Introduction
As Able Corporation is a comparatively large manufacturer of power tools, lawnmowers, microwaves and ranges, it produces goods that are in demand in due to their use in everyday life.
The potential ramifications for this company can include various measures including brand extension and cooperation with other well-known brands that operate in the same market field or those operating in related fields such as manufacturers of household equipment and municipal services and private companies engaged into the sector of public beautification.
In this respect, attracting investors can become one of the most effective methods of entering the market and expanding the sector of operation. Thus different scholarly sources consider the importance of taking into account the opportunities related to the use of venture capital investments (Bottazzi, Da Rin, & Hellmann, 2007; Gompers, Kovner, Lerner, & Scharfstein, 2005; Hochberg, Ljungqvist, & Lu, 2007).
Besides, the company that is sure to contribute to the Able Corporation’s effective performance in the new marketplace, Walden International, deals with those businesses that have some referrals as it “gives both parties a sense of pre-qualification” (Walden International, 2010) leading to the incorporation of venture capital investments.
The Able Corporation should ensure that the parent company can operate as a good investor and encourage all initiatives related to potential ramifications. In this respect, Able Corporation should take appropriate measures to enter the global market and find its niche in the global marketplace.
Moreover, the concept of intangible capital such as reputation (Corrado, Hulten, & Sichel, 2006) can be used in order to obtain a more powerful position in terms of customers’ loyalty, brand awareness, and reputation of the parent company and corporation that promotes its goods to the global market.
In addition, the report by Adrian & Shin (2008) suggests that liquidity and leverage should be essential principles to use while contributing to the growth of business and its development in the global market.
One-Year Strategic Objectives
The first steps in promotion of the Able Corporation’s products onto the global market should include brand extension related to the existing products within the United States of America and certain strategies aimed at exploration of the global market and its perspectives for the company’s range of goods.
In this respect, it is necessary to conduct a research and find out what goods can be promoted to the global market in the way they are delivered to the domestic customers and focus on the range of products that should undergo some changes and modifications before being produced for international community.
The next step includes classification of changes and strategies related to the modifications that should be applied to the existing goods in order to make those applicable for the international market commerce.
The goods can be promoted more actively and effectively to the domestic market via a chain of various measures aimed at promotion of the goods, growth of the company’s popularity, and development of brand awareness and brand loyalty. These measures can include development of the consumer market and brand extension.
Besides, the brand extension can be further used for the global market sector when the international community acknowledges the quality of the brand’s products and stability of services provided by this company. This means that the company can include services provided in certain cases.
For instance, if some company purchases more than a fixed number of units of lawn furniture, a special division of the Able Corporation can provide the customer with some assistance while installing those units or some services that can be provided within a certain period from the date of purchase serving as a guarantee for the customer and the company.
Five-Year Strategic Objectives
The five-year objectives should include a more effective cooperation with other companies engaged into the same field of industry as the Able Corporation and the related sectors and promotion of modified goods into the international market. The domestic market strategy should include the following elements to gain more intangible capital for the Able Corporation:
- Brand leverage should be developed in order to facilitate the brand extension for more effective performance in the domestic market;
- Brand extension can promote the company in the domestic market and facilitate its promotion to the global market as more products under the same brand will be available for the international community;
- It is possible to cooperate with various municipal and privately owned organizations that are engaged into the sector of landscape design and beautification. This step can be rather effective because lawn mowers and lawn furniture can be distributed through this cooperation to a wider range of organizations and development of brand awareness will be achieved in this way;
- Restaurant business and catering can be addressed through the production of microwaves and ranges. Establishment of relations with catering services and restaurant owners can be productive in terms of distribution of this range of goods including already existing means of distribution such as large discount department stores.
This means that a five-year strategy focuses more on development of relations within a domestic market and creates basis for the development of product and distribution chains for the promotion of Able Corporation brand’s goods onto the international market.
In this respect, the corporation has to divide its activities into two areas to cover the development of a new range of goods and modification of the existing ones for the international market and for promotion and brand extension of goods for the domestic market.
Ten-Year Strategic Objectives
The company has to start with the exploration of the international market opportunities and assessment of the existing products with the purpose of their promotion to the international market. As soon as the company analyzes the measures needed to enter the global market successfully, it is possible to divide the company’s activities into two main branches.
Thus, the first branch should focus more on the domestic market applying brand extension strategies based on brand leverage whereas the second branch should develop the strategies required for company’s operation in the international market. In this respect, an approximate plan of company’s objectives for ten years can be the following:
First-second years should be spent on exploration of the international market, assessment of the existing product lines and company’s productivity in the domestic market.
Analyzing the situation, it is possible to establish plans and take appropriate measures to improve the company’s position in the domestic market and outline the methods to use for promotion of products into the international market.
Third-fifth years should be spent on cooperation with various services and companies in the domestic market, brand extension and adjustment of the company’s products to the expectations and needs of the customers in both markets, domestic and international.
The company can widen the range of services provided and enter the domestic market as the one that deals with customers in the universal level including production and distribution of goods, delivery, installation, maintenance, and consulting on various questions and propositions from customers and other parties concerned.
Sixth-seventh years should be spent on launching products into the international market. This stage should operate as a part of the abovementioned second branch of the company responsible for the international market operation.
As the customers, partners, and competitors in the domestic market should become aware of the brand and the range of products provided under this brand within the period of five-six years, it is possible to spend more resources including financial and human resources onto the development of products for the international market.
Seventh-tenth years should be spent of brand extension within the international market as the company should have started with launching of the basic products. Besides, the Able Corporation can implement new technologies and modify the range of goods that are to be launched into the market by that time.
As technological progress is one of the constantly developing concepts, it is necessary to take into account necessity of applying newly-developed techniques into the production including all sectors and departments starting from management, production, retailing, services, and other branches of the company’s activity.
It is necessary to use the latest strategies and train employees in order to reach the goal within a shorter period of time.
Reference List
Adrian, T., & Shin, H. S. (2008). Liquidity and leverage. Federal Reserve Bank of New York Staff Reports, 328 (May).
Bottazzi, L., Da Rin, M., & Hellmann, T. (2007). Who are the active investors? Evidence from venture capital. Forthcoming, Journal of Financial Economics, September.
Corrado, C., Hulten, C., & Sichel, D. (2006). Intangible capital and economic growth. Washington, D.C.: Finance and Economics Discussion Series.
Gompers, P., Kovner, A., Lerner, J., & Scharfstein, D. (2005). Venture capital investment cycles: The impact of public markets. Harvard University, December 1.
Hochberg, Y. V., Ljungqvist, A., & Lu, Y. (2007). Whom you know matters: Venture capital networks and investment performance. The Journal of Finance, LXII(1), 251-301.
Walden International. (2010). Official Corporate Web Site. Web.