Contents
Concha y Toro 2
Mobile phones company 3
Soup company 4
Electric appliance company 5
Financial Information about industries 6
References 7
Concha y Toro
The company is resident to Chile and is one of the largest producers of the wine in the country. The country produces majority of its wine in Chile and surrounding Latin American nations. The strategy behind this production is that the company markets itself as the producer of wine produced in that region. Also it is familiar with the environment conditions and the technology used in the South American region. The company has maintained its focus on production in the South American region in order to maintain economies of scale and scope. The company profits from the efficient production process, its local and fixed workers, and the more or less fixed technology. The company focuses its attention towards the expansion in terms of export rather than production in other regions (“Investor Relations,” 2013).
This allows the company to not deviate much from its standard procedures of production. On the other hand it also allows the company to not have much different policies in terms of production of wine. The political nature and the laws in South America are similar in nature. F the company goes on to produce in different regions then it will have to invest in the different polices of different nations, which may require large amount of investment. In addition it is a high risk process which may not be successful resulting in loss of investment. On the other hand it will have to train local personnel according to its production needs which may not be economical for the company (“Investor Relations,” 2013).
The company produces wine is South America and exports it to different regions all over the world. The strategy behind this is that the local produce of food and other commodities which are specialty of the company are going sell at much lesser prices in their native region. The company being native to South America and it being a region which is supportive to the production of wine in terms of geography, weather, and culture. The price and the value of produce of the company are much less in the native region of Chile than in other parts of the world, where wine production is not native to the region. The amount of revenue which the company can garner from outside Chile is much more than which it can collect from Chile (“Investor Relations,” 2013).
The major factor is that there is high level of competition within the South American market for the sale of wine. This is due to it being a native product. The company will have to produce something new or have to be on its toes in order to make the sales going on increasing. In this case when the company shifts its focus abroad it is able o garner revenues from regions which do not produce in large quantities. The price of the product is high and the value is more. On the other hand competition is more or less non-existent. The company also does not have to be on its toes to improve or change its product, in order to increase its sales (“Investor Relations,” 2013).
Mobile phones company
In the case of the multinational firm being a mobile phone company, a transnational strategy will be more effective in order to promote the sales and effectively manage the operations of the business. A mobile phones multinational company’s products have the following characteristics:
The mobile phone products are more or less based on a specific set of technologies. Irrespective of the region of the mobile phone the base technologies of the company remain more or less same. It may happen that the technology or product which has become obsolete in one market may still be in demand in another market. Or it may happen that the company launches one product in one specific market or nation to gauge its response and performance and expand to
