Market Entry Strategies

Introduction

The purpose of this paper is to enlighten and explore the market entry strategies of the multinational organizations. In the era of globalization, the competition has become intense and the corporations are striving to achieve the competitive edge in the market place. In this scenario, the success is achieved by the organizations that expand their practices beyond national boundaries. There are several organizations that formulate diverse strategies to grasp the potential target markets beyond national boundaries. These organizations are called the multinational organizations, and their key competence is revealed by their marketing strategies through which they penetrate the global markets. This paper will explore the penetrative strategies adapted by IBM and Canon in order to achieve the competency in the global market place. IBM is considered to be the second largest company in the computer industry in the world. This first invention was one of the outstanding that became a hallmark for the excellence of IBM. These kinds of products had directed the firm towards the title of being an innovative organization in the development of precision instrument. IBM will develop a lot more products which will prove their breakthrough performances over the 50 years. This will eventually provide an ample percentage of the innovative product measurement instrument market.

Canon is an organization that regulates its practices globally. The diversification and market pioneering are the most essential strategies of the organization that has allowed it to grasp a significant market share. According to diverse sources, the net sales of Canon were $34,883 million in FY 2009, and its net income in FY 2009 was $1,431 million. Canon's target markets are consumer, business and industry, where it produces wide range of products; however the important ones are cameras, printers, copying machines, optical products and business machine. The consumer unit focuses on the digital SLR, interchangeable lens, compact digital cameras, camcorders, single and multi inject printer, scanner and broad casting equipment. Canon group loss for the year 2009 after taxes was 2.0 million and gross profit margin declined by 7.1 % due to increased cost sale and pound deprecation. The U.S digital still compact camera market reached 5.80 Mio units, while DSLR contributed 500,000 units and HD camcorder with the percentage of 51 % and 165,000 units. Canon digital compact camera and DSLR (EOS 450 D) were leading the market.

IBM

This section of the paper would discuss the market penetrative strategies adapted by IBM in order to achieve leadership in global market place.

Retaining the Customers in Printing Industry

IBM was able to outpace market growth early in the review period largely thanks to its leading positions in developing markets like Brazil, where volume sales of IBM printers accounted for 60% of the market in 2004. The company was able to use its leadership to drive sales as the region recovered from the crisis over the latter part of the review period.

IBM has been the leading printing brand in the US over the entire review period, but in 2006 its volume share in the US ...