Ppq Parts: Global Business Expansion

PPQ Parts: Global Business Expansion

Introduction

Verizon Communications Inc. is an International Fortune 500 company that only recently entered the market in the year 2000. This communications company is ranked number 13, by Fortune, as one of America's largest corporations. In order for them to have arrived at this level, Verizon has had to ensure that it not only offered quality service, but that they reach and maintain their targeted audience. By strategically and successfully using the 4P marketing mix concept, Verizon has paved the way to what looks to be a very profitable and productive future worldwide.

Potential Problems for Host Foreign Country

Potential problems in the host country should always be taken into account when businesses choose to globalize. Managers have to be prepared to handle many different aspects of operations in the global market based on the countries perspective of what are acceptable business practices and what are illegal or unethical business practices. "Host country issues include culture, membership in a free trade area (FTA), law, economy, and growth potential." (Abboushi, 2000)

Cultural Barriers and Diversity Issues

Host country uncertainty avoidance and host country trust are cultural barriers MNCs can run into when choosing countries to expand to.

Verizon's 4P Marketing Mix Concept

Verizon's products are offered worldwide, so therefore their marketing strategy has to reflect how they want their products to gain notoriety globally. Understanding the product they are currently trying to sell is one of the many important aspects of marketing. With technological advances continuing at a rapid pace, many companies are hard pressed to ensure their marketing strategies can keep up. For Verizon product, place, and promotion fall under the same umbrella for strategic planning. Their wireless capabilities are their top seller, so when it comes to marketing that service, they focus on their overall wireless coverage area, clarity, and strength. Using this as their focus, they are able to effective show how they can outdo their competition (AT&T) in the global arena. By using a comparison form of marketing, they compare the advantages to using their wireless network over AT&T's network. (Verizon, 2010) This has proven successful for Verizon over the last couple of years.

Using the same strategy for pricing also allows them to demonstrate how their service is not only better than AT&T's service, but the price is worth the quality of service that you will receive. On another front, Verizon also sells phones that allow a consumer to not only use their service, but also their product at a price that is reasonable for the client and profitable for the company. Vodafone uses this same concept in its sales and distribution overseas. By marketing that their phones and service are of better quality and reliability than their competition, they are able to influence customers into thinking they are the better choice of providers out on the market.

Difference in 4P Marketing Concept by Country

In Japan, Vodafone has to appeal to the customer based on their cultural understanding, needs, and wants. The Yen is the currency used in Japan and the cost of living