netrashetty
Netra Shetty
Peterbilt Motors Company is a manufacturer of medium- and heavy-duty Class 5 through Class 8 trucks headquartered in Denton, Texas. Founded in 1939 Peterbilt operates manufacturing facilities in Denton, Texas (1980), and Sainte-Thérèse, Quebec. From the early 1960s until the mid 1980s, the company was based in the San Francisco Bay Area of Northern California, with its headquarters, parts department, and main plant all in Newark, California. The Newark plant closed in 1986 with all manufacturing consolidated at its facility in Denton; in 1993 headquarters and engineering also moved to Denton.
- The UN and the ADB estimate that the global economic crisis could result in an additional 21 million people in Asia Pacific in extreme poverty. As Asia Pacific has weaker social protection compared to other regions such as Latin America and Eastern Europe, people falling back into poverty cannot recover easily.
Opportunities for businesses
While there are factors in the region restricting income and spending growth, the long-term trend is the emergence of a wealthier consumer market, driven by the growth of China and India:
- The emergence of a sizable, affluent middle class in China, India and Southeast Asian nations for the first time creates major opportunities for companies, as these economies move from consumption of basic household durables to more expensive items such as mobile phones, computers and white goods;
- India's largely rural and agrarian countryside also provides more opportunities compared with China, as the 'bottom of the pyramid' segment aspires to an urban lifestyle. Business potential of poor communities are large in basic products and services such as telecoms, consumer goods, scooters and motorcycles;
- Meanwhile, significant variations in incomes and expenditures due to inequality across the Asia Pacific region mean that products and services have to be tailored for different countries. In general, Japan, South Korea, Taiwan, the coastal regions of China, Singapore and Hong Kong offer mature markets for high-end products, while Southeast and South Asian nations will be more suitable for budget products and services.
Prospects
Major emerging economies in the Asia Pacific region are posed for a strong recovery following the global crisis:
- In 2010, China's real per capita disposable income is forecast to grow at 8.8% annually, compared to 10.9% in pre-crisis 2007. In India, in 2010, real per capita income is set to rise by 4.6% annually, which is a return to the same level of annual real growth in 2007. This region will be an important growth driver for global consumer companies which are struggling to find growth in other parts of the world;
- In the medium-term, Asia Pacific per capita consumer expenditure is expected to increase by 3.8% annually during 2010-2015 in real terms. Regional per capita annual disposable incomes are expected to rise at an average annual rate of 4.2% in real terms over the same period. The equivalent world average annual growth rates are 0.9% and 1.2% respectively. Asia Pacific therefore offers businesses a sound medium-term growth prospect.
forerunners in the export businesses. (Brouthers and Nakos 2005, 363) Studies have indicated that these companies tend to be successful in the area because of a couple of factors: “influence of decision-maker characteristics on the export behavior of the firm and its performance” and “firm-specific characteristics that influence a firm's international behavior.” (p363) It is seen therefore that the structure of the company, being compact allows for a much expedient way of carrying out decisions. In doing so, the SMEs are able to act timely. In the same way, if the company did make some sort of mistake or miscalculated their actions, then evasive measures could also be done surreptitiously as the decision-makers could detect it quickly.
IX. Entry in the Global Market
Entering a new market is a complex choice which has to be given focus and understanding. With the purpose of establishing a business that would be well-known and sustained by consumers, entrepreneurs are ever more trying to break through the market hastily. (Herrmann and Datta, 2002, 551) Among the factors that egg on businesses to go international is the opportunity set by an investment to support a company which in turn becomes a more a competitive entity among the other players in their respective industries.
If a business entity has decided to break into the international market, there are a lot of options available to them. These options may possibly be composed of the cost, risk and the degree of control that the company will encounter. (Griffith, Russell, Tihanyi, 2005, 270) In having an international business endeavour, it is very important that the management of the company should be competent of selecting a marketing entry system so as to make the business be more competitive (Brouthers and Nakos, 2004, 229). International business scholars make use of the expression “modes of entry” to represent the varied means and methods functional to enter markets and perform trade in other states.
In choosing joint ventures, the company has quite a few advantages to work to their favour. (Choi, and Beamish, 2004, 201) One would be the sharing of information with the associate company. This indicates that the learning curve with reference to the market that the company intends to enter would be rather brief. Likewise, the reputation of the company may similarly develop if a competent associate is selected in the target state. And deciding a competent associate will similarly bring about the prospect of the associate to institute high profit margins. This means that choosing a perfect partner in a joint venture entails the option of establishing obstacles to possible competitors in the same region.
- The UN and the ADB estimate that the global economic crisis could result in an additional 21 million people in Asia Pacific in extreme poverty. As Asia Pacific has weaker social protection compared to other regions such as Latin America and Eastern Europe, people falling back into poverty cannot recover easily.
Opportunities for businesses
While there are factors in the region restricting income and spending growth, the long-term trend is the emergence of a wealthier consumer market, driven by the growth of China and India:
- The emergence of a sizable, affluent middle class in China, India and Southeast Asian nations for the first time creates major opportunities for companies, as these economies move from consumption of basic household durables to more expensive items such as mobile phones, computers and white goods;
- India's largely rural and agrarian countryside also provides more opportunities compared with China, as the 'bottom of the pyramid' segment aspires to an urban lifestyle. Business potential of poor communities are large in basic products and services such as telecoms, consumer goods, scooters and motorcycles;
- Meanwhile, significant variations in incomes and expenditures due to inequality across the Asia Pacific region mean that products and services have to be tailored for different countries. In general, Japan, South Korea, Taiwan, the coastal regions of China, Singapore and Hong Kong offer mature markets for high-end products, while Southeast and South Asian nations will be more suitable for budget products and services.
Prospects
Major emerging economies in the Asia Pacific region are posed for a strong recovery following the global crisis:
- In 2010, China's real per capita disposable income is forecast to grow at 8.8% annually, compared to 10.9% in pre-crisis 2007. In India, in 2010, real per capita income is set to rise by 4.6% annually, which is a return to the same level of annual real growth in 2007. This region will be an important growth driver for global consumer companies which are struggling to find growth in other parts of the world;
- In the medium-term, Asia Pacific per capita consumer expenditure is expected to increase by 3.8% annually during 2010-2015 in real terms. Regional per capita annual disposable incomes are expected to rise at an average annual rate of 4.2% in real terms over the same period. The equivalent world average annual growth rates are 0.9% and 1.2% respectively. Asia Pacific therefore offers businesses a sound medium-term growth prospect.
forerunners in the export businesses. (Brouthers and Nakos 2005, 363) Studies have indicated that these companies tend to be successful in the area because of a couple of factors: “influence of decision-maker characteristics on the export behavior of the firm and its performance” and “firm-specific characteristics that influence a firm's international behavior.” (p363) It is seen therefore that the structure of the company, being compact allows for a much expedient way of carrying out decisions. In doing so, the SMEs are able to act timely. In the same way, if the company did make some sort of mistake or miscalculated their actions, then evasive measures could also be done surreptitiously as the decision-makers could detect it quickly.
IX. Entry in the Global Market
Entering a new market is a complex choice which has to be given focus and understanding. With the purpose of establishing a business that would be well-known and sustained by consumers, entrepreneurs are ever more trying to break through the market hastily. (Herrmann and Datta, 2002, 551) Among the factors that egg on businesses to go international is the opportunity set by an investment to support a company which in turn becomes a more a competitive entity among the other players in their respective industries.
If a business entity has decided to break into the international market, there are a lot of options available to them. These options may possibly be composed of the cost, risk and the degree of control that the company will encounter. (Griffith, Russell, Tihanyi, 2005, 270) In having an international business endeavour, it is very important that the management of the company should be competent of selecting a marketing entry system so as to make the business be more competitive (Brouthers and Nakos, 2004, 229). International business scholars make use of the expression “modes of entry” to represent the varied means and methods functional to enter markets and perform trade in other states.
In choosing joint ventures, the company has quite a few advantages to work to their favour. (Choi, and Beamish, 2004, 201) One would be the sharing of information with the associate company. This indicates that the learning curve with reference to the market that the company intends to enter would be rather brief. Likewise, the reputation of the company may similarly develop if a competent associate is selected in the target state. And deciding a competent associate will similarly bring about the prospect of the associate to institute high profit margins. This means that choosing a perfect partner in a joint venture entails the option of establishing obstacles to possible competitors in the same region.