Indledning
In this paper I will look at Bolia International A/S internationalization effort. Bolia was established in the year 2000 and produces high-end furniture in the modern Scandinavian style and has since 2005 been owned by JYSK Holding.
This paper will start off by characterizing the company for then two account for its internationalization effort. After that the I will select and argue for four different screening criteria from the GE Matrix and give them a score for the Chinese and US market respectively.
These scores will be based on research that I have conducted. Finally, I will discuss, based on the scores I awarded in the previous question, why Bolia should choose either the Chinese or US market.
Indholdsfortegnelse
introduction.............................................................................................. 2
methodology................................................................................................... 2
q1: characterize the company bolia in all possible ways ............. 2
product........................................................................................ 2
price .................................................................................... 2
promotion .......................................................................... 3
place ............................................................................ 3
generic strategy ............................................................. 3
q2: account briefly for bolia’s internationalization.. 3
export motives and triggers ....................................................... 4
export readiness................................................................................. 4
entry modes used historically ............................................................ 4
standardized or differentiated parameter strategy ................................... 5
q3: which screening criteria from the ge matrix you would suggest bolia to use and evaluate in the ims process? ................................. 5
conclusion to q3 ..................................................................................................... 7
q4: bases upon your conclusions in q3 grade the 8 criteria for chia and the
united states respectively and argue why.............................................. 7
market attractiveness: political and economic risk ........................................... 7
market attractiveness: market growth............................................................ 7
market attractiveness: prices and buying power ......................................... 8
competitive strength: product fit to market demand .................................... 8
competitive strength: marketing and communication ....................................... 9
competitive strength: financial results ......................................... 9
conclusion to q4 .................................................................................................... 9
q5: discuss and conclude which entry mode to launch in the chosen market
....................................................................................................................................... 9
conclusion ....................................................................................... 10
sources.............................................................................................. 11
Optimer dit sprog - Læs vores guide og scor topkarakter
Uddrag
Export motives and triggers
There have been several motives, both reactive and proactive, for Bolia’s internationalization.
On the proactive side, we have seen a combination of managerial urge for increased profits and growth9 and a foreign market opportunity10.
On the reactive side Bolia has seen a combination of slight competitive pressure and a small domestic market, that can arguably be classified as a red ocean.
What has most likely been the triggers have been the takeover by JYAK Holding, providing a rock-solid foundation of capital and more importantly, the appointment of Lars Lyse Hansen as CEO. Mr. Lyse comes from a position in Ikea as the international Franchise manager11, making him a perfect trigger for an internationalization process. On the external side, they have reacted to the internationalization of many of their competitors but also, the demand for Scandinavian furniture.
Export readiness
Bolia had at the time of beginning their internationalization process a high degree of readiness.
Their product was refined and in demand, with a similarly refined international production line. And as previously mentioned, large capital reserves and a CEO with internationalization experience.
Entry modes used historically
Bolia has made use of a strategic partnership with Steelcase where Bolia handles the R&D and Production while Steelcase handles marketing and sales/services for the US/Asia office furniture market.
Bolia has also made use of a hierarchical mode where they have local subsidiaries running official stores around Europe12.
It would appear that there is a strict hierarchical and integrated nature to these relationships, since they are included in the centralized omnichannel sales approach that Bolia is utilizing in Denmark.
We might assume that some of these sales subsidiaries can be expanded to include production as well, since a lot of their production is handled overseas.
Finally, Bolia makes use of direct export, where Bolia allows select dealers to carry some of their products.
Standardized or differentiated parameter strategy
Depending the psychic distance to the foreign market, Bolia will either use a standardized or differentiated parameter strategy where the we can assume the only thing that changes is the distribution and promotion, not the product or price13.
In the near markets, the four p’s are more or less the same, but as we get away from the Nordic and western europe, distribution and promotion changes.
Skriv et svar