A New Innovative Product - Creoqode

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Question 4:

There is one solution that combats both potential challenges 2048 will face. Mergers and Acquisition. Mergers and acquisitions is a strategy dealing with purchasing and/or joining with other companies. In a merger, two organizations join forces to become a new business, usually with a new name. It allows Creoqode to enter the market without resistance and also gain valuable strategic assets like brand loyalty, customer relationships, trademarks or patents, distribution systems, production systems, etc.

The business would not technically become local and the calls for consumers to invest in more local products would aid them. In fact, the move to become subsidized may now work in Creoqode’s favor as they would now monopolize the market and go on to trade throughout the Caribbean through Trinidad

Question 5:

There are six different types of entry strategies. The one least appropriate for the 2048 would be Franchising. Franchising is a specialized form of licensing in which the franchiser not only

sells intangible property to the franchisee, but also insists that the franchisee agree to abide by strict rules as to how it does business. Franchises are generally for service companies and the 2048 is a single tangible product and Creoqode is product based company.

Secondly, Creoqode would prefer the 2048 be sold in every electronic store and not specifically at one type of store. Most franchises have a variety of products and the 2048 is the sole product so far that is trying to enter the Trinidad market. Franchising may only become applicable later on if the product is highly successful and Creoqode releases more products to the market,

Question 6:

The most appropriate entry strategy for 2048 would joint venture. A joint venture entails establishing a firm that is jointly owned by two or more otherwise independent firms. Starting a joint venture with Lateral would be the most appropriate strategy. They would benefit from Lateral’s knowledge of the Trinidad’s competitive conditions, culture, language, political systems, and business systems. Creoqode would supply the technological know-how and resources whilst Lateral provides marketing expertise from a local standpoint.

Also, having a joint venture with Lateral would allow Creoqode to face a lower risk of nationalization of other government interference. Nationalization is the process of transforming private assets into public assets by bringing them under the public ownership of a national government or state.

References

Hill, C. W. (2015). International business: Competing in the Global Marketplace

Wild, J. and Wild, K. (2014). International Business: The Challenges of Globalization.

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