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International Business Strategy – Damro Private Limited


International Business Strategy – Damro Private Limited

Word Counts 3555


The assignment requires students to critically analyse through the application of relevant international business tools and frameworks the process that companies go through in analysing; entering and engaging with foreign markets together with any potential risks or opportunities involved.

You are required to:
1. Select a business organisation of your choice that is already involved in a foreign market or is contemplating on entering a foreign market.
2. Critically evaluate through the use of relevant business tools and frameworks the suitability of the foreign market selected. – Opportunities
3. Analyse potential risks in the foreign market selected. – Threats, Challenges
4. Critically analyse the mode of entry to be utilised by the chosen company to suitably realise the opportunities available and overcome the risks in the foreign market selected.
5. Critically analyse relevant management responses that should be undertaken by the selected company to realise the opportunities offered in the market selected (including the management of its human resources; operational function; marketing and cross-cultural issues). Please suggest practical and justified recommendations about how the company selected can achieve competitive advantage in the market selected.

Additional information

Table of Contents

1. Introduction
1.1. Background
1.2. Scope
1.3. Purpose

2. Product Readiness for Internationalization

3. Host Country Market Analysis
3.1. Macro Environment Analysis – PESTLE
3.2. Competition Analysis – Porter’s Five Forces
3.3. Cultural Analysis – Hofstede’s Model

4. Risks Identified

5. Entry Mode

6. Opportunities & Recommendations
6.1. Internationalization
6.2. Operational Strategy
6.3. HR Strategy
6.4. Marketing Strategy

7. Conclusion

8. References


Executive Summary

Damro is a well-known furniture and electronic manufacturing company located in Sri Lanka. They have already made their international presence by entering into Indian market and successfully establishing more than 100 showrooms. This report is focused on further expansion by starting their operations within Bangladesh as well.
When considering the macro environment of Bangladesh, the country is facing with political issues which have led to economic issues. However, the situation is now controlled with the help of IMF and the country is now redeveloping and inviting foreign investors to invest in Bangladesh. This is identified as a great opportunity for Damro to setup their operations within Bangladesh, where the company will be able to get Tax concessions as well as many other benefits provided by the Bangladesh government to the investors who invest.
The market competition for the furniture industry is high within the country. Further the cultural background of the country is also in line with the Southern Asian countries and it poses benefit for Damro to start and operate within Bangladesh. For the risks identified which are caused by the political and economic background, market competition and cultural factors, the best suited entry mode is selected as establishing factory complex within Bangladesh and manufacturing abroad. Damro will gain cost benefits, tax benefits, brand recognition since its products are made in Bangladesh if they follow that entry mode. Finally, the recommendations on the operations, HR and marketing strategy will help Damro to establish a firm strategy which will lead them towards their success.

1. Introduction
1.1. Background
The company chosen for this assignment is Damro Private Limited. Damro is a Sri Lankan build brand which is specialized in manufacturing and distributing MDF made furniture and their own branded “Damro” and “Innovex” household electronic equipment. Established in 1986, the company became one of the largest furniture manufacturers in Sri Lanka and has more than 180 showrooms island wide. Further the company has made their presence in international market by opening up branches around India. Damro brand is well known for the quality of their furniture items and electric equipment offered and the level of aftercare service provided. (Damro, 2022)
1.2. Scope
The scope of this report is to introduce Damro products to a new foreign market. The country chosen for this activity of “Bangladesh”. The report will analyze the market and environment conditions in Bangladesh and will provide recommendations to Damro in focusing their strategy on the current situation and overcoming the possible risks of expansion.
1.3. Purpose
The purpose of this report is to provide Damro a flawless strategy to launch their products in Bangladesh and capture the market, where Damro will be able to earn good profits as well as expand their global presence.

2. Product Readiness for Internationalization

Damro has been one of the successful local brands which were able to become successful and capture the local market just within few years. The company started their operations by offering MDF based wooden office furniture for the Sri Lankan market. The quality offered together with the aftersales services offered quickly captured the market, resulting in a high demand made for the products. Subsequently Damro began to offer MDF based wooden and plastic furniture for households as well. Further the started their own brand names on electronic equipment as Damro and Innovex, which also became instant customer favorites.
In order to widen their reach, Damro opened up 180 branches within Sri Lanka which covered every geographic location and every main city in the country. To facilitate the market demand, they opened few factory complexes which were specialized in manufacturing the furniture as well as assembling the electronic equipment. (Damro, 2022)