Abstract
Currently, international management at MH Company consists of one person. But for a business expansion – a team from the host countries is required, and this move will also call for a team expansion at-home – management and coordination of the global business network. Specific management principles and practices will be required to be followed by MH company that will assist the company with their international expansion plans to further their international business. This discussion considers possible partnerships with international consultants who can assist with cultural and social factors.
Strategies: The Possible Partnerships and Consultations to be considered for the Expansion
The possible strategies to expand a company’s market share are to increase its sales in the already existing market, and this will require a bigger location, improved marketing strategies, and reasonable and attractive pricing. Another possible strategy is the introduction of a new product in the already existing market. The market research data and feedback have been known to help predict the sales, demand, and supply of the new product. A company’s previous reputation will give a boost to its sales and start the sales of the product. This is not only viewed as an evolution of business, an expansion tactic, but also as a response to the customer needs. This is a sure and risk-free strategy of Expansion (Meister, 2005).
This strategy requires the foundation of market research and testing and a different approach to different market segments, e.g., the mobility devices used by people who have met with an accident and mobility devices used by the aged. Managing remote locations is a task in itself. Even if it is risky, the pay-offs are immense. The next strategy is inspired by the likes of McDonald’s – having a chain of stores of mobility solutions will make MH Company – visible and available to the customers.
This will make the company a household name, making the Mobile health solutions an inevitable choice in the market. Other parameters like what made the initial stores a success, replicating and improving the same parameters at the new stores will be essential. This will boost the morale and initiative of the existing staff, which will get a chance at management duties. This will be an incentive for the entire staff to work upon and further their career in the company.
Another quick way to grow is to grow franchisees. At a nominal cost of $100,000 to prepare the franchise agreement, the company will acquire an expansion within the country and abroad. There should be proper training staff which has the ability to give training in different languages and also willing to go on tours when there is need to be. Licensing even requires the parent company to give up some amount for control over the product and the marketing strategy. It means that the company has to give a license to the patent, industrial design, trademark, and also the means to manufacture, distribute and sell the product rights to further companies (Moister, 2005).
Strategic alliances and mergers are an excellent way of business expansion – it combines the best of two companies, increase intellectual capital, the efficiency of operations, resources, and an expanded customer base. These may be new partners, but the retailers, for their benefit too, extract performances. ISO quality standards, an adaptation of procedures, diligence, and strong contractual arrangements are a must here. Growing, liberal markets are on the rise, providing an improved business environment. This requires exporting, licensing, mergers, joint ventures for manufacturing, and stringent quality control. Keeping a few basics in mind as the customer demand quality at reasonable prices, legal and accounting assistance, and protection of intellectual property rights (Dwight & Micheal, 2004).
The only difficulty which arises is the knowledge and understanding of cultural nuances, and the company’s representatives should be sensitive and well-versed in them to acquire local partners and customers. This will help marshal massive local support and resources from the local economic development body. Lastly, patience pays.
Bibliography
Dwight, A., & Micheal, R. (2004). Preparing for a new global business environment: divided and disorderly or integrated and harmonious? Journal of Business Strategy , 16-25.
Maister, D. (2005). Geographic expansion strategies. Web.