INTERNATIONALIZATION

OF
KONKA

International Business

Date: 03-07-2019 - Group 6

Abhishek Jha
Sahil Garg
Pramendra
Nikhil Todkar
AGENDA

1. Question

2. Answer – NO, & reasons

Question

Would Konka's internationalization

efforts have succeeded if it
followed a non - trade based
strategy of entry and operation?
NO, but why?
1. Dominance of the Japanese MNCs
in the world CTV industry
Company % share of world market
Sony Corporation 12.4
Philips Electronics 10.6
Matsushita 9.8
Thomson Multimedia 8.4
Sharp 7.9
Toshiba 6.9
LG Electronics 5.6
NO, but why?
2. Accumulated units due to over
capacity
• More than 100% units produced due to excess
capacity

• This led to the decrease in unit prices by 8-18%

• Decrease in profit margins

NO, but why?
3. Low Brand Equity

• Low brand awareness in China due to the

existence of grey market of counterfeits and fake
products

• Major MNCs in other countries had well

established brand perception which would have
been difficult for Konka to overshadow
NO, but why?
4. Low investment in R&D

• Spends 3% of revenues on R&D as compared to

6-7% spent by Sony

• Uprising demand of DTV and HDTV