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  • Essay / Driving and Restraining Forces Analysis - 907

    Driving and Restraining Forces AnalysisDriving ForcesDriving forces refer to the factors that influence a company to locate and do business in another country. Here are some important driving forces that Fonterra is interested in expanding its business in South Korea: technology, government appreciation for foreign direct investment, communication and logistical support. South Korea is already advanced in technological sectors and has modern equipment to establish a new factory. Additionally, the Korean government values ​​foreign direct investment and provides good incentives to its investors. As the country has a large number of people, it is also a positive site that provides opportunities for extensive marketing. Since South Korea is a developed country and its technology is already developed, so it has good communications and logistics support, which indicates that business activities can continue without problems. Restraining Forces South Korea's current situation is favorable for foreign direct investment, however, restraining factors such as negotiations with local suppliers, rigid labor markets and negotiations with customers are also factors that require special attention.5. Marketing Approaches and Rationale There are several marketing approaches available to do international marketing, but for Fonterra's expansion in South Korea, foreign direct investment is favorable due to the country's facilities and future expansion. In South Korea, many organizations are entering due to the facilities offered by the government and the market is quite large and people have high income levels. It is easier for Fonterra to establish a factory there and aim for a huge brand..... . middle of document......research suggests that foreign direct investment in South Korea will be a great opportunity for Fonterra due to the facilities, technical advancements and vast market environment that the selected country has to offer. ConclusionBased on the above analysis and the use of various tools, it is then concluded that the marketing approach to foreign direct investment is the easiest way to enter the country. It will be easy to build brand awareness in South Korea through a product line or brand first and then expand further as South Korea has resources available for production. But doing business by producing a single product makes it easier to introduce and run the business while minimizing costs. But then again, it is very positive and feasible for Fonterra – Fresh 'n Fruity yogurt to expand its business in South Korea..