Expanding Globally Essay

8706 Words Jun 6th, 2015 35 Pages
Executive Summary
Feltex Carpets Ltd. is the largest Australian carpet manufacturer. The company has experiences in internationalization in countries such as USA, Japan, Southeast Asia and New Zealand. However, the company is interested in expanding their market power to new destinations, to improve their multinational strategy and to be well-known worldwide.
The countries of potential choice are Mexico and Chile. The analysis has been done by comparing the overall information and in-details of each indicator.
From evaluation of indicators of both countries, such as economic, social, legal and infrastructure, the analysis has shown that the economy of both countries are quite similar. However, the infrastructure, technological and
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Then, the report shows the entry mode for company’s internationalization that which is the best choice for the company at this position. The entry mode has been divided into three considerations – country specific, company specific and strategic specific.
In company specific, the report has specifically considered the position of the company in details and analyzed the preferences modal for the company at this point. In order to identify the details of the company is difficult regarding the limitation in authorized access to the company information. The indicators that have been used to considered the position of the company, for instance, company’s size, current experiences, current situation, current competitors, target market and human resources (or the current human capital of the company).
Furthermore, the consideration on the entry modal of Feltex has also included in the country specific indicators, for instance, regulations, government supports, economics, ethics, cultures, diversity, market, industry, competitors, labour force, resources, barrier of entry and currency exchange rate between Chilean currency and Australian currency.
The last category of indicators which has bought into consideration is the strategic specific. It is important to understand that which strategies would come from each entry modes. Thus, the indicators, such as products diversification, production quality,

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