Solar Solutions Ltd is determined to enter into business relations with foreign governments and maintain good and lasting relationships with them. These relationships are supposed to be strictly professional and based on business ethics to ensure that they exist for the mutual benefits of both parties that are involved in the relationships. Good relationships can be developed through different ways some of which include constant communication with the concerned departments. This is meant to ensure that the parties are in constant understanding of what is going on with the other and they maintain it at healthy levels. The other way to ensure that there is a good relationship is through corporate social responsibility by the company towards through the country in which they are based (Ciampa, 2009). This helps to create trust in the company and it instills in the people the thought that the company is there for the mutual benefits of both the people and profitability.
The company can also develop and maintain good relations with the foreign countries where they are based by being observant to the set rules and regulations especially those govern business operations between the government and foreign companies that carry on business in those countries, for example, payment of tax (Gibbs, & Humphries, 2009). When the company is compliant to these rules and regulations and the relationship is good, the company can operate competitively and gain competitive advantage in these countries just like any other company that is operating.
Solar Solutions Ltd can gain international competitive advantage through various ways both of which can be contributed to by the good deeds that the company does to ensure that there is peaceful coexistence between the two parties. The first way through which Solar Solutions Ltd can gain this competitive advantage through the provision of quality products and services to the people at all levels. This can translate to mean that the company will be able to sell more as well as attracting and retaining new customers and thus high returns for the business (Gibbs, & Humphries, 2009). Every customer is interested in quality products that will serve them and offer the required utility within the desired time. The company can follow up this with quality after sale service that will be aimed at ensuring any fault in the devices sold by the company is dealt with as fast as possible and in the most efficient way that the company can. The company can also gain competitive advantage through pricing mechanisms that the company will have in place. The company can achieve this through special pricing and cost leadership as well as ensuring that fair prices are charged on the products and avoid taking advantage of the situation on the ground especially if the company enjoys monopoly power in the countries that they are to be based (Firestien, 1996).
The third way that the company could gain competitive advantage in a foreign country is through creating and maintaining a good reputation. A good name is better than gold or silver and it goes a long way into the future. The reputation takes time to create though but once it is there, it will be in the hands of the company to build around it and maintain it and consequently gain economically through it. Cultural cache is another way through which the company can strengthen its links in a foreign country. This can be achieved through trying to preserve the culture of the country in which they are based (Marinov, 2012). When a company is able to uphold the cultures of the countries in which they are based, many people are able to identify with it and this can lead to good customer relation with the business, increased sales and thus higher profits for the company.
Any business though that has its strengths in a given field, it is bound to have some weaknesses that if not dealt with can affect the business adversely. Solar Solutions major weaknesses are finding a base to establish itself and get a market share that is significant to enable it to gain economically in the market. Another weakness that Solar Solutions may experience in the foreign countries is competition from the already established companies who are in the same industry. It will require so much effort to try and overcome the already established strongholds and who already have the support of the customers. The good news with this situation is that they can be overcome and dealt with and if possible reversing them to their advantage and make sure they work in their own way. To begin with, the company is well prepared to search important information that can help to learn about the situation on the ground and the level of competition and work appropriately.
The company is also well prepared to ensure that it abide by the rules and regulations and ensure that all the good ethics are observed at all times and in return win customers to their side. The company will also ensure that any opportunity that comes is grasped with haste as it will enable the company to perform better and be able to balance the competition and overcome some of its weaknesses in the otherwise competitive market.
Venturing into a new market, and a foreign market for that matter, is not a small issue and especially when the company has no previous links or somebody who is to connect it with the customers. This requires the company to make it known to the country even before it can start operating officially. This can be done through promotions and advertising through the media and other promotion companies so as to create awareness among the people. If this is done in the right way, so much is bound to happen to the advantage of the company and by the time it will be introducing its products in the market, the people will be having an idea about what it is all about (Goswami, & Mattoo, 2012). Solar Solutions Ltd is also in the process of making free samples to the people prior to the official launch in the country. This may come at a fee and a high cost to the company it will be worthwhile in the long run as it will have a better basis when it is operational in the country.
Once Solar Solutions is well established in the country, it is planning to formulate a new pricing strategy that will be acceptable in the country it will be launching. The company can first sell its products at a discount so as to attract as many customers as possible to its dock. This though will be done in regard to the contribution margin that the company will have set at the onset of the business. The company will look into it that at least the business break even to avoid loss and consequently drive it out of business. The company will also adopt promotional strategies that will be marked with numerous and creative adverts all of which will be aimed at capturing the attention of as many people as possible (Firestien, 1996).
Where possible, the company can organize concerts and road shows if the host country allows creating awareness in the people. Marketing services will be done by professionals who have experience in marketing in the international scenes and they will be equipped with the right information at all times to avoid contradictions and drive the potential customers away (Gibbs, 2009). This, coupled with quality products, will ensure that the company at least thrives in the market and even get a substantial market share within the first few years of operations.
Solar Solutions has many options of entering into the foreign market that range from exporting its wares into the international market until it has the required information about the host country, enter into coalition with the local companies that have operated in the international business or it can even form partnerships with international companies in the host countries and carry business as if they were partners. The best alternative course of action that the company can take as of now is to begin with the exportation of its solar products to the intended foreign investing country. This way the company will be able to know if its products are acceptable in that country or not (Firestien, 1996). After this action, the company can partner with either a local company or an internal company, whichever it deems right, and work towards doing business in the intended country. Solar Solutions Ltd having exported its products for some time, will consider entering into an alliance with international companies and try to work towards the success of the business.
In forming alliances, the company has many options that it can choose from; it can either go for a joint venture or a strategic alliance. Solar Solutions Ltd would prefer to go for a joint venture to begin with after which it can go it alone. This is specifically because the company is new and it needs people who can show it how the business goes around there. It will also serve as a means of attracting customers especially those who are already loyal to the existing company.
This type of alliance will also enable the company to manage the costs of operating the business in the new place. These are especially the costs that are associated with the establishment of the business, promotions, renting of premises or even paying new additional workers. It is in the company’s expectation that the country’s laws will mandate this type of agreement and that the business will grow as expected by the company management. The company will deal with any differences in the corporate cultures by making sure that they respect their values and beliefs. The company will also adhere to the set corporate rules and regulations to avoid conflicts of interest between the company and the other stakeholders (Ciampa, 1999).
In conclusion, venturing into an international market is an interesting but yet a risky deal to enter into. The investing company should be prepared to face all types of problems and threats and to this effect, it should have come up with mechanisms to deal with these issues and be sure to come out successfully. In addition to this, the company should have developed the strategies on how to enter the market, how to make itself known to the people and also the pricing and marketing strategies it will put in place to ensure that it remains competitive in the market. It is also of great importance how the company relates to the people of the new country as these are the potential customers and they determine to a big deal what will become of the business and its growth potential. Solar Solutions Ltd has all this information handy and it will use it to make a difference in its expansion plans.
References
Ciampa, D., & Watkins, M. (1999). Right from the start: taking charge in a new leadership role. Boston, Mass.: Harvard Business School Press.
Firestien, R. L. (1996). Leading on the creative edge: gaining competitive advantage through the power of creative problem solving. Colorado Springs, Colo.: Piñon Press.
Gibbs, R., & Humphries, A. (2009). Strategic alliances & marketing partnerships gaining competitive advantage through collaboration and partnering. London: Kogan Page.
Goswami, A. G., & Mattoo, A. (2012). Exporting Services A Developing Country Perspective.. Washington: World Bank Publications.
Marinov, M. (2012). Internationalization of emerging economies and firms. New York: Palgrave Macmillan.
