Foreign Market Entry and Diversification

[Date of Submission]

Foreign Market Entry and Diversification

Introduction

The purpose of this paper is to formulae an argument based on the aspect of entry in the foreign market and to elaborate on the concept of diversification of my company, which has been named as the company X. The paper includes a detailed account of the strategy which will be utilized to accomplish the mentioned objective, along with a brief description of the challenges that might be experienced during this process and their potential consequences.

Argument for Diversification to be Presented to the Board of Directors / Business Investors

 A diversified company is a collection of various and individual businesses. This collection of businesses, whether related or unrelated, will cause the strategy- making and decision-making tasks for these collection and/ or groups of businesses to be even more complicated, important, and crucial than ever before. The process of diversification is a very vital and an essential move for any business or company. A business / company must be aware of the need to diversify, along with the most appropriate strategies to efficiently plan for this process at the most suitable time (Chen, David & Michael, 2006).

As long as a company possesses the potential to capitalize on profitable growth opportunities in its present industry, there is no urgency to pursue diversification. The big risk of a single-business company, of course, is having all of the firm's eggs in one industry basket. If the demand for the industry's product is eroded by the appearance of alternative technologies, substitute products, or fast-shifting buyer preferences, or if the industry becomes competitively unattractive and unprofitable, then company's prospects can quickly diminish (Jusuf, JusuBiljanaf, 2011)..  Diversification would serve as the key to the longevity of our products and service of the company X. Its smallest and largest competitors, Company Y and Company Z, respectively, offer worldwide linguistic, intelligence and technical support and have begun to offer other attractive services as well. “Diversifying entrants pose a bigger threat in increasing rivalry and challenging incumbents' market share. Right now, Company Z is the leader in diversified product lines, despite the fact that our competitors offer a variety of services and products, Company X will improve on quality in order to become a threat to the competitors. If Company X does not diversify, it will quickly become irrelevant in the market, like its smaller competitors. If it plans to succeed and increase longevity it must diversify and improve upon what its competitors offer (Pehrsson , A (2004).

Strategy for Diversification to Gain Synergies from the Diversified Activity

As a way to increase the popularity and customer base loyalty, marketing, research and development will work with designers and distributors on a linguist, contractor employee line for enhancing the capacity of the services offered by the Company X. Owing to the consideration of the fact that currently, finding the right and qualified human power in a specific field is difficult to find for working and deploying overseas and being away from their family, ...