International Business Strategy - Essay Example

also factors related to consumer viewpoint in their willingness to sample new products with untrusted or unknown new competitive players, based also on their traditional cultural values. These factors need to be considered prior to entering Spain as a viable profit opportunity. However, evidence provides that the growth rates in Spain associated with consumer willingness to purchase mobile products makes this a quality opportunity if new methods to undercut these values can be accomplished through marketing or other innovative communications methods.

Spain represents a tremendous new market opportunity that is marked with sustained growth, despite problems that exist in labour shortages and the presence of a highly regulated labour market. It is recommended to pursue this strategy of expansion into the Spanish marketplace and improve long-term manufacturing and R&D capabilities in the process. Conducting business in the Middle Eastern markets is considerably different than that of Spain, both at the business and economic levels as well as cultural.

These factors must be taken into consideration in order to develop a business model that can bring higher profitability and growth to the company entering this new market. The company described is a mobile communications manufacturer, specialising in the development of new consumer mobile technology products. Spain is marked with an uncertain labour market as well as a radically different cultural tendency that is present at the employee level as well as in relation to how managers conduct routine organisational processes.

This report identifies the factors that will impede or enhance new market entry, via Greenfield entry, by reporting on issues which will directly impact success in this new market entry strategy. The consumer electronics market in Spain has experienced a steady growth rate of 10.8 percent between 2004 and 2008 (forbes.com 2010). This represents a consumer market that is adopting new technologies,