Implementation strategy in international markets: the case of Magna Argus

Extract

[...] Also the benefits that each country can provide are different, and therefore the method of implantation will not be the same in each country. Strategic objectives To achieve a thriving international development the company prepares for competition by opting for a Blue Ocean Strategy. It should create a new strategic space out of the trade-off between low cost and differentiation. With global integration MagnaArgus can meet this challenge by completing the following objectives. Lower its production costs: A shift of production to low-cost countries, although representing costs to entry, can reduce production costs and help cope with competition that focuses on prices. [...]

[...] organization, which for a branded Keep high-end recovers information product and not production in from other markets. because it must be Pennsylvania and Exports through comprehensive. develop R & D independent Collaboration with Implementation of a distributors the distributor to production site in worldwide. check market trends Mexico for other and confirm our products. choice and better Sale to Mexico of plan our strategy. low-end products. [...]

[...] A suggested strategy to successfully implement the internationalization of MagnaArgus may be suggested by a diagnosis of the current situation of the company. Overview Diagnosis of the Situation Environmental Scan Threats and opportunities in targeted markets Hexagon based Competitive Forces Porter Analysis of Resources Value chain Balance of resources and skills Strategic Proposal Strategic objectives Plan of action Diagnosis of the Situation Environmental Scan Threats and opportunities in targeted markets Environment Country Job Opportunities Threats Economic United High purchasing power States Low interest rates and low inflation The world's broadest and richest market Mexico Low labor costs Low purchasing power and High unemployment Germany Stable economy and Costs of high labor currency Low Inflation Good infrastructure High purchasing power Spain Growth rate Low labor costs Japan High purchasing power Economic downturn since Costs of high labor Thailand Low labor costs Low purchasing power Carrefour opened Exchange rate regional neighbors on instability dynamic Political United Stable government States Mexico Member of NAFTA: no Political instability tariff barrier Great practice illegal Member of Mercosur: activities openness to other Latin American countries Germany Very stable Rigidity of the laws on EEC member: ease of Strict labor laws movement of goods in Europe Government "pro-business" Spain EEC member: ease of movement of goods in Europe Japan Political tensions with the United States Thailand Major political crisis and corruption Social United People watch much TV Households are already Behavior & States Market for replacement equipped with demand positions television Mexico Small population Poor equipped TV sets Despite a low purchasing power, desire to be "equipped" Germany Interest in television sets, high-tech jobs Spain An increase in consumer credit Japan Growing insecurity hanging over consumption Thailand Very few people equipped with television. [...]

[...] Average Establish a plant in Jump to a division Adapt the marketing Spain by geographical strategy for each According to study Progressive country, but relying results Export in transmission of the on a corporate other countries in distribution of the communications tower Europe and South independent "clean" in the quality of America from products and regional plants (Mex know-how of the & Spa) company Accompany the new Broadening the production centers, product range in distribution and South America and sale Europe in relation Developing Asian to prior studies exports to Thailand Assess the potential and opening a of other Asian distribution center countries longer The results of the Skip a matrix Increasingly adapt study, exports in organization the marketing other Asian Consolidate the strategy for each countries learning of geographical area, Development of R & D different countries but keeping a in Germany through in the parent consistent look or a distribution centers company to develop multi-brand strategy skills that will be for each market transferred and segment adapted abroad Indicative Bibliography by Oboulo • cf. Page 26 of the guide, Exhibit 3.2 Product grades and market segments. [...]

[...] A single production site Circuitry and creativity in the Costs of high labor costs. assembly High shipping cost Strict control guarantees the Committee on trade over the quality of our services displayed price and not the current A variety of products price Two types of television sets, which adapt to the three market segments Good after-sales service Quality products recognized by consumer magazines Following the internal diagnosis of MagnaArgus, we identify the benefits which the firm can leverage to develop its overall activity. [...]