International Strategy

International Strategy

International Strategy

Blueberry Incorporated is a Sydney -based telecommunications company considering introducing its cellular telephones to the Chinese market. Aware of the fact that there is strong competition in the market, Blueberry understands that the high demand for cellular telephones in China outweighs the existing threat of competition and makes conducting business in the country an attractive business opportunity for the Seattle-based company. However, before moving forward with the idea of entering the Chinese market, Blueberry must take a close look at the risks associated with doing business in China and find a way to manage such risks. Hill (2009) stated "The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country" (p. 488). By conducting a regional and a country analysis, Blueberry will have a picture of the challenges associated with conducting business in China and the necessary data to give life to objectives and goals that will help the company tailor a plan. Once the risks associated with doing business in China have been identified, Blueberry will conduct a SWOT analysis that will help identify the pros and cons of moving forward with the company' plan. Once a regional and a country analysis have taken place, Blueberry Incorporated must identify a strategy that will help launch and sell the cellular telephones in the Chinese market, and an optimal entry mode that will support the company's objectives and goals. Each entry mode has advantages and disadvantages. Hill (2009) stated "Managers need to consider these carefully when deciding which to use" (p. 493). Blueberry Incorporated will present and analyze data regarding conducting operations in China; based on the results of the analysis, Blueberry will have to decide if moving forward with the idea of entering the Chinese market would be a feasible idea.

Region Analysis

For Blueberry Inc. to successfully setup operations abroad in China, the organization will need regional alliances along the Far East and Australasia region. One portion of the alliance can be found in China and is already in place because of the outsourcing that takes place in the manufacturing plants. This takes care of the manufacturing side of the business; however the Australian company will need to establish alliances on the marketing side. Huawei is a telecommunications company in China that specializes in Broadband, cell phones, core network, data communication, and value-added services (Huawei, 2010). "Every day, 120,000 new Chinese customers subscribe to a cell phone service" (Gifford, 2005, p.1). Such a statistic clearly shows that a market exists for cell phone customers in the country. Huawei competes with ZTE, another large Chinese-based telecom company. Blueberry Inc. could consider developing an alliance with Huawei for sales and distribution. Such a move would be beneficial for Blueberry Inc. expanding their international ventures and assisting Huawei to remain competitive with ZTE. Coordinating with organizations like the Chinese Market Research group will give Blueberry ...