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Analysis Of Making An Investment In A Foreign Market

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Making an Investment in a Foreign Market Name: Institution Making an Investment in a Foreign Market Introduction As globalization intensifies, the business community tends to expand its operations towards the international market. This can be as a result of intense competition in the local market, need to increase sales and profits margins, to enhance the company’s prestige, to create jobs, to increase the value of the entrepreneurs among others (Bodie, 2013). Before going global, the company’s executive has to consider factors that favour or hinder their goal towards achieving international recognition in trade. This paper reviews the topic on “Making an Investment in a Foreign Market and factors considered. BP, a …show more content…

The high population of the middle class in the country also meant that the client base was almost ascertained. I also noted that Total’s presence in the market was a rivalry threat to the company. The suppliers of the product that the company intends to produce and sell were not yet ascertained and this provided a setback. After analysing all the factors that favour the company’s investment against those that deter its choice of investing, I ascertained that the increase in revenue of the firm and reduction in the cost of operating in the foreign market was a probability thereby the value of the firm would be increased (Kotler & Kotler, 2014). Rarity. I looked at whether the firm had a valuable resource or capability that made it unique and different from its competitor - Total. BP’s strategic statement indicates that the company intends to produce energy in a more efficient ways using new technology that will not only lead to production of clean products but also meet the consumers’ demands by providing competitive prices and products that fit the consumers’ preferences. Uniqueness could be achieved through product packaging, service delivery and advertising. Through packaging, I came up with the idea that we should package our products using environmentally friendly material, durable, easy to handle and clean material that would make the client fall in love with our products and differentiate it from other products. The kinds of

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