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Business & Marketing
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Case Study
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Cycles Devinci’s Expansion to Asia Pacific Business Case Study

Case Study Instructions:

(Write this as a Memo)
Simon Brodeur has hired your consulting firm to lead the assessment of the expansion of Cycles Devinci to Asia Pacific. Your goal: to develop a plan to achieve the objective of 1,000 bikes sold annually in the Asian-Pacific market within three years.
Your memo will summarize your strategic plan. Consider that:
Brodeaur needs a succinct and analytical memorandum (that is, the write-up follows a memo format and not separate answers) of no more than 1,500 words (add the word count at the top of the first page). This is a maximum, not a minimum.
The header and any tables and/or graphs that you include do not count against the word limit. Use 11-point font and 1.5 line spacing.
The memo must center on:
A roadmap to internationalization in Asia Pacific for Cycles Devinci.
Objective support of your arguments.
Apply course concepts and frameworks. For instance, if you assess that a particular characteristic of the firm is a core competence, it should have passed the three tests suggested by Prahalad and Hamel.
Use data whenever possible. For instance, you can use the tables of cross-national distances (https://www(dot)globalscopelab(dot)com/page20.html) to build the CAGE framework. Broadly, you can use any database, such as the World Development Indicators.
Answering the questions,
What are the Asia-Pacific countries that offer the most potential for meeting the objective?
What are the key distances that are likely to drive Devinci’s performance in such countries?
What is (are) the strategy(ies) to manage distances that you advise the firm to apply?
What entry mode(s) should Devinci use? Why? Are you considering the degree of economic integration, such as trade agreements, between Canada and those countries?
Recall that only you can contribute to produce your memo and this will be online checked for plagiarism.

Case Study Sample Content Preview:

Memorandum
Name
Institution
Memorandum
To: Simon Brodeur
From: Alex Smith
Date: March 25, 2020
Subject: Expansion of Cycles Devinci to Asia Pacific
Penetrating the Asia Pacific market will require a well-laid strategic plan to ensure that Cycles Devinci invests in the right market. Cycles Devinci needs to identify the countries with the most potential so that they can achieve the objective of selling 1,000 bikes annually within three years. The factors to consider include the key distances that can drive performance, strategies to manage the distances, and the mode of entry into the selected countries. 
Selling 1,000 bikes annually within three years is not an easy task. This requires focusing on countries with the most potential in terms of income, ease of doing business, and the presence of Devinci’s brand, among other factors. The income per capita has to be put into consideration because the prices of the proposed product lines to be sold in Asia Pacific range from C$3,999 to C$ 10,699 (Plourde & Aspirot, 2019). Also, ease of doing business is an indication of the regulations and other administrative measures put in place to promote or hinder the international business. Devinci should focus their expansion efforts in Australia and Singapore
Australia
Australia is a good choice because first of all, Devinci has a foothold in Melbourne, one of Australia’s largest cities. As revealed by Plourde and Aspirot (2019), Devinci gained international recognition in 2008 following the success of BIXI-type bikes in cities such as Melbourne and London. Their presence in such a city implies that they have an existing relationship with commercial agents and representatives, who can be used to sell and distribute the bikes. In terms of ease of doing business, Australia has been ranked 5th, with a score of 14. It has a score of 3 when it comes to enforcing contracts. This means that Devinci will not have a hard time dealing with administrative issues such as regulations and taxes when doing business in Australia, nor will it have a problem enforcing contracts with the commercial agents and representatives. Australia has an import tariff of 5% on Canadian exports, which means Devinci’s bikes will still be attractive to Australians. Australia also has the highest number of mountain bike races, which provides Devinci with an opportunity to market its bikes and get feedback on their performance during those races (Plourde & Aspirot, 2019). Finally, Devinci has received the highest number of google searches in Australia when compared to its competitors in the region. This indicates a preference for Devinci bikes. Australia does not have the largest population, but the factors mentioned above, especially income levels, making it a potential market, more than some of the countries with high population. Also, Australia has the highest average income per capita of $54, 230 among the fourteen Asia Pacific countries that were under consideration (Plourde & Aspirot, 2019). A high income per capita means that a majority of Australians can purchase the bikes within the C$3,999 to C$ 10,699 ranges. 
Canada has an average income of $48,000 (Statistics Canada, 2020). Thus, the two countries d...
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