Internationalization Strategies

A Recommendation for Brighton Mobile TV to Internationalize by Relocating Production to China





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TO: The Chief Executive OfficerBrighton Mobile TV
DATE: March 24, 2016.
SUBJECT: Internationalization of Brighton Mobile TV.
A Recommendation for Brighton Mobile TV to Internationalize by Relocating Production to China

  1. Reasons for moving production
The TV manufacturing business in the UK has become increasingly competitive with the entry into the market of competitors whose production is based emerging markets. The reason for their competitiveness is because they are more cost effective in their production process and hence are able to offer their products at a competitive price to the consumer.
For Brighton Mobile TV,a relocation to an emerging market would reduce labour costs because of the availability of a large pool of skilled workers who can be hired at cheaper costs (Wild and Wild, 2014). Most emerging marketsare also characterized by a rapidly growing population. This large population presents a chance to increase the market share of Brighton Mobile TV as well as providing labour at cheaper costs than in the UK. Another reason this move would be viable way of improving the cost advantages is the availability of cheap raw materials in emerging markets (MOTTALEB & KALIRAJAN, 2014).
  2. Benefits of internationalization
Internationalization is when a firm is able to expand its operations such that they transverse national borders. It involves entry into new markets and for this, I propose that we seek a local partner that is already familiar with the dynamics of the targetmarket and as the business shows positive signs of expansion, we then could become more involved in a directly controlled subsidiary. There are a couple of reasons why internationalization would be beneficial to our firm and they include;
  * Both short term and long term...