An Analysis of the Potential Expansion to Belgium and Germany - Paper Example

Published: 2021-08-15
1799 words
7 pages
15 min to read
Middlebury College
Type of paper: 
Case study
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In the business context, data analysis characterizes the process of inspecting, modelling, cleansing as well as modelling data, with the core objective of discovering beneficial information that suggests conclusions and promotes decision-making. Additionally, there are two methodologies of data analysis. These include qualitative and quantitative data analysis techniques (Morris, 2011; Dwyer & Slyman, 2010). Also, the choice of data analysis technique to be employed depends on the nature and purpose of the data to be analysed (Buglear, 2011). For instance, when making a decision to invest abroad, a data analyst can use both the qualitative and quantitative data analysis techniques. This case study is a data analysis of whether Duque Papetiers should expand its operations to Belgium and France and a discussion of the international standards that apply to Duques activities.

An Analysis of the Potential Expansion to Belgium and Germany

Chart Score Discussion

The score of each pro or con has been offered a score rating of a minimum of 10 points and a maximum of 10 points. The higher the pro or con in the score rating, the higher the impact of that specific factor to the foreign direct investment (FDI) made by the Duque Papetiers Corporation. Additionally, from the analysis, it the pros supporting Duque Papetiers decisions to invest in Belgium and Germany are higher than the cons of the same consideration. This can be evidenced by the score rating of 72 points in contrast to the con ratings of 52 points out of a possible 100 points. Furthermore, the average score rating of both the pros or cons has been attained by diving the total pros/cons with 10, which is the maximum number of the points that can be attained on the score rating scale.

Recommendation of Whether Duque Papetiers Corporation Should Invest in Other Markets or Not

From the data analysis chart, it is evident that Duque Papetiers move to invest in international nations is a wise and beneficial decision. This move can be supported by several reasons. First, the corporation will attain access to new markets where it can sell its products. Up to date, the Duque Papetiers has never sold its products outside France. Nevertheless, Belgium and Germany will provide an additional source of market for the corporation. Subsequently, through investing abroad, the company will be in a position to expands the scale of trading operations as well as the organizational structure.

Furthermore, this will also result in a rapid rate of growth for the organization, due to high sales volume and increased revenue attained as a result of the venturing into the Belgium and Germany markets. Moreover, Duque Papetiers will have a chance for diversification, in the event, it decides to invest its products abroad. In this case, the corporation may decide to acquire new products and services for sale or retain its current products. Also, the company may benefit from the tax relief offered by the governments of Belgium and Germany, which are set up in place to encourage FDI.

Furthermore, by diversifying its trading operations to Belgium and Germany, the Duque Papetiers will benefit from the advantage of resource transfer. This is the volume of purchasing power that the buyers in the foreign country provide within a defined period. In this case, Duque Papetiers might profit from elevated demands for their products in the foreign nation, which might arise due to the temporary shortage of substitute products in such nations. Consequently, this will also enable the Duque Papetiers Corporation to benefit from an increased level of income because of their ability to retail surplus products to the Belgium and Germany markets.

Also, the decision of Duque Papetiers to invest in Belgium and Germany will also benefit the corporation by increasing its disparities between revenues and costs. This is an important goal of every profit generating business organization. In this case, the corporation can benefit from the increased revenues attained from selling its surplus products to the Belgium and Germany markets. Subsequently, by selling in the foreign nations, the organization will be in a position to reduce its costs associated with storing surplus products in its France warehouses. Moreover, Duque Papetiers will also be in a position to minimize the costs associated with securing labour in France, due to access to a cheaper human resource in the foreign nations.

Ultimately, the Duque Papetiers will also benefit from the increased sales due to the elevated purchasing power of the targeted consumes in the German market. This is because of the high GDP of the nation, as well as the improved economic status of most person in Germany. This phenomenon has can be supported by the charts outlined below.


Promotion Methods Analysis

In promoting its products in the foreign markets, Duque Papetiers will be better off by using the contemporary digital promotion strategies to market its products. This is compared to using traditional promotion strategies, which have been used by most corporations for years, like newspaper, television, radio, newsletters, flyers, and billboards. In this case, one of the most effective digital promotion strategy that should be employed by the Duque Papetiers entails the use of social media platforms for advertising. Moreover, there are several reasons why social media advertising will be the most effective promotion method.

First, it is an inexpensive method of advertising a corporations products. This is because unlike in other traditional methods of advertising like radio, it is free to join multiple social media platforms. Additionally, through social media, it will be possible to contact a wider target customers population in the foreign market. This is because unlike other mediums of traditional advertising like radio, it is possible to incorporate aspects of age, gender, pictures, language and other customers preferences in the advertisement. Consequently, this means that the advertisement can be structured to fit a defined customers demographic.

Sales Promotion Analysis

Sales promotion characterizes a single level form of marketing that is focused either on the consumers to distribution levels. In most cases, sales promotion entails the use of sales-incentives such as the offering of gifts, vouchers and free samples after sale among others. In this case, the use of sales promotion techniques will aid the Duque Papetiers Corporation in introducing its products in the foreign nations. It will also aid in clearing out the corporations inventories in the Belgium and Germany markets and also improve customers traffic.

Nevertheless, the primary sales promotion technique that will be employed by the Duque Papetiers will entail the usage of emails with discount codes. In this case, thousands of emails on the targeted Belgium and Germany markets will be collected from public social media platforms, as well as from online and local contact directories. Additionally, this method will be effective for sales promotion because it will be a simple and very inexpensive method of sales promotion. Furthermore, it will be possible for Duque Papetiers to reach a large number of the targeted customers in a short period.

Also, the use of email voucher codes for sales promotion will encourage more customers to purchase products from the Duque Papetiers as a highly effective method of saving on their purchases. Also, through the usage of email vouchers, the Duque Papetiers personnel involved in the promotion will be in a position to offer additional information pertaining the products retailed by the corporation in the target market. For instance, the email with the voucher code can be accompanied by pictorial advertisements of all the range of products retailed by the Duque Papetiers Corporation.

Direct Marketing Analysis

The use of direct marketing will also aid the Duque Papetiers to promote its sales in the new foreign markets. Direct marketing is a form of advertising whereby business organizations have a direct contact with the customers through a range of media sources (Mullin, 2002). Additionally, the examples of such media forms include cell and mobile phones text messaging, emails, websites, and catalogues among others. Moreover, there are four primary reasons why direct marketing will be beneficial for the Duque Papetiers.

First, through direct marketing in the Belgium and Germany markets, the corporation will be able to foster good relationships with its target customers. This will be important for the organization because it will result in the attainment of loyal customers. Second, through direct marketing, it is possible to test the appeal of a business products or services to the targeted customers (Keilhacker, 2000). In this case, Duque Papetiers will be able to know the satisfaction levels of the customers with their products.

Third, direct marketing will enable Duque Papetiers to increase their sales in the new markets. This is through the use of personal selling skills by the organizations sales personnel, so as to convince potential buyers to purchase the organizations products. Lastly, through direct marketing, the Duque Papetiers marketing personnel will be in a position to offer the targeted customers detailed information pertaining the usage of the products. Subsequently, the involved customers will be able to share the same information with other potential customers and in the process promote the sales for the Duque Papetiers Corporation.

SWOT Analysis

Strengths Opportunities

Duque Papetiers will attain diversification in their investments.

It will help Duque Papetiers to expand on an international scale, which also means added profits.

It will enable organization to diversify its risks in terms of investments

It will aid Duque Papetiers to added more profits from the sale of their products in better markets that are situated abroad. The company might enjoy reduced taxes on its products in the international markets.

Duque Papetiers will access cheaper human resource to work on its FDI in the international market.

Weaknesses Threats

Duque Papetiers have a poor market knowledge of the international markets, in terms of the tastes fashions as well as preferences of the customers.

The business might face intense competition from foreign corporations that are already operating in the Belgium and Germany markets.

Duque Papetiers may face stiff legislation that may be enforced by foreign nations on its FDI, such as high taxations.

From the above SWOT analysis of Duque Papetiers in its efforts to operate in the foreign market, it is evident that it will be successful in launching its business. Additionally, this is because it has more strengths that will enable the entity to perform excellently in the Belgium and German markets. This in comparison to its weaknesses, opportunities as well as threats it stands to face in the same markets. In this case, the corporation will be able to diversify or enlarge its business and attain added profits from the increased sales in the foreign markets. Also, the Duque Papetiers will be in a position to diversify its risk and not succumb to any unfavourable occurrences that may take place in the market. Lastly, better prices for the Duque Papetiers products in the Belgium and German markets will also promote the growth of the cor...

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