Market Entry Strategy Analysis
Any time a company introduces a new product into a market they are going to experience challenges. With introducing the M-box into the Swiss market we are going to have challenges with the demographics, the government, the physical infrastructure, economics, and the communication infrastructure.
Switzerland’s demographics are strong in some areas and weak in others. The greatest challenge in dealing with marketing the M-box is the current population growth rate. While the middle class size did show poor rankings in our BEAR research this will not have a major impact on the M-box because the middle class is not the entire ...view middle of the document...
We are attempting to introduce the M-box into a specific market to maximize sales. With the economic freedom being so high it appeals to many companies. When we introduce the M-box to the public in Switzerland numerous companies will be watching to see our results. If the M-box succeeds it proves to other companies that video gaming systems can be successful in the Swiss market. With having a high economic freedom all the competitors will have to do is find something that sets their system apart from the M-box. This will allow them to introduce their product at a comparable price and have the possibility of taking our profits and consumers. Fighting with the government and overcoming the demographics is a moot point if we can not get past the greatest challenge of the physical infrastructure.
Overall, Switzerland has a good physical infrastructure—all the roads are paved, it has a rail network that extends throughout the country, and has three airports that can handle cargo planes. The greatest challenge will be the port system and the three airports. When introducing a new product in an international market you have to be able to get the product to the market and keep the market supplied. With having only three airports that can handle cargo planes it can cause a logistics nightmare. One airport is located on the western border of Switzerland while the two remaining are both located in the north eastern corner of the country. With the locations of these airports getting the product from the point of import to the stores adds numerous variables that we can not control. With all roads being paved it makes sense to place the cargo in a truck and move it from the airport to the stores. Doing this opens us up for the possibility of delays in the supply chain. Uncontrollable variables such as traffic, mechanical failure, mountainous terrain, and road size and condition can cause delays in getting the product to market. In the infant stage of the business, this delay can be the make-or-break it point. While the airports can be an issue the greatest challenge when dealing with the infrastructure is the port system.
Switzerland is a landlocked country, but there are four rivers that flow into seas. Switzerland currently has four small river ports and one medium river port. The four smaller ports are mainly used as refueling stations and can handle very small amounts of cargo. The medium port, which is also the main port, is located on the Rhine River in Basel. Basel is located near the French and German border in the north central region. Ships and barges can travel with ease from the port of Basel to Rotterdam, then to the ocean. While this seems promising the challenge is getting the goods from Basel to the rest of the country, after arriving in port, the uncontrollable variables of land navigation enters the equation. Near the port of Basel, the Rhine, Rhone, and Ticino rivers converge offering the ability to place the product on smaller ships or...