Budget: The Entry of Stern Mobile into the Netherlands

1 Budget: The Entry of Stern Mobile into the Netherlands The entry of Stern Mobile into the Netherlands will require costs that the company will incur for the smooth running of its operations. The costs include marketing, equipment and services, worker salaries, transport and logistics, rent, electricity, and water. The company needs robust emailing surveys, newsletters, and transactional emails to promote the new product in the Netherlands successfully. Also, the company needs direct mail, online marketing, and promotions. Promotions involve many things, including branding, sponsoring events, flash sales, free trials, and partnerships with other companies.

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2 Also, the company requires a manager, an assistant manager, and at least five assistant workers. According to Statistica (2023), the average manager's salary in the Netherlands is 4000 Euros per month, and the average salary of a normal worker is 1600 Euros per month. The company also needs high-speed computers and Wi-Fi connection. The company requires Apple Mac Pro (48 GB Ram) computers for easy functionality, which costs 5000 Euros each (Laptops, 2023). In addition to Wi-Fi, Stern Mobile may spend 26500 Euros on Computers. Other items in the budget include rent, electricity, and water, amounting to 15000 Euros every quarter (Statistica, 2023). Also, the company needs a van amounting to 5000 Euros and an average of 300 Euros per month for fuel (Statistica, 2023). The following spreadsheet summarizes the budget for Stern Mobile.

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Conclusion The entry of a business into a new environment requires research that will enable it to acquire all information about the new market. The analysis of the Netherlands as a market for Stern Mobile involves understanding the competition and their pricing approach, the five market

4 forces as explained by Porter, and they include the power of suppliers, power of consumers, entry of new companies offering the same product, competition, and availability of substitutes. In terms of pricing, Stern Mobile will leverage low cost to win the broad market provided by the young people in the country. Also, the company needs robust marketing practices, including promotion and advertising in the mainstream media, for the target market to notice the product.

Incidentally, the budget outlining all the required services is crucial for proper planning. It shows the cost of service provision in the first quarter, second quarter, third quarter, and fourth quarter of the initial year.

When a corporation enters a new market, budgeting plays a crucial role in ensuring the success of the venture. The budgeting process involves estimating the costs associated with entering the new market and planning for how to allocate resources to achieve the corporation's objectives.

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References Laptops. (2023). All-in-one desktop laptop prices in the Netherlands. Retrieved from Laptops: https://www.laptop6.com/nl/laptops/all-in-one-desktop/ Statistica. (2023). Average monthly wage in the Netherlands in 2021 by age. Retrieved from Statistica: https://www.statista.com/statistics/538025/average-monthly-wage-in-thenetherlands-by-age/ Statistica. (2023). Average purchase price of new passenger cars in the Netherlands in 2022, by car segment. Retrieved from Statistica: https://www.statista.com/statistics/654790/average-purchase-price-of-new-passengercars-in-the-netherlands-by-car-segment/ Statistica. (2023). The average office space rent in Amsterdam, Rotterdam, The Hague, and Utrecht (Netherlands) from 2012 to 2020. Retrieved from Statistica: https://www.statista.com/statistics/595762/average-rent-of-office-space-in-four-largestmunicipalities-in-netherlands/