How A Small Watch Company With A New Technology Essay
There are over 23 million small businesses in America, which make up 54% of U.S. sales (NSBA, 2013). With these staggering numbers, small businesses in America are rather successful. The next step to that success is to internationalize. Currently, only 63% of small businesses export internationally and among those who do participate in foreign markets, 27% of those exports go to Canada (2013). These small businesses had to start somewhere to go international. This paper will discuss how a small watch company with a new technology can expand globally. In the scenario, two emerging markets will be identified that the small firm will target, including a overview of those countries’ markets, demand for this product, legal and political environment, and reasons for selecting these countries as places to start the internationalization process. In addition, two approaches to internationalization will be discussed along with an explanation of the risks and benefits of each strategy in each country. Lastly, a clear and succinct recommendation will be provided for the firm in which approach to take.
Overview of the firm Copper Tech is a relatively new start-up company based in Silicon Valley, CA that specializes in watches and LCD screens. The company decided to venture into combining the two known technologies into a very unique product called the Wrist-Reader. This product serves as a wristwatch that consumers wear on their wrists in which the screen…