Important Issues of Marketing Companies - Case Study Example

There is also a lack of efficient and effective management hierarchy within the organization as Sigrud seems to perform most of the work along with three other employees. Lack of professional management, therefore, has resulted in the lack of organizational development which could have been translated into greater success for the firm at the international level.3. Another important key issue is the lack of capital to expand the business not only in the local market but at the international level too.

Lack of capital has forced the firm to actually limit it and grow organically rather than expanding itself into a new and emerging market. This has indirectly resulted in a lack of exposure for the firm at the international level besides restricting its growth capacity. Based on the above key issues and the facts and figures provided in the case study, the following course of actions may be undertaken:1. The market expansion should be considered as one of the important strategic moves by the firm to actually ensure that it expands into the market other than Europe.

Market expansion can be achieved either through the formation of strategic alliances with the firms which are already operating in the target markets of the firm or through direct entry into the market.2. Product development can be another important strategic move which the firm can make in order to ensure that they offer a variety of products to the existing market. As described in the case that the retailers often take very few items during the season and the firm is still not in men’s or children business, therefore, to offer a variety to the market, it is critical that new products should be rolled out at relatively quicker pace in the existing market.

In order to ensure that the firm becomes successful at the international level, it is important that the strategy of market expansion must be adapted. In order to expand, business needs to formulate strategic alliances with the firms working in other markets. The formation of strategic alliances can really offer the firm a real chance to know and understand the market with relatively lesser capital while at the same time gaining valuable entry into a new market. Strategic alliances could be formed either through the formation of joint ventures.

A joint venture is a temporary arrangement and once the firm gets brand recognition within the market and gain necessary market acceptability, it can then launch itself into the new markets.