India for instance, with its numerous technological applications and in its quality of hosting most of the global mobile telephones -- would be expected to be a large consumer of batteries and could as such constitute a desirable trading destination for Larson Inc.
Relative to specialization, this aspect is more delicate, but it would be advisable for the company to become more specialized in the type of batteries most popular within the regions in which it operated. Considering a situation in which Larson Inc. became a batteries supplier in India, it would be advisable for them to specialize in mobile telephone batteries.
3. Evidence and Potential Changes in the Recommendations
The recommendations previously made are all based on the features observable at the international level.
a) the recommendation to save rather than invest is based on the generally unstable state of the global economy
b) the recommendation to not raise funds through the issue of debt is based on the general contraction of the credit market, revealed by the decreasing values of the traded shares and by the decreasing numbers of interested investors
c) the recommendation to take the manufacturing of batteries outside Germany is based on the fact that operating within this country is highly inefficient from a cost standpoint
A first example in this sense is constituted by the possibility that the loyalty of the German customers would be lost as the manufacturing plant exits the country, which means that the customer base would have to be enlarged. A second example is constituted by the necessity to change product specifications and focus more of mobile telephone batteries upon penetration of the Indian market.
