International Marketing and business expansion on a global basis has become increasingly common in every sector of business. This is essentially due to the increase in competition and the potential in the new markets that can be harnessed for achieving continuous business development and growth achieving competitive advantage in the market. The economy of Ireland has grown tremendously in the past few decades with numerous organizations becoming leaders and potential competitors in the global market. Organizations like Ryan Air have established themselves in their competing market segment as a strong competitor with appreciable market share. This essay is focused on the ...view middle of the document...
It is interesting to note that the company manufactures two thirds of its products (crystal, glass, cookware and others) in its owned manufacturing facility in Ireland, UK and Germany alone but generates almost 51% of the revenue from the market in north America. This apparently proves that the company has strong bard name and brand identity in the global market. Alongside the company also generates revenue (nearly 10%) from the Far East in Japan while the rest of the revenue comes from the European market. These further justify that the company is internationally active and has gained a strategic position in the international market for luxury lifestyle products under crystal, ceramic and glass categories.
The industry profile for the global house wares and specialities (2004) shows a steady growth rate for the industry up to the year 2008. This is essentially because of he globalisation and the expansion of the business by the leaders in the industry through mergers and acquisitions. This is primarily because of the increased demand for the lifestyle products and gift articles across the globe. Philip Kotler (1988) says that an organization can grow in its business when it strives to identify new markets in geographical locations other than its normal location of operation. Even though it involves numerous risk factors including loss of investment, a strategic approach to the internationalisation of the business will be highly profitable. The strategies adopted by the company under debate (i.e.) Waterford and Crystal are discussed below.
2.1 Merger and Acquisition
The company first made its merger in 1986 with Wedgwood to become Waterford Wedgwood Plc was the first big step by the company towards globalisation and international business. The merger resulted in the combined efforts expanding the product range from crystal products to ceramics, glassware and other luxury lifestyle products. The acquisition of Rosenthal AG in Germany and All-Clad in the United States of America further expanded not only the markets for the company but also its product range to cookware and other speciality lifestyle products on top of the existing product range.
It must be noted that the merger and acquisition not only provides scope for expansion into new markets but also international trading and legal issues that needs to be addressed effectively in order to establish the presence in new markets. Alongside, the company successfully overcame the barrier of competition and initial hurdles faced by a business in new markets through the acquisition of the popular and established brands in their target markets. This is evident from the acquisition of All-Clad in the United States as the company has established itself as a strong brand in the US markets.
Frances Brassington and Stephen Pettitt (2003) say “Co-branding is the way in which an organization establishes itself as a brand under the shadow of a more popular or stronger brand...