Play It Safe, Or Take a Risk?
Should Coe's Expand Internationally? Is Mexico the best place for expansion?
As Chu (2012) points out in the case study, Coes needs to diversify its risk and Latin America is an inexpensive place for doing that. From that angle it makes sense to expand internationally into Mexicoplus, there is demand from consumers for the type of business Coes can provide, as one consumer points out. In Mexico, Coes would be providing something no other store is providing. And it would be good to give some competition to Walmart in Mexico. The regulatory environment in the US looks to be tightening and the same goes for Europe, so it helps to have another income stream in an environment that is potentially more regulatory friendly.
Globalization has led to a more interconnected world, and businesses have taken advantage of this by expanding into new markets (Steger & James, 2019). However, international expansion comes with risks, and it is important for businesses to diversify their risk by expanding into multiple markets. Mexico is an attractive market for expansion due to its large population and growing economy. Furthermore, Mexico is in close proximity to the United States, which makes it easier for companies to expand into than more distant markets. By diversifying their risk through international expansion into Mexico, Coes can tap into a new market while mitigating the risks associated with doing business in a foreign country.
Do you expect Coe's to have to adapt its successful model in another country?
There is no one-size-fits-all answer to this question, as the appropriateness of adapting a business model to another country depends on a variety of factors. One key consideration is the nature of the product or service being offered. If the offering is relatively new or unique, it may be more difficult to find success by simply replicating a successful model from another country. Another important factor is the level of competition in the target market. If there are already a number of established businesses...
…list a number of other good reasons to justify expansion into Mexico. Mexico is a rapidly growing market with a lot of potential for US companies. The Mexican economy has been expanding rapidly in recent years, and is expected to continue to grow. This makes Mexico an attractive market for US companies looking to expand their operations. Plus, the Mexican market is relatively close to the United States, making it easy to transport goods and services. Mexico has a large population, which provides a potential customer base for US companies. The Mexican government is friendly to foreign investment, and offers a number of incentives for US companies to expand into the country. And, finally, the infrastructure in Mexico is improving, making it easier for US companies to do business there. These factors make expanding into Mexico an attractive option for Coes. Since there is demand on top of all these factors, if I were Stan Wyndham I would say full speed ahead to expansion into Mexico for the…
References
Bose, I., Madhur, P., & Bansal, A. (2020). Impact of Culture on International HumanResource Strategy: A Case Study on the Global Expansion of Sez-Craft, Netherlands. Journal of Applied Management and Investments, 9(3), 105-111.
Chu, M. (2012). Play it safe at home, or take a risk abroad? HBR.
Steger, M. B., & James, P. (2019). Globalization matters: Engaging the global inunsettled times. Cambridge University Press.
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