Business Plan for Nvidia Corporation
The projected market size for technology industry in Malaysia is approximated to reach US$ 1. 1 billion by 2020 due to the rising number of online shoppers. With the rising number of online shoppers, it paves way for new market opportunities to all organizations that offers computer related products. According to Malaysian Logistics and warehouse department, globalization has intensified trade activities in Malaysia and therefore the government of Malaysia is committed to ensure it will integrate computer technologies to ease trade transactions with foreign countries. Nvidia will liaise with Foxcom and Taiwan Semi-Conductor Manufacturing Company in attempt to meet the needs of the targeted market. The purpose of the paper is to make an analysis of the business plan for the company as it makes an entrance to Kuwait.
It is crucial to understand the factors that affect the market and the partnerships that can be applied to reduce the hindrance that is experienced as the company venture into new markets. The best market strategies to be applied are significant in relation with Malaysia to determine the best that can be applied. The main strategies are on the adaptation and standardization to align with the needs of the customers (Gong, 2015). Malaysia is among the countries with the highest GDP and a favorable business environment and hence the propensity to purchase technological products from Nvidia is high. The company should align itself to the political landscape to ensure compliance to the government to avoid the wrath of the invisible hand of the government.
Foxconn Inc. is the company to partner with Nvidia as it makes it entrance to the market in Kuwait. It is a company that has effectively made a distribution in the electronics markets. It has offered superior solutions to the market and the partnership with Nvidia is expected to lead to an increase in the market base for the electronic products produced and distributed by the two companies (Podlozhnyuk, 2007). As a result, the likelihood of NVIDIA products getting purchased more is high. The success of NVIDIA or any other profit-making company depends on a variety of factors such as policies and strategies set in the production, marketing and distribution of products. For NVIDIA to perform in Kuwait, policy makers and those in the field must work extra to ensure that the market conditions are favorable through knowledge of the prevailing conditions (Podlozhnyuk, 2007).
The company should partner with Foxconn, one of its major suppliers to make sure that they familiarize themselves with the market and get an advantage of market penetration. Malaysia is among the countries that excel in business, and hence NVIDIA penetrating its market would ascertain a larger market share and profits as a result. As a result, the alliance and partner help the company save the time that could be used for marketing and use it for product promotion and advertisement. The three possible market entry modes are as a joint venture, strategic alliance or a merger. Joint venture is a situation where the two companies come together making a different and a separate company. Strategic alliance is like joint venture but partners have unequal shares, responsibilities and investments.
A merger differs from the two since it involves a permanent option and there may be more than two companies (Taylor, 2005). The following chart represent the structural organization: Figure 1: Organizational Structure Marketing Strategy Successful marketing strategy requires the organization to scan the external environment deeply so that to evaluate the factors that are likely to hamper the efforts of the business to increase its customer base. Some of the critical components that Nvidia Corporation will assess so that to implement a successful marketing strategy in Malaysia will entail: Main Competitors The computer technology industry in Malaysia is among the industries that are characterized by stiff competition due to the rising number of companies entering the industry. Despite, the stiff competition in the market, Nvidia Company is determined to ensure it will adopt and execute market strategies that will create an awareness about the products it will be offering in the market.
The main competitors that Nvidia Corporation will face are: Indium Software Company- ATG Company is considered as a giant company in Malaysian’s IT market due to its outstanding ability in offering gaming services. The main business of the company is to offer IT products, and solutions in the computer technology market. 62 million people in Malaysia and its population is increasing dramatically after the exploration of oil. The number of non-Malaysian’s citizens is also rising day by day approximated to be more than 3. 3 million people and the high number of immigrants is attributed by robust economy and high remuneration package to employees (Peattie & Belz, 2013). The growth of the IT industry in Malaysia is enhanced by the efforts undertaken the Public Authority for Industry (PAI) in implementing business friendly measures geared at stimulating development of industries.
Moreover, the Malaysian’s government is prioritizing foreign investment and therefore Nvidia will be able to penetrate and offer its IT products in the market (Peattie & Belz, 2013). Professional Visualization. Market and Segment Growth With the rising need for computer solutions in the contemporary society, the demand for digital products is expected to rise considerably all over the world. Malaysia is among the nations in Southeast Asian that are considered to be politically stable. High GDP growth levels and political stability provides profitable avenue for any form of business venture to thrive in Malaysia (Peattie & Belz, 2013). The technology industry is among the sectors that hold so much potential for growth and hence the targeted segments will generate significant income for the company.
Place Marketing Mix So that to gain a strong hold in the market share of Malaysia, it is prudent to maximize the market for hardware and software since they are main pillars of our product mix. For that reason, the choice of the locations that will be used will have a great impact on how Nvidia Company will transact with customers. The following venues will be used to distribute our products in the market; Approved retail agents, Company’s website/Online store and Nvidia Stores. By embracing the E-commerce technology, most of the products will be offered in the market through the online stores. Online stores are expected to be one of the major avenue for Nvidia Company to generate revenue that will be used to meet the investment needs of the company.
Direct marketing Prices and Pricing Strategy The pricing strategy used by a company affects the attractiveness and sales performance of the products offered in the market. Nvidia Company will apply suitable pricing strategies that will effectively address the attractiveness of the products that the company will offer in the market. The following are the main pricing strategies that will be used in the targeted market segments (Solomon et al. Marketed positioned pricing strategy. Premium pricing strategy 3. Facebook Twitter and LinkedIn are the main social media platforms that Nvidia Corporation will intensively use to reach the targeted markets. In the realm of e-marketing, new trends are emerging and companies are going digital so that to reach scores of customers globally (Mintz & Currim, 2013).
Nvidia Company will establish online stores to ensure the customers can easily access the products will be offering in the market. The online marketing sites will be ideal tool for the success of Nvidia in Malaysia since the nature of the nature of the products will be based on users’ behavior and the moves made by our competitors. The company will design companion mobile applications that will facilitate sharing of information pertaining our products and special offers with our customers. The next legal procedure undertaken by the Malaysian’s state is requesting the Malaysian Embassy based in the home country of the investing company to attest the documents of the client company. The entire process is costly and time consuming. Besides the legal procedure Nvidia is expected to follow before obtaining a business permit, there a number of hurdles that pose a significant challenge when entering the IT market in Malaysia.
All the companies operating in Malaysia must obtain a license before they commence their business operations. Some of the main examples of licenses include: commercial licenses, and general trading licenses. The following table illustrates the major key areas that the company will consistently monitor to ensure measures so far achieved are in harmony with strategic objectives of the company: Perspective Criterion Measures Financial Is the company meeting the set financial goals Assess: • Operating Income • Sales volume and growth • Reduction of production and administrative costs Customer Is Nvidia meeting the needs of the customers? The number of customers retained within a given financial year. The size of new market share retained. Internal Processes Is the company enhancing the critical processes? The number of defective products that have failed t meet customers’ expectations.
Number of approved suppliers in the market Innovation How many innovative products so far designed/manufactured? Education and training programs for employees. Employees’ turnover rate. There are many ways to enter the market in Malaysia but among the best is joining and forming a strategic alliance with a stable company in the location (Foxconn in this case). Foxconn’s mode of operation of a series of online shops gives a fertile ground for marketing of the alliance and hence the frequency at which the growth of the business is anticipated is high. The task ahead of formation of the business is formulation of the mode of operations, roles, aims and goals of the study. The alliance should set some short run and long run objectives based on the available resources and the market conditions.
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