International commerce is becoming increasingly essential to growing enterprises. Our shoemaking firm finds the new market in China very attractive since it presents many growth opportunities. The corporation intends to expand to various regions around the globe starting with China to evaluate the global response of people towards our product line. China is a lucrative emerging market that attracts investors due to the availability of inexpensive labor and raw materials. Hence, the plan is to convince the board of directors and major shareholders using statistics of future revenue and development forecasts of the shoe industry in the Chinese market. Our products target consumers of all age and gender to ensure that we capture the interests of a large portion of the population. This essay entails a representation of the possible challenges and benefits that will emerge in the international expansion to China.
According to Lynch (2009), a global business strategy is not similar with a national entrepreneurial mechanism because it is more complex and needs to consider the differences in the regions. The trading environment in China will thus present various cultures, perceptions, and policies that might enhance or limit the process of expansion. The penetration into the Chinese market will require the employees in our shoe industry to learn the Chinese language, understand their way of dressing, and the particular taste of shoes to produce items that conform to the interests of the Chinese people (Koont, 2009). The process of international expansion will not be easy since it poses numerous risks such as corporate failure, stringent laws, intense competition, possibility of non-acceptance, etc. It will be a systematic procedure to capture the perceptions of the global market to gain a footing in the region. However, a thorough and comprehensive analysis of the potential market and business environment is mandatory before the corporation can make the ultimate decision to penetrate China.
References
Koontz C. (Performer) (2009). Cultural Adaptation for Global Business. Retrieved June 1, 2016 from https://www.youtube.com/watch?v=LOdk-x4A_z8.
Lynch R. (2009). International Global Business Strategy Sep 09. Retrieved June 1, 2016 from https://www.youtube.com/watch?v=9M5wWSA5vQQ.
