The company will be given the customer and client a price that is lesser than its competitors so that the consumer will be enhanced to buy and patronise the H & M clothes and cosmetics.         1.3.           Placement/Distribution To be known in the market place, the product will be distributed directly to its clients and consumers.  And to be known internationally, one of the strategies that the product will utilise is going on a joint venture with distinguished distributor of apparels, clothes and cosmetics, providing them with great offers, so as to market the product of the H & M.                In 2003, H&M announced its entry into the traditionally exclusive Milan fashion scene. Initial analysts declared that the high-fashion Italian market would be extremely resistant to the entry of this low-end competitor. It remains to be seen if H&M and other low-end retailers will be able to find a market there. In February 2004, The Gap, another prominent international retailer, sold off all of its German outlets to its competitor, H&M.               H&M is co-operating with  and introduced a line by her in the autumn of 2005. The planned face for this campaign was British model . On 20 September 2005, H&M announced they have dropped  for the advertising campaign of their autumn clothes range, stating that her image was “inconsistent with H&M’s clear dissociation of drugs” in light of recent drug allegations. The contract was reportedly worth £4 million a year. Singer and model  was featured in a short film and promotion campaign for the new denim jeans for women as well.               H&M launched its first American outlet on March 31, 2000 on New York’s famous Fifth Avenue. Following the success of that flagship, additional outlets were opened in the SoHo, Gramercy, and Herald Square areas of Manhattan, followed by outlets in Upstate New York in Syracuse, Utica, and West Nyack. The brand then expanded to other regions of the country, including Chicago and its outlying suburbs.               The first two H&M stores to appear on the West Coast of the US opened in San Francisco, California on November 19th, 2005. One store is located at 150 Post Street (next to Brooks Brothers), and the other store–H&M’s bigger West Coast flagship–is located at 150 Powell Street.               H&M opened its first Canadian store in Fairview Mall in Toronto and soon after, its flagship store in Toronto’s Eaton Centre in March 2004. Following great financial success, H&M opened ten other stores within the Greater Toronto Area. Stores will be opened in Montreal in Spring 2006.               H&M continues its expansion in the Canadian market, planning to double the current 11 stores to 22 in Canada by end of FY2006. Planned new markets include Barrie, Hamilton, London, Kitchener/Cambridge/Waterloo, St. Catharines and Windsor. Although current expansion is primarily in the Ontario market, plans for expansion into Quebec continue, with the opening of 5 new stores in Montreal, beginning in March of 2006. The first store to open will be in the Fairview () shopping centre on March 30, followed by one in the Rockland Centre (April 6), the  (April 13), and the (May 18). So far, only Rockland and Laval locations will be stocking menswear. Certainly, expansion into Western Canada will start in 2007, continuing into 2008 through 2010. ()   1.4.           Promotion/Communication             To promote the company and its product, the company will use video advertisements, print advertisements and the concept of e-marketing. These promotion and communication strategy will tend to meet the consumers form different places everywhere, especially those target markets or the consumers in the working place (See Appendix 3).                Moreover, since the trend in the market place today is the usage of e-marketing, the company will provide a website that any client can access.  The use of the Internet is changing high-tech marketing overnight while different industries have been trying to use it as part of their marketing strategy. It does not only reconfigured the way different firms do business and the way the consumers buy goods and services but it also become instrumental in transforming the value chain from manufacturers to retailers to consumers, creating a new retail distribution channel (, 1999).  E-marketing is a powerful tool used by different business organisations around the world. It is defined as the process of achieving marketing objectives through the use of electronic communications technology.  (2001) have provided a 5Ss’ mnemonic for how the internet can be applied by all business firms for different e-marketing tactics.  These 5S’s are selling, serve, speak, save and sizzle.               E-marketing is also known to be the online marketing strategy utilised by different company whose objective is to be the best company in their field.  Thus, the H&M will create its own website ().  The main objective of utilising e-marketing strategy is to keep in touch to different internet users to be able to attract more clients and consumers. All in all, through the website, whether the user is a customer, employee, stockholders, vendors, retailers or end customers, the true strength of e-marketing is acceleration of the business portfolio.   1.5.           Market Segmentation             Here, H&M will provide its target consumers for its product. Primarily, the context of the market segmentation for this company will be the Psychographics.  Psychographics includes social class, lifestyle, and personality variables ( 2000). The end result of using these variables is a psychological profile of each market segment. Issues also examined the customers’ loyalties, habits and self-concept. Social class describes how individuals want their office automation will meet their comfort and satisfaction, what they consider important about their immediate surroundings, their opinions on various issues, and their interests.                As lifestyle studies concentrates on what the consumer requires, using these study results as marketing strategies eventually became a marketing concept.  (1960) is one of those highly credited for popularising this specific marketing concept. The marketing concept is a basic philosophy that maintains that an organisation should endeavour to satisfy the needs and wants of customers through a coordinated set of activities that also allows the organisation to achieve its goals at a profit. Some firms fail in this task since they are more concerned with making a product and selling the product than satisfying potential customer wants and needs.               The H&M must be able to consider its consumer, especially the demands of the consumer so as to let the business have an opportunity of having an expansion of its business portfolio as required by the consumers and the clients’ need (See Appendix 4).   SWOT Analysis In order to determine the different resources and capabilities of H&M, a SWOT analysis is appropriate. This specifically analyses the strengths, weaknesses, opportunities and threats of a company. Situational analysis, where the SWOT technique is applied, is an integral procedure and a very powerful tool for businesses to instigate effective marketing plans. As the initial procedure of creating a market plan, situational analysis aims to comprehend the environmental as well as the organisational influences that surround a particular business establishment. A SWOT analysis actually has two parts and both are equally significant. One is the external analysis and the other focuses on the internal environment. When conducting an external situational analysis, the business’ customers, market and competitors are analysed. Relevant information regarding the company’s market segments, their competitor’s relative weaknesses and strengths as well as the industry as a whole.   An analysis of the external environment requires more than just a summary of what the competition is doing. The external environment is comprised of two elements — the societal environment and the industry. The societal environment includes a review of major trends in society affecting organisations across all industries. These trends include political, economic, social and legal. An analysis of the industry takes a look at factors that have a more direct bearing on the business. Hence, in addition to analysing the competition other groups must be similarly evaluated to ascertain that no opportunities or threats within the environment are overlooked ( 1997). On the other hand, internal situational analysis focuses on the identification of the company’s distinctive competencies, expected growth, their assets as well as their liabilities. The internal analysis also illustrates the core values of a company, and in what ways can these values be enhanced or beneficial to the market plan ( 2002). Below is the SWOT analysis for H&M:   Strengths: Weaknesses: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Basis for strong management team </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Possibility to evolve into range of offerings </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Very focused management/staff </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Well-rounded and managed business </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Efficient Marketing plan </li> </ul> <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Focus maybe too narrow </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Lack of awareness amongst prospective customers </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Potential need for larger premises </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Absence of strong sales/marketing expertise due to new environment </li> </ul>   Threats: Opportunities: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Major player may enter targeted market segment </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Economic slowdown could reduce demand </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Market may become price sensitive </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Market segment’s growth could attract major competition </li> </ul> <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Market segment is poised for rapid growth </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> New markets offer great potential </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Distribution channels seeking new products </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Potential to diversify into related market segments </li> <li class="MsoNormal" style="punctuation-wrap: simple; text-autospace: none; vertical-align: baseline; margin-top: 5.0pt; margin-bottom: 5.0pt"> Emerging new technologies may move market in new directions </li> </ul>     Synthesis China is the fourth largest country, and with a population of 1.3 billion people, it is bound to be the largest economy of the future. That is, if it could set right its marketing policy after long years of economic “dark ages” under Mao Zedong’s autocratic socialist system. After the World War II, the communist government imposed a Soviet style centrally planned economy. Although this system ensured that the country was free from foreign intervention, there was a strict control over the everyday lives of the people, and the economy suffered, became sluggish and inefficient. DENG Xiaoping, who succeeded Mao, started focusing on a market-oriented economic development (:  2005).   China went through a major marketing philosophy change after the government initiated the policy shift. Previously, the only way to export goods to China is by directly approaching a government FTC (Foreign Trade Corporation) for the particular commodity to be exported The closed distribution system of the government has been shattered and this meant that the free market gave birth to systems that provide goods based on real market needs instead of what the bureau decides to supply. The advantage of this move quickly became evident as the living standards of much of the population have improved enormously and the people have more freedom of choice. The objective of this essay is to show the importance of further enhancing China’s marketing philosophy to maintain this development.  After a free market has been established, the next step would be import and export. In the 20th century, the major concepts that should be incorporated in China’s marketing plan are GLOBALISATION and e-commerce. China had opened its door to the rest of the world, but it is still not that simple for the foreign investors to capture the Chinese market.             China had indeed embraced globalisation, but of a sort. Travelling through Shanghai, it would be hard to distinguish it from Taipei, Hong Kong, or any US city for that matter. The wide streets are packed with automobiles. Bright Neon lights decorate the shops. You will find Chinese wearing Nike shoes or Calvin Klein tees, and drinking Coca Cola. Patrons fill the Discos and bars, where rock American rock music played and German beer were served all night. The impression is that foreign products and influence flows freely and accepted readily at China, but those who think they understand Chinese market completely better think twice. In his article “: ”, compared China to an awakening dragon who tossed down the large number of foreign investors who sat atop it, trying to ride it without fully understanding the dragon (2000).  The Chinese market is not as accessible as should be.               There were of course foreign companies able to set a stronghold in the Chinese soil, but only those who came utterly prepared, knowledgeable in Chinese  society, and committed to do business. After all, China is a large country with its transportation and communication sector still under development. Regions are separated and fragmented, and therefore cannot be considered a unified market. The immediate issues faced by the early investors were cultural differences, trade barriers and government restrictions. Coca cola, Philips, Kentucky Fried Chicken, Nokia, Microsoft, and Johnson and Johnson were some of the companies who succeeded in taming the “dragon”. There is social behaviour in China that in itself is not bad, but it does affect the country’s globalisation process. The predominant thought in Chinese Marketing System is that in order to do business successfully in China, the business must be organised, implemented, and operated in China. A business have no hope of much success if operated through long distance management, controlled by overseas main branch, or implemented by a foreign team that excludes participation by the locals. The Chinese are like westerners after all, sincerity and friendship is appreciated. A business in China must show acceptance of the host country. Donation to the government and charities , company leaders’ visits during China’s important days, company participation in China’s  activities or drives, these are likely to make a foreign company accepted by the Chinese market.  There were a lot of examples that illustrate this, involving the big foreign corporate names in China today.               Developing e-commerce is another impact that is brought about by globalisation. The principle of doing business internationally raises connectivity issues, which are better solved by e-commerce, which means doing business transaction electronically through the internet. E-commerce removes the geographical separation between regions, and made dealing with foreign trade a snap. E-commerce is just on its initial phase in China, but it is expected to grow as the Ministry of Information Industry starting to structure the basic framework for e-commerce development, rules and regulations.               Thus, we find that for China to emerge as a economic leader, it must embrace a significantly different marketing philosophy. The future of any developing country lies on globalisation, in trading with other countries without bias and discrimination. China must practice readiness to accept the trends in marketing strategy. Contact with the outside world market should be welcomed, not doubted. That way, china and its 1.3 billion people, would stand as the new pillar of world economy   Recommendation             The above discussion has evaluated the marketing entry plan of the H&M as an emerging clothing and cosmetic business in China.  Through this analysis, the company has utilised some marketing concept to be able to be competitive in the business world, specifically, the clothing and cosmetic industry.  And since the main mission of the company is to provide apparel, clothing and cosmetics suitable for the current trend, the company should efficiently create a product that would enable the client to buy it and be satisfied about it.               It is recommended that the company should be more innovative in making clothing and cosmetic that would make them known in the marketing arena, locally and internationally.  To be able to be known worldwide, the company must include in their strategy the acquisition and merges, to properly utilise branding strategy.  By acquiring, other famous company within the software field, the company can easily enter the marketing arena in the global competition.   Conclusion             Although, H&M is a new market within the business arena, the company has been utilised a strategic marketing move, including a strategic planning in order to make the market be know in the marketing environment.  The company has also made it possible to be connected to their target market thru the use of technological advancement like the e-marketing. Moreover, this marketing entry strategy can be considered as effective since the company has included all the factors to be assessed in order to make the business prolong its competitiveness and survive in the threatening place of the market.                                               References:   Appendices Appendix 1                             Figure 1:  Porter’s Five Forces Model             Source:  . (1980).    Appendix 2 Marketing Mix             Figure 1: The Concept of Marketing Mix     Appendix 3                     Figure 2: Marketing Communication Process Source:  1965. Appendix 4                       Figure 3: Buyer Decision Process Source:  1991 Credit:ivythesis.typepad.com

EMERGING MARKETS REPORT

H&M Introduction If an industry has decided to conquer the international market, there are many choices that will be ...

CRITICAL ANALYSIS OF THE EMERGING MARKETING ISSUES

“CRITICAL ANALYSIS OF THE EMERGING MARKETING ISSUES”         Basically all firms almost always facing critical issues about the emerging market situation especially in International trade and these are open ended issues pertaining to the solution that may or may not be easily adaptable to all firms. One must adapt the emerging trends or be left behind. These are the following topics that may be associated in your organization but is it applicable to all company in general. 1.    The Internet or cyber marketing    2.    Research and Development/ Innovation etc.   3.    Sales and Promotional strategy 4.     Marketing management 5.     Customer relation 6.    Competition and many others.       Whether you are a small or medium size enterprise to be able to be a viable marketing firm one must face the challenges that emerge into your business. For the purpose of discussion we are going to focus into “Competition of original against the fraud issues” since emerging firms usually derive their initial focus into distributing or selling new and innovative products and services. If an emerging marketing company complies with new products that are new to the market then they must therefore develop another marketing and promotional strategy to their product in order to be accepted to the market. It is not necessary that a company would distribute new products that have not been offered to the market for example is a time machine, or a laser gun or an x-ray sun visor just to exaggerate if that is so, then they should aim for market leadership since they are the first mover. Therefore Research and Development has paved its way to introduce a new and innovative product to the market and it should continue.       An emerging issues rise when your product has gained market control and your competition has taken its step to compete with your products. In as much as I remember cellphones and computers has flooded the market in the early 90’s but up to now the continuous Research and Development of giant companies like Nokia, Samsung, Alcatel etc. has been enormous. These giant companies continue to develop additional function and innovation they can offer and one would not want to be left behind. Research and Development have put on TV inside the cellphone; Internet, torch etc. just to get ahead over the other.       In some other point some fraudulent firms take their advantage to “ride on” the popularity of these giant companies. In most parts of China fake cell phones are rampant they even use the brand names of the original products to imitate not to innovate. You can easily know that their products are weak and unreliable since they do not offer a guarantee but a low price low quality products. Sadly they even distribute these items to other Asian countries like Philippines, Malaysia, Thailand and Singapore including music and video DVD’s and MP3. Critically this marketing issue has not been resolved for the last ten years although a thorough and massive collection of fake supplies have been taken place.       Most companies have suffered heavily from this issue. People tend to buy low quality products just to experience the product and benefit from it without worrying about its content and legal issues. Some companies especially the recording and film industry tend to compete to lower their price just to get even. In the Philippines reportedly as high as 50 to 70 percent of their net income on film and music has been lost.         Another booming trend in most part of Southeast Asia and some parts of Africa is the second hand used clothing industry popularly known as “Ukay Ukay” These are used clothing that comes from other countries that is low priced may or may not be a high quality materials but usually unclean, and easily available around the corners or along the market and shopping malls. Although most of this used clothing is illegal the government has not addressed any issues to resolve such cases of importation and selling such commodities. There is no guarantee to the products whatsoever because it is offered as is. A customer may simply walk into their store to chose and pay whatever they like.       Some giant companies offer a massive sales pricing strategy to effectively compete with their products or preserved their stocks if they have not taken action against it. Basically small firms who have not reach a wider distribution are the one who suffered from these issues. According to experts the reason for these fraudulent booming businesses is still due to worldwide economic crisis.                                                         Credit:ivythesis.typepad.com

CRITICAL ANALYSIS OF THE EMERGING MARKETING ISSUES

“CRITICAL ANALYSIS OF THE EMERGING MARKETING ISSUES” Basically all firms almost always facing critical issues about the emerging ...