SME Networks And International Performance

Running Head: ACTIVITY 1 – MEGA BIKES
ACTIVITY 1 – MEGA BIKES
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1ACTIVITY 1 – MEGA BIKES
Table of Contents
Introduction......................................................................................................................................2
Strategic options for Mega bikes.....................................................................................................2
Exporting.....................................................................................................................................2
Joint venture.................................................................................................................................3
Franchising mode.........................................................................................................................3
Best option for Mega Bike...............................................................................................................3
Potential benefit and risks for Mega Bike.......................................................................................5
Benefits of the mode....................................................................................................................5
Challenges to the mode................................................................................................................5
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................7

2ACTIVITY 1 – MEGA BIKES
Introduction
Mega Bikes is a small and medium scale enterprise working in Canada. The organisation
is popular for its high-end mountain bikes (MTBs) that are mainly available in the west coast of
Canada and USA. The quality of the mountain bikes is one of the best features that helps Mega
Bikes to earn more profitability through extensive market capitalisation. This report aims to
figure out the strategic options for Mega Bikes to expand its business further in the international
market. However, the limited financial capacity of the organisation restricts its aggressive market
expansion in the global platform. Henceforth, the focal point of the report is also emphasised on
proposing strategies that are fit with financial constraints of Mega Bikes.
Strategic options for Mega bikes
Exporting
As far as exporting is concerned, the exporting strategy enables the companies to get a
fast entry into the international market and procure enough success with low risk. According to
Abegaz and Lahiri (2019) it can be stated that exporting entry mode is the easiest way for any
business company to enter the international market. One of the major factors behind this
implementation of exporting entry mode is to avoid extra expenses of establishing stores and
market analysis (Padmaja & Sasidharan, 2017). As a result of that the cost effectiveness of the
exporting entry mode is very effective and pragmatic for the small and medium scale companies
like Mega Bikes.