Entry Strategies in Cutlery industry in Austria (Haider)

This is our strategy to explore new market.

Exporting
We will produce our goods locally in home country and then export to Austria.

Advantages
By exporting we can save a huge cost of production because we can make products locally at
low labor costs and material cost too.

The infrastructure is easily available here and expert labor is also an advantage.

Disadvantages
While we are exporting so we have to bear high transportation cost to sell in Austria.

We cannot easy control the foreign business.

Pressure of Local Responsiveness (Haider)

Dimensions Home Country Host Country Barriers Strategies
Customer We do not prefer Quality and designs are We will make
Preferences designs in cutlery preferred in this country stylish cuisine
items but we Yes designs
consider heavy in providing best
weight quality
Infrastructure We are highly Austria is a wealthy We can sell at
and practices involved in country and have high prices over
differences hotelling so the advanced infrastructure Yes there by
demand is high and good in hotelling acquiring good
practices relations with
locals in Austria
Host Country’s Demand is high Due to demand is
Demand high so we can
sell high amount
of products over
their
Distribution Crokery shops Shopping malls and super Giving discounts
Channels and Sellers of stores Yes to the distributors
kitchen items and sales
margins to them
so our product
demand will
heavily increased
Pressure of Cost Reduction (PCR) (Haider)
Austria is importing cutlery products from different countries so there is not major pressure of
cost reduction. The exporters can sell at high price due to proving variety of products.

Localization Strategy Transnational Strategy

High

Low International Strategy Globalization Strategy

PLR

Low High

PCR

Because we are facing Less Pressure of cost reduction (PCR) and High Pressure of Local
Responsiveness so our strategy will go forward to the Localization Strategy.
Staffing Policy (Haider)
We are going to apply the approach of Polycentric because we have lower PCR and higher PLR
so this approach is suitable for us to hire the employees.

We will hire local nationals in the home country and also local people of the host country over
there.

Marketing Mix (Haider)

The 4Ps of marketing mix are these

Product
Our product is the cutlery items to sell in Austria through the exporting approach of international
Business. Our products are heavy in weight and rust does not appeal on it.

Price
We can sell at high prices over there by acquiring good relations with locals in Austria. Because
there is established hotel businesses and they provide high quality in hoteling services in each
aspect.

Place
Austria is a wealthy country and has advanced infrastructure and good in hoteling practices. We
will mainly focus on Shopping malls and super stores.

Promotion
Our product will be promoted through

 Social Media (Facebook, Instagram ads)

 Catalogues (this will describe the characteristics of products)
 Newspaper

Concerns of the Host Country (Austria) (Haider)

These are the concerns of the host country

NGO
Our business is directly linked to the food business so we have to consider these things.

Slow Food works around the world to protect food biodiversity, build links between producers
and consumers, and raise awareness of some of the most pressing topics affecting our food
system.
These initiatives range from community activities organized by local convivia, to larger projects,
campaigns and events coordinated by Slow Food’s national offices and international
headquarters.

◾Saving endangered foods and defending gastronomic traditions through our

biodiversity projects

◾Teaching the pleasure of food and how to make good, clean and fair choices through
food and taste education

◾Celebrations of the gastronomic traditions of Europe and Asia, artisanal cheese and
fish, and meetings of our worldwide networks in our international events

◾From animal welfare to land grabbing, addressing themes that we care about

◾Connecting people passionate about changing the food system through our
international network

(Slow Food, 2019)

Government

Under Austrian Law, you are required to have your passport readily accessible at all time.
Failure to comply with this law is punishable by an on-the-spot fine of up to 150$.

Society

The highest court of the public laws jurisdiction is the Verfassungsgerichtc (VfGH,
constitutional court) it is the highest court of ordinary.

There is peace of environment and the corruption is as low as 14th Rank in 175 countries. There
is also no terrorism in Austria.
 Activist Organization
F
FS1 (Austrian TV channel)

I
International Human Rights Tribunal

Ludwig Boltzmann Institut für Menschenrechte

Rosa Antifa

(Wikipedia, 2019)