Description
Solution Pages: 8
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Questions Covered in the Solution
1. Would you recommend Midea to expand into India or Russia? Or into another third market? Why?
2. Which market entry strategy (acquisition, joint venture, Greenfield site, etc.) would you suggest Midea to use for your recommended market? Why?
Sample of Solution
Would you recommend Midea to expand into India or Russia? Or into another third market? Why?
It would be strategically prudent for Midea to consider expanding into new markets. When entering into new markets the primary questions to consider are 1) the size of the market, 2) purchasing power, 3) future economic growth (Johnson & Tellis, 2008). Russia and India both fit for the “One Belt One Road” initiative, and both show a lot of potential for market growth. Considering Russia, it has a huge market appetite for appliances, and specifically for the refrigerators which have spiked up to 30% of total share. Moreover, a bulk of Russia’s home appliances are imported from abroad (about 80%), while the use of appliances is also growing by 15% per annum. However, Midea should consider expanding to India, due to the potential opportunities the market offers which can extend from growing middle class to lower labor costs and integrated government encouragements.
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Would you recommend Midea to expand into India or Russia? Or into another third market? Why?
It would be strategically prudent for Midea to consider expanding into new markets. When entering into new markets the primary questions to consider are 1) the size of the market, 2) purchasing power, 3) future economic growth (Johnson & Tellis, 2008). Russia and India both fit for the “One Belt One Road” initiative, and both show a lot of potential for market growth. Considering Russia, it has a huge market appetite for appliances, and specifically for the refrigerators which have spiked up to 30% of total share. Moreover, a bulk of Russia’s home appliances are imported from abroad (about 80%), while the use of appliances is also growing by 15% per annum. However, Midea should consider expanding to India, due to the potential opportunities the market offers which can extend from growing middle class to lower labor costs and integrated government encouragements.
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