Zen plastics are a manufacturer of moulded plastic products which only operates in the home market. This report gives some researches and advices for assisting the company’s future decision making and strategy for entering a new market.
1. The reasons for why marketing internationally would benefit Zen plastics.
It offers opportunities for Zen plastics to continue to grow while gaining exposure to other countries. To some degree, the domestic market may not provide the company with the opportunity for growth that it needs.
On the other hand, it can give the company additional sales and profits. From marketing internationally, Zen plastics will not just produce for the domestic consumers and trade market. It will produce for a much larger market. That is to say, the company can provide more productions to the much larger consumer pooling.
The company can gain more market share and increase the size of its operation. Currently Zen plastics only operate in their home market and the consumer pooling which it faces is just in home market. For example, if the company enters to the Europe market, they may gain the Europe market share. And their consumer pooling may start to include Europe consumers.
At the same time, it is also good for remaining competitive. If the company entering the international marker, there will be more international companies compete with Zen plastics. For gaining competitive advantages, Zen plastics may want to ensure that its product is kept up to date by exposure to competition in international markets and to keep abreast of new technology development and skills.
Otherwise, entering the international market is good for long term survival. The company may be looking for the increased security it can achieve by spreading its risks over a variety of markets. At the same time, it provides the scope to develop the company’s strength and abilities and it will sharpen the company’s innovative edge and open up opportunities that...