January 10th, 2018
Expanding to Japan| conclusion
The expansion to global markets by any organization might be fuelled by different needs such as potential demand, achieving economies of scale and responses to competitor strategies. Irrespective of the reason for the expansion the internal and external environment characterizing such ventures must be adequately addressed for a successful expansion to be achieved. The expansion of Sorbet Delicacies – a hypothetical U.S Ice cream manufacturer – to the Japan market was the subject of this paper. The Internal environment that embodies the planning, organization, leading and implementation functions and the strengths and weaknesses of the company have been highlighted. Further the opportunities and threats presented by the Japanese market and a subsequent analysis of the CAGE distance indicators has been performed.
With the analysis carried out the paper has identified the export through a joint venture with a local player as the best entry method that the company could apply in achieving its expansion strategy. This method does not only ensure the company’s products are available in the market but also alleviates the problems associated with culture and market specific characteristics of the Japanese people. Further the method reduces the extent of capital expenditure that would have been otherwise employed but increases the variable costs though in to a lesser extent. With such a method the benefit achieved following the expansion occurs to both the company and the country. While the company obtains a higher customer reach and spreads its risks beyond a single market, the country benefits from the income, employment and market improvement that such entry of foreign competitor is bound to present.
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