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There have been certain unfortunate incidents like strikes on some of the issues, which put a bad impact on the overall operation of the company. Company happened to lose its key customers as well as few new orders. The company has been able to attain a profit of around £ 2.3 million in the year, 2006. As the competition is getting intense, more of its competitors are going global. There is a low entry barrier in this market; which has led to a number of new entrants in this market. The products and prices of all of these companies are quite similar, so day by day, the market is getting divided into more segments. To survive this competition Crappy Shades now would like to go for expansion in some new regions to tap the global market. Zeroing down on a singe opportunity is the main decision to take on.
Globalization has allowed ease in free trades among the countries. It has introduced greater speed and lesser difficulty in transportation of goods as well as that of the people. Most of the companies, in developing countries, are now interested in using their cash inflows to invest in developing nations. Even the company is now in a situation, where they can take the advantage of globalization by expanding their business to other regions. The destination should be cautiously picked as the company would like to keep their cost effectiveness up in that country. In such a way they can carry their brand names out of UK. With every brand name, an image gets attached to it. So this ‘low cost’ company should keep that image alive, even out of UK.
Moving to another country means they would get access to the technology and resources of that nation. At the same time it would have a large customer base with access to a large talent pool of that nation. So using the resources worldwide, technical and cultural, the company would be able to
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As seen in the research conducted by Roll (2005) and Sengupta
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