Knowing all of the above alternatives, the smartest strategic plan for Mercan Systems, Inc. is to enter the market through a joint venture. After they chose a partner to enter into business with, it is most cost effective for them to expand into four regions initially and employ selling through dealer channels.
Implementation Plan for the Chosen Alternative
Choosing a joint venture is the best all-around entry process for such a large corporation. It allows the right amount of risk to reward ratio, allowing them to maintain more control over operations as well as saving some initial outlay. In addition, they will save time by utilizing the pre-established resources and knowledge from their partner. Now that Mercan Systems, Inc. has chosen an alternative, they must formulate an implementation plan.
The first major element to consider is when exactly they should enter the market. A large opportunity is present, meaning that they need to act fast to find a joint-venture partner. Due to Singer’s increased presence and a simmering threat of a new purifier penetrating the market, Mercan must act fast. They have a window of opportunity currently that they must take a jump on. The …show more content…
must formulate a solution to their strategic issue. While there are many external threats and weaknesses as well as many closely-related alternatives of entry, there is only one real choice. They can grow into a stronger global powerhouse by entering the Indian water purification market through a joint venture. In this joint venture, they should partner with a domestic middle-sized firm that would benefit just as much as Mercan would though the new company. This new company will allow Mercan Systems to become a large industry leader, and will allow them to give back to the community by providing them with cleaner water and the opportunity for employment. Entering the market would not only be beneficial, but would be socially responsible for all those
Implementation Plan for the Chosen Alternative
Choosing a joint venture is the best all-around entry process for such a large corporation. It allows the right amount of risk to reward ratio, allowing them to maintain more control over operations as well as saving some initial outlay. In addition, they will save time by utilizing the pre-established resources and knowledge from their partner. Now that Mercan Systems, Inc. has chosen an alternative, they must formulate an implementation plan.
The first major element to consider is when exactly they should enter the market. A large opportunity is present, meaning that they need to act fast to find a joint-venture partner. Due to Singer’s increased presence and a simmering threat of a new purifier penetrating the market, Mercan must act fast. They have a window of opportunity currently that they must take a jump on. The …show more content…
must formulate a solution to their strategic issue. While there are many external threats and weaknesses as well as many closely-related alternatives of entry, there is only one real choice. They can grow into a stronger global powerhouse by entering the Indian water purification market through a joint venture. In this joint venture, they should partner with a domestic middle-sized firm that would benefit just as much as Mercan would though the new company. This new company will allow Mercan Systems to become a large industry leader, and will allow them to give back to the community by providing them with cleaner water and the opportunity for employment. Entering the market would not only be beneficial, but would be socially responsible for all those