Write a 3-part, 800-word in-depth analysis in which you assess the feasibility and profitability of launching a product in a foreign country.
The importance of a thorough analysis to determine the feasibility of launching a product in a new market abroad cannot be overstated. A careful consideration of such factors as cultural communications, global organizational structures and hierarchies, negotiations, and international business ethics is vital to the success of market expansion ventures.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
On a daily basis, there are articles in the major business publications (for example, the Wall Street Journal) about global production and logistics, and there is a wide range of orientations for those articles. Some will describe companies that have established highly efficient and successful global production and logistics capabilities. Other articles might describe issues (sometimes major issues) businesses face in this context, such as due to the government of one country nationalizing a corporation, or due to some other major country-specific issue (for example, a government being overthrown). Such events can obviously have tremendous impact on businesses with global operations, including potentially shutting down major portions of the company’s production and logistics.
As but one of many simpler (but significant none-the-less) examples of how global production and logistics can impact a company, there were numerous business media articles in the fall of 2012 about how Apple was experiencing product shortages associated with its otherwise successful iPhone 5 launch. One such shortage was alleged to be due to Apple switching suppliers (within Asia) and the new supplier not being able to meet Apple’s demand (Campbell, 2012).
But despite the controversies and challenges, a large number of medium and large companies continue to pursue global production and logistics because of the significant potential benefits. Companies and their customers can benefit from the expertise of other organizations in other parts of the world. There can be government policy benefits as well. There are countries that prohibit selling products within their geographical boundaries unless the product is in some way manufactured or assembled there. BlackBerry has addressed that in certain countries by establishing assembly operations within those countries as part of their global production and logistics, thus enabling them to sell their products in more countries.
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.
To begin, select a product and country from the Products and Countries Lists linked in the Resources under the Required Resources heading. Use the selected product and county to complete the following three parts.
Examine the following characteristics of the country you selected:
Identify the issues you will need to consider to determine the feasibility of a successful product launch and address the following:
Support your analysis with references from the Internet sources.
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:
Support your analysis with references from the other Internet sources.
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:
Support your analysis with references from the other Internet sources.
Use the following guidelines when writing your analysis:
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