Strategic Plan: Developing global competitiveness
You have been called to advise a large New Zealand Agri-tech manufacturer Agrigiant whose key products include electric fences, harvesters, and pumps. Since the last three years, this firm has lost its market share due to increased competition from domestic and foreign players in its current markets i.e. New Zealand, Australia, North America, and the UK.
Explain to the CEO where the firm needs to further internationalize/ or de-internationalize its operations to improve its competitiveness.
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Explain how the firm should manage the risks associated with the recommended internationalization activities below.
Exporting to psychically distant markets such as India, China, Russia, Brazil, Chile, Eastern Europe, and the Middle East despite the related risks
Offshoring of manufacturing/services/innovation activities to low-cost economies of China, Vietnam, Philippines, and India.
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