Webster Inc. Global Expansion Strategy

Introduction

Global expansion is the process where a company makes investments in other countries in the world outside the home country. Company’s intentions are usually to maintain their business activities in those countries. In most cases, a company usually has one international partner. The main reason is that cultural, political and legal systems vary from country to country (Hill, 2008). In the current market, the most suitable countries to venture into are the developing countries because new markets are opening up leading to the necessity of new sources of goods for these markets. Hence in developing countries, long-term business relationships can be established. 

Brazil is a suitable country to venture in because it is still a developing country. In addition, it has the largest economy in Central America. Moreover, the country has a very high population thus increase the number of potential customer for the Webster Inc. products. The country also has a developed transport system with good roads. The reads will make transportation of Webster Inc. products smooth and efficient. To ensure a successful entry in Brazils market, Webster Inc. has to develop a strategy that is different from those used by the home companies and have ways of implementing the strategy. Webster has to adapt to the ups and downs in marketing finger jointed lumber. The model developed must not destroy its business models so that it can have a competitive advantage over other companies that produce the same product. The product of Webster (FJL) can change Brazils market in many ways. Additionally, the company can improve the quality of (FJL). Consumers will prefer the highest quality thus the company will be able to win and maintain a high number of customers. Also, we as Webster Inc. can also open an education center to train people who will in turn work for the company. To ensure that there is an improvement in the quality of products, people with architecture talents can be hired by the company.

To ensure a continued support from the government, Webster must help Brazil develop its full potential. The creation of a win-win situation between Webster and the Brazilian market will ensure that the company continues and remains competent in the market. The company can pioneer business links between forests owners and the government to ensure they have enough raw materials for making the construction raw materials. Also a bond between the company and the customers can be created by making products that are of better quality, great service and of lower prices. This will enable the company to win customers from the competitors making the company remain stable in the market and earn more profit.

Trading relationship between Canada and Brazil

Brazil and Canada are closely related. They are partners and share almost similar characteristics. The two countries share similar values and democratic societies from supporting the promotion of human rights and environmental values. Additionally, they share similar values in innovations, science, and technology and there is a good relation between the two governments. Moreover, there exists a good business relation between the two countries (Verbeke, 2013).  Canada-Brazil trade growth has been observed in the last few years with Brazil being a very common country in importing goods. Therefore the country is a good market that can be invested in. the high level of imports in Brazils makes it a better market compared to Canada which has been ranked 14th in exporting products. The Canadian government also encourages developmental relationships which will improve the people-to-people exchanges and in turn enrich the relationship between the two countries. Therefore, Brazil poses a better and affordable market for Webster products compared even to Canada.

Forces in External Business Environment between Canada and Brazil

The economic condition between Brazil and Canada were characterized by low prices of commodities. Therefore importer was the main beneficial and gained advance in the economy. Canada is more developed compared to Brazil. Brazil’s economy was severely affected by recessions in Russia. Thus its means that there is a lot of capital flow in Canada compared to Brazil (Govindarajan & Ramamurti, 2011). In addition to this, Brazil most products are imported from Canada and this trade relationship can hinder the proposed plan of marketing the product in the country. People might prefer the Canadian products in respect to Webster finger jointed lumber. But the good relation between Canada and Brazil can be of advantages to the company. 

Managing the External Forces

Webster Inc. can manage some of the forces from the external business environment by planning and forecasting. The uncertainty in the market can be predicted how it will be in the future and the company can take appropriate plans to reduce negative impact (Peng, Wang & Jiang, 2008). Reorganization of the company can also be used to ensure stability is achieved. Improving the marketing organization can result in incompetence especially in marketing FJL. Competition can be an advantage to the company. A competitive environment shows there is enough number of consumers for a particular product. In a competitive environment, a competing company can take advantage of technological innovations so that it can be leading in the open and ready market. Webster Inc. can take advantage of the internet to ensure there is expanded exposure and potential customer base of the company and its products ( Chan, Isobe & Makino, 2008). In addition to this, Webster Inc. can make contracts with construction companies so that they can be supplying them with FJL. Contracts will ensure that the market is ready for the specified period of time between the company and the contracted company. Licenses can also promote the selling of the product in Brazil. The agreements made through licensing ensure that there is access to the foreign market. If the licensee was effective, there are high chances that the company given the license will be a higher advantage of being popular in the market. Therefore, Webster should take advantage if licenses. 

The best thing about exporting is that you don’t have to necessarily do it alone. The government offers assistance and training. Assistance from the government makes it easy for a company to enter into a new business environment and be effective and competent. Webster should, therefore, seek assistance when exporting its products to Brazil ( Holburn & Zelner, 2010). It is an advantage because Brazil and Canada are good business partners thus will enable Webster gat in the market more easily.

Conclusion

Global expansion strategies for companies can make them explore new markets that are unexploited. Companies willing to venture in other countries must develop strategic plans they will follow. The strategies will enable them to enter into a country economic sector and remain economically competitive. Webster should, therefore, take advantage of Brazil with the help of Canadian government and sell their products there.

References

Chan, C. M., Isobe, T., & Makino, S. (2008). Which country matters? Institutional development and foreign affiliate performance.  Strategic Management Journal ,  29 (11), 1179-1205.

Govindarajan, V., & Ramamurti, R. (2011). Reverse innovation, emerging markets, and global strategy.  Global Strategy Journal ,  1 (3‐4), 191-205.

Hill, C. (2008). International business: Competing in the global market place.  Strategic Direction ,  24 (9).

Holburn, G. L., & Zelner, B. A. (2010). Political capabilities, policy risk, and international investment strategy: evidence from the global electric power generation industry.  Strategic Management Journal ,  31 (12), 1290-1315.

Peng, M. W., Wang, D. Y., & Jiang, Y. (2008). An institution-based view of international business strategy: A focus on emerging economies.  Journal of international business studies ,  39 (5), 920-936.

Verbeke, A. (2013).  International business strategy . Cambridge University Press.