Multinational Corporation & Strategic implementation.

 Consider yourself a management consultant. You have been commissioned by a domestic Saudi company to elaborate a report on the conditions necessary to successfully enter a ‘new’ market in foreign country. The senior management responsible asks you to assess the current strategy of the company, to produce realistic strategy and develop a plan for entering the new market (you have to select a particular foreign market on where your company will operate) To accomplish your tasks you have to: 1. Identify the pros and cons of the actual strategy of this company (choose a Saudi company from the real market). Leadership cost OR Diversification OR Concentration (Facts are necessary) 2. Present the key challenges you are likely to face when internationalizing the business? • Adapt the product and prices to the new market; • Understand the consumers’ needs and desire on new markets • Understand the consumer’s behaviors on new market • Study of competition in new market; number of competition; their positions; products; concentration • study of social, political, technological environment 3. Describe the optimum and realistic strategy to a successful entry in the new market. Justify your choice of this strategy. • Exporting (spot sales; foreign agent; long term contract …) • Licensing (franchising; licensing patent…) • Joint venture (Marketing and distributing only) • Fully integrated • Wholly owned subsidiary Note: the chosen strategy should be supported by your findings from research of relevant theories and models. 4. Develop the steps for entering this new market • Identify the target market • Perform market research • Define marketing strategy • Establish a plan • Risk mitigation strategy • Ramping up • Exit strategy 5. Present recommendations to the senior management team to gain market share and improve the competitive advantage on the new market. 1/ prepare well • Good definition of target market • Study of consumer’s behavior, needs and desires; • Study of the competition and environment 2/ define well the objectives 3/ choose the effective strategy 4/ elaborate a communication strategy to attract and keep clients