Ducan Industries

Problem Statement: Dun heap Industries is seeking to some alternatives to observe their commercial enterprise growing rapidly that the follow has experienced for the past fewer years. In order to increase the companys sales and marketplace share in the U.S market, they tried to set up the regional sales office in New York. They precious to service a lot of twelve nearby U.S states that is all needed couple hours from Lachine plant. Otherwise, they also want to expand their market to European Union. There are three ways that they can figure out: Licensing a three years promise with Bar Maisse, Joint Venture with Bar Maisse and Direct investment. Which weft do they want to choose? S.W.O.T analysis Critical Issues strain business opportunities to increase sales in untapped U.S market, especially in Mid-Atlantic and New England states High capital price if Duncan industries want to unionisely invest in EU No capital leave outiture needed for licensing three years treaty with Bar Maisse High quality and good service should keep in U.S market. Cooperate with big car companies or bondage no matter in U.S or E.U Recommendations: The company should expend the European market by joint- venturing with Bar Maisse. Joint-venture is the best resolution for the expansion.

Due to the fact that the risks are spread equally among the two companies. Otherwise, if the company directly invest in European market, it would cost much money, especially they has less knowledge near the market. Furthermore, the company can use the resources of Bar Massies company, for example, the facilities, blemish recognition and their market knowledge of the European Union market. By joint-venturing will spend for a couple of years. So that, the company could deeply understand of whole E.U market. Therefore, it will be easier than direct investment. However, the company does not know Bar Maisse would execute the 50-50 proposal of marriage that is another risk for... If you want to get a sufficient essay, order it on our website: Orderessay

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