1. Knowledge and understanding of the key issues in international business
activity in the context of contemporary globalization.
2. Capacity to evaluate and select an appropriate national marketplace in terms of political, economic, cultural, ethical, and legal frameworks.
3. Knowledge and understanding of multinational enterprises’ responses to
external influences and possible modes of entry into new markets.
4. Capacity to critically assess the activities of a given multinational enterprise in terms of its business interests.
CASE STUDY: VMOTO
Vmoto delivers international growth with its ‘green’ two-wheel electric vehicles
Vmoto Ltd (ASX:VMT) is beginning to deliver on its strategy of becoming a global leader in the manufacture, sales, and marketing of ‘green’ two-wheel electric vehicles (EVs).
The success of this strategy, incorporating the sale of higher value and higher margin EVs into international markets, has been revealed in the company’s 2018 financial results.
Total revenue in the 12 months increased to $19.6 million, an increase of up 30% on the $15.1 million achieved in the 2017 financial year.
Vmoto is looking to expand into new markets. This assessment aims to contribute towards the company’s internationalization strategy.
PART ONE: NATIONAL ENVIRONMENTAL ANALYSIS
Select a new national market for the company to enter and carry out a STEP
analysis of the country’s macro-environment:
– Vmoto already has large operational facilities in China and the Netherlands, as well as an advanced, growing network of more than 20 international distributors.
For the purposes of this task, students must avoid all national markets wherein
Vmoto already enjoys distribution deals.
PART TWO: ESSAY
Vmoto should seek to enter my chosen market by way of a cooperative entry
mode (such as joint venture, licensing, or franchising), rather than via a wholly-owned subsidiary.