Mode Of Petronas

MODE OF ENTRY PETRONAS

PROPOSAL

The best proposed mode of entry by Petronas would it‘s advertising, because Petronas has a good deal by advertising to promote its product and services. The advertising media of Petronas applies on newspapers, television advertisements, posters, banners, and magazines. However the most noticed and effective advertising media used by Petronas is by television advertisements. Petronas ‘ television ads have always been unique and catchy. So, these creates many advantages for Petronas, the ability to build sale volume and, switching cost. Second, it helps to gain more companies or student to study in Petronas university.

Advantage

• on location desirability of host country production relative to home country

The choice for Petronas will be based on based on their long run profit potential. In details the economic and political factors which may affect the foreign markets. Doing business in a country depends on the Size of the market, The present wealth of demanding consumer in the market. By Nature of competition these factors of Petronas will lead to rank in countries, in terms of their success and long-run profit.

Timing of entry

It is important to consider the timing of entry for Petronas. Entry will be easy if petronas enters the foreign market before other foreign companies can easily establish having less competitions. And if late in entering the foreign market it will less likely to make their way to success in host country. The advantage is when a company enters early in the foreign market is known as first-mover.

First mover Advantage

• Petronas will be having the ability to prevent rivals and competitors, and by capturing demand will have a strong and established brand name.

• Petronas will be able to build sales volume in that country. So that they can drive competitors out of market.

• Ability to create a customer relationship by offering standard

The amount is considered least expensive compared to other modes of entry.

• Less Risks

Exporting reduces risks for the company to understand the host country’s culture, knowing the consumer demands of their market. Later it allows the company enter the host country on a full scale.

Licensing :

In this mode of entry, Petronas leases the right to use its technology , copy rights , brand name etc to a manufacturer in a foreign country for a fee. Petronas in the home country will be called licensor and the foreign manufacturer will called licensee. This mode of entering the market is less costly. Petronas will be able to choose any international location and enjoy the advantages without incurring any obligations and responsibilities of ownership ,managerial ,investment etc.

Advantages

• Low investment on the part of licensor(petronas).

• Low financial cost to licensor.

• Petronas can investigate the foreign market without much efforts.

• Licensee gets the benefits with less investment on research and