ACME Electronics
ACME Electronics, an electronics company working from the US, is seeking to expand its reach and increase the potential revenue. As it stands, the organization is unable to support itself intrinsically, making the need for change and expansion apparent. In order to enact such change, international markets must be chosen with careful consideration. Their potential growth patterns, along with the present conditions and opportunities will be discussed, forming a clear picture of ACME’s market emergence. In order to make this procedure successful, it is be necessary for ACME to adapt to the differences in various nations and business culture, while also rooting their business in well-coordinated corporate effort. This paper will attempt to discuss three potential growth and expansion opportunities for the organization, including China, Canada and Mexico. All of the aforementioned countries were chosen because of their solid or emerging role in the global market, combined with a fruitful atmosphere for budding businesses.
China
In the recent decades, China has become among one of the fastest-growing, innovative and profitable business areas for companies around the world. Formerly closeted country has emerged in order to start manufacturing efforts that cannot be matched by many, and the professionals within the nation are also well-trained. China prospers and develops because of the widespread use of foreign direct investment, a trend which ACME will be standing behind wholeheartedly. Compared to many other nations, emerging as a business in china presents its unique challenges and rewards. First, the business must make sure to “assimilate” into the local climate, cooperating with the previous owners and managers instead of establishing its brand identity quickly (“Top 10 challenges of doing business in China,” n.d.). The look of the brand, its focus and branding must also reflect a shift toward more Chinese values, the capabilities that can allow a company to prosper in this market. One of the biggest problems of the Chinese market is its strictly regulated nature, owning to the need of the Chinese Communist Party to enact its influence over most spheres of life. On the other hand, the organization is capable of gaining access to vast worker pool of the Chinese market, and a considerable influx of new clients due to established trade. These conditions present a unique challenge in navigating the political landscape of the nation, where local and global authorities compete for power and influence (Test, 2021). By working within the system they are presented with, companies can develop a trustworthy and reliable reputation in the region.
Canada
Canada, on the other hand, presents a much more stable and easily recognizable identity to any company seeking to expand here. Situated close to the US, considerations of supply chain maintenance and coordination can be easily resolved. In addition, the culture of workplace and management in both the United States and Canada is similar, creating an ease of assimilation and management. It will be possible for ACME to fully transform their purchased business to suit the needs of the organization as a whole, and enter the market as a strong, well-grounded force. The potential markets in the area are diverse, with many people having the spare money necessary to buy more goods and services (“Benefits and challenges of expanding to Canada,” 2021). With the strength of the American dollar compared to the Canadian one, it will also be considerably easier to pay taxes, fees and budget costs. Canada presents a business climate most closely associated with the US, without the trappings of the same limited domestic market, and a wider familiarity with international consumer practices. In this vein, the company can expect similar gains in the Canadian market to their domestic ones. The political climate of this territory would be difficult to discuss due to recent developments. With the emergence of political protests and conservative movements, the government can be expected to respond to uncertainty within its borders, potential affecting international businesses and trade (Campisi, 2022). As with many other nations that companies consider a lucrative expansion opportunity, the process of managing government and official regulations must be taken into consideration. In addition, the workforce needs to be kept in good conditions, including regular high minimum wage pay and benefits.
Mexico
The last country that will be discussed within the constraints of this work is Mexico. Compared to the other two countries, Mexico does not have as much of a reputation as an investment lucrative opportunity. Currently, Mexico has at least 46 free trade agreements with other nations, making it an ideal spot to see international audience, and expand the reach of a business. Furthermore, the ability of Mexico to secure connections places it in the way of future profit, promising large returns on investment (“Benefits and challenges of expanding to Mexico,” 2021). In order to fully integrate a business into a new culture, it is necessary to partially assimilate the key culture of the area and integrate it into the workplace. Compared to other Latin American countries, the measurements regarding political stability, corruption and other issues remain stable, which is another good sign for a business entry (“Mexico,” n.d.). However, Mexico is quickly evolving changing and growing, establishing partnerships and creating fruitful connections.
References
Benefits and challenges of expanding to Canada. (2021). Globalization Partners. Web.
Benefits and challenges of expanding to Mexico. (2021). Globalization Partners. Web.
Top 10 challenges of doing business in China. (n.d.). TMF Group | International expansion experts. Web.
Campisi, J. (2022). Risky business: What protests and blockades could do to Canada’s global reputation. The Conversation. Web.
Mexico. (n.d.). Export Finance. Web.
Test, A. (2021, May 21). Country risk: China. ABC-Amega, Inc.Web.