Friday, February 14, 2020

Entry Strategies and Exporting Essay Example | Topics and Well Written Essays - 3500 words

Entry Strategies and Exporting - Essay Example Consequently, the firm stands at the threshold of the next step which is taking its operations to the international level, studies both academic and market based have shown that the demand for quality but affordable clothing in parts of Europe and Asia is increasing and this is opportunity that M and W can profitably exploit. Given its expansive scale of production at home it has considerable economics of scale and therefore it can afford to confront new markets with lower prices. In addition the firm has a great deal of experience which is evinced by the many years of production behind it in addition to the obvious market dominance which has been forged through strategic thinking and experience. Notwithstanding, before making the commitment to venture into internationalization, the firm should take to account several factors, more so the advantages and disadvantages of this move. This is important because by making such considerations, it can be aptly placed to develop an open minded and critical strategic plan. Besides, no matter how practical or natural any business move may appear, the manager should first ensure that they are aware of the underling advantages and disadvantages so they can strategize with both in mind. The entry of a company into international business is takes two forms, it can venture indirectly when forced by circumstances or when the directors order that the firm should purchase or sell from foreign sources. On the other hand it could be direct in which case the company deliberately makes a move which in most cases is preceded by reconnaissance into the new market. Whichever the case, before a firm ventures into the import export business, they needs must carefully asses the disadvantages and advantages. The firm in question is interested in the latter model since the decision to export is one that has been done deliberately and indeed the primary objectives of these paper are geared towards establishing the strategic

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