Quality Kraft Carpets Ltd is a British company specialising in good quality woven Axminister carpets. It was founded in 1989 by William Jackson and John Turner. The company has not got high production capacity and they prefer to sale their products the contract customers such as hotels, restaurants, offices, large stores and loyal customers. After the changing market conditions they decided to enter foreign markets. However they hadn't got any experience in international business.
In this assignment, first it will be generally discussed how Quality Kraft Carpets can enter the US market and which strategies it should be choose. Second, it will be tried to answer the question "after the initial success in the US Market what would need to be made to realize business in the Middle East and in Japan?" Finally, it will be given recommendations further market media.
2.Short/Medium/Long Term Issues
2.1 Short-Term Issue
The company doesn't want to venture too much money in the new market.
In the short term strategy, the company needs to get experience in the market which might be helpful to obtain the target market's size structure, behaviour and profit goals sought in the first few years.
2.2 Medium-Term Issue
The company should obtain their marketing budget and try to enhance their market share.
2.3 Long-Term Issue
The company should commit more resources to get stronger in the market and describe long-run sales and profit goals.
3. Representation Issues
Once a company decide to target a particular country, it has to determine the best mode of entry. Its broad choices are indirect exporting, direct exporting licensing, joint ventures and direct investment. Each succeeding strategy involves more commitment, risk, control and profit potential.
According to the P. Kotler, indirect export has two advantages. First, it involves less investment; the firm...