Wallis Drilling-International Marketing Strategy
Wallis Drilling Company uses wholly-owned strategy to enter the international markets. The company has achieved this through Foreign Direct Investments (FDI) in various countries including Africa, Europe, Asia, South and North America (Wallis Drilling, 2016). The Company subsidiaries in the different parts of the world enables it to sell its drilling and mining services to the host nations as well as to the neighbor countries of the host nation. According to Doole & Lowe (2012, p. 403) foreign direct investment involves the company establishing production facilities in the foreign country. Similarly, Wallis Drilling Company has realized that the international market is good enough to offer positive returns on investment. Therefore, it Wallis Drilling Company has perfected this through directly investing in foreign countries: PLAGIARIZED SAMPLE-ORDER YOUR PAPER NOW
There are no defined company distributions channels because it deals with services that are intangible in nature. The company subsidiaries acts as the intermediaries of the company products. They sell the company services in the host country but they are answerable to the main head office in Western Australia. The wholly-owned subsidiary international marketing strategy is well exhibited by Starbucks Corporation which owns Starbucks Japan. Alternatively, this have proven be a good global marketing strategy as portrayed by Volkswagen AG, Walt Disney Company and others.
When it comes to mineral resources, Australia ranks in the top list of the countries with minerals comparative advantage. The county’s minerals resources are adequate to facilitate the country to continue mining and exporting the mineral products in the foreseeable future (Australian Government , 2016). The availability of the enormous minerals resources has enable Australian to maintain a comparative advantage in the mineral production sector. This has been as result of skilled workforce, advanced mining and processing technology, accessibility to the crucial information which reduces the risks of association and rich mineral endowment in the country. Similarly, Wallis Drilling Company has applied comparative advantage theory to enter the global markets. According to Ricardo as cited by Cavusgil, et al. (2012, p. 132) in the situation where the country has a comparative advantage in the production of its goods and services it can export the same to other countries.
Wallis Drilling Company is a perfect example of the private company that can use the opportunity of the country’s comparative advantage to enter the international markets. Bearing in mind the company offers services, it has been appropriate for the company to adopt wholly-owned subsidiary strategy to meet the needs of the customers satisfactorily. In reference to the type of products the company deals with, the distribution channel which involves only the producer and the customer is the most appropriate. This enables the company to have to the total management of its operations in the foreign countries. Additionally, in some of the countries such as Kenya, South Africa, Namibia, Tanzania and some Asian countries where Wallis Company has entered may lack the agents or distributors needed to sell the company services: PLAGIARIZED SAMPLE-ORDER YOUR PAPER NOW
Australian Government , 2016. http://www.ga.gov.au/scientific-topics/minerals/mineral-resources/aimr. [Online] Available at: http://www.ga.gov.au/scientific-topics/minerals/mineral-resources/aimr [Accessed 29 March 2017].
Cavusgil, T. S. et al., 2012. International Business : The new realities. 2nd ed. NSW: Pearson Australia.
Doole, I. & Lowe, R., 2012. International Marketing Strategy: Analysis, Development and Implementation. Chicago: Cengage Learning .
Wallis Drilling, 2016. Wallis Drilling | 50 years of experience and innovation. [Online]
Available at: http://www.wallisdrilling.com.au/our-company/ [Accessed 29 March 2017].