Boffi's Opportunity of Thriving in the Japanese markets

Management Brief
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Executive Summary
Boffi is known for its fashionable interiors that involve the production of innovative and excellent kitchen and bathroom appliances. In its effort to reach diverse market segments, the company extended its operations to Japan with a strategy that did not prove effectual. Boffi embarked on a plan that introduced a new wood that had no formaldehyde emission with an expectation that it would infiltrate the Japanese market (Kajanus, Leskinen, Kurttila, & Kangas, pp.1-9 2012). However, this innovation did not meet the demands of the company during this period. Through a critical analysis of this company's strengths and weaknesses, it is important to note that it still has an opportunity of thriving in the Japanese markets again after its failure in the first attempt.
Japan's economy over the recent past has rebounded from the contractions that came with the advent of the 2014 tax hikes. These elements are mainly supported by the falls that have been witnessed in the prices of oil and the increasing wage gains, a factor that has placed the countries growth output at a projected rate of ¾ % in the year 2015 (Deutschmann, pp. 31-42 2014). The current export growth has remained buoyant as a result of the weakness of the yen and the gradual increase of world trade. In order to achieve fiscal sustainability, the country has developed approaches of detailing a credible consolidation approach with the aim of fostering growth through a bold structural process designed to boosting investor's opportunities to venture into their markets.
It is, therefore, significant to note that business investments remain the only key proponent of increasing the country's economic growth, a factor that will see a rise in foreign investments (Kajanus, et.al). The planned job cuts that are considered relatively high including the corporate income taxes are avenues anticipated in increasing foreign investments in this country. In addition to this, the improvements in corporate governance and accelerated efforts in developing product markets will also spur the creation of business opportunities for foreign investors in the country. In lieu with these aspects, Boffi has a chance to grow its business venture in Japan, a factor that will see it maximize on its profit margins and gain a competitive advantage in this new market.
Table of Contents
TOC \o "1-3" \h \z \u 1.0 Introduction5
2.0 Summary of Environmental Audit (Current markets)6
2.1 Internal analysis7
2.1.1 Strengths7
2.1.2 Weaknesses7
2.2 External analysis8
2.2.1 Opportunities8
2.2.2 Threats9
3.0 Internationalization9
3.1 Switzerlands Macro and Micro Environment9
3.2 Brazil's Macro and Micro Environment10
3.3 Brazil and Switzerlands Industry Lifecycle11
3.4 Motive for Internationalization PAGEREF _Toc422844924 \h 11
3.5 Evaluation of National Competitive Advantage PAGEREF _Toc422844925 \h 12
3.6 Evaluation of models of entry PAGEREF _Toc422844926 \h 12
4.0 Conclusions and Recommendations PAGEREF _Toc422844927 \h 13
5.0 References PAGEREF _Toc422844928 \h 14
6.0 Appendix PAGEREF _Toc422844929 \h 15
1.0 Introduction
Boffi is a brand name known for its fashionable interiors that involve the production of innovative and excellent kitchen and bathroom appliances. From its inception, Boffi identified itself with the proponents of production, creativity, and entrepreneurship, which served as its focal principles (Harzing, & Sorge, pp 187-214. 2003). The company then integrated these elements into its productive and operative processes with its customers at the center of its focus.
In its strategy, this company entered into joint ventures in managing its operations, and as a result of these collaborative efforts that engaged the companies production models, creativity became its genuine concern (Harzing, & Sorge, pp 187-214. 2003). The company has therefore achieved significant growth that has seen the production of innovative products such as the bathroom brands. As a result of this, the company has extended its products through a flagship program in the central cities over the world. It is in these circumstances that it is significant to mention that businesses around the globe go international for many different reasons with the main one being increasing its profit margins.
Multinational companies such as Boffi, therefore, go global with the aim of attaining economies of scale as a result of its broad client base. Such company's brand names and values take an increase in the event that they successfully operate in these foreign ventures. The other main drivers for this companies engaging in internalization includes gaining a larger client access, better information technology, improved communication, cultural convergence, reduced barriers to trade, enhanced transportation and distribution, privatized programs, and a developed international standard (Harzing, & Sorge, pp 187-214. 2003). Boffi in its initiatives to venture deep into the luxurious market understood the significance of creating a strong brand name that would act as its tool in enabling the consumers identify its products from its wide array of competitors.
Therefore the sole purpose and aim of this management brief is in developing an internalization approach for Boffi in its venture into the Japanese market. The paper will address the key areas required in performing an environmental audit through the SWOT analysis to determine the approaches the company will employ in ensuring the company emerges victorious in a competitive market as it expands and gains growth (Güvenen, pp 23-26 2012). The further recommended markets that this company can depend on for a future internalization includes Greece and Switzerland that has diverse opportunities if exploited at the right time, a factor that will see the sales of Boffi increase immensely.
2.0 Summary of Environmental Audit
Engaging in the environmental analysis including the three markets it seeks to penetrate in would critically determine some of strengths, weaknesses, opportunities as well as threats that should be analyzed before engaging in an internalization process (Güvenen, pp 23-26 2012). Conducting a SWOT analysis would be a beneficial factor in developing an internalization strategy for Boffi Company, a factor that would lead to the discovery of the market opportunities that can be subjugated to gain a competitive advantage within a market segment. The company through this element can also determine its strengths that it can build on and the threats that it should address to win a customer audience within a market.
2.1 Internal Analysis;
2.1.1 Strengths;
To better understand the strengths of Boffi Company, it is important that an analysis is done of the advantages that this company has over its competitors. One of the benefits this company has over its rivals includes a contextualized production mode that incorporates handmade crafts techniques into its products, a factor that has enhanced its product quality (Forsgren, pp45-67 2015).
The companies control over the production schedules has also been a significant element that has ensured the production of quality merchandises aimed at meeting client needs. As a result of its strong brand products that have an Italian touch, the company has been in a position to develop its unique style that consists of sophisticated tastes, pure lines, and elegant designs. These factors had therefore attracted a wide client base in the different market.
Secondly, the company has also taken the advantage of collaborative efforts with external designers among other entities and as a result of this, it won the Compasso d Oro award in 2008. This aspect has to a wider extent enhanced the company's productivity, a factor that has led to the evolution in producing the best sophisticated products in the market (Forsgren, pp45-67 2015). In line with this, the company also ensures that their staffs are experts and have the expertise and skills to don their stores with quality products globally.
2.1.2 Weaknesses;
The weakness that may be witnessed in this company includes the elements that hinder the smooth operations of this company. It is, therefore, important that these weaknesses are magnified and improved or avoided since failure to do this may result in the company losing its client audience and an advantage in a market (Forsgren, pp45-67 2015). Some of Boffi's weaknesses include the lack of a structured planning approach in efficiently entering a market and expanding. This instance was seen when this company first made its effort in entering Japan. However, due to its lack of a better planning approach, its venture failed to meet the market needs.
Homogeneity is also another challenge that this business has encountered since its designs and products are similar all over the world markets. As an outcome of this, many clients have resorted to purchasing the same products but with different designs from the company's competitors. This factor has therefore widely affected the operations of Boffi in various markets.
2.2 External Analysis
2.2.1 Opportunities;
Boffi's opportunities can be examined and identified through various factors that would favor and impact the operations of the business. The company through its diversification approaches has created avenues of introducing a vast array of brands in the market. Initially, Boffi started with kitchen equipment and after understanding the needs of the market introduced bathroom amenities (Doole, & ‎Lowe, 234-245 2008). Most recently, the company also initiated and introduced the production of wardrobes. These factors clearly point out to the truth that the company is flexible in developing diverse products for...