Question
Please provide feed back or advice on the post below? 1. Introduction: With a valuable business model which focuses on providing needed support and mobility
Please provide feed back or advice on the post below?
1. Introduction:
With a valuable business model which focuses on providing needed support and mobility to wounded veterans and others who are in need of wheelchair support, Easy Chairs has set themselves apart from the crowd in the American Market. Through the utilization of innovative technologies such as 3D printing to allow for customized wheelchairs at a fraction of the cost of its competitors, and it's steadfast adherence to the notion of hiring wounded veterans, Easy Chairs has grown from a small startup to a 7 million dollar company over the course of five years. There is no denying the growth potential of this organization, which has already experienced a meteoric rise in the American market. However as successful companies often learn, the initial market will eventually become saturated as competitors and copycat organizations attempt to pry away market share from the established industry leader. The time in now to seize the opportunity to expand into the global marketplace and build an enduring great company. By taking this opportunity to branch out into the Asian market, Easy Chairs will enjoy the benefit of the first mover advantage, and become the standard bearer in this emerging market (Tutorials Point, 2022, Page 10).
2. The future of the International business environment for EC's products:
Due to a recent move towards internet sales in Japan and South Korea, Easy Chairs has already begun to build name recognition in this market and are now primed to establish a retail center in this area of the world, while initially maintaining manufacturing operations in the United States. After an extensive review of locations to set up a retail center in Asia, the BMGT 485 Class Consulting Firm recommendations the city of Fukuoka in Japan. By choosing this city as a base of operations, Easy Chairs will be able to tap in to the Japanese economy which has the third largest GDP in the modern world (BBC, 2021, Paragraph 1). The selection of Fukuoka also provides the highest population growth rate of any of Japan's cities while touting a moderate cost of living, and government incentives for new businesses. Additionally, Fukuoka provides a good mix of both city and rural customer bases, as the sixth largest Japanese city and second largest port city (Arts and Culture, n.d, Paragraph 1). Despite these amenities, Fukuoka boast a cost of living that is 26% cheaper than Tokyo and 65% cheaper than New York City (Living Cost, n.d, Paragraph 1). With 53% of the population obtaining a college degree and a skilled labor workforce of 69 million people, Japan would be a prime location for manufacturing if Easy Chairs decided to eventually expand manufacturing to its Asian market (Statista, 2023, Paragraph 1). Finally, Japan provides the greatest wealth distribution of any modern country, with the gap between the richest 10% and poorest 10% being only 4.5x (Tasker, 2021, Paragraph 1). With all of these benefits, it is hard to deny that Fukuoka Japan is a strong gateway into the Asian market.
3. Advantages and disadvantages of manufacturing abroad:
The advantages of manufacturing abroad are wide ranging. From the ability to source resources from the same area in which sales are made, to the ability to customize products to meet the needs of international consumers, and the ability to reduce international shipping cost for completed products. For these reasons and many more, it makes sense for organizations to shift manufacturing abroad when engaging in international sales. However there are some drawbacks to overseas manufacturing, including the protectionist policies of many countries. Protectionism can be described as a government acting to undermine the of ability of foreign organizations to achieve large scale growth in their countries, through policies such as government levied tariffs which increase the price of foreign goods in order to make them less attractive (Tutorials Point, 2022, Page 10). It is important that these factors be taken into account when choosing to start manufacturing operations in a foreign country. This is another reason whyFukuoka Japan is so attractive. This city has encouraged new business by offering government incentives such as a fast track Startup Visa, and a 22% corporate tax rate which is 8% lower than the standard Japan rate of 30% (Startup Fukuoka, n.d, Paragraph 2). Overseas manufacturing can be a sales multiplier, but choosing the right location is paramount and can make the difference between success and failure in international business.
4. The role of managers and leaders in business today:
As with any large scale business venture, the success of this international expansion plan will hinge on the ability of managers and leaders to adapt to a changing environment. Modern companies are learning the historical business model of strict hierarchy and larger than life leaders, are no longer effective in this modern business environment. Today's leaders must be agile and quick to embrace change. They must be willing to collaborate with their peers, and immerse themselves into the culture of the customer base for which they serve. They must also be able to influence the workforce instead of just leading. We have come to learn that leadership is connected to a specific title or position, but influence is not dependent upon a position or level of education (Graves, 2020, Paragraph 7). Influence includes the subtle things that a leader does to connect with those in the workforce, and get them to buy-in on a particular strategy. This move to the international sales market will require manager that can not only lead their team, but also influence them to go above and beyond for this new customer base.
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