Traditionally focused on China as a source of increased gains, eBay has come to redirect its attention to other countries as well. The online auction company is as such focusing on launching and expanding operations in Japan, South Korea, Singapore, Malaysia, Thailand or even the Philippines (Chan). Through this strategic expansion to more Asian countries, eBay is decreasing its dependency on the revenues generated in China and is striving to create a stable expansion on the Asian continent.
2. Starbucks
Starbucks is one of the largest American corporations, with stores opened throughout the entire globe. The global expansion strategy at the coffee company is that of physical expansion through the opening of more and more Starbucks stores across the globe.
Throughout the past recent years, the coffee monolith has placed an increased emphasis on its expansion in China. The Starbucks managerial team has recognized the potential of the Chinese market place and has been emphasizing on opening more stores here. Aside from the actual stores, the Starbucks managerial team has also been considering the opening of coffee plantations in the country. Such a strategy would help it reduce costs with the imports of coffee beans, but it is also a beneficial decision as it is supported by the Chinese government and it would create new employment opportunities for the population, enhancing as such the reputation of the company in China.
"China will be the biggest growth market for the largest coffee supplier within the next two years.
Starbucks has even started to develop its own coffee farm in southwestern China to maintain the supply of coffee beans and help manage the costs. Starbucks said it would hire coffee growers in the province of Yunnan to grow Arabica seeds during the next year. Schultz hopes the quality and quantity of the Yunnan-grown coffee would meet the standards to be sold in China and around the world. He also sees this farm as an opportunity to produce a single-origin coffee that would eliminate the need to blend it with beans from elsewhere. Moreover, the Yunnan provincial government is planning to invest 3 billion yuan to increase coffee...
Market Entry Challenges in Asia Many companies want to move into Asia, but there are market entry challenges that have to be faced there. Still, Asia represents a very important and profitable market for many companies, and it is not unusual for these companies to draw major profits from their overseas operations. EBay, however, has many problems in the Asian markets, and has struggled with these issues in the past (Chan,
Com. In case of several companies, enhancing customer relationships is among the most capable features of e-commerce. However, whereas the Internet has presented the consent of a novel method to draw and communicate with the customer, hardly few enterprises have discovered a method to efficiently manage interactions with their customers on the Internet. (David, 2000) The real skill is involved in making the device suitable to accomplishment of the business strategy
Foreign Market Entry Diversification Foreign Market Entry and Diversification Why Diversify? Diversification is expanding a company's current operations by adding new markets, products, services or stages of production to its current portfolio. It is all about entering a single or a series of new business lines that differ from its current operations (Cengage, 2006). Murphy Auto Company (MAC) is one of the largest luxury automobile company which wishes to diversify and enjoy even
GM's Chevy Volt and its all-electric design, as well as diesel-electric and conventional gas-electric hybrids could and must replace the image of the 'old' GM in the public's imagination. The company has shed the Hummer stigma, now it must create a new image for itself in the future, not just domestically, but internationally. Works Cited Gas-free cars future priority. (2009, April 20). China Daily. Retrieved August 6, 2009 http://en.ce.cn/Industries/Auto/200904/20/t20090420_18857964.shtml General Motors. (2009). Company
19). The family-friendly atmosphere at the company's restaurants has also been conducive to its growth, as well as Applebee's combination of good food and alcoholic beverages. For instance, Crandall and his colleagues suggest that the casual dining nomenclature ". . . includes such settings as Applebee's where the food comes with a relaxed atmosphere. The concept here is 'not-so-fast' food for aging boomers who may still crave a burger
International Acquisition EU or not EU? On the question of whether to expand into the European Union or not, there are a few different considerations for an American firm. While the EU has a fairly complex regulatory environment that could prove challenging, the decision as to where to expand internationally still has to be more of a market-based decision. That means looking at an ROI or net present value type of calculation,
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