Case Study # 4: Foreign Markets Entry Decision for a Singaporean Firm What is the nature of...

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Operations Management

Case Study # 4: Foreign Markets Entry Decision for aSingaporean Firm

What is the nature of the product: brand new high technologyconsisting of a computerized CAD system. The CAD system that thiscompany wants to promote in Pakistan consists of two major parts:the hardware which is a sophisticated weaving machine, and thesoftware that designs the carpets and runs the weaving machine. Howimportant is it to protect patents and the technology from beingcopied illegally? How important is the firm's intellectualproperty? How do transportation costs affect your decision?

2. Where is it being manufactured now: Singapore. What is thelevel of manufacturing sophistication in this country when comparedwith the target country?

3. What is the nature of the target market: What are therelative business barriers in the two countries? Demand? Economicdevelopment? Legal system for resolving disputes? Patent protectionlaws or enforcement of the law? Availability of skilled engineersand workers? Availability of suitable agents or partners?

The consideration of the above factors will allow you toproduce an excellent report for Ms. Chang.

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4.4 Ratings (891 Votes)

Let us evaluate each of the three alternatives available to Ms Chang to understand and make a wellthoughtout and informed choice 1 If company exports to Pakistan from Singapore In this case the company keeps its current manufacturing facility in Singapore intact and then transports CADs to Pakistan Following Pros and Cons are likely to be observed in such a case Pros Singapore is a fairly developed country with strong business law framework and stable business friendly environment It has well defined labor laws low taxation which can be an added advantage With an already existing unit company doesnt need to incur any additional capital expenditure in set up of new facility and would have a stable manufacturing base The technical prowess needed in a highly specialised product like this needs high technology and skilled labour Singapore offers much better See Answer

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