National Market
Summary:
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Expanding a chain of surfwear stores to international markets is under consideration. And Vijay, most probably the CEO, has asked the senior management for their thoughts regarding this decision. Santosh is not in favour of this decision and thinks that the company should first occupy the national market as there are more opportunities for successful expansion. Still, Murali's views are different from those of Santosh and emphasize that Asian markets have more potential for growth due to lack of competition and favour expansion to Asia. David advises that the company should expand in markets where there is already a demand for their goods, but in Asia, the market should first be developed where there could be a lot of trade barriers. Whereas Helen thinks that entering an established market means more competition and there will be a need for brand recognition first as opposed to already recognized brand locally and is in favour of local expansion. Venki disagrees with their thoughts of Helen and says they can work for brand recognition in Asia by surfing events and through famous surfers but is unsure whether that marketing strategy will work in Asia or not. Naser agrees with the thoughts of Venki and doesn't recommend taking the risk of failure through international expansion and instead advises to expands locally.
Skills:
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I have learned that the thoughts and views of senior management are crucial for decision-making. I also understand that before expanding into another country or continent, it is essential to consider whether that product or service is in demand or not. Additionally, if the service is in order, it is necessary to consider whether there is any room for entry to another competitor. Also, if there is room for expansion in the home country and if it is more profitable, it may be a worthy decision to expand locally first. However, if the barriers are less and opportunities are more internationally, the company should grow.
Knowledge:
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Brand recognition is the essential element of a business's success. If it's a new brand, it will face several difficulties entering a market because the already recognized brands retain customers. A new brand will have to offer generous discounts to attract new customers, leading to low profitability and even losses. It's also important to note that no risk has no reward; if a company does not enter a market, it will not be able to do business. It has to take some extent of risk because the higher the risk higher the reward. The risk might not always come with a premium but could rather incur loss sometimes. However, if there is more competition in a market and saturation, the business should first find a call with less competition.
Behavioural Change:
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Before making a decision, it is crucial to analyze all the consequences of it, and thus the views of the experts must be taken into consideration. The demand for a product in the region or country in question is equally important because if there is no demand, there will be no customers for that service. It is a trend in every market that the current competitors in the market create barriers for new entrants. Before expanding internationally, it should be analyzed whether it is sensible or not because better opportunities could be available in the home country. Similarly, brand recognition in the region in question is essential as new brands face challenges entering a new market. A new entrant must also consider the techniques of attracting new customers and the costs associated with it. It is always a risky decision to expand the business in a new location or market because there are competitors who form specific barriers for new entrants, which could sometimes lead to heavy losses.
Future:
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The knowledge and skills I obtained for it have enabled me to give keen importance to the decision-making process. I will analyze all the consequences of a decision and take into account the thoughts and views of experts. I will prioritize the demand for the product in the region or country in question because low demand means a low number of customers and lower sales. I will also analyze the current trend that the existing competitors create barriers for new entrants in every market. Before expanding internationally, I will examine whether it is sensible because there could be better opportunities available in the home country. If there are so, I will focus on expanding locally rather than internationally as business success is the most crucial objective. I will also assess brand recognition in the region in question because new brands face challenges entering a new market. As a new entrant, I will also consider the techniques for attracting new customers. Finally, I will assess the risks associated with expanding the business in a new location or market because there are competitors who form specific barriers for new entrants, which could sometimes lead to heavy losses. Profitability and business success will be my most important objective because expansion cannot always be in the company's best interest.