International Economic Strategies Analysis Paper

Running head: INTERNATIONAL ECONOMIC STRATEGIES ANALYSIS International Economic Strategies Analysis Name: Institution: Instructor`s Name: Course: Abstract This is an economic analysis for a cookware retail line company, which has enjoyed strong financial success in the American and European markets. The research has recommended that the company uses alliances for their international market entry method in order to enjoy the benefits of reduced costs and increased experiential knowledge through alliances with local manufacturers, distributors and marketers. However since, there is strong competition from low priced cookware from Asian and eastern European nations, the company has been recommended to brand their product line to enjoy the growing market for high end and branded cookware in America, Europe and middle class Asian markets. Keywords: internationalization, alliances, market entry The necessity of taking businesses abroad and the attraction of international customers make entrepreneurs create innovative and effective strategies that will internationalize businesses. The goal of this report is to internationalize a cookware retail line store through the alliance globalization strategy that will consider the trend in foreign direct investments the company can enjoy, export and import markets. Before the cookware retail outlet is internationalised, several international strategies must be considered. The first is to clearly define the businesses situational analysis of the company by looking at economic, cultural, political and competitive environment of the company (Nicholas, Mark and Hayley, 2007). The report will then make a follow up with a market entry mode that the company can use to internationalize. The situational analysis reveals the current economic aspect of the company and its products in the market. The company has managed to develop an up scale cook ware range of products which are reasonably priced and are very popular among the retail market in America and main European cities. The current American cookware market is growing at an annual rate of 7%, with the upscale market segment at a faster rate of 18% (ESB, 2011). On the other hand, the European market consumption for cookware grew from 18.3 billion Euros in 2003 at a significant momentum at a rate of 8.2% annually. Major countries increased their consumption of high end cookware products by 20% for UK, 16% for Italy, 15% for Germany, 7% for Spain and 4% for Netherlands (SEB, 2011). Therefore, since the company has already significant presence in the American and European markets and the strong growth of the cookware market for these regions, the company has huge potential in other regions and cities of the world. Moreover, the company is enjoying the benefit of increased consumer awareness of the company`s high end products, and demand which has increased sales. By taking into consideration that the market has seen remarkable change in the lifestyle and attitudes of people towards high end cookware, the company is recommended to increase their international market presence. Since the European and American markets are increasingly seeking branded and quality good and services, the company is recommended to brand their cookware line in order to meet this cultural shift. By branding their cookware line, the company will significantly create a niche market that will provide a stable market for its products (Nicholas, Mark and Hayley, 2007). Moreover, Asia and eastern market is experiencing changes in the market where high end branded products are on demand from the rise of an economically stable middle class. However, the company should be aware of increased competition in the global market owing to low cost products from the Asian region and Eastern Europe. One of the cons of strong economic growth in the international market is the mergence of competitors in both the domestic and foreign markets (Nicholas, Mark and Hayley, 2007). The increase in the cookware market also provides emerging companies opportunities to grow. Additionally, high end cookware manufacturers have taken up production capacities to low labor cost regions and lesser regulated markets like Asia. Therefore, for the company to have continued growth in the cookware market there is need to consider low cost production with state of the art technology, couple...