3.Analysis of the Internal Resources and Capabilities of Rowa
It is undeniable that the external environment is significant for enterprises to enter into foreign markets, but the internal capabilities, such as current resources, competitive advantages in home country and competitive assets in host country play important roles as well.
3.1 Current Resources and Capabilities
Rowa is considered as one of the most innovative companies in the Chinese TV industry who has strong and powerful innovation teams. In 1998, it developed the first flat-screen TV in China. Additionally, based on TCL (2016), the partnership with the global appliance enterprise TCL is likely to improve the quality of Rowa’s products as TCL implements strict and higher standards. …show more content…
In Rowa’s case, the Indian market is similar to China at the end of the 20th century, thus, the competencies in the Chinese market might be used for expanding to the Indian market, such as the alliance with TCL. However, the totally different economic reforms determine the differences between China and India, which requires Rowa to utilise the local resource. For example, Rowa should be able to develop the distribution channel in the Indian market and implement localised marketing strategies to attract more Indian …show more content…
Meanwhile, Rowa could enjoy the complete distribution channel after the joint venture because Delhi was also one of the cities that TCL has covered. After entering the Delhi market, Rowa could consider the near rural areas because its cheap televisions would become attractive for consumers who live in the bottom of pyramid. As the market leaders, such as Sony, Samsung and LGE, have developed in the Indian market for several years, Rowa should avoid direct conflicts with these enterprises, thus, it may consider exploiting the markets which have not been control by competitors. In that case, the transportation in the unexploited markets are likely to be inconvenient, therefore, Rowa may establish its own transportation system to solve this issue. Meanwhile, as a result of insufficient mass media, new channels are required to reach mass markets, especially in the rural
It is undeniable that the external environment is significant for enterprises to enter into foreign markets, but the internal capabilities, such as current resources, competitive advantages in home country and competitive assets in host country play important roles as well.
3.1 Current Resources and Capabilities
Rowa is considered as one of the most innovative companies in the Chinese TV industry who has strong and powerful innovation teams. In 1998, it developed the first flat-screen TV in China. Additionally, based on TCL (2016), the partnership with the global appliance enterprise TCL is likely to improve the quality of Rowa’s products as TCL implements strict and higher standards. …show more content…
In Rowa’s case, the Indian market is similar to China at the end of the 20th century, thus, the competencies in the Chinese market might be used for expanding to the Indian market, such as the alliance with TCL. However, the totally different economic reforms determine the differences between China and India, which requires Rowa to utilise the local resource. For example, Rowa should be able to develop the distribution channel in the Indian market and implement localised marketing strategies to attract more Indian …show more content…
Meanwhile, Rowa could enjoy the complete distribution channel after the joint venture because Delhi was also one of the cities that TCL has covered. After entering the Delhi market, Rowa could consider the near rural areas because its cheap televisions would become attractive for consumers who live in the bottom of pyramid. As the market leaders, such as Sony, Samsung and LGE, have developed in the Indian market for several years, Rowa should avoid direct conflicts with these enterprises, thus, it may consider exploiting the markets which have not been control by competitors. In that case, the transportation in the unexploited markets are likely to be inconvenient, therefore, Rowa may establish its own transportation system to solve this issue. Meanwhile, as a result of insufficient mass media, new channels are required to reach mass markets, especially in the rural