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Trusted Supply Chains

Trusted Supply Chains— Client Report: Sanken Power Systems (UK) Product

Client Requirements

To undertake a study to create a Strategic Evaluation of the market structure for Sanken BR200 device in

the European Telecommunication Market.

This study shall strengthen the projects potential to:

� Establish a target market in the European telecommunication industry.

� Approach nearest potential customers.
� Identify if the BR200 fits in the telecommunication industry.
� Identify the companies tier position in relation to the telecommunication market.


� Examine the tools that are required to enter the telecommunication market and establish a target

market to approach the nearest potential customers, by looking at:


� Market Research
� Market Segmentation

Trusted Supply Chains— Client Report: Sanken Power Systems (UK) Product
The rise in amount of information transmitted and received has promoted the rapid
proliferation of ICT services and gadgets such as cloud services and smartphones (Walkenhorst
et al., 2009, n.p). In response to these emerging trends, the devices used in control power supply
for the DSPs, MCUs, and FPGAs that constitute the core elements of these emerging ICT
gadgets must equally be able to support much higher output currents and lower voltages
(Hilmersson and Jansson, 2012, n.p). Therefore, the DC/DC converters commonly used in
control power supply should have high current and low voltage specifications as well as a fast
response to the rapidly changing loads. The non-isolated step down converter module which is
the new BR200 series produced by Sanken features a line-up of seven products all with an output
current of either 20 A or 10 A perfectly fits this specification.
1.0 Client Aim and Objectives

To undertake a study to create a Strategic Evaluation of the market structure for Sanken
BR200 device in the European Telecommunication Market.

  1. To Examine the tools that are required to enter the telecommunication market and
    establish a target market to approach the nearest potential customers
  2. To evaluating the company’s BR200 device and their current position in the market
  3. To determine the supply Chain tiering through mapping the process

2.0 Supporting Theory
Sanken is a top global supplier of semiconductor products with their core business being that
of semiconductor power devices. Although most of their power devises are widely used in the
Automobile industry, the company eyes an opportunity in the Telecommunication industry
especially for its BR200 device. The reason for this kind of inclination is motivated by the fact
that optical communication is becoming increasingly popular and as such, Sanken needs to
engage deeper into the optical systems (Dolnicar and Lazarevski, 2009, p. 360). Moreover,
Sanken’s BR200 device is a key component in the telecommunication industry and thus the need
for the company to establish the type of component required within the network loop
(Hilmersson and Jansson, 2012, n.p). Sanken must establish if their BR200 equipment is
appropriate in the telecommunications sector and consequently identify a target market for it
within the European market.

Apparently, Sanken postulates that the telecommunications market opportunities largely lie
in the major European market players such as Ericsson and Fujitsu. However, the company still
beliefs that there is potential for expansion through identification and entry into new markets.
The success of venturing into new markets will greatly depend on the capacity of the company to
access and acting upon reliable market information (Fabling and Sanderson, 2013, p. 428).
Information is particularly needed to narrow down on potential customers, understand their
position within the telecommunications market for the purpose of positioning themselves in the
supply, and as a basis for approaching their nearest customer to engage with within the supply
chain in telecommunication.
Sanken Power Systems (UK) Ltd seeks for the services of a reputable and reliable supply
chain company. The PackIT Logistics limited is a leading supply chain based in Cardiff, South
Wales and providing efficient services in warehousing, order fulfilment, storage, sock
management and distribution, E-Commerce Fulfilment customer service, back office systems,
account management, data management services, contract packing, and response management in
a range of businesses and industries across UK and internationally.
In the case of Sanken, it is necessary that appropriate information is provided to enable the
company master the complexities of the telecommunications market. Market information will
focus on investment, customer base, competitiveness, and market entry strategies (Baldwin and
Yan, 2012, n.p). Telecommunication market in Europe is characterised by high dynamism in
terms of technological innovation cycles, product differentiation, quality improvement, and high
capital intensity (Haveman, 2013, p. 602).

The BR200 series consists of a line-up of non-isolated step-down converters that can offer a
fast response to any changing loads making it easy to mount. These types of converters offers a
stable supply of power output to the MCU, DSP, and FPGA components, whose loads have rapid
fluctuates. It also allows high-intensity mounting and in turn facilitating the development of
more compact equipment (Wright and Larsen, 2014, p. 171). As such it presents as a competitive
alternative to most of the current devises that lacks these essential aspects.

2.1 Objective 1
To examine the tools that are required to enter the telecommunication market and establish a
target market to approach the nearest potential customers2.1.1
Market Research
Market research is a key consideration when evaluating a new market or product.
Research is essential in providing Sanken with the data and information that will enable the
company make viable decisions about venturing into the new market. Indeed, the company
requires a combination of both primary and secondary research in order to obtain the required
data (Rudež et al., 2013, p. 131). The principle aim of the market research is to identify a
competitive landscape for the BR200 device in terms of the understanding competitors marketing
approaches, pricing structure, as well as strengths and weaknesses.
As Quinn, (2009, p. 272) notes, one of the areas that require market research before
venturing into the new market is on market trends. According to Jae Young et al., (2013, p. 290)
an analysis of the industry trends is very necessary as a basis for forecasting postulated levels of
sales in the potential market. Market trends offer a comprehensive guide to potential market size

growth prospects. This offers a strategic market analysis of factors influencing the market,
demand, and companies including distribution and supply chain factors, pricing, new product
development and introduction, and economic issues.
Regarding trade regulations Sanken must be aware of all the legislative requirements that
they need to comply with for smooth running of the business (Dibb and Simkin, 2009, p. 376).
Additionally, other considerations when venturing into the new market are technical standards
desired in the new market and product safety as well as any rules or regulation in exercise in
these markets or countries. Again, it is very crucial that tariffs and duties for the particular
electronic devices be considered. A wide range of laws and guidelines within the country or
market of destination must be first met before the BR200 device can enter the new market. To
ensure market success, the design and usability of the device must satisfy the end user’s desires
and expectations. Telecommunications industry is largely driven and characterized by innovation
(Min et al., 2008, p. 16). Consumer needs, expectations, and behaviour are constantly evolving.
Market research is therefore, very necessary to determine exactly what is required in the market
and how best to deliver it. This entails reviewing of designs and market information about the
product being introduced. This must include product viability and usability in the potential
market as well as the safety of the electrical device to ensure that they are ready for the market.

2.1.2 Market Segmentation
In order to compete successfully in today’s’ competitive and volatile business markets,
companies must attack niche markets exhibiting unique wants and needs. Battisti (2013, p. 41)
defines market segmentation as a process of grouping customers into homogeneous groups or

categories in order to optimize on the use of resources and to increase efficiency in terms of
distribution, pricing, product adoption, branding, and communication. The principle purpose of
market segmentation For Sanken is to reflect on some aspects that are being faced by the telecom
industry. This is necessary since venturing into new telecom markets requires proper
consideration of huge amounts of data from various sources such as banks, online shops, and
insurance about potential customers.
`Market segmentation is the foundation upon which the other activities in analysing of the
potential market are based (Schlager and Maas, 2013, p. 45). It requires major commitment on
the part of the management to facilitate customer-oriented research, planning, and
implementation and control. By and large, the use of the market segmentation information is
bound to improve the company’s competitive advantage putting it in a better position to serve the
needs of their customers.
Market segmentation analysis entails segment identification, market selection, and strategic
positioning (Juan, 2014, p. 88). Segment identification involves establishing based on selected
segmentation criteria and variables a given number of similar market segments say in terms of
justifiable size, accountable, profitability, and customer-focused segments. To specify on market
opportunities, it is crucial to make strategic choices concerning corporate objectives, financial
and technical resources available, competitive opportunities, and customer needs. Positioning is a
key factor in ensuring that the company carves out on a market niche. This involves searching
out unique advantages, seeking new market segment not being cultivated by competitors, and
then develop new approaches to these old problems. Positioning should be based on both real
sources such as quality and superiority and intangible factors like reputation to gain competitive
advantage for the company (Kuen-Hung et al., 2013, p. 722).

Market segmentation analysis has the capacity to enhance responsiveness of products so as to
meet the needs and conditions of the marketplace (James and Raee, 2013 p. 32). The process
facilitates the developing cost-efficient and effective promotional tactics and campaigns.
Through market segmentation analysis, it will be possible to gauge the company’s market
position in the potential markets and customers in relation to the competition. In this context, the
company is able to plan for its business strategies in the entry of the new market. When
launching the new venture it is very critical for Sanken to identify and understand the type of
companies they are targeting and how well to reach them. Therefore, conducting a market
segment analysis is necessary for focusing the new product to the most promising segment.

2.2 Objective 2
To evaluate the company’s BR200 device and their current position in the market
2.2.1 Porters Five Forces
The Porter’s five forces model is a framework used for the analysis of the business strategy
development. It describes five forces that highlight the competitive intensity and attractiveness of
the market as; bargaining power of customers, threats of new entrants, threats of substitute
products, bargaining power of the suppliers, and competitive rivalry within the industry. These
factors are referred to as the micro-environment and have direct impacts its ability to make
profits and serve its customers (Lamore et al., 2013, p. 701). Any changes in these factors require
that the company reassesses its marketplace. The model will be used to analyse the attractiveness
of the European telecommunications industry.

The five forces analysis will facilitate the understanding of a factors impacting profitability
in the telecommunication industry in terms of developing competitive strategies and to increase
capacity in the market. It is specifically ideal for the EU market since there are more than three
competitors (Al-Araki, 2013, p. p. 230). As Lorca-Susino (2014, p. 33) argues, it is effective in
several other ways including establishing the impact of the government on the industry and
considering the lifecycle stage of the industry as well as considering the dynamic characteristics
of the specific industry. It is an effective tool for identifying and analysing the competitive
position and strength of the company within the particular market.
The theory is based on the perspective that there are five basic drivers that determine the
competitive attractiveness and intensity of a market (Kaufmann and Roesch, 2012, p. 9). The
model helps to identify areas where power lies within a given business situation in this case the
case being that of the position of the Sanken Power Systems within the European market for their
BR200 device. This is a significant step since it will help in understanding the strength of the
company’s current competitive position as well as the strength of a new business opportunity that
it may look to move into. The model in this case will help to understand if the introduction of a
new product in a new market is potentially viable and profitable. The theory is also effective in
identifying and understanding where power lies and areas of strength as a basis for the strategic
move in a new market.
2.2.2 PESTEL Analysis
The PEST analysis of Sanken will be used as a strategic tool to analyse the external
environment in which it operates (Global Semiconductor Industry, 2013, n.p). It is an acronym
for political, economic, social, and technological factors. These factors play a very crucial role in

the value creation opportunities of the company’s strategy. However, these factors are usually
outside the company’s control and must be considered as either opportunities or threats.
PESTEL analysis helps to show the big picture of a company’s external environment
especially ones related foreign markets (Ghazinoory et al., 2011, p. 24). It helps gain a better
understanding of the potential opportunities and threats likely to be faced when venturing into
new markets. It aids in building a better vision of the development or expansion of business and
ways in which the company can compete profitably. It analyzes for market growth or decline and
as such the potential, position, and direction for the business. These factors are particularly
important when the company is planning into entering into a new market as is the case with
Sanken. This is achieved through creating insight into market status of key flatness of the
market, both in terms of the future and present trends.
The first step in making the most out of the PESTEL analysis is to consider the relevance of
each of the six factors in the analysis to the business context (Briciu et al., 2012, p. 147). The
second step involves identifying and categorizing the information applicable in these factors.
Finally, the data should be analyzed in order to draw conclusions (Nunan and Di Domenico,
2013, p. 7).
2.2.3 SWOT Analysis
When launching a new product it is very critical that the company evaluates the four pillars
related to marketing; place of sale, promotion, product, and price of sale (Millson, 2013, p. 1).
For successful analysis of these factors it is necessary to analyze the external and internal factors
of the company which will in turn help in maximize the opportunities and strengths while
minimizing on the threats and weaknesses. New products ought to be developed around two

concepts of satisfying the demand or need of a specific target market and with a selling benefit
(Simoneaux and Stroud, 2011, p. 75). A weakness related to launching a new product may not
necessarily mean that something is wrong with the product, it might instead be signalling the
advantage that the competition has over the company. Developing a new product implies an
opportunity for the company in the market (Quinn and Dibb, 2010, p. 1244). As such early
influencers and adopters are companies who like to try the hottest new product and to tell others
their experience with it. This will allow the company to set prices appropriately. Once the new
product has been introduced in the market, the competitors will likely react. In this case Sanken
is likely to face a great threat after launching their BR200 by competitors changing the playing
field. In this regard, it is critical that Sanken has a backup plan for the promotion, distribution
channels, and pricing of the product in readiness to respond to competitor changes.
Harwood and Ward, (2013, p. 252) postulate that the SWOT analysis examines the business’
strengths and weakness, as well as threats and opportunities in the potential market. By focusing
on these key factors that are likely to affect the business in the new market, the analysis provides
a clear basis for establishing the business performance and prospects. The reviewing of the
potential business performance will motivate action (Dobbs, 2014, p. 32). The analysis is an
effective step towards identifying how successful the new market or product can do through the
analysis of the favourable and unfavourable conditions in the potential market. SWOT analysis is
a strong basis for planning when undertaking a major business venture (Min et al., 2008, p. 22).
The system combines environmental analysis information and separates it into two components.
This level of analysis facilitates the company to determine the factors likely to aid in the
achievement of some specific objectives or on the obstacles to be overcome before the company
can achieve the desired outcome.

2.3 Objective 3:
To determine the supply Chain tiering through mapping the process
2.3.1. Value Chain Mapping
It requires a great deal of resources in terms of finances and time to launch a new product
effectively, quickly, and ahead of the competition. An efficient launching of the BR device
requires coordination and integration along the chain for the purpose of product design, planning,
and manufacturing, procurement, sales and marketing. A value chain strategy in this case is the
crucial collaboration of the various functions of the business, primary and support activities with
the aim of meeting a certain business objective (Ereaut, 2002, n.p). Value chains are a leading-
edge business strategy that guides every participant to contribute to creating value for consumers
(Kahn and Kahn, 2010, n.p).
Value chain mapping describes activities that take place within a business and relates
them to an analysis of its competitive strength (Competitive Market Analysis, 2009, n.p). The
primary activities are those that concern directly with creating and delivering a product while
support activities are those that are not involved in the production directly although they may
increase efficiency and effectiveness.
By conducting a value chain analysis the Sanken will be able to introduce the BR200 device
through involving the management in creating value, deciding the way communication is to be
handled, ensuring volatile supply and demand, and chain efficiencies and risks (Market
Selection, 2013, n.p). Value chain mapping is an effective means of developing a differentiated
product, whole chain marketing, and ensuring consistency of supply.

2.3.2 Supply Chain Segmentation
Proctor (2010, p. 86) postulates that supply chain segmentation is the designing and
operating distinctly the different end-to-end value chains form suppliers to customers and
optimized through a combination of unique product attribute, business value considerations,
customer value, and manufacturing and supply capabilities. It is the dynamic alignment and
integration of customer channel supply and demand response capabilities that are optimized for
net profitability for each segment (John 2014, n.p). The prevailing fierce completion in the
telecommunication industry coupled with the economic downturn across Europe has necessitated
the need for businesses to tackle some of the most conflicting challenges of reducing costs and
driving growth through innovation (Presutti and Mawhinney, 2013, n.p). Traditionally, the aspect
of sales has always been assigned to the marketing function while that of cost reduction is
directed towards supply chain. Business alignment is geared towards developing congruence
between the supply chain, marketing, and product strategy.
Supply chain segmentation is an effective approach towards mapping the end-to-end supply
chain in order to provide visibility within the different segments of the business. Segmentation
helps to identify the scope of integration for active management by the supply chain organization
(De Backer and Miroudot, 2014, n.p). It is an easy way of identifying the primary customer for
the supply chain organization. Segmentation in this case will serve a strategic purpose by
reflecting what is important to the growth and profitability of the new product. This approach
also gains the much needed internal support to drive the new venture. Sectoring the supply chain
is strategic in that it facilitates support for company plans as well as maximizing growth and
returns for the new business. In this way, resources are aligned where they are most needed.

According to (Yeates et al., (2010, n.p) value-based approach segments customers on the
basis of economic value. The segmenting highlights characteristics in each of the segments. For
instance, the company can look at areas where customers in each of the segments differ from
others in terms supply chain service. This information can then be used as a basis for strategizing
on the entry approach. A needs-based segmentation matches well with the management of supply
chain (Lymbersky, 2008, n.p). In this case segmentation is done on the basis of driver that clients
have for a specific supply chain service. Clients are categorized in terms of the common set of
needs they share. The purpose is to match each sector needs with the current supply chain
service. This would guide in enabling the company deliver services in each sector better than the
competitors does and as such earn a competitive advantage. Segmentation is, therefore, a very
effective approach to understanding Sanken’s supply chain for the purpose of venturing in to the
new market. It will enable the company to focus attention and attention in segments where they
can create value and provide strategic support.

  1. Gantt Chart



formuating market reearch poblem
method of inquiry
research method
research design
data collection
analysis and interpretation
marketing research report
definining the market
creating the market sgments
evalating the proposed market segments for viability
constructing segment profiles
evaluating attractiveness of segments
research political factors
research economic factors
research socio-culural factors
legal factors
research technological factors
research environmental factors
evaluate strengths as a result of internal factor
evaluate weaknesses a a result of internal factors
evaluate opportunities as a result of external factors
evaluate threats as a result of external factors
interviewing key individuals in each market category
baseline current costs
collecting KPIs from interviews or existing data
preparing maturity scorecards for each market catgoy
creating a Gantt Chart
identifying the market
describing the market demographically
describe target market pycho-graphically
decribe target market behaviouristically
compiling the results


3.1 Gant Chart Methodology
Gantt charts provide clear illustrations of the status of a project. To complete the venture
successfully, Sanken will need to control a large number of activities in order to ensure that they
are completed within schedule. This is to avoid knock-on effects on other activities in case some
of the tasks in instances where deadlines are missed or tasks are finished out of sequence causing
late delivery of products and more costs for the company (Market Entry Strategies, 2013, n.p).
Gantt charts will convey this information visually and effectively by outlining all the tasks
involved in the venture, and their order which are shown against a timescale. This clearly

highlights overview of the venture as well as its associated tasks and when these tasks need to be
Glowik (2009, n.p) notes that a Gantt chart helps to work out practical aspects of the venture
in terms of the minimum time required for covering a given task and which activity needs to be
completed before others can start. This information will then be used to determine the critical
path; the sequence of activities that must first be individually completed on time if the whole
venture is to deliver on time. Additionally, the Gantt chart will be used to inform the relevant
teams informed of the progress.
4.0 Contribution
4.1 Market Analysis
Market analysis is the evaluation of the dynamics and attractiveness of a given market within
a particular industry (Cayla and Paloza, 2012, p. 44). In the case of Sanken, a market analysis
will form the basis for planning pertaining to the introduction of their new product in the
telecommunications industry. Market analysis can be done in various dimensions such as market
size, trends, growth rate, profitability, or industry cost structure, distribution channels, and key
success factors. The goal of conducting the market analysis is to gain an understanding of the
potential opportunities and threats and then relating them to the company’s strengths and
weaknesses. Sanken will use the findings of the analysis guide their investment decision and in
turn advance their success. The findings can also motivate the changing of certain aspects of its
investment strategy.
In terms of the market size, the market volume presents the totality of the realized volume of
sales within a given market (Wilkie et al., 2012, p. 957). This is dependent on the quantity of

consumers as well as their consequent ordinary demand. Notably, the market potential is also a
crucial factor for consideration which will provide the information concerning the potential for
growth of the telecommunication industry. Examples of information that are key in determining
market size are trade association data, company surveys, government data, and financial data
from major players. Market trends entail evaluation of the upward and downward movement in a
given market which offers information about new opportunities and threats. One of the ways of
forecasting market growth for Sanken is through extrapolating the historical data into the future
or through the study of market trends in complementary products. Analysis done through the
Porter’s five forces will be important at this point in evaluating the attractiveness or profitability
of the telecommunications market.
The most important factor for any company that plans on introducing a product in a new
market is the pilot study. This clearly outlines the market situation in the new market or country,
a picture of what to expect while venturing in. However, most ventures still fail for some
reasons. In most cases, companies will fail due to failure to do objective research, or to follow
the guidelines outlined in the same. Failure may also emanate from the use of wrong
communication, advertising, and advertising channels. To achieve a successful launching in a
new market, therefore, a proper set of processes that are based on research is a key factor to
4.2 Stakeholder Analysis
Stakeholder analysis is the technique of identifying the key people that require to be won
over. It involves working out stakeholder’s power, interest, and influence, in order to identify
what to focus on (Alternative Market Entry Strategies, 2012, n.p). It is critical that Sanken

develops a good understanding of the most important of the stakeholders. This will enable the
company to establish how they are likely to respond and plan on how to win their support. By
identifying the key people to work in the venture, Sanken will be able to make use of the
powerful opinions that most of the stakeholders are likely to bring over to shape the venture at an
early stage.
Apart from the possible support that stakeholders are likely to bring on board, their input is
equally crucial since it can enhance the quality of the venture. Winning the support of
stakeholders is an important consideration in the venture since it helps in anticipating people’s
reaction towards the venture which is crucial to building into the company’s plan of action to win
people’s support. Effective communication with stakeholders is essential in ensuring that they
fully understand the significance of the venture and as such they will be willing to support when
4.3 Pricing in a New Market
The major objective of entering in to a new market is to increase profits. Pricing has huge
impacts on the profitability of a product (Jolly, 2008, n.p). For this reason, the pricing strategy
needs to be evaluated methodically before a final price can be reached. The four pricing
strategies available for Sanken are the value-based pricing, market based pricing, cash-plus
pricing, and the negotiation pricing (Murray et al., 2012, p. 56). In developing a pricing strategy
it is very important to have a basic understanding of competitors as well as the level of
competition. This enables the company to create value for themselves and for the customers.
Choosing the right pricing strategy will, therefore, largely depend on how well Sanken
understands the potential market they are venturing into.

Pricing in a new market is highly dependent on the market dynamics and prospects that exist
in the host country (Halliburton et al., 2011, p. 95). As such, it is crucial that Sanken makes a
deep market analysis through proper consideration of the pricing framework. Sales offices
emerge as the most profitable for a Sanken to venture in to a new market. The company will
have the opportunity to use the local knowledge and experience of sales teams and in turn reduce
on contribution costs of the new product.
Pricing strategies will play a crucial role in determining the number of customers that are
going to buy BR200 device. The pricing strategy adopted should be in a position to cover costs,
grow market share, and earn reasonable profits for Sanken (Piercy, 2009, n.p). To grow the
market share for instance will require that the company offers product selections at a price that
will take the market away from the competitors. Cost based pricing entails adding up the total
costs incurred to manufacture the product and then adding up the mark-up (Phan and Markman,
2011, n.p). Competitive pricing on the other hand entails matching prices of competitors for
similar products. The other option is for the company to set high prices for the new product on
the rationale that the attributes of the BR200 device are unmatched in the market.
4.4 Market Entry Strategy
Market entry strategy is an important factor when entering a new market. It is the planned
method of delivering the company’s products to a target or potential market and distributing
them there. It is very critical for Sanken to understand the preferences of the new customers as
well as the management and business culture as a basis for identifying the best talent in driving
new business in the new market. Morley (2014, n.p) contends that the different market entry
models that are available for the company are upsala model, eclectic paradigm, industrial

networks, business strategy, the agency approach, the bargaining power approach, or the
transactional cost analysis theory.
Entering into new markets offers great opportunities to companies to increase their sales and
enhance their brand awareness. The process of entering a new market requires proper analysis of
the existing competitors and potential customers (Donadelli and Persha, 2014).
According to Allen et al., (2012, p. 212) entry plans involves a set of procedures that needs to
be considered. First, is the process of selecting the market. In this stage, comparison is done of
the different alternatives available in terms of market size, competitors, prices, technology
available, as well as the consumer profiling (Collis, 2014 n.p). Secondly, consider the Go-to
market strategy. At this stage once the market has been identified a strategy to get into the actual
market has to be developed. Models that can be use include the direct model, in-direct model, or
the acquisition model (Using Business Analyses, 2014, n.p).
Markets that are much developed calls for the use of the direct model and requires more
investment in terms of money and resources. The indirect approach entails partnering with a
player who will support the growth and establishment of the business in that market. In this
model, it is important to start with one or two partners as you familiarize with challenges and
other factors in that market (Greenblatt, 2013, n.p). Acquisition approach is applicable for
medium sized firms with stable firms, assets and management teams to enable them develop
long-term decisions (Thomas et al., M 2012, n.p). This stage is crucial in facilitating the budget
process for the whole process of market entry.
The fourth stage involves identifying the key customers for the BR200 device, prospecting as
well as lead generation (Plötner, 2012, n.p). This is achieved by preparing a list of targeted

decision makers and a marketing plan. A crucial consideration to make when planning at this
point is the available revenue. Market entry mode is a fundamental decision for Sanken as it
plans on entering into a new market. Sanken can choose between the exporting, agent, dealer, or
sales office mode of entry. Entry timing is also very important for the company which is
dependent on the type of the product, competition levels in the particular market, and the
prevailing market factors. The market entry strategy for Sanken will map out the approach to
follow in selling, delivering, and distributing the BR200 device in the new market.
5.0 Reflection
It is important to note that a company’s entry into new markets provides an opportunity
to increase their sales and gain a wide view of the market dynamics as presented by the diversity.
Several factors need to be factored in the process to start a business in a new market. First, the
organization has to conduct a survey on the market and employ key models such as the PESTEL
analysis tool and SWOT. Information gathered through these models gives an insight into the
overview of what to expect in terms of competitors, customers, costs, and technology. For
instance, in this case the introduction of BR200 device would be informed by vast market,
stakeholder, and industry information gathered through market research, market analysis, and
stakeholder analysis of the telecommunication industry within Europe.
Once information has been gathered on the opportunities, threats, and potential of the
new market it is time to come up with an entry strategy. The plan is to maximize on the potential
and opportunities while minimizing the threats. Sanken will then be able to come up with a
budget and guidelines into which approach of entry to employ. The company should avoid at all
costs misconceptions concerning any factors when implementing the plan. Lack of proper survey

and implementation plans could result to failing of the business. In this study, it was evident that
the success of the plan to venture in to a new market with the new product for Sanken is
dependent on the viability of the analysis of the telecommunication market.


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