Old Chang Kee Essay
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This feasibility study was commissioned to assess Old Chang Kee’s proposed marketing strategy to enter the Thailand market. This report draws attention to the analysis of the external factors of the new market, proposed entry strategy and internalization of marketing mix. The marketing objectives set for this study will remark on an increase of 15% of total international sales of Old Chang Kee’s products.
Master franchising is chosen because it provides an easier entry to Thailand food industry and is cost-efficiency compared to fully owned subsidiaries system. The factor that may hinder the business growth is the political instability and the high …show more content…
3.3 Market Entry Strategy
There are kinds of decisions when wishing to join an external market. Spreading, licensing, joint projects, tactical cooperation and only owned subsidiaries. This study will highlight two promising lines for Old Chang Kee's entry plan. They are contracting and solely owned company. 3.4.1 Franchising Between Food and Beverages (F&B) business, the most general approach agreed is agreement (Yin and Zajac 2004). For example, operates primarily on a licensing source. Franchisee pays a large sum of money and fee each month to the franchisor and gets the class name, existing customers, and management knowledge.
Bread Talk, a close challenger of Old Chang Kee in Singapore, operates on a contract source for a distant market. It has some parallels with Old Chang Kee in times of business they are working and objective market.
3.4.2 Wholly Owned Subsidiary
When the company wish to have total management of its jobs in the mass country can be done by starting own business from scratch or get as being firm in the mass country. Such as Japanese companies, Honda, Nissan and Toyota, have successfully