International Expansion

Essay by jpgildeaUniversity, Bachelor'sB+, August 2008

download word file, 6 pages 5.0

China's pet population has grown by a remarkable 20% in five years (Zhuang, 2005). Pet Accessories has been highly successful in the United States. Pets Accessories is expanding into the world market. Pet Accessories has China at the top of its list of countries to expand its customer base. Pet Accessories provides online shopping. In addition, we offer veterinary services at store locations or at the customer location. International expansion can be risky. In this paper we will discuss the impact of global current events, region analysis, Country analysis, and organization and products analysis.

Global EventsThe current world scene has an effect on the local economies and therefore the success of an international launch. "The arms talks - which include China, Japan, Russia, the U.S. and the two Koreas - began Wednesday with an infusion of optimism after North Korea shut down its reactor Saturday"(Associated Press, 2007). This is very important to keeping relations open between the United States and China and supporting a plan to open a business in China.

The US dollar has a strong effect of other currencies. Unfortunately, Mr. Greenspan stated in an interview recently "We're heading towards a slowdown. Whether that actually leads to a recession is dependent on things we can't forecast at this moment ..." (Reuters, 2007). The world will be watching since the dollar is already weak. This weakened dollar could cause costs to rise for US based companies due to the increased exchange rates. The war in Iraq has not helped the US dollar and the threat of terrorism is always a concern. Rumors state the US will be pulling troops out of Iraq and the US will have a diminished presence there. The Al-Qaeda group and Pakistan are now engaging one another. This embattlement and the wars in Iraq and...