Global Business Strategies Assignment: Electronix Expansion, Market Entry Modes and Blockchain Supply Chain (European Business University), Singapore

This Global Business Strategies assignment follows Electronix, a domestic appliance maker planning its first move into a neighbouring country. You analyse the factors behind the investment decision, the supply chain technology it could use, and the entry mode it is using compared with the alternatives.

Case Study: Electronix

Electronix makes refrigerators, microwaves, ovens, toasters, washing machines, hairdryers and electric toothbrushes, sold through local department stores, supermarkets and appliance retailers. After 12 years of strong domestic growth built on quality, affordable prices and after-sales service, it wants to enter a neighbouring country with a fast-growing middle class and rising home ownership. Some of its retail partners already have branches there, but new contracts must be negotiated and other retailers approached. It is also considering an e-commerce website as a back-up channel, which means working out export documents and payment methods. More products must be adapted to local preferences, so it needs more raw material suppliers and changes to inventory and production processes.

Questions

1. What are the main macroeconomic and microeconomic factors Electronix must consider and analyse before this large-scale investment? Explain each factor and why it is relevant to Electronix. [10]
2. Following its expansion plan, how can Electronix use blockchain technology and other modern supply chain technologies to run its new supply chain? [10]
3. Which entry mode is Electronix currently using, and what are its implications for the company? What other entry modes could Electronix consider to enter the neighbouring market?