OtterBox Global Business Plan: Part Two – Risk Analysis
Scott McLaughlin, Michelle Sanchez, Ami Shimanek, D’Anna Slusser
MGT 448
March 14, 2011
Elizabeth Newburn
OtterBox Global Business Venture: Part Two - Risk Analysis
Conducting business in overseas countries such as China is different from conducting business in the United States. OtterBox is a plastic cover manufacturer that produces plastic covers for iPhone, iPod, iPad, and other touch screen technologies. OtterBox is considering the region of China as a foreign venture for the export and production of protective covers. China places tariffs on all imported goods, and give subsidies to their exporters to gain a more competitive advantage both there and abroad. OtterBox protective covers will be the ideal product to produce in China due to the high flow of technology and the low cost of labor.
The risk is moderate to high when dealing with China on business. With the economic and social changes in effect, China has maintained a very low crime rate, keeping a tight control on crime. OtterBox will have to consider these factors and many others upon working a business deal with China to produce their protective covers.
Strategic Objective/Goal
As a business, OtterBox supplies durable, watertight cell phone and other smart device covers specifically designed to fit multiple product lines. OtterBox is in the business of providing innovative cell phone and other covers that incorporate suggestions and feedback from consumers into product research, development, and design to ensure that the company continues to push the envelope on cover durability and functionality.
OtterBox, due to the number of potential customers who use cell phones and other electronic devices, has targeted China. The sheer number of China Mobile users alone translates into a very lucrative business opportunity for the company. OtterBox provides cases unlike any other in any...