Introduction
Business expansion is a goal that all organizations strive to achieve as they work their way through sustainability and longevity. However, expanding into international markets is more complicated than regional growth because it involves managing the activities of several players, addressing the needs of a diverse pool of shareholders, and making critical business decisions. Although there are various international expansion strategies businesses can adopt to spearhead advancement, several unique factors, including consumer preferences, the perceived value of services, and administrative regulations can influence expansion decisions. Therefore, business owners should evaluate their options by answering the three basic market-expansion questions regarding which market to venture into, when to implement the expansion, and the scale of entry.
Market Expansion Strategy for 360-Express Collision Company
360 Express Collision is an auto repair company with a fleet of shops owned by William Altas and Holly Travis. Currently, the company serves individuals in Louisville but its management has considered an international expansion initiative due to a recent boom in the automotive business and reliable revenue streams from several investors. Their auto repair shops specialize in window tinting, wheel repair, collision repair, detailing, reconditioning, paint corrections, ceramic coating, and end-of-lease inspections. Moreover, the organization is an authorized dealer of vehicle parts and servicing equipment from leading manufacturers (360 Express Collision, 2022). Therefore, their market expansion strategy should focus on the existing niche since increased specialization will enhance the quality of service delivery and help to establish a stronger brand. 360 Express Collision has achieved success because of consumer appreciation of its top-notch repair services and excellent quality products. Hence, an expansion strategy that does not deviate from the present services will better position the organization to gain a competitive advantage abroad.
The automotive maintenance and repair industry has seen exponential growth over the past decades due to improved global business, advanced infrastructure, and high demand for auto repair services. However, regarding the question of which market to enter, it would be advisable to venture into developing nations, especially in the Middle East since they have experienced an economic boom over the recent financial years and are advancing at a reasonable pace. For example, regions like Dubai in the UAE are known to host some of the richest individuals in the world (Khelifi et al., 2022). As a result, the country imports a high number of automotive, vehicle parts, and equipment to help sustain the rising demand for vehicles. Additionally, the region houses millionaires with luxurious cars, meaning that they will not mind parting with extra cash to obtain high-quality services. Moreover, improved infrastructure, political stability, and a reliable business environment present several opportunities that the business can leverage to advance. Hence, introducing the business to a region like Dubai promises positive growth and sustainability.
During the Corona Virus Pandemic, many businesses suffered due to disrupted supply chains, diminished raw materials, and government restrictions that limited the movement of goods and people across borders. However, most governments have lifted these restrictions, thus giving business owners the chance to regain their losses. Therefore, it is advisable to roll out the expansion initiatives as soon as everything is put in place since it is best to take advantage of the improving business landscape. Nevertheless, conducting intensive market research to establish trends in the automobile industry can guide the organization in making a more informed decision on when to roll out the project (Visvizi, 2022). For example, Dubai is known to host global events and functions that draw millions of people. Therefore, it would be best to launch the business during these events since it will enable the venture to pick up immediately after the launch and attract customers. Moreover, the auto repair shop should apply effective marketing strategies to acquire customers.
Since 360 Express Collision is entering a foreign market that may have different attributes from their home markets, it is reasonable to introduce their services at a smaller scale to allow them time to investigate consumer features and adapt as required. Although the organization is specialized in auto repair servicing and automobile products, its current inventory might not align with the needs and requirements of markets in foreign nations (Li et al., 2021). Therefore, it would be best to launch a few shops and assess the requirements, including the preferred automobile models, vehicle types, and the services required most. A small-scale venture will give the organization enough time to process all the requirements and organize its supply chains and distributors to ensure a reliable supply of the required resources. Moreover, it will limit the risks associated with entering the market as it requires fewer resources.
Recommended Market Entry Strategy
360 Express Collision is an auto repair organization whose value lies in the quality of products and services its experts provide. Therefore, the recommended market entry model for the organization is direct exporting, since it will allow the organization to replicate its service provision strategies in the new market. Direct exporting is an international market entry approach that allows an organization to handle all its business activities, including obtaining raw materials, marketing, and product distribution (Visvizi, 2022). Thus, since the company has reliable distributors and positive reviews back home, it would benefit them to share the experience and provide excellent services to consumers in the UAE. Direct exporting is also viable for the business since it will limit the inclusion of middlemen and parties that might decrease revenue (Li et al., 2021). Moreover, it will facilitate brand awareness and a loyal consumer base as individuals in the new market will familiarize themselves with the exemplary services offered by the company. Hence, it will ensure higher levels of organization, effective decision-making, and better execution of business initiatives.
Conclusion
Business expansion is sometimes inevitable as organizations grow and venture into other fields. However, a company’s expansion strategy can determine whether its venture will succeed or fail. Introducing a business to a new international territory is a risky venture because of unprecedented factors like stiff competition from regionally established players, regulations, and changing consumer preferences. However, 360 Express Collision is well positioned in its market and is advantaged by the rising demand for automotive services. Therefore, a dependable expansion approach would be to invest in developing nations like Dubai since their economic stability will enable the business to thrive. In addition, the organization should monitor market trends before launching its services and begin at a small scale to limit the risks associated with venturing into a new market. Moreover, they should adopt a direct export market entry model since it will allow them to provide high-quality services, gain consumer trust, build their brand, and enhance their relationship with their current distributors. These approaches will ensure that the business gradually improves and attracts more customers in the international market with time.
References
360 Express Collision. (2022). *Louisville detailing and collision repair* Over 20 years of expertise in Louisville. 360 Express Collision & Detailing. Web.
Khelifi, A., Ebraheim, A., Saeed, M., Saif, H., Salem, F., & Ehtesham, H. (2022). An automobile smart services system. In 2022 International Conference on Electrical, Computer and Energy Technologies (ICECET) (pp. 1-7). IEEE. Web.
Li, Y., Cheang, S., Yi, B., Sun, J., Yu, T., & Li, T. (2021). What businesses need to consider when entering foreign markets. Frontiers in Economics and Management, 2(8), 194-198. Web.
Visvizi, A. (2022). Sustainability in international business: Talent management, market entry strategies, competitiveness. Sustainability, 14(16), 10191. Web.