Foreign Market Entry and Diversification Research Paper

Foreign Market Entry and variegation - Research Paper ExampleArgument for diversification of your business Diversification is a much hyped outlet and forms a part of strategic decisions and firms needs to decide whether they should modify or not to diversify. It has been the most debated topic by business and it has been said that firms which has the resources and capability to diversify should g for diversification as most of the businesses planning to go for diversification often fails. Diversification involves the highest train of risk but still firm opt for diversification strategy solely for one reason is to create synergy. The create company may diversify for better opportunities, to leverage the competencies as well as capabilities by way of expanding into business where the firms resources can be used as militant assets. Also to some extend diversifying will help the company to minimize the risk but as pointed earlier the risk involved is high. There is no guarantee that the business will succeed (Rao, et al, 2009, 228). Strategy for diversification indicating the products and industries for the diversification and how synergies may be gained from the diversified activity The print company which deals with books and other make items should continue with its business and go for related diversification. ... Thus the publishing firm may search for new business whose product, market, distribution is similar to that of its own and where learning would result in synergy. Thus the company in order to create synergy should enter into related diversification and share resources and capabilities with its existing business unit. naming and discussion on the foreign market that the company should enter and the strategy it should use to enter the market With the growth of online and digital media, the publishing business has been undergoing real changes. Thus considering the current situation the publishing business should diversify its business into emergi ng and developing countries and at the same time follows the emerging trends in the publishing industry which are like eBooks, blogs, mobile publishing along with self publishing (ICMR, 2007). While diversifying the business the publishing company can opt for strategic alliance. Strategic alliances are formed through partnership between the firms and combining the resources, capabilities and core competencies and pursue a mutual interest to develop, invent and also manufacture goods (KAZMI, 2008. 187). The alliance is a collaboration which aims for synergy where both the partners hopes to benefit from the other alliance and will be greater as compared to individual efforts. Other benefits which the publishing company will receive by adopting the strategic alliances is gain capabilities, much easier way to access the target market, share the financial risk and most significantly achieve synergy and competitive advantage which are the important elements that lead a business to succes s. Challenges that company may face in the foreign market, and how it aptitude respond