Reactive stimuli: The demand for vegetables and fruits in Taiwan is quite high compared to the other importing countries in Asia.
64 Other stimuli: It is evident for that company that the global mindset of the case company plays an important role in deciding to internationalize the firm. The founder of the case company observes that “t he most important objective is to promote and develop the Vietnamese fruit industry to be among the most successful industries in Vietnam as well as a position among world leaders in the international fruit market”. 4.1.3. Barriers at the initiating stage. The barrier which the firm faced when it first exported to the Taiwanese market is the language. Differences in language result in difficulties for the firms to meet customer’s demands, the customer’s willing ness to engage in business, and also in obtaining information from its partner. “ In 1986 , when I did business in my previous company, I lost lots of money in a deal with a Hongkong business man, due to the language difference. So this pushed me to learn Chinese language. And my Chinese skills later helped me to do study the business culture of this country” comments general director of the company. Due to this reason, the founder decided to learn at least the basic language of which country that my company is going to enter. During the time he studied at a Taiwanese university, he had a chance to learn basic Taiwanese language but it was still not enough to avoid the language barrier when beginning to enter into the market. Trademark registration is very important when a company wants to expand its business overseas, but many Vietnamese firms still do not understand its importance. For example, in 1997, the case company started to export its product to the Chinese market under the brand name “A”. “Brand name “ A” was registered for intellectual property in Vietnam while the name in Chinese was left unregistered. The Chinese distributor then seized the opportunity by having “A” registered as a Chinese brand name while producing a similar product as the case company , and thus dominated the same market previously held by case company in China ” notes the founder of the company. As a result, the case company ended up losing the market share in the Chinese market.
65 However, the founder of the company did not accept the loss of the Chinese market. Rather, he took the Chinese company to court, in which the case company won the dispute. From the founder’s experience, he recomm ends that Vietnamese businesses should penetrate the Chinese market particularly with a Chinese brand name and concerning the international market in general, should immediately register for intellectual property rights.