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From the most appropriate entry method for Governor, Inc., going into India and pros and cons of the decision. The best appropriate entry strategy is export strategy. There is limited potentiality of sales in the host country, since very little adaptation of product is needed. In the host country, there are the probabilities of high cost of production. The advantages of exporting include; maximization of investment and risk. This strategy ensures high entry speed a part from maximization of scale, as it uses facilities that are already laid. The disadvantage with exporting strategy includes; the existence of trade barriers and tariffs that add up to the cost of business operation. Such like costs might include transport costs. In most cases, the company will be looked upon as outsiders ready to destroy the markets. In addition, the access to local information is limited, (Lieberman & Montgomery, 1998).
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Advantages associated with entering a national market early, before other international businesses have established themselves. The approach to be used by Governor, Inc., and Ben Carr their CEO who wanted to get into India ASAP. The advantages of being first movers in relation to Governor, Inc., and Ben Carr their CEO who wanted to get into India ASAP, is having an advantage of the initial occupants of a market segment; this is because first movers like them gain control of resources that followers will never match. They failed because; they were not able to make use of their advantage, hence left chances for other companies to gain second mover advantage. They only concentrated on growing and expanding, rather than coming up with a good and sound company. They also overlooked what consumers desired in their products as they were concentrating on growth. They also rushed in cementing their market share and overlooked the problems they were facing. (Boulding & Markus, 2003).
The core competence issues for Governor, Inc. is core competency is in technological know- how. This is because Governor, Inc. is an independent designer, manufacturer, and service provider of energy control and optimization solutions for commercial and military aircraft, turbines, reciprocating engines, and electrical power system equipment. Leading original equipment manufacturers use Governor, Inc.'s products and services in aerospace, power and process industries, and transportation. This might drive their entry mode to India, as market diversity is a factor to consider in the Indian markets. The reality of Indian market is that, there are more than 17 official languages, and a very wide ethnic diversity, 26 states, many castes more than six major religions. Such like a diverted population have varsity tastes. Such like marketplace has tremendous effects on product variability and labeling, and places where successfully products can be sold.
Tailoring services and goods to local tastes has been never been a trivial undertaking. The firm has to realize that there is need for extensive technology involvement for it to understand consumer demands, and they technology know-how will assist them to make modifications at a local level. Indian supervisors will handle their lack of competence. This is because though Company's management will have to look at individualism and collectivism nature in India. In India, every business learns quickly that independence is the order of the day in carrying out one's assignments; however, supervisors in the country are depended upon and much respected for their managerial work.
Pressures for cost reductions and how Governor's Inc, move to India and if so why so Governor's Inc moves to India due to cost reductions. This is because the market in their area had reached maturity stage. As an effect, they went to India with the aim of looking for new markets to provide opportunities of growth so; a part from apart from investing their excess provides they wanted to maximize efficiency by maximum utilization of resources that were under utilized in both human and capital assets, like management, technology and machinery. They wanted economy of scale to attain higher levels of output that is evenly distributed fixed costs so that they can lower cost per unit. In addition, they wanted to fully use equipments of production and end up spreading the high costs of research and development over the life cycle of the product. Some developing countries like India, which require improvements and development via infusion of capital, technological know-how and skills, with incentives, Like fixed assets tax exemption, and even low wages, (Lieberman & Montgomery, 1998). If Peter should share with Melanie what his two peers (Loiacano and Smith) in the industry. If so, how would it help Peter and the venture if Melanie. How Melanie would respond to Peter upon his sharing the comments of his peers.
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Peter should share with Melanie what his two peers (Loiacano and Smith), in the industry have suggested. This is because Even though Melanie is unfamiliar with international law, but Melanie heads a head of Governor's legal firm and very much familiar with contractual law, which might be of great help to them. My response after peter's disclosure, I will advice him concerning contractual laws as it is my field. With this in mind I will advice him on which market entry strategy he can use in entering their in their contract. Since the two have already dealt with international business at a managerial level, meaning that they are well acquitted in international laws, I will advice peter to carefully enter into a contract with them for him to learn more in international trade.
Pros and cons of Peter listening to John's and Roger's advice and what Peter should do in this scenario. The pros of Peter listening to John's and Roger's advice included; the action stimulated his thinking about international trade. It also enabled him to learn their experience concerning international trade. The process provided an opportunity to learn ideas and concerns about international trade. The prons included; it consumed his time
Before entering any deal with them, peter needs the following five bullet plan of action
Find time to build trust, respect and even understand and appreciate their different background, vision, abilities, duties and even expectations of each other.
Consider funding and training.
Talk with them openly to identify a common ground.
Involve in a flexible membership.
Start thinking about terms of reference of the contract.