Page 296 - International Marketing

298 International Marketing BRILLIANT’S

target, TSI would have to tap markets other than Europe. US footwear
market was the largest in the world and seventy percent of the US market
needs were met by exports from China. There was an opportunity to enter
the US market because seventy percent of TSI's leather was exported from
Hong Kong warehouse to China, where it was processed and converted to
full shoes before being exported to USA.

China's Competitive Advantages
 Most Favoured Nation (MFN) status with USA, thus Chinese prod-
ucts entered USA at concessional rates.
 Chinese plants with high manufacturing capacity were able to manu-
facture 10,000–15,000 shoes per day unlike the Indian Plants having
a capacity of 1,000–1,200 shoes per day.
 The component industry was well developed providing standardised
heels, soles, uppers in large volumes.
 A well developed infrastructure was available in China, which facili-
tated exports. NPP
 Most Chinese manufacturers followed strict quality norms enforced
by US quality inspections.
Sourabh Sharma knew that to be successful in the US market, it
needed to develop similar skills and competitive advantages as enjoyed
by the Chinese firms. So after a lot of brain storming, he thought that the
best strategy to enter US market for TSI would be shifting of production
facilities to the Chinese mainland, where labour cost was low as com-
pared to India. Leasing a Chinese facility could be a good strategy, also
outsourcing the shoes from the supply chain could be an alternative
strategy.
Questions For Discussion :
1. How far do you think that Sourabh Sharma's formulation of
strategies would work in the existing scenario ?
2. What other strategies could be adopted by TSI to enter the US
market ? 
2012
1. Define International Marketing. Discuss the “EPRG” concept of Inter-
national Marketing. Also discuss theory of Human Capital and theory
of Identical Preferences. [See Q.1, 7 & 8]
2.. Discuss any five major problems of International Marketing Research.
[See Q.17]