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    Strategies for Sustaining a Competitive Market Profile

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    Deborah enters your office, and you notice that she looks apprehensive. "Hi, Deborah. What's up?" you ask, hoping that nothing is wrong.

    "Well, your team is doing an excellent job researching, and you've been keeping me up-to-date on your findings. My concern is that we are approaching this from a narrow-minded approach."

    "How so?" You ask. You are puzzled. "Our team has been looking at every aspect of the company and considering both internal and external pros and cons."

    "Have you considered partnerships or an acquisition or other options for expanding our brand?" Deborah asks. "I didn't see that as an option in any of your reports. I think you really need to cover our bases here. Please report back to me next week with more options."

    Complete the following:

    - What other strategies would be a good fit for your company profile?
    - Provide a brief overview of these strategies.
    - Why is it important to have more than one strategy in mind when pursuing global expansion?
    - Compose, prepare and recommend strategies to achieve and sustain a competitive market profile.

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    Solution Preview

    - What other strategies would be a good fit for your company profile?

    Other strategies that would be a good fit for the company profile are a joint venture, an acquisition, or a partnership with a local firm.
    A joint venture with a business partner in the host country means a time bound development of a new entity and new assets by contributing equity.
    The acquisition is a company's action when it buys most of the target company's ownership to assume control of the target company.
    A partnership agreement with a local partner takes place when there is an explicit agreement with a local enterprise that details their individual obligations and contributions to the new business.

    - Provide a brief overview of these strategies.

    The joint venture takes place when two firms come together. Your company should seek a local business in the country where it wishes to expand. This is an important method to grow globally. The joint venture allows your company to share its burden of growth with a local company. This form of expansion is useful when language barriers exist, your firm is unfamiliar with the local customers, and does not know all the formalities that have to be done to get government approval. Your company will want to form a joint venture with a local firm that has experience in production and marketing of products similar with yours. A joint venture may be preferable to Deborah because it is different from the companies that form it, the joint venture can contract in its own name, acquire rights, and have a separate liability from that of its founders. In Asian countries there are special types of joint ventures that are mandated by local laws.

    The second strategy is that of acquisition. This is a strategy in which your company will buy most of the target ...

    Solution Summary

    A partnership agreement with a local partner is explained in this response. The answer includes six references.