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How ABM should change its business in order to enter UK - Essay Example

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ABM is a US based company dealing with the provision of property maintenance services such as energy, electrical and integrated facility services. The company offers its service delivery in quite a number of ways in order to succeed in the market. …
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How ABM should change its business in order to enter UK
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First is the issue of on-site service delivery which enables the company to provide engineers who can give quick response to maintenance needs by customers. The second service delivery mechanism is through mobile maintenance in which small sites are visited and maintenance services such as lighting, plumbing and electrical services are offered. On-demand/call center are also used as alternative strategies to deal with the service delivery of the company. In this case sites that have daily maintenance needs such as groceries are catered for on-demand basis. However, these ways of doing business may not be appropriate for the UK. This is because multinational business involves a shift from one geographical, cultural and political environment to another. One way in which this company needs to change the way it conducts its business is by avoiding the use of on-site service delivery mechanism in conducting its business. It should rather establish its subsidiaries in the UK near its target customers and offer customized services; offering services in line with the needs, desires and preferences of its customers in the UK. This is due to the fact that the issue of distance matters in international business. In order for the company to prosper in the UK, given the issue of geographical distance, it may not be feasible for the company to establish onsite business in the UK as the business operates from the US. The costs and barriers associated with distance makes the company to make potential losses. The company should also avoid the use of mobile maintenance because the UK is mainly characterized by industrial clustering. In this case, industries with similar industrial activities or within the same industry are located close to each other (Porter 20). Therefore, it is important for the company to avoid mobile maintenance and use other mechanisms that may enable it to offer to many customers within an industrial clusters, e.g. many clusters located close to each other. If the company makes these changes in its business activities, it will still be able to make profits because it will be able to adapt to changes in international business. These changes will enable the company to maintain its business line while entering into new markets where new gaps and opportunities exist. As a result, the company will enjoy the benefits of expansion and economies of scale in international business. This includes the acquisition of new and wider range of customers. In other words, the company will increase its market share. As long as the issue of change in international involvement is adapted to, profits are feasible. After all, international involvement requires a change in ways of business and if this is done appropriately then the business will definitely still make profits. 2. First Solar’s Multinational Business Context First solar company is a company that offers solar cells as its primary products. Its technology is characterized by CdTe thin film technology which exhibits low-cost and moderate efficiency (Hallmon, Siegel and Burgelman 9). This technology is used in photovoltaic’s research and activities. The conversion rate of this technology is currently at approximately 11% which is expected to rise even more in the future. Good conversion efficiency of this technology has enabled the company to increase the cost-effectiveness of its electricity production. This technology is also simple, and this has enabled the company to enjoy lower costs than its competitors. In terms of its market, the company has been involved in offering its products to markets which offer subsidies. Germany, Spain and France are some of the countries which have a great concern for solar power (Hallmon, ...Download file to see next pagesRead More
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