While at lunch, you and the company's chief financial officer (CFO) begin to discuss opportunities to expand in the U.S. Discuss the opportunities to expand in the U.S., what it would take, and the potential hurdles the firm would have to overcome. Be sure to identify specific retail companies that could potentially sell CPI's products, the markets that would be attractive, and some of the financial and economic considerations.
Opportunities to expand in the USA:
CPI can leverage on its existing brand reputation and goodwill generated in its local region to expand throughout the nation and capture attractive retail opportunities existing in the country. CPI can transform itself from a small regional player to a pan-USA player, as well as establish its footprint in the fast growign online retail segment.
Key hurdles that needs to be overcome:
The transition to a pan-nation player will demand significant changes, both at the strategic as well as operational levels for CPI. CPI will need to invest heavily into technology, infrastructure and human resources to support this expansion. A complete change the overall strategy and mindset of employees need to be brought to ensure that firm competes successfully against much larger and established players like P&G.
This industry is quite competitive and cost/pricing plays a critical role, especially for the survival of newcomers like CPI. ...
Discuss the opportunities to expand in the U.S., what it would take, and the potential hurdles the firm would have to overcome.