Entering International Simultation Essay

830 words - 3 pages

Introduction International business requires that companies know their strengths, weaknesses, opportunities, and threats. The simulation discussed in this paper involves Trinezza, which produced motor scooters called the Cynta. They decided to go global by producing and selling the scooters in a country called Sentonia. In this paper, the following questions will be answered: what would be the major elements in the SWOTT of Trinezza, what are some advantages large companies have over smaller companies when choosing a mode of entry strategy, and what factors should drive a company to continue in, expand or exit its chosen market.SWOTT Analysis of TrinezzaStrengths: Trinezza has several strengths that will help their motorcycle succeed in the international market. Trinezza’s product is the greatest strength itself because it is an economical mode of transportation. The motor scooter has also proven to be a very reliable method of traveling. The motor scooter not only works well, but also looks prominent and has practical features. The technology of Trinezza’s motor scooter provides Trinezza an advantage over the other scooters existing in Sentonia. Moreover, the fact that there are few scooter companies in Setonia will work in Trinezza’s favor.Weaknesses: Weaknesses of Trinezza consist of the following: 1) little or no brand identification – Sentonia market is not virtually familiar with Trinezza’s company, brand and their product. 2) Little international experience – making a transition to international markets requires international experience and lack of experience within a company could prove fatal. 3) Price - the price of Trinezza’s motor scooter, the Cyntya, is higher than the competition in Sentonia that could make it difficult to sell. 4) Lack of financial resources – Finding financial investors has not been easy for them. Thus, lack of financial resources could make it difficult to establish in the international market due to bigger companies trying to edge into the same market. 5) Production Capacity - The existing production capacity of 14,000 scooters per annum will be barley enough to meet the demand in the U.S. market. Trinezza's mode of entry might be severely constrained by the ability to produce the required number of scooters (Apollo Group, Inc, 2004).Opportunities: The opportunities that Trinezza has in international business in Sentonia include: foreign competition and size of middle class (4 million). The foreign competition in Sentonia lacks the better technology which Trinezza possesses, allowing Trinezza to introduce a better motor scooter into the Sentonia market. Trinezza’s better technology will...

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