Case Study on Play it Safe at Home, or Take a Risk Abroad?

Q. 1: Should Coe Expand internationally? IS MEXICO that best place for Expansion?

            It is important for every business organization to look for its options. If Coe’s overall situation is looked into in this case, it is evident that they should go for international expansion as it is important for them in so many ways. When there is an opportunity to grab, then they should go for it, and become first movers to take advantage, rather allowing anyone else to get that advantage. There are some advantages related to this act such as:

·         It will allow them to increase their overall share in the market and earn more profits.

·         This move will allow them to make a strong customer base by building a great brand name, which makes life difficult for competitors to come in the future.

·         Customers could be owners by just completing their lease for a specific project.

Other than the benefits, there must be consideration of some negative points as they should also know that moving first in any market can also be a difficult thing, and it may bounce back in terms of strategy. They should do a lot of research & development before going for this, otherwise, this decision can prove to be a devastating one for their business. The case has also mentioned details regarding the Mexican customers buying their products, so it gives a clear indication that their best choice for expansion in Mexico. It shows that Mexican people do like such kind of products out of their country, so they may also suggest their family & friends back in Mexico to try Coe brand on the basis of their personal experience in the United States. So, expansion with some thought and planning in Mexico is the way to go for them.

Q. 2: Do you expect Coe's to have to adapt its successful model in another country?

            It is vital to understand that when a business model is being expanded to any other region, then things can get difficult due to a variety of reasons. A culture of another country may not expect the business model along with some specifications of the brand, so it may get failed. If Coe’s model is analyzed in the context of the United States, while being applied to the Mexican market, then it can be said that both cultures have various kind of similarities. So, their current business model can easily be adapted in Mexico, which may also get a great response from the Mexican market. However, this will not remain the same for various other international destinations, because every country has so many particular elements to be looked at. So, it is critical for the policymakers to understand that when they develop a business model and strategy for any country, they should know whether the current business model can work there, or it will need a lot of changes so that it can be accepted.

Q. 3: Suppose you were in charge of the company what would you do differently or what would you do next?

            If I am in charge of the company, and I have a decision power to make for Coe, then I would have looked for several options. I believe that a company should look at a variety of options before choosing the best one for them. If you just focus on one option with its pros and cons, then you may miss various other opportunities waiting for you. So, I would have first gone for the expansion option in the United States. I believe that when a company is doing well in a market, and there are markets to be covered, then the best option is to first become stronger in that country. So, my choice would have been expanded across the United States. Once the business would have great sales, revenues, profits, as well as, brand name in the U.S, then I would have thought to go for any other country. When I would have a great brand name in the U.S with enough financial resources, then I would have taken the risk of international expansion, because every company should know that if opportunities are there, then various great risks are also there.