Bluetooth Speaker APAC Market Entry Strategy - ADX/RIVA
Globalization has increased the competition amongst firms and enlarged the company’s willingness to enter foreign markets. Small, middle-sized and big companies are using different approaches to reach their target customers, increase profits or ensure the company’s growth. Different strategies offer these companies various opportunities to adapt modes to enter foreign markets and to find new channels of distribution. Business success of entering foreign markets strongly depends on an appropriate market entry strategy and operation.
Using ADX, Audio Design Expert, as the case for entry strategy analysis, the paper analyzes how a small-sized American company enters Taiwan market first in order to expand its market to other APAC countries with its advantages as well as potential risks.
It is decided for ADX/RIVA to enter Taiwan market in order to expand its market in APAC region, and hence to increase its market share, build its brand awareness, and to maintain its competitiveness in the industry. Especially knowing that Asia Pacific market for audio products is larger than we expected. Total revenue of the wireless audio device market is expected to grow at an estimated CAGR of 24.02% from 2013 to 2018 to reach to $13.75 billion by 2018. And exporting is the chosen market entry method for Asia Pacific region, and the distribution is done by local commercial agents and distributors and E-commerce.
For a company like ADX, a middle size start-up with limited budget, it is crucial to make sure strategic plans are in line with market thinking when entering fast-growing foreign markets. This is especially important for companies with lack of brand awareness in an industry that brand image makes quite difference. Audio device is one example of such industry due to the subjectivity of audio performance and experience. The alignment between strategic plan and market thinking strengthens the message delivered globally and consequently facilitates on building brand awareness and image positioning in the market it is trying to expand market to.
Moreover, when entering an unfamiliar market with limited budget, exporting might be the best market entry strategy. It takes the least cost and risk; meanwhile, having the local distributors to help on marketing strategy that best fits the market as they have stronger connection and network and know the marketplace better.
The integration of such market entry and marketing strategies has made a unique business model for ADX/RIVA to stand out from numerous competitors in Taiwan, and hopefully to be helpful for companies with similar situation.
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