Analysis for MHM business Strategies using Management Tools
TABLE OF CONTENTS
Companies use market entry strategies to expand their business in new markets. This research paper aims at analyzing the market entry strategies. External environment and internal environment analysis plays a key role in developing a market entry strategy. Mergers and acquisitions, establishing a wholly owned subsidiary, joint venture, strategic alliance, franchising etc. form the common forms of market entry.
MHM is regarded as one of the leading suppliers of Electrical parts in Qatar founded in 1972. It has diversified into the fields of electrical contracting, MEP Contracting, Manufacturing of Switchgear, and low voltage electrical parts trading. It has the capability of handling huge projects with least assistance. The objective of the firm is to support the Electric
als industry of Qatar with quality parts and technical expertise at a competitive price. The market dynamics of Qatar has been highly influenced by the rapid globalization and changed economic conditions. It has resulted in a highly complex marketplace. The company has been continuously meeting the increased demand for electrical equipments and parts with its comprehensive products and competitive prices. For the past 30+ years MHM main focus was in low current electrics business and never entered into different field of business since then.
MHM management sensed an opportunity in the market for fire Alarm and fire fighting installation and trading business. New law was established in Qatar required all real estate owners to upgrade their fire fighting system to meet the American standards (NFPA).
Very few fire fighting companies working in Qatar that no way can manage the new and up gradation contraction projects in the country specially after starting the construction for the 2022 FIFA world coup. MHM management hired a specialized company to do market survey to study the need of the fire fighting business. The study covered the existing companies as well as some assumption for new entry. Based on the recommendation of the survey, MHM management decided to enter into a totally new market that they have little experience with.
The biggest challenge for MHM management now is to make a decision whether to enter by developing their own their market entry plans, or by establishing joint venture with specialized companies. The main objective of this research is to asses the entry of MHM into the fire fighting market considering two options;
Stand alone by developing own resources and manpower
Establish a joint venture with specialized company
Both options have advantages and disadvantages that will be discussed in this research. The joined venture companies this research used is Unisafe Fire Fighting International Company.
1.1 Introduction of UNISAFE
Unisafe is based at Cairo, Egypt. The company specializes in developing...