Foreign Market Entry and Diversification



Foreign Market Entry and Diversification

Introduction

In order to decide that in a business where to concentrate the sales endeavors, wide ranging points of motivations draw closer. Businessmen might select a market that offers a challenge, and them put emphasis on products that they want to sell in that particular market. They plan to import and export to/from a country that fascinates and delights them the most. Similarly, businessmen also might plan to diversify their markets to foreign market in order to expand their businesses by serving their customers across the national borders. Diversification is usually done for increasing the business profitability by increasing the sales volumes from new foreign market and from new products.

This assignment paper will discuss the different trends in foreign markets that how an existing market and product may be diversified into foreign market and foreign market's product; how a business can identify and then enter into a foreign market; what challenges may come up to the business in the foreign market and how a business copes up with those challenges; and how a business can create a work environment for it that fully ethical and highly acceptable for all.

Discussion

Entry of any business enterprise in a foreign market is amongst the topics that are much researched in the scenario of international business. Despite the fact, the substantial attention dedicated to this topic and many studies yet shed light on some particular modes of entry that are exerted by a business enterprise in a specified foreign market. For deep understanding and clarity of this topic that is about entry and diversification into a foreign market, some questions are required to answer, which are as follows:

Arguments related to diversification of COCA-COLA business for presenting to the business investors or Board of Directors

Coca-Cola should take initiatives to diversify its existing market into foreign market as this strategy will help the business to explore new categories of drinks, and also, there would be positive impacts on the current portfolio of its products and brand. For this purpose, the Coca-Cola business should start its small business across the national border to expand its market geographically. For diversification, the business will need some shared technologies, familiar skills of employees, raw materials and supplies sources, distribution channels or extensive and advance supply chains. But, the things that will remain same are the operating and managerial methods as well as the capability of the company to have good customer relationships and sales force (Food & Drink Brief, 2009).

By acting upon the strategies of foreign market diversification, Coca-Cola Company can get advantages and be benefited in several distinctive ways. A product line of specific kind launched by the company may help the business in reducing the risk. It can attain experience to various technologies, and build up the economies of scale. It will fulfill the strong wish to expand the brand of company into some additional areas of products, and will help in accomplishing the profitable growth (Charles, Jones, Galvin, ...