Mabe Resource Based Consideration

Running head: INTERNATIONAL BUSINESS EXPANSION
INTERNATIONAL BUSINESS EXPANSION
Name of the Student
Name of the University
Author Note

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INTERNATIONAL BUSINESS EXPANSION
Question 1:
Resource Based Consideration:
Resource is one of the major essentials in the business and for the international business
of the company Mabe resource works as the vital component for the offshore expansion in of the
same. The resource based consideration is based on the view of the resources that are currently
available in the firm. The resources of the business are the potential of the company marked as
the capabilities which are financial, physical, human and intellectual (Hunt and Davis 2012). The
resource based consideration referred to the strategies and the planning of the company interns of
the international business. The resource based view (RBV) model enables the company to have
the potential market opportunities in the new host market in the terms of the strategic resources
of the organization (Lin and Wu 2014). The strategic resources of the firm further refer to the
VRIN which is valuable, rare, inimitable and no substitutable. These resources signify the
success of the organization in the new international market in terms of the competitive
advantage. The VRIN framework entails that the resources must be valuable in orders to have the
power for creating or leveraging the opportunities for the firm’s business (Talaja 2012). The next
category in the framework refers to the rarity of the resources for providing the uniqueness of the
same in the international market. The first two features of the resources denote the inimitable
feature of the resource, which further indicates achievement of the competitive advantages. The
achievement of the competitive advantage ensures the non-substitution of the resources.
Therefore, the model based on the resources of the organization will enable the firm to analyze
resources in order to ensure the success.

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INTERNATIONAL BUSINESS EXPANSION
In the other hand the institution based consideration is also important for driving the
organization towards the success in the international market. The market of India is highly
competitive and the existence and sustainability of Mabe in this new market is difficult. The
institutional framework is considered in this respect for driving the success of the company. The
institution based view of strategy defines the role of the industry in which the company belongs.
The view based in the institutional framework refers the industry specific environment for the
organization in the new international market (Van Essen et al. 2012). The intrinsic potential as
well as the performance of the industry in the new market environment is stressed by this
particular framework in order to ensure the success of the company in the international context
of the business. The institution based view also refers to the economical condition of the market
as well as the organization for initiating the business in the new industrial market (Peng 2014).
For the chosen company Mabe, the institution based view is important to be considered for
understanding the market condition of India as well as the potential and performance of both the
organization and the industry in the same. This framework will enable the company to analyze
the market and business opportunities for the international expansion and success and achieve
the competitive advantages.
Question 2:
For the expansion of Mabe in the international context of the business, the organization
has chosen India. For the business expansion of the company, the firm must identify the specific
attributes in the potential market of India. The attributes are based on the market opportunities
and the sustainability factor of the company. To ensure the sustainability of the organization in
the potential new marker the company must understand the market environment and effective
strategies for the same (Bell, Filatotchev and Rasheed 2012). The attributes here in the potential

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INTERNATIONAL BUSINESS EXPANSION
Indian market refers to the various dimensions of the country. Undoubtedly, the entire market of
the India is provides both the ground and the competitive advantages o the company, yet there
are some specific attributes of the company that must be considered by the company for ensuring
the success of the company.
As per the Action Learning team of the company, the company must understand the need
and the necessity for the joint venture for the future success in India (Beamish 2013). In the
other hand, the company also understands the economical condition of the country as per the
geographical division within the same (Guadalupe, Li and Wulf 2013). The unequal distribution
of the electricity in India refers to the need of considering the geographical preferences for the
company as the company products are the electrical kitchen appliances (Deshmukh, Natarajan
and Pahwa 2012). The next attributes of the potential market of India refers to the demand of the
consumers and the preferences and choice of the same. The Action Learning team presents the
result that the demand and the need of the consumers indicate the successful business of
company in refrigerators, washing machines and stoves. The next dimension refers to the
financial capacity of the Indian consumers for purchasing the electric appliances. It cannot be
avoided that India is still a developing country and hence there are regions that are economically
not capable of purchasing the products offered by the company. Therefore, the financial capacity
of the consumers determines the success of the company in the specific part of the country. The
business environment of India marks another dimension of the potential market for the
company. The business environment of the country is highly competitive; therefore the company
must analyze and find opportunity in the competitive market environment in India.
From the above discussion on the factors driving the sustainability of the company some
specific attributes must be considered by the company. The specific attributes for the potential