You are the Managing Director of London-based musical instrument manufacturer InTunes that employs 30 people and has a turnover of £3 million per annum. The company has performed well in recent years by selling good quality pianos, violins and guitars to the UK market. You now want to expand the business by selling abroad. Before committing resources to this strategic development there is a need to identify an appropriate market. This assessment requires you to undertake a Global Market Opportunity Assessment to:
- Identify the most appropriate country to target;
- Understand the demand potential in that country and the suitability of the products to be sold;
- Determine the market size and potential;
- Choose an appropriate foreign partner to help enter and compete in the market.
It is assumed that the company already has a readiness to internationalise. Start with an
- Introduction setting out what country/market has been identified and why it presents a good market opportunity for InTunes. The introduction should present the findings of your chosen country screening that highlight some of the positive factors that underpins your choice.
The relevant parts of the GMOA framework to use are:
- Suitability of products
- Country market size
- Market potential
- Business partners and mode of entry to market
Conclude with a summary of the key factors from your GMOA that will drive the strategy of international expansion. Provide a closing argument for the choices you have made to achieve this strategic aim.