Analysis
Which market entry strategy (acquisition, joint venture, greenfield site, etc.) would you suggest Midea to use for your recommended market? Why?
By reviewing the position andcompetency of the Midea Refrigerators, it is recommended that the company should pursuethe Green field strategy to enter into the Indian market.It is due to the fact, that since, the company hasthe expertise to produce andmanufacture the appliances itself, it has the benefit to produce the products in the Indian market itself, savingthe cost of supply chain logistic and other operational cost that may incur if the companypursues joint venture or acquisitiontechniques.
In addition to this, thegreen field technique is beneficial for the company as it would allow the companyto pursue its own standard of productions hence wouldmitigate the intervention of any third marketplayer that may give rise to conflicts. Moreover, the greenfield technique would allow the Midea refrigerators to solely own its subsidiary in the Indianmarket, developing its own logisticchainand distributionnetwork, though thismay cost a little high than the other options in the initial period, however, in the long-term, the particular option would create the competitiveadvantage for the companyand wouldmitigatethe dependence on suppliers or any third party player for the distribution of its products.
In addition to these operational competenciesand advantages, the Greenfield option would mitigate the culturalintegrationproblem, sincethe company will hire purely the Indianlaborinto theorganization that would have uniform vision and scopetowards the organization.Such cannot be attainedin acquisition of joint venture, since there are two different types of work forces that mayresist to each other and ultimately results in low production and hence overall productivity.(Business, 2010).
SWOT Analysis
Strengths:
Midea Refrigerators Harvard Case Solution & Analysis
1- The company has strong market entry strategy and presence in over more than 20 countries.
2- The company produces and manufactures the electronics itself, mitigating theneed to insource the supplies.
3- The company has strong financial resources to back up its globalization strategy.
4- The Indianmarket is FDI welcoming market, allowing the company to initiate the business activities with firm conscious and stable market growth................
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