Abstract
In this paper the expansion e expansion of MNC in the products and services on offer by the businesses. Then a matrix will be constructed in the paper in order to compare three different emerging markets, which include the India, China, and Japan markets on the basis of economic, political, environmental, ethical system, legal, social responsibility, and technological environment. Finally, the last section of the paper will perform an evaluation of the emerging market for expansion.
Expanding an MNC
Introduction
Trendsetting Inc. is a U.S. based organization that is setting new and innovative trends in the market by providing the cell phone accessories, and repairing of cell phones. The company is providing the accessories such as mobile phone chargers, batteries, hands free, and also cases of several mobile phones. The company is also working continuously in order to evolve quickly just like the technology. Such as when they are selling the cell phone cases, they are hard at the work arming their franchisees with the novel products and services and their support and knowledge. All these results in retaining the customer for the entire life. Furthermore, the working environment of the organization is also very comfortable in a way that experienced, and enthusiastic professionals having in depth knowledge about marketing, operations, development, brand building, and operations associated with the accessories and franchise industry meant for repairing of cell phones. So, efficient and flexible functioning of the company enables it to enter the new market with ease. But, in this case, the organization should consider environmental scanning, political risk assessment, entry strategy,
So, in order to enter the Chinese market, Trendsetting Inc. has to adopt such a market penetration strategy that will help them to gain market share. The company should analyze the factors environmental factors, cultural factors, and political factors etc in order to penetrate in the new market, and develop business in the foreign market. The country’s foreign multinationals and the domestic firms have the trend of setting up joint ventures. The trends enable the foreign firms to penetrate the interior markets in the third and the fourth ties. The Chinese local industry will also benefit from the assistance to expand overseas. Development will encourage all the parties to produce new products in light of the global crisis.
Further, The Chinese market has close connections to the multinationals. In the past, firms have delivered economic growth to allow trade and investment. Multinationals have enabled the country to have a rise in the economic share globally from a mere 4 percent to fourteen percent in the GDP. The country’s sales accumulate to USD 32 trillion as the global economy reaches 25 percent (Lindgreen & Maon, 2013). So, joint ventures will also be an efficient way for the company to facilitate the Chinese customers with their products and services. This strategy will help the company in its start-up, which will be beneficial for the company as well as for the country i.e., China, this can be analyzed from the fact that all the inland territories of China have a GDP of USD 150 billion with a population base of 720 million (Lindgreen & Maon, 2013). Furthermore, the company can expand in the market because of the favorable factors offered by the country such as some of the Asian economies realize their dependence on the Chinese market. The nation depicts a high fiscal stimulus as a source of growth in the early stages of the financial crisis. But, Growth has recently slowed in the manufacturing sector as the country considers the possibility of diversifying due to rising cost of the trade disagreements, the company should consider this fact. It is possible for the market to emerge quickly since the industry is always ready for change. Furthermore, the company should be conscious about the cultural aspects of the country because people value their traditions, and they do not accept the things that go beyond their traditional and cultural values. Following the legal requirements and procedures will further help the company to enter the Chinese market easily.
So, the Company remains optimistic of the economic outlook in the long term. China has a dynamic market and has the capacity of fueling development in the global industry. The Go West policies and an increase of migration will further benefit the country. In a nutshell, considering the above mentioned analysis, Chinese market present favorable environment and factors for the company to expand their business. By keeping into consideration the important values, political factors, ethical factors, cultural factor, environmental factors etc the company can easily expand its operations in the Chinese market.
References
Ekmekci, U., & Ansal, H. (2009). Determinants of knowledge transfer from foreign direct investment to local supplier firms: the case of turkish automotive industry. Upper Saddle River, N.J.: Routledge.
Lindgreen, A., & Maon, F. (2013). Sustainable Value Chain Management a Research Anthology.. Farnham: Ashgate Publishing Ltd.
Webb, S. E. (2009). Expanding corporate responsibility the role of business in creating sustainable peace and security. Houston, Tex.: Greystone Books ;.
