As if often the case, a successful company in a developed and matured domestic market would seek a business growth opportunity to external or international markets. The Davis
Service Group is successfully in textile maintenance services business in the UK and Europe.
The Davis Service Group was also a company to seek growth opportunities to overseas markets.
The Davis Service Group consisted of three main operating companies, Sunlight (textile maintenance), Elliott (building systems), and HSS (tool hire). Since the Sunlight earned 45% of the total group of the revenues, the group decided to focus on the linen hire and textile maintenance services for overseas business expansion in order to meet expectations for a further return to shareholders …show more content…
Thus if Sunlight decided the vertical integration option, Sunlight would find the best matching sheets making company as a backward vertical integration company, and products distribution company as a forward vertical integration company to collaborate and maximize the business benefits. In other words, the vertical integration option is to seek minimizing the logistics costs of the effort.
The Davis Service Group acquired Berendsen as a horizontal integration in 2002. It was the best decision for the Davis Service Group because Berendsen had already had a textile service business based in Denmark, Sweden, Norway, Austria, the Netherlands, Poland, and
Germany, as the market leader in those countries. The acquisition provided the Davis Service
Group, reducing operational and fixed costs. Also, those business based countries have …show more content…
Even though many countries in EU have matured markets, as a whole, it is still quite an attractive large market zone for the Davis Service Group. There are myriad companies out there thus if the Davis Service Group would pursue the inorganic growth and integration (horizontal or vertical) strategy, finding the best partnership company in the regions would be the key to success of expansion.
If the Davis Service Group were to expand into new areas of the globe, I would recommend either matured market and English native speaking countries, such as the US,
Canada, Australia, New Zealand, Singapore, and South Africa or immature market but English native speaking countries, such as India and Philippines. As discussed, the language is one of the barriers. All countries mentioned above won't have an issue with the language. Also, as the
Davis Service Group first determined into EU market as their expansion, the matured market with English native speaking countries’ markets should be easier to enter for the UK’s company, because the cultural, legal, administrative, skill level, are expected to be similar. However, those countries’ markets are matured markets thus the competitions may be harder and hard to
Service Group is successfully in textile maintenance services business in the UK and Europe.
The Davis Service Group was also a company to seek growth opportunities to overseas markets.
The Davis Service Group consisted of three main operating companies, Sunlight (textile maintenance), Elliott (building systems), and HSS (tool hire). Since the Sunlight earned 45% of the total group of the revenues, the group decided to focus on the linen hire and textile maintenance services for overseas business expansion in order to meet expectations for a further return to shareholders …show more content…
Thus if Sunlight decided the vertical integration option, Sunlight would find the best matching sheets making company as a backward vertical integration company, and products distribution company as a forward vertical integration company to collaborate and maximize the business benefits. In other words, the vertical integration option is to seek minimizing the logistics costs of the effort.
The Davis Service Group acquired Berendsen as a horizontal integration in 2002. It was the best decision for the Davis Service Group because Berendsen had already had a textile service business based in Denmark, Sweden, Norway, Austria, the Netherlands, Poland, and
Germany, as the market leader in those countries. The acquisition provided the Davis Service
Group, reducing operational and fixed costs. Also, those business based countries have …show more content…
Even though many countries in EU have matured markets, as a whole, it is still quite an attractive large market zone for the Davis Service Group. There are myriad companies out there thus if the Davis Service Group would pursue the inorganic growth and integration (horizontal or vertical) strategy, finding the best partnership company in the regions would be the key to success of expansion.
If the Davis Service Group were to expand into new areas of the globe, I would recommend either matured market and English native speaking countries, such as the US,
Canada, Australia, New Zealand, Singapore, and South Africa or immature market but English native speaking countries, such as India and Philippines. As discussed, the language is one of the barriers. All countries mentioned above won't have an issue with the language. Also, as the
Davis Service Group first determined into EU market as their expansion, the matured market with English native speaking countries’ markets should be easier to enter for the UK’s company, because the cultural, legal, administrative, skill level, are expected to be similar. However, those countries’ markets are matured markets thus the competitions may be harder and hard to