• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

INTERNATIONAL BUSINESS - Case Study #3: Going International

Extracts from this document...

Introduction

INTERNATIONAL BUSINESS Case Study #3: Going International Miriam Gonzalez Falcon EXECUTIVE SUMMARY MST is a small bio-defense company with an exceptional product that is patented in the U.S. They are looking for second round financing, a source of cash, in order to fulfill their goal of going public. At this time there is an unsolicited sales call from Japan, which would mean a great amount of money. This sale would mean hundreds, maybe even thousands of units. MST knows that their product is one of a kind now, but their competitors are working hardly to come up with a similar item. They need to make the deal quickly, before the Japanese buyer has other choices. There are several risks that must be considered while considering this deal. The most important one is that they might lose the technology due to either licensing or to reverse engineering, which will probably also mean the end of the company, knowing that it is not strong enough. It is also known that American patents can't be protected when exported to Japan, that is a big risk. There are a number of alternatives available to solve this problem. The first is for MST to export the product by itself, and sell it to the Japanese. ...read more.

Middle

However, due to the age and size of the company, getting an exporting license for a product such as this may prove to be difficult and time consuming. I assume that a bio-defense product might probably be a dual use product, adding to the difficulty of getting the exporting license. Another disadvantage that this choice may have is that since this is the first time MST has attempted to export anything, problems will arise, taking time to solve, meaning that the time to market will not be what they aim for. This is more important considering that the competition is already creating a similar product: if they take too long to export it, they might lose their market leader position. There are other less risks when considering loss of intellectual property and the product. The reverse engineering by the end user cannot be avoided, but if they buy lots of units, one can assume that they are not doing so just to reverse engineer them. The same happens with loss of intellectual property: there is no way for MST to guarantee that it won't happen, but a big enough sale means that they intend to use it rather than try and produce a knock off. The main problem with Japan is that American patents do not apply over there, so it the scenario that someone patents the product there is possible. ...read more.

Conclusion

The exporting license will be easier to get, with the Japanese's help, but not as easy as the previous option. Finally, the time to market depends on how much work the Japanese need to make to the plant before they can start producing, but it definitely will not be as bad as exporting by themselves. Recommendation Given an analysis of all the alternatives available, it is recommended to use the second one, because it addresses most of the needs of the strategic question in the best way, although it also has a few disadvantages as well. I have analyzed this alternative as the best because it takes a short period of time, helping MST to keep their position as market leader, as well as protecting its intellectual property due to the fact that trading companies have a reputation to maintain. Also, their experience in the field would be helpfull for MST, that is absolutely new in the business of exporting, both to close the sale and to obtain an exporting license that might prove to be difficult to get. The main disadvantage of this choice is that the amount of money obtained from the deal will not be as sizeable as they expected as far outweighed by all the risk that MST avoids by using a trading company. They must wait for longer before going public, to be sure of their possibilities. 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Marketing and Markets section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Marketing and Markets essays

  1. Opening an Arcade – Feasibility Study

    All these fruit machines will be replaced with up to date and new machines every few months. I will have two skill win prize machines: 'Who wants to be a millionaire' and 'The Weakest Link.' There will be three twin sit down racing games and ten arcade games that will be changed on a regular basis.

  2. AVON Case Analysis

    Avon's capital expenditure goal is to average $225 annually and be spent on the same expenditures that they have been spent on in the past. Bigger cash flows: Avon had a significant increase in net cash provided by operating activities in 2001.

  1. marketing study - biolife

    Fatigue is the first experience of stress before any other major health problems emerges. The physical symptoms of fatigue are mainly pain. As such, consumers are realising that alternative medicine therapies can assist in the prevention of much stress related ailments that are engulfing our civilization.

  2. Executive summary

    This decision is important as it determines the type and degree of risk borne by the exporting firm. The key market strategy recognises this fundamental nature of market numbers. The BETRO Trust Committee (1976) concluded that new exporters should concentrate on five or six markets, while the established exporters should

  1. Investigating Market

    While these organisations run many of their activities in a profit orientated way, this is not their sole concern. They seek to meet a responsibility to provide a service to the community. For Example, if the Post Office was purely concerned with profit-making it would not offer a service to out of the way places.

  2. Alcopops - design a new business.

    Also using primary data gives you the researcher the ability to gather data on exactly what is required. Disadvantages of using primary data is that is it is time consuming and costly. Market research can be gathered by conducting surveys.

  1. Marketing MA Management and International Business

    and to prospect for new customers (Prospecting) Retail Loyalty "Loyalty is a feeling or attitude of devoted attachment and affection; or the act of binding oneself (intellectually or emotionally) to a course of action. (http://dictionary.reference.com) In everyday life loyalty implies emotional commitment to family and friends, fidelity in marriage.

  2. Marketing coursework - opening a new business

    I will also look at my market research to see which type of advertising people like best and see if Jack could use this advertising to promote his business. I will look at other businesses advert designs and design my own to suit Jack's business.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work