Assume the role of a business manager in a fictitious American company whose task is to assess the feasibility and potential profitability of launching the company's product outside the United States. Company management has already approved your opportunity proposal and has authorized you to proceed with your market expansion investigation. Complete the following three parts.
Part 1:
Country Analysis Examine the following characteristics of the country you selected: Country background and history Location and geography, Inhabitants, lifestyle, culture and customs, Communication and language, Economy and currency, Legal environment and Government. Identify the issues you will need to consider to determine the feasibility of a successful product launch and address the following: What are social, political, and legal structures and hierarchies of the selected country that are relevant to market expansion? How do they compare to those of the United States? What are the cross-cultural communication issues that could result from differences in the social, political, and legal structures and hierarchies between the foreign country and the United States?
Part 2:
Competitive Product Analysis Assess the desirability of expanding your company's product market into the country you have selected in consideration of companies that may already be doing business there. Identify 2-3 competitors and assess their present market situations. Compare your company's offerings to those of your competitors, and address the following questions: Would your company be the first in the region? Is the market saturated with competitors? If there are existing competitors, is there evidence that suggests that they have, or have not, been successful? What price might consumers pay? Can you establish the sales potential? Based on your market assessment, what are the potential barriers to market entry? Do any of these barriers present significant risks to market expansion?
Part 3:
Company Analysis When it considers pursuing foreign markets, a company must analyze its ability to establish and maintain its business abroad. Extend your market expansion feasibility investigation by addressing the following questions: What are the key production considerations for conducting operations abroad? Where would manufacturing operations take place? What are the key fiscal considerations, such as the foreign exchange market and the international monetary system? How will you determine whether or not this market expansion is a profitable venture? How would you manage this venture? What management structure would you recommend? What are the elements of the internal workings of the company that you must consider carefully before making your final recommendation to the board of directors? What political and legal rules and regulations must be followed to sell the product abroad? Are there forms to file? How will existing social and cultural structures and hierarchies affect business operations and company management structure? What is your strategy for launching and promoting the product? What are the risks and opportunities associated with market expansion? What is your current assessment of the feasibility of market expansion, based on your overall analysis? Is it still feasible to launch your product in this country?