Market Entry Strategy for Palliser in Mexico

Running head: BUS8350 GLOBAL BUSINESS MANAGEMENT CAPSTONE
BUS8350 Global Business Management Capstone
Student’s Name
University Name
Author’s Note

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Table of Contents
Introduction................................................................................................................................3
1. SWOT analysis of market entry of Palliser in the Mexican market......................................3
1.1 Strengths...........................................................................................................................3
1.2 Weaknesses.......................................................................................................................4
1.3 Opportunities....................................................................................................................4
1.4 Threats..............................................................................................................................4
2. Customer Value Proposition..................................................................................................5
3. Competitive advantage...........................................................................................................6
4. DEPEST analysis...................................................................................................................6
4.1 Demographic....................................................................................................................6
4.2 Economic..........................................................................................................................7
4.3 Socio-Cultural...................................................................................................................7
4.4 Technological...................................................................................................................7
4.5 Ecological.........................................................................................................................8
4.6 Political.............................................................................................................................8
5. Porter’s five forces analysis...................................................................................................8
5.1 Supplier’s bargaining power.............................................................................................8
5.2 Bargaining power of buyers.............................................................................................9
5.3 Threat from substitute products........................................................................................9
5.4 Threat from new entrants..................................................................................................9

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6. Market entry strategy for Palliser in Mexico.........................................................................9
7. Selection and justification of the target market segment in Mexico....................................10
8. 4Ps analysis of Palliser for entry in the Mexican market.....................................................10
8.1 Products..........................................................................................................................10
8.2 Price................................................................................................................................10
8.3 Promotion.......................................................................................................................10
8.4 Place...............................................................................................................................11
9. Description of the business risks..........................................................................................11
10. Financial viability and attractiveness of the Business Plan...............................................11
Conclusion................................................................................................................................15

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Introduction
This report will analyse the market entry options for the Palliser Furniture in the
Mexican market. In the first part of the essay, the necessary strengths and opportunities that
the company would experience in the Mexican market have been highlighted. Along with that
the threats an risks that the company would witness will also be highlighted in the report. In
the next part, the competitive advantage of the company by operating in the Mexican market
will be highlighted. The DEPEST model have been highlighted in the next part of the report.
This model specifically sheds light on the various macro environmental factors that would be
detrimental for the success or failure of the company in Mexico. Lastly, the 4Ps model as
well as the Market Segmentation theory have been applied for the assessment of marketing
feasibilities that would impact the business of the company in the country. In the end, a
detailed analysis of the business plan of the company for launching its products have been
highlighted here.
1. SWOT analysis of market entry of Palliser in the Mexican market
1.1 Strengths
Palliser provides good quality products that are durable and light weight. More
importantly, the prices of the products of the company are also low. This is why they are
going to get a competitive edge in the Mexican market. The customers of the Mexican
market, unlike the customers of the other neighbouring customer bases, prefer changing
furniture on a regular basis and keep up with the latest trends (Yu et al. 2017). Whereas broad
customer bases elsewhere consider furniture to be lifetime asset. Herein lies the main strength
(advantage) in terms of entering the Mexican customer market.