Write an essay in which you discuss the issues below. The essay should count up to 8 pages of text.
1. Profile the company with specific reference to why you believe they are geared to exploit foreign markets (in general, i.e., not just related to the EU market) (innovative product, know-how, capacity levels, raw material supply, labor costs etc).
2. Comment on the competitive (comparative) advantage you believe the product would enjoy in international markets. Does this correspond with the advantage in the domestic market? Is the advantage sustainable over time?
3. External Environment: Analyse the external environment the focal firm may face in the country to be entered, as well as any factors pertaining to the home country of the firm with impact on market entry. O.a. analyse the sources of competition both domestically and globally. Who are they? What are their strengths and weaknesses relative to the targeted market(s)?
4. Market Attractiveness Analysis I: Determine the attractiveness of the market in terms of the following facets: 1. market size and growth, 2. cultural dimensions (o.a. related to consumer behaviour as well as the negotiation process (customs, norms, beliefs, language, religion, etc)), 3. legal dimensions influencing contracts and intellectual property rights, and 4. ethical issues.
5. Market Attractiveness Analysis II: Determine the attractiveness of the market in terms of real or perceived trade barriers (tariff and non-tariff). Countering such barriers need to be addressed.
6. Market Entry Strategy: What is the best way for the firm to enter that new market? Describe entry mode, how to organize for it (including extent of localization vs standardization) and provide rationale for each of the strategic recommendations based on examples from literature/articles
7. Recommendations: What are your recommendations to the firm for further international expansion in the short and the medium term? This could mean staying in the country and expanding, or seeking new international markets. Explain your answer drawing conclusions from your above analysis.