Analysis of Teknion Benchmark Company - Research Paper Example

The company through this strategic expansion managed to improve its marketing segment drastically and expand its product lines to meet the demands of the new markets in furniture products. For example, the company has handled numerous projects in different countries.

These include the Barnes Jewish Hospital and Agilent Technologies in Israel among other numerous global projects that the company has successfully implemented. This global expansion helped the company in expanding its production lines, improving its design work to meet the current customer demand in a highly competitive market, and coming up with designs and technologies that are in accordance with the advocacy of the day. An example is the embracing of green technologies that are environmentally friendly.

As the company expanded to international markets, there were more demands in different markets to have products in accordance with certain environmental specifications, motivating the company to initiate massive design and innovative works to correspond to such market demands. Therefore, from producing a single line of furniture for the domestic market, international expansion helped Teknion in providing much-advanced office furniture and other high-end furniture to clients in different market segments.

Teknion’s expansion to the international market did not comprise its domestic market share, but instead, the domestic market became much stronger as new international designs previously not made for the domestic market were available to domestic customers, offering them a large variety of designs with international tastes. The company was in fact named among the top 50 best managed Private Companies, with its presence not only growing domestically but also regionally (Anonymous, 2010). International expansion led to an enhanced image of the company and its products; the company was more involved in international tendering processes, such as in the interior and exterior design of the Bow, a 58-story tower near the Bow River in Calgary (Anonymous, 2010).

It is such manifested prowess in interior design and furnishes that has enabled the company to control not only the domestic but also the regional market; meaning its international expansion was a real benefit to the company. Teknion is faced with several risks in its international market operations. Sargent (2011) explains some of these risks as increased competition. The company is faced with stiff competition from much larger multinationals, especially from the U.S., North America, and other regions.

The stiff competition requires strategic operations in realigning with the market demands to offer many superior and competitive products at a price that will offer much more value addition to customers. The company through design and innovations in office furniture work has been able to compete effectively and capture its sizeable market segment in the international market.