Sterling Marking Products Ing.

1062 Words5 Pages
PROBLEM/ISSUE STATEMENT:

We need to determine whether Sterling possesses the key success factors necessary to expand internationally into the UK. Our analysis will evaluate the feasibility of Sterling's international expansion via exporting, licensing and branching.

SITUATION ANALYSIS:

Market Segmentation (SWOT)

Strengths

-Significantly higher market demand than in Canada (162k-192k vs. 87K)

Weaknesses

-Barriers to entry include, high number of competitors, high exchange rate, high initial capital requirements, cultural differences among sales people (perhaps not as aggressive as in Canada, resulting in lower sales)

-Lack of current Sterling brand identity

-Development of bad reputation

-Lack of die and embosser sub-assembly…show more content…
Sterling will fail to achieve higher production and revenues. Sterling's presence in the UK market would remain extremely low with a total number of Mark Maker units sold equaling 3000. Additionally, Sterling's reputation would continue to be severally damaged as a result of poor die manufacturing by Jordan, which could potentially harm Sterling Mark Maker's brand identity in other parts of the world.

"Exporter"

Important aspect to keep in mind is that under this scenario Sterling is assuming that it will become the sole provider of Mark Makers in the UK. It is irrational to expect to dominate the entire market upon entry. While Sterling would be able to meet UK's demand, it would face some fearce competition especially from UK's top seal producers, which include Jordan and Bolsom, who have very loyal customers. Furthermore, duty, taxes and other regulatory exporting barriers would significantly lower Sterling's potential revenues. On the positive side, Sterling would not be giving up its core competency (computer technology) and the threat of patent duplication resulting in a potential domestic branch failure would not exist. Additionally, Sterling would be able to test the market with its problem without high-risk exposure.

"Licensing"

This option possesses a threat to one of Sterling's core competencies, which is its state of the art computer technology. It would not be in Sterling's best interest
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