Studentshare
Subjects
Business
Foreign Market Entry and Diversification

Foreign Market Entry and Diversification - Research Paper Example

Add to wishlist

Summary

Diversification is a much hyped topic and forms a part of strategic decisions and firm’s needs to decide whether they should diversify or not to diversify. It has been the most debated topic by business and it has been said that firms which has the resources and capability to…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER91.8% of users find it useful

Foreign Market Entry and Diversification

Read Text Preview

Subject: Business
Type: Research Paper
Level: College
Pages: 4 (1000 words)
Downloads: 3
Author: ernieupton

Extract of sample "Foreign Market Entry and Diversification"

Download file to see previous pages

y diversify for better opportunities, to leverage the competencies as well as capabilities by way of expanding into business where the firm’s resources can be used as competitive assets. Also to some extend diversifying will help the company to minimize the risk but as pointed earlier the risk involved is high. There is no guarantee that the business will succeed (Rao, et al, 2009, 228). The publishing company which deals with books and other publishing items should continue with its business and go for related diversification.

The publishing company should opt for related diversification strategy and involve into acquisition of business which are related in terms of technology, products or markets. Related diversification also termed as concentric diversification occurs when combined profit tends to increase the opportunities and strengths and thereby minimizes the threats and weakness (Orcullo, 2008, 76). Thus the publishing firm may search for new business whose product, market, distribution is similar to that of its own and where acquisition would result in “synergy.

” Thus the company in order to create synergy should enter into related diversification and share resources and capabilities with its existing business unit. With the growth of online and digital media, the publishing business has been undergoing significant changes. Thus considering the current situation the publishing business should diversify its business into emerging and developing countries and at the same time follows the emerging trends in the publishing industry which are like eBooks, blogs, mobile publishing along with self publishing (ICMR, 2007).

While diversifying the business the publishing company can opt for strategic alliance. Strategic alliances are formed through partnership between the firms and combining the resources, capabilities and core competencies and pursue a mutual interest to develop, manufacture and also manufacture goods (KAZMI, 2008. 187). The alliance is a

...Download file to see next pages Read More

CHECK THESE SAMPLES OF Foreign Market Entry and Diversification

Management of Information Business

The report will conduct company, industry, country and regional organization's (EU) analysis in order to recommend Tata Motors an effective market entry strategy.... Therefore, it would be effective for Tata Motors if they choose joint venture as the market entry mode.... The report is all about the business expansion of a multinational organization in an international market place.... Leading multinational organizations are trying to expand their business process in global market place in order to capitalize on the potential advantages that have been developed due to globalization....

15 Pages (3750 words) Essay

The four basic management strategies to compete internationally

Thus organizations usually decide to globalize their operations when they foresee a sufficient profitability in assigning their limited resources to foreign market(s) higher than the expected rate of return from other marketing decisions.... he attractiveness of the foreign market.... he cost of entering the market....

8 Pages (2000 words) Essay

Tata Consultancy Services entry strategy in international markets

Entry into this market may be done by diversification of the existing activity or by founding a new company.... The One of the interesting reasons for the company's success can be attributed to its entry approach that the company used in different markets.... Let us now look at TCSs and its country specific entry modes in view of its strengths, weaknesses, Opportunities and Strengths.... The IT consulting and other services market has shown impressive growth in recent years, offering an attractive prospect to potential new entrants....

5 Pages (1250 words) Essay

American Steel Industry

This includes industry concentration, barriers of entry that One of the industrial relations patterns that have emerged and which the international leadership of the united steelworkers of America appears to be advocating is a new cooperative partnership, modeled after the 1986 National Steel Agreement.... The inaccessibility to potential entrants of requisite iron ore supplies of high grade has imposed a major barrier to entry to the American steel industry....

6 Pages (1500 words) Research Paper

Business Expansion Strategies

The paper aims at answering certain questions related to a company's productions and expansion in international market while adopting related diversification strategy.... The company has been following unrelated diversification strategy since its inception and has product lines… In order to develop a relative base between products that are highly unrelated, it is important to focus on their line of production.... In this regard, it is important to note that when there is no In other words, it is a process of undertaking two or more unrelated product lines for the purpose of diversification....

5 Pages (1250 words) Essay

Market Across Culture

Direct exporting is one of the well-established market entry processes within the UK and Mexico.... Market Growth Strategy After the market entry strategy, the organization needs to properly decide upon the market growth strategy.... Hence, the marketers need to adopt diversification strategy to expand their business in the new market.... The dissertation "market Across Culture" is focused on analyzing the cross-cultural differences in terms of the food market of Mexico....

9 Pages (2250 words) Dissertation

Marketing Across Cultures

For entry into the market the company can either use equity modes or non equity modes.... Non equity modes of entry that the company can use will be in the form of exporting to the country and contractual agreements (Lévesque and Shepherd, 2004).... Other advantage of the country lies in the fact that it is a stable democracy and the market offers size and diversity that should be very much appreciated.... However it is very difficult to find a single distributor or agent that can cover the huge market....

8 Pages (2000 words) Assignment

Modern Financial Markets

The paper 'Modern Financial Markets' presents the advanced and sophisticated modern financial markets that provide the opportunity for international diversification.... The process of international diversification enables firms to reap advantages like economies of scale.... There is no consistency in the empirical studies with regard to the performance advantages arising from international diversification.... Various studies conducted by Buckley & Casson (1976), Caves (1982) and Rugman (1979) have drawn attention to the internationalization theory, highlighting that the process of international diversification does not improve performance rather the leveraging of the intangible assets of the firm bring in performance advantages....

7 Pages (1750 words) Term Paper