Considering that the household income in Czech Republic is below theaverage income of 25000 dollars, there is need to consider theeconomic aspect before embarking on marketing the front load washersand dryers. There is need to market the low end washers and driers.This would ensure that the low income earners in the country affordthe machines. Additionally, the machines would be using little powerand water to ensure that they are sustainable (Daniels et al., 2015).I would also consider the gas powered machines as a way of ensuringthat the machines are affordable and can save on power. It is evidentfrom research that there are machines which are power star rated interms of their power consumption. In a bid of considering the bestwashers and dryers for Czech Republic, I would consider the bestrated machines. These are just but some of economic factors that Iwould consider while marketing front load washers and dryers in theCzech Republic.
With regards to the legal and political aspects, there is need toensure that the machines abide by the standards set by the regulatoryauthorities in the countries. ABC Washing Machine Company wouldcomply with all the tax requirements and acquire the necessarypermits required by the Czech Republic government for anyinternational company to operate in the country. There are laws inthe country which are meant to protect the consumers from beingexploited. It is essential for ABC Company to ensure that these lawsare adhered to. This would ensure that the business runs smoothly inthe country. ABC Company should not set up a business in the countrywithout having met all the legal requirements including the permits.Politically, it is prudent for any company to ensure that it venturesinto a country that is politically stable. It is worth noting thatCzech Republic has a democratic government and it is one of the mostpeaceful countries in the world. This implies that the politicalenvironment is favorable for business.
Product differentiation is an integral part in any marketingprocess. In marketing the Front-Load Washers and Dryers in CzechRepublic, it is critical to have unique products that are differentfrom the products being currently supply by Miele Company. ABCWashing Machine Company will ensure that unlike the washers and thedryers supplied by Miele, theirs are modern and efficient. Thecompany seeks to market machines which are efficient in terms ofwater loss and power usage. Another uniqueness of the ABC washers anddryers is that they will be gas powdered. ABC also considers sellingtheir machines at relatively cheaper prices than the competitor. Thisdoes not mean that the quality of the machines will be compromisedwhatsoever. The company will provide quality machines hence creatingvalue for the clients. This will differentiate the product from thatof the competitors. The ABC Company is ready to alter the products tofit the demands of the Czech Republic customers (Daniels et al.,2015). This will give the company a competitive advantage in themarket. The company has plans to set up a manufacturing plant inCzech Republic which will ensure that the design of the washers anddryers can be altered to meet the demands of the clients.
The company will apply the marketing mix of price, promotion andplace to ensure that it gains the big share of the market (Bowman &Gatignon, 2010). ABC Company plans to sell its machines at relativelylower prices than those of the competitors. The modern sleeker designas opposed to the drum shape/design will ensure that themanufacturing cost is low hence selling the products at lower priceswithout compromising on quality. Promotion will be integral inmarketing the products in Czech Republic (Richter, 2015). It isevident that the Miele washers and dryers are already in the marketand therefore for the ABC products to gain ground in the market,there needs to be immense promotion efforts. The company plans to usesocial media, television, radio, newspapers and posters to market itsproducts. It is also worth noting that the company will use localretailers and supermarkets to promote its products. It is alsoessential to consider the place where marketing is taking place. Thecompany will market in areas where there is potential for purchases(Bowman & Gatignon, 2010).
There are three main staffing approaches namely the ethnocentricstaffing, polycentric staffing and the regiocentric staffing. Theethnocentric staffing calls for the deployment of employees from thehome country of the company only without using nationals of thecountry where the company is operating. This has the advantage ofensuring that the company has representatives who can align theinterests and perspectives of the home office with the foreign office(Mössler, 2013). The maindisadvantage is that there is lack of the local perspective in termsof the political, business and legal environment. An example ishaving a US company such as Microsoft plant in Mexico and having onlyAmericans working in the plant in Mexico.
The polycentric staffing approach is where a company hires nationalsof the local country as employees without expatriates from the homecountry. This has the advantage of providing the local political,economic and legal perspective (Mössler,2013). The main disadvantage is that there is lack of the alignmentof the interests and perspectives from home office. An example ishaving Czech Republic employees working for an ABC Companymanufacturing plant in Czech Republic. The last staffing approach isthe regiocentric staffing approach where the management staffs areselected from the countries that are close to the host country(Mössler, 2013). It isargued that these staffs well understand the region and hence canhandle situations well. The disadvantage is that the staff cannotgrow in their careers since they only deal with likeminded people. Anexample is the use of employees from East African region to work foran American company plant in Tanzania.
Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P.(2015). International business: Environments andoperations. Harlow: Pearson Education.
Mössler, K. (2013). ThePros and Cons of International Staffing Policies. Munich: GRINVerlag GmbH.
Bowman, D., & Gatignon, H. (2010). Market response andmarketing mix models: Trends and researchopportunities. Boston: Now.
Richter, T. (2015). International marketing mix management:Theoretical framework, contingency factors andempirical findings from world-markets. Berlin: Logos.