Assignment 2: Global Strategy Analysis—Choice of Country/Region to Internationalize Operations
phyllis young
Global Strategic Analysis
Student's Name
Institution
Country | Attractiveness | Importance in global market place | Possible synergies with current operations |
| ||||||
| Size of Market | Growth rate of market | Labor costs | Barriers to entry | Competitive situation | Political/social risks | Home market of global customers and/or competitors | Home of most demanding customers | Local partners that would share operations | |
China | 10% | 25% | 20% | 5% | 6% | 2% | 10% | 15% | 15% | |
Japan | 15% | 6% | 4% | 10% | 15% | 15% | 10% | 13% | 12% | |
Mexico | 10% | 12% | 18% | 10% | 5% | 8% | 15% | 5% |
| |
Israel | 15% | 10% | 10% | 12% | 13% | 17% | 10% | 5% | 8% | |
South Africa | 20% | 15% | 10% | 10% | 5% | 5% | 15% | 10% | 20% | |
Egypt | 14% | 13% | 12% | 10% | 10% | 5% | 10% | 12% | 24% | |
Brazil | 20% | 10% | 15% | 3% | 18% | 10% | 15% | 15% | 4% | |
Kenya | 10% | 10% | 10% | 5% | 20% | 15% | 15% | 6% | 9% | |
From the analysis of the chart, it is clear that the country that is good to invest in is Israel. It is so because of the fundamental reasons such as the political risks that are associated with investing there; it is true that there are many times when Israel has been at war with some other countries. This, however, does not hinder the fact that it has a stable political system which is ideal for the operations of the company. Israel also has policies that support and encourage foreign investments into the country ( Plessner,1994).
Their taxation system is seen as very fair. The amount of local customers is however not as high as expected; this means that the company will have to export most of the products to the neighboring nations since Israel enjoys a good relationship with many countries in the world. The cost of labor in Israel is also not as high as when compared to other nations. They also have a minimum wage requirement which is not as high as other nations. Being one of the strongest nations, Israel has very stable economy which has overtime shown to be growing steadily irrespective of the condition that Israel is in at that time (Hever, 2010).
The company should therefor look into such factors and invest much in Israel. The amount of competition that the company is likely to face is very low in Israel because there are only few companies that produce the same products as the firm (Rivlin 1992). Competition is however very healthy since the government has done its best to regulate all the sectors of the economy. These are some of the sole reasons that makes Israel to be the ideal place for the expansion of the operations of the company.
Reference
Plessner, Y. (1994). The political economy of Israel: From ideology to stagnation. Albany: State University of New York Press.
Hever, S. (2010). The political economy's occupation of Israel: Repression beyond exploitation. London: Pluto.
Rivlin, P. (1992). The Israeli economy. Boulder u.a: Westview Press.
10 years ago
