International Bussiness — Export Case Seclection Essay Example
Elfin Sports Cars’ International Ventures
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Elfin Sports Cars’ International Ventures
In most instances, business organizations tend to seek investments in foreign countries upon the saturation of their home countries. Such investment decisions are informed by concepts and theories which are framed in a manner that assists the stakeholders in identifying the most appropriate foreign investment destinations. Other factors include the firms’ strategies, structures, and rivalry; factor conditions; demand conditions in the home country; as well as the nature and strategies adopted by the supporting and related industries (Kochan 1997, 205).
In order to illustrate how such factors contribute to decisions as well as success in foreign investments, this report analyzes an Australian motor manufacture referred to as Elfin Sports Cars. The company does mainly operate in the Australasia region. It is based in Braeside which is a suburb of Melbourne (Kochan 1997, 205).
Motivation towards the Export Business
Elfin Sports Cars has been offering a wide range of vehicles which are manufactured locally. The organization has been facing significant challenges due to importation of sports cars by other corporations. The declining volume of sales in Australia has prompted the organization to venture in the international market. This decision is mainly informed by the need to enhance its profitability (Bayari 2011, 82).
Potential Overseas Markets for Elfin Sports Cars
In order to enhance the company’s standing internationally, as well as its profitability, the organization ought to consider making significant investments in India, Russia, and France. These three countries are markets with a substantial level of economic outlook. Nonetheless, while India and Russia are emerging economic powers, France has been a power for a long time. This means that France may not be as attractive as India and Russia. France does have a number of successful care manufactures, and many other foreign based manufacturers have been selling cars to the French. So, in a sense, the market is already saturated (Bayari2012, 168).
Being emerging economic powers, India and Russia are have a new crop of citizens who are getting wealthier by the day. Based on the fact that many people could not have afforded to own vehicles a few years back, these two markets were not as attractive as they are today. The fact that India has a huge population makes it almost certain that it has a higher number of potential customers than Russia does (Blanpain2008,
Elfin Sports Cars can win and retain customers in India based on its comparative advantage. It has a superior strategic policy, and its long experience in the export business means that it has a unique competitive edge over several other manufacturers. With regard to the aspect competitive advantage, the organization does possess competencies and innovation strengths which are difficult to imitate or replicate. This, coupled with the nature of the Indian market, makes it clear that Elfin Sports Cars ought to consider investing in India (Blanpain2008, 21).
This report has explicated the how Elfin Sports Cars ought to lay down a strategic policy that would enable it exploit international markets competitively. It has been pointed out how Elfin Sports Cars can counter the impact of imports by other corporations (Ibp 2009, 234). Motivation towards the export business has been also been considered, as well as the potential oversea markets. The assessment has concluded that India is the best investment destination as it is easy to penetrate, and there are an increasing number of wealthy individuals.
Bayari, C (2011), Japanese Hybrid Factories in Australia: The Japanese System Transferred, Berlin: LIT Verlag Münster, pp. 79, 82
Bayari, C (2012), Australian Economy and Neo-liberalism: Manufacturing, Trade and Bilateral Links with Japan in the Post-Keynesian Age, Berlin: LIT Verlag Münster, pp 168, 169, 172
Blanpain, R (2008),
Globalization and Employment Relations in the Auto Assembly Industry: a Study of Seven Countries, New York: Kluwer Law International, pp 13-21
Ibp, U (2009), Australia Company Laws and Regulations Handbook, Volume 1, Jakarta: Int’l Business Publications, pp 232, 234
Kochan TA, Russell DL, Macduffie JP (1997), After Lean Production: Evolving Employment Practices in the World Auto Industry, New York: Cornell University Press, pp 205, 209
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