Question
A Singaporean-owned Company opened its business in 2004, who used to be a leader in Wellness & Energy Products and E-Commerce Network Marketing. They design,
A Singaporean-owned Company opened its business in 2004, who used to be a leader in Wellness & Energy Products and E-Commerce Network Marketing. They design, develop, and manufacture from most of its wellness products and distributes them directly via the Network Marketing Business Model. All of the energy-based products were manufactured in their own manufacturing facility in Malaysia, applying their very own proprietary technology.
Prices of their items are sold in US Dollars and can be done through online. During their 1st year of operation, there was a huge sales in Singapore market and slowly made known to its neighboring countries.
In 2005, they expanded their business by opening its physical offices to Malaysia and Hong Kong, 2006 in Philippines and Indonesia and 2007 in India, US and Australia. They hired local employment for each country to cater the needs of the local clients. Though there was an increase in sales and increase in its number of members but there was also an increase in expenses.
In 2011, business has started declining. There was a delay of shipment to Philippine office. In Indonesia, courier and tariffs were quite high. Some hand-carried the items but with a very minimal number of products. There was also a delay in commission pay-out to give way to the office monthly rental, utilities and wages.
For the Philippine market, mostly could not afford and opted to purchase the imitation products that is circulated in the country.
Until in 2013, all their physical offices were shut down.
- What do you think are the factors to be considered in International Expansion?
- What are the alternative courses of action given the situation?
- Among the alternatives identified in Question No. 2, what is the best option for sustainability?
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