Impact of Political Environment on Market Entry Modes
Added on 2019-11-26
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Running head: INTERNATIONAL STRATEGYInternational StrategyName of the Student:Name of the University:Author Note:
2INTERNATIONAL STRATEGYTable of ContentsIntroduction......................................................................................................................................2Background of Bata.........................................................................................................................3Discussion of two Potential Destinations where Bata can operate..................................................3Justification for going global to these selected destinations and examining the cultural andmarket fit..........................................................................................................................................4Examining cultural fit in potential destinations...............................................................................4Examining market fit in potential destinations................................................................................5Strategic capability, risk assessment and cost of Bata.....................................................................6Environmental factors to enter potential destinations.....................................................................9Recommendation on selecting destinations that best fit for market entry for Bata.......................11Conclusion.....................................................................................................................................14Reference List................................................................................................................................15
3INTERNATIONAL STRATEGYIntroduction This study deals with suggesting two potential destinations for the company Bata wherethey should expand their operations. The Bata Company was started in the year 1990 and ownedby 5 shareholders who had great passion for entrepreneurship (Bata.com 2017). The companydeals with manufacturing of shoes, leather bags as well as belts. The company had opened manysales outlets in most part of the country. Bata Company purchases raw material that is mainlyanimal skins that turns into useful materials. The company shows interest in global presencewhere they will make their products available as well as get hold of customers both nationallyand internationally (Bader, Gassmann and Ziegler 2014). The current segment had properlyexplained two potential destinations where Bata Company should start thinking of operating inthe near future. The selected destinations are Japan and United States of America where thecompany does not have presence yet. Both the destinations are evaluated in areas such as culturalfit, market fit and strategic operations. There are vast difference present among Japanese cultureand American culture. In order to plan for expansion in these countries, it is important to conductmarket research so that proper information is gathered about the tastes, market trends,preferences and other vital attributes that will help the company for expansion purpose. Afterproper evaluating the factors, it is recommended that Bata Company should set up theirexpansion in United States of America and the country will give lot of opportunities and marketpresence (Xie and Li 2017).
4INTERNATIONAL STRATEGYBackground of Bata Bata is a private-owned company that operates in retail and manufacturing sector fromthe year 1894 (Bata.com 2017). Bata is one of the family-owned global footwear as well asfashion accessory manufacturer and retailer that are headquartered at Lausanne in Switzerland.The company is organized into three main business units. The company has retail presence ofover 5200 retail stores in 70 countries. Discussion of two Potential Destinations where Bata can operate For this study, the potential destinations selected where Bata can go global are UnitedStates of America and Japan. These two countries are selected as potential destinations becauseBata has not yet operated in these countries (Wheelen and Hunger 2017). United States of America is one of the federal republics that are composed of 50 states, 5major self-governing territories and different professions (Bader, Gassmann and Ziegler 2014).The Capital of United States of America is Washington and largest city in USA is New YorkCity. The used currency at USA is United States Dollar and population 325365189 by 2017. Japan is one of the sovereign island nations in East Asia. The population of 127 million atJapan makes it 11th largest populated country (Song 2014). The capital of Japan is Tokyo.
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