Submitted By: Sushant Datta

Mishra
Level: BBIS 4th year
Roll No: 16

Submitted to: Mr. Birat

Shrestha

INTRODUCTION
Heckler & Koch is one of the world's leading manufacturers of small arms with
firmly established roots in Germany. For more than 60 years, the company has been
a reliable partner to security forces, the police and special forces of the German
Federal Armed Forces (Bundeswehr), NATO and NATO-associated states.
Heckler & Koch represents the highest of quality, as well as innovative products.
Beyond this, Heckler & Koch is the only supplier of small arms to offer a
comprehensive range of products incorporating pistols, machine pistols, assault
rifles, precision rifles, machine guns, training systems, as well as 40 mm systems. In
this context, individual categories of weapons have been conceptually designed to
form a product family. In this way, Heckler & Koch offers a variable model range that
is tailored towards the most varied of application requirements. The advantages of
such a product family extend from a lower accident risk through the prevention of
operating errors to replaceable components, and right through to reduced
instruction and training periods for firearm users.
In order to retain and extend its position as a market and technology leader, Heckler
& Koch invests around four per cent of its revenues in research and development a
value that is far above what is deemed standard for the industry. In doing so, the
company decisively participates in the development of new weapons and the
improvement of existing weapons and weapon systems, both within the scope of
own projects and on behalf of the German government and other NATO states.
During the 2012 financial year, Heckler & Koch generated EUR 235 million in sales
revenues. Subsidiaries in the US, France and the UK form part of this internationally
active group based in Oberndorf am Neckar in Germany. The HK Sidearms GmbH
subsidiary, which concentrates on the civilian market with hunting and sport
weapons, was established in 2003. As a result, the civilian business was also
separated from military business and business with authorities from a corporate law
perspective. 640 of the approx. total of 700 employees of the group work at its
Oberndorf head office.
Besides the Bundeswehr, the German Federal Police (Bundespolizei) and the
German customs authorities, Heckler & Koch also supplies the US Army and the
British and Norwegian armed forces, amongst others.

products and services offered

Heckler & Koch firearms and cartridges

HK4
VP70
P9
P7
Handguns

MK23
USP
P2000
P30
HK45
VP9

Assault rifles

G3

 HK33
PSG1
G41
G36
HK416
HK417
M27 IAR
G28

HK41
HK43
MR223
MR308
Civilian rifles

SL6
SL7
SL8
SR9
USC

Shotguns

HK 512
FABARM FP6

MP5
Submachine
guns

UMP
MP7

HK21
Machine
guns

MG4
MG5

HK69A1
AG-C/EGLM
Grenade
launchers

AG36
M320
GMG
Heckler & Koch XM25 CDTE

Prototypes

Handgu

P46

ns

HK32
HK36
Rifles

G11
XM29 OICW
XM8
L98A2

Shotgun
s

HK CAWS

P2A1
Miscellaneou
s

P11
4.630m

Entry mode for Heckler and Koch

Firms enter into market into several forms, and new
approaches continue to evolve. The initial entry mode used to penetrate the foreign
market must be chosen carefully because of its potential effects on the success of
the venture. Another factor is difficulty in changing the mode without the
considerable loss of time and money. Heckler and Koch's aim is always to became a
leader in the market in which they operate or compete. For which they followed
strategies like the following when they were just a start-up company: partnership
with or acquiring other market leaders, Entry in new market where there is need.
They used their resources and achieved the growth with the maximizing of wealth
with a continuous development and entry in new markets they maintained their
competitive advantage. The reason why Heckler and Koch wanted to go
international was, they were leaders in the domestic market and they want to
increase their market size. They wanted to take advantages of the other growing
markets around the world. Being a leader in weapons Business, they wanted to first
take advantage by entering in new markets before competitors, maintain
continuous development, innovative design, top level and consistent performance
and maintain their competitive advantage.
They followed Licensing and Strategic agreements as an entry mode international
strategy. There are many reasons why they go for this kind of strategy , some of
these are:
Involves low cost to expand the internationally, as there is low cost of
development.
Allows license to absorb risks, less amount of risks because of the risk sharing
approach.

Multidomestic Strategy
A firm using a multidomestic strategy sacrifices efficiency in favor of emphasizing
responsiveness to local requirements within each of its markets. Multidomestic
strategy is an action plan that the firm develops to produce and sell unique products
in different markets. To use this strategy, a firm establishes the relatively
independent set of operating subsidiaries in which each subsidiary develops specific
products for a particular domestic market. But here in case of Heckler and Koch
slightly follows multidomestic strategy and mostly it follows the Global strategy that
sacrifices the responsiveness to local requirements within each of its markets in
favour of emphasizing efficiency. Heckler and Koch for example , offers the same
weapons model around the world but adjust the model to match the local
preference and need.

Forces in the Environment

Various internal and external forces influence upon the development and operation
of the Heckler and Koch. And various environments such as Domestic, foreign and
international environment also effect the Business of Heckler and Koch.

Domestic Environment:

It refers to the uncontrollable

forces originating in the home country that surround and influence the
firm's life and development. German government policies, availability of
manpower inside the country, etc. effect the operation and development
of the Heckler and Koch.

Foreign Environment:

All the uncontrollable forces

originating outside the home country that surround and influence the Heckler and
Koch. . For example, In 1990, Due to the international political climate at that time
(East and West Germany uniting and defense budget cuts) the company was unable
to secure funded contracts from the German Government to support production of
either weapon system and this resulted in the company becoming financially
vulnerable. In the following year, the Heckler & Koch company was sold to the
Britain's Royal Ordnance division. As the result of a 1999 merger between British
Aerospace and Marconi Electronic Systems, Heckler & Koch was then owned by BAE
Systems and was contracted to refurbish the SA80 rifle for the British Army. This
contract entailed a modification programme to the SA80 series of rifles to address a
number of reliability issues with the SA80. Three years later in 2002, BAE Systems
restructured and sold Heckler & Koch to a group of private investors, who created
the German group holding company (HK Beteiligungs-GmbH).

International Environment:

It is the Interaction

between domestic and foreign environmental forces or between the sets of foreign
environmental forces. It is also known as global environment. Global environment
transcends national boundaries and is not confined in its impact to just one country.
International environment exerts influence over domestic as well as over the
foreign also with the forces like world economic conditions, international financial
systems, international agreements and treaties, and regional economic groupings.
In 2004, Heckler & Koch was awarded a major handgun contract for the DHS, worth
a potential $26.2 million for up to 65,000 handguns.This contract ranks as the single
largest handgun procurement contract in US law enforcement history. In 2007,
the Norwegian Army became the first to field the HK416 as a standard issue rifle.