1. Conduct a SWOT analysis of S/M.
Strengths: According to the case study the company’s greatest strength lies in providing high quality products to its customers. This gives S/M an edge over other architects in the industry. The 40 years experience in this industry adds to the company’s strengths because they have now established their name in the market. Adding on, the company enjoys a positive image in their designs of sports facilities and this is a niche market. The staff of the company contributes towards the strengths of the company.
Weaknesses: Their specialty only lies in designing of sports facilities and this limits their chances of creating a name in other areas. The costs of retaining and developing their employees are higher than industry standards and this adds to their costs. As there is strict concentration on specialization of one area, they are unable to deliver up to the mark in other areas. Unlike other firms, S/M is unable to get government support because of which they have to bear all the costs alone.
Opportunities: Under the Free Trade Act, there was a lot of demand for top notch Canadian architects in USA. Adding on, universities in USA are not loyal to local firms, consequently, this provides greater opportunities to foreign companies. Apart from America, there are growth opportunities in more affluent countries like Europe. Many university campuses are being funded for maintaining their sports and recreational facilities and S/M could gain business from these university campuses.
Threats: If laws on architects continue to be stringent and there is little cooperation from the government then it will become difficult for S/M to grow outside the boundaries of Canada. As S/M provides high quality products they charge a higher price as well. This makes it difficult for S/M architects to work with clients who have a restricted budget; hence, limiting their clientele. Canadian firms are backward in their use of CADD as compared to American architectural firms, and this would be a source of threat once they expand beyond Canadian boundaries and if other firms enter Canada. Most of the times a tender needs to be filled in order to gain a contract; hence, S/M may not be able to win the tender as they are higher priced than their competitors.
2. What types of information will Brooks need to collect before he can even begin to assess the New England market? Develop a series of questions you feel are critical to this assessment (3-5 questions). Explain what would be learned from each question and how it will be used to start the assessment process. In addition what resources would you recommend for collecting the information?
Brooks needs to identify the average income and revenues of households and businesses in New England. In order to ensure that their services are going to be affordable by the local residents of New England it is important for them to identify this factor. Since, colleges and universities have received funding, they must find out whether these funds are utilized yet or not. If these funds are still lying idle then it is the best time for S/M to enter the market. In order to further explore this market and take into consideration expansion opportunities Brooks need to answer a few questions:
- Would S/M be welcomed by these universities to undertake the development facilities?
- Who would their main competitor be; local firms or international firms?
- Is the workforce of S/M skilled enough to undertake such a project?
Information regarding competitors and their prices could be gathered from looking into projects previously completed by their competitors. Talking to the competitors clients would also give them an insight into how much of a chance does S/M have in being hired. Data on employees can be gained from internal sources. If external recruitment needs to be done then the employee market of New England would have to be surveyed.
3. What selection criteria do you believe will be relevant to the assessment of any alternative markets? What preliminary market parameters are relevant to the evaluation of S/M’s global options? For each selection criteria and market parameters you list, describe relevance to the overall assessment.
In order to assess alternative markets S/M needs to identify where they stand in the industry. The need and demand for their services would be a potential way to give them insight into their own business position in the industry as a whole. Identification of new markets would be one option when evaluating alternatives. This process would include elimination of markets that are not profitable and developing on those markets which seem to be profitable. S/M would filter out its global markets by evaluating the likelihood of success in the specific market. They would determine where they would be able to capture the largest market share and be able to achieve a strong foothold in the international market.
4. Assuming that S/M decides on the New England market, what information will be needed to implement an entry strategy (including but not limited to what areas need market research)? Describe in detail why the information is important and how it would be used.
The entry strategy for S/M would begin from determining the skills of the local workforce. It would be impossible for S/M to relocate majority of its workforce to New England; hence, some form of recruitment would have to be undertaken by the company. This would mostly be at the lower level, as managerial skills can be used of the existing employees at S/M. Furthermore, they would have to gain reasonable contracts with the goods supplier in New England. An extensive market research would have to be conducted that would identify which supplier would come up to their standards in terms of quality and price. The local requirements of New England would have to be understood in terms of client preferences and local culture. Since, culture is strongly embedded in people S/M would have to handle this with great care by taking into consideration how they deal with their clients.
5. In general, explain the value of market research in the global community and key considerations that should be taken into account when conducting international research. (200-400 word paragraph). Be sure to identify the differences in domestic vs. international market research.
Market Research is an essential part of conducting business in today’s competitive work environment. Companies that are able to conduct market research are also able to ensure that they are up to date with the latest trends that are prevalent in their field. If companies are not in touch with prevailing trends they are going to lose their competitive edge, and in the long run lose customers. Competition is constantly growing, and it is vital for firms to highlight their competitive edge in order to maintain the image amongst their customers.
Globalization has further contributed towards the urgency of conducting market research. Companies do not just have to compete with local firms they have to compete in international markets as well. In order to successfully do this, they need to determine the needs and demands of international customers. Since customer tastes vary according to regions they need to fulfill the expectations of the customers or lose out to competitors.
Domestic market research may not require the extent of rigor that may be required by research done in international markets. The researcher needs to be sympathetic towards international requirements before judging the customers. The researcher’s ability to understand requirements would determine the success of the research and business both (Tradestart). If successful market research is conducted then the business may be able to make its place between competitions regardless of being an international or domestic market.
References
Differences Between Domestic and International Business. (n.d.). Tradestart. Retrieved March 3, 2014, from http://www.tradestart.ca/domestic-vs-international
