Taiwan Home Furnishing Sector Analysis

Running head: INTERNATIONAL BUSINESS MANAGEMENT
International Business Management
Name of the Student
Name of the University
Author Note

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Executive Summary
The following report revolves around the market entry and development strategies of the
organization Kelly & Windsor. In order to expand the business, the organizations have to
penetrate in the domestic market or they could expand in a foreign market. However, as the
domestic market of the organization has not been effective due to the demands in import
products in the country, Kelly & Windsor has been suggested to open up the operation in
Taiwan. Taiwan is one of the growing nations, which has observed a highest growth in
technology and economy in a very short period. Thus, as the market entry strategy, licensing and
franchising have been suggested to Kelly & Windsor. Based on the implementation and the
relevance of the strategies, the market forecast has been presented in the report.

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Table of Content
Introduction......................................................................................................................................3
Analyzing the industry environment for the products/ services- Porter’s 5 Forces analysis -........4
Considering the market for the product and services......................................................................7
Considering the strength, weaknesses, opportunities, threats of the company................................8
Considering the international strategy in the market and justifying them.....................................10
Picking the type of entry mode and justifying the entry mode with theory..................................11
Choosing the organization design and control...............................................................................12
Specifying the international marketing strategies..........................................................................13
Specifying the international human resource management options..............................................14
Forecasting.....................................................................................................................................14
Recommendation for dealing with the future issues......................................................................15
References and Bibliography.........................................................................................................17
Appendix........................................................................................................................................21

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Topic- Market Entry Strategy
Introduction
The following report is based on the market entry strategies that are supposed to be
applied to the organization Kelly & Windsor. Kelly & Windsor is an Australian manufacturer
of bedding accessories and the organization distributes a uniquely made high quality range of
luxury bedding accessories. The organization utilizes the latest production methods to the
manufacture the highest quality of luxurious products for meeting the needs of customers.
However, in the recent time, the organization in the domestic market faces some sales challenges
due to the less demands and limited customer base. The organization makes a large investment
for the enhancing the quality of products and operation but the return on investment has not been
effective compared to the cost of operation.
Considering this issue, the organization is intended to expand the business to an
international market where this deficiency of profits can be recovered by increasing customer
base and maximizing the value of brand. Working as an international business consultant, the
country Taiwan has been suggested for the expansion of Kelly & Windsor’s business. Taiwan
is the appropriate choice for market expansion because Taiwan is one of the emerging nations
with growing demands of innovative products. Moreover, economy in Taiwan is stable now;
thereby, people are heading towards an enhanced culture and lifestyle. In addition to this, Taiwan
has achieved an economic success. Since 1992, Taiwan’s GDP growth has averaged 4.5% and
this maximized the per capita income from $9,116 in 1993 to $19,789 in 2014 (Hsu and Cheng
2012). It is also observed that presently Taiwan is at the 28th position in terms of wealth globally.
Therefore, such emerging growth would certainly help the business of Kelly & Windsor. In

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addition to this, another factor selecting this country as the expansion of business is that the
small and medium size organizations have always been the backbone of Taiwan dynamic
economic expansion. Thus, at the initial stage, the organization might not be able to start the
operation with a large framework in new market; the operation might fall under the category of
small and medium size. Therefore, the organization will receive tremendous responses from the
market and government. So, the selected country is appropriate for Kelly & Windsor is suitable.
Analyzing the industry environment for the products/ services- Porter’s 5 Forces analysis -
According to Chien, Chen and Hsu (2012), the Taiwan’s private sector has benefitted
from a relatively well-developed commercial code and open market policies that facilitate the
free flow of goods as well as capital. It is also observed that small and medium size organizations
have been strong platform of Taiwan’s changing economic expansion. In addition to this, Zhu,
and Chung (2014) mentioned a sound legal framework in place to deliver a strong protection of
property rights and uphold the rule of law. It has been identified bedding and home furnishing
products suppliers have gained a tremendous momentum due to the availability of technology,
which means the organizations in the recent time have relied on e-commerce platform for selling
the bedding accessories to the customers. The industry observed a dramatic growth within a
decade.

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Figure 1: Growth of home furnishing products in Taiwan
(Source: Zhu, and Chung 2014)
However, the industry environment of Taiwan has been discussed with Porter’s five forces
model in the following.
Porter’s five forces analysis
Bargaining power of customers- (Moderate)-It has been observed that as the economic
position in Taiwan is stable, the customers tend to prefer high quality of products. The country
has many small and medium size organizations selling the same categories of products but the
due to the factor of quality, all organizations do not receive the similar attention from the
customers (Chiou et al. 2011). Even though, the customers many choices but they look for the
quality. Thus, the bargaining power of the customers with respect to bedding accessories is
moderate. However, it is expected that bargaining power of customers might increase as the
country has the potential to attract the foreign brands.