Global Marketing Research Case Study Analysis
When deciding if a company should expand business into a global market, it is important to conduct market research. Global market research gathers and collects data and information and identifies possible issues that an organization may face. Conducting market research is a positive step to begin a globalized marketing strategy.
Sperry/MacLennan Architects and Planners
David Aaker, V Kumar, and George Day (2007) present a case study about an architectural organization that concentrates in recreational facilities, Sperry/MacLennan Architects and Planners (S/M). The company was founded in 1972, and grew quickly with the enlarging economy. The organization provides a “local market presence and meet[s] licensing requirements” (p. 72). Unfortunately, the growth the company was experience began to decline, and resulted with a change of direction. Sperry/MacLennan began to focus on providing innovative recreational facilities and partnered with Creative Aquatics becoming successful and receiving several awards.
Sperry/MacLennan Architects and Planners have had great success in recreational facilities that are geared towards summer activities. However, with the winter months coming up soon, the company is starting to face backslide in business. The junior partner, Mitch Brooks, is developing a plan to export the company’s services to combat the arising issue of declining business. The company is considering developing educational athletic facilities and believes there is an opportunity to undertake available in the New England market, and has a projected goal that designing two sports facilities annually will compensate for lost business and bring in new business prospects. However, Mitch Brooks has conflicting information that expresses similar geographically close and physically close markets may not be a wise business venture in obtaining long term profitable goals (Aaker, 2007, p. 72-74).
Identifying and Addressing Key Issues
In order for Sperry/MacLennan Architects and Planners to successfully globalize business operations, there are several key issues to be considered and addressed before continuing with the expansion.
Long Term Goals
Sperry/MacLennan needs to determine if the company wants to focus on long term goals. If the organization is concerned with maintaining sales and operations in a long term aspect, then exporting business into New England is not the ideal market to globalize based upon the information depicted in a seminar that Mitch Brooks attended. The seminar extended evidence that “geographically close market, or even that most psychically close one, may not be the best choice for long-run profit maximization and/or market share” (Aaker, 2007, p. 74).
The issue of long term goals not being met when globalizing business into New England can be solved by deciding upon a new location. The organization can still globalize business into different...