International Market Entry StrategiesExecutive summaryCentral Car Company (CCC) is a UK based company that imports and exports vehicles and their parts. Recent rapid growth and high customer demand has necessitated expansion into foreign markets. Over the years, as we improved our service delivery and strived towards offering the highest quality vehicles in the market, our customer base has grown considerably. This has prompted us to expand our services to other parts of the world. In particular, my department chose Canada. This decision was arrived at after extensive research conducted on their market status and financial and economic status of the country.
As a result, we considered several entry strategies that could enable us roll out our services in Canada with the least risk. My department decided to apply the joint venture strategy because of its effectiveness and inherent benefits. This was after the realization that the Canadian vehicle market was highly competitive and entry was difficult. In addition, established firms have developed barriers that prevent new entrants from plying the market. IntroductionAfter successful delivery of services in the UK’s vehicle market, Central Car Company has decided to expand its services to other parts of the world.
This decision was arrived at after an extensive analysis and evaluation of our company. A SWOT analysis was conducted and a decision made to expand our business operations internationally. Our strengths offer us a better chance of successful international service delivery considering that our customer base has been on the increase over the years. In addition, we have received excellent feedback from our customers stating how satisfied they were with our services and how good our products are.
The management of the company decided to roll out our services to Canada after extensive evaluation of its car market. As a result, the International Operations Department was responsible for finding the best entry strategy that would present the least risk to the company (Vaghefi, Paulson, and Tomlinson 43). As the Director of the department, I am responsible for evaluating and selecting the best entry strategy. This was after the company’s management approved my group’s presentation of Canada’s risk assessment of its market. This report will evaluate the different entry strategies available and that the company may adopt.
This evaluation will be based on their advantages and disadvantages they may present to the company. From this evaluation, the company will select the best entry strategy for adoption. The best strategy will be selected based on the need of the company to enter Canada with the least risk. In addition, the need to expand services to other parts of the region will also be incorporated into the evaluation. Why Canada is appropriateCanada’s vehicle market has experienced a consistent and rapid performance compared to other countries in the region in recent years.
In addition, its resistance to the volatility that is characteristic of the vehicle market in many parts of the world was a positive factor that was considered. This stability and sustained good performance motivated my group to choose Canada. Their small vehicle and heavy vehicle markets are very well established and developed and entry into the country would serve to spur the growth of the company.