The Competitive Global Context

Introduction To Business operations

In the present competitive era, organizations carry their business operations from their home country to abroad in order to expand their trade and enlarge their market share. The long windy path of evolution was traversed by prefabricated housing sector. This sector highly contributes to the revenues of housing industry (Vaidya, 2009). In this regard, present report is prepared to analyze the benefits to Super Homes regarding venturing abroad. In addition to this, methods that can be utilized by Richard for trading in Asian markets have been evaluated. Here in the report, alternative marketing strategies that can be used by Super Homes for venturing abroad and the factors which need to be considered by Richard while selecting the market strategy are also discussed.


Venturing abroad is the process of expanding business operations in the international market. Super Homes sells high quality prefabricated houses in the UK and they have the opportunity to expand their business in Asia. In the modern era, people are highly attracted towards prefabricated homes as these houses are fully furnished and are available in low cost. The conventional homes are expensive to be maintained where as maintenance of prefabricated homes is less costly (Lymbersky, 2008). These houses are highly energy efficient as well as eco-friendly and therefore people are immensely attracted towards these homes which provide opportunity to Super Homes to expand their venture in Asia. There are various benefits available to Super Homes of venturing abroad and some of them are as follows:

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Increase capacity and quality: Going abroad will assist Super Homes to enlarge their market share and will increase their capacity by enabling economies of scale. International business operations provide greater access to resources such as technology and staff that will enhance the capabilities of the firm which will lead to the development of high quality prefabricated houses. This will provide opportunity to the organization to obtain new expertise as well as technological knowledge that will allow them to enter into new market. The exposure to foreign competition will encourage organization to increase their efficiency. In order to gain competitive advantage, expanding in overseas market will allow the company to improve the quality of their homes (Erikson, 2009).

Diversify the risk: When organizations perform their business in one country, then they rely on a single market and all the transactions take place in one currency which is highly risky. Expansion of business in the Asian market will assist Super Homes to diversify their risk by relying on different currencies and resources. Extending its roots abroad will help the organization to reduce the reliance on domestic market and thereby overcome the risk.

Technology advantages: Technological advancement in the Asian countries will help Super Homes to increase their ability of development of high-quality prefabricated houses. It will also aid them in minimizing the cost of production and will generate greater revenue. Organization has the opportunity to gain technological advantages that will help to attract customers and to successfully survive in the competitive business environment (Birley and Macmillan, 2002).

Earning foreign exchange: Expansion of business operations from UK to Asia will help to enhance the production and will increase foreign exchange earnings that can be used by organization for further development of prefabricated houses. This will help Super Homes to enlarge their market share by higher level of production. Entering in Asia will assist the corporation in increasing the number of potential customers which will lead to higher revenue and will enhance the foreign exchange earnings.

New business opportunities: Expanding overseas will provide various business opportunities to Super Homes as it will assist in proper use of resources. It will also provide opportunity to the company in productively utilizing resources like materials, labor etc. Global expansion of venture in Asia will provide highly skilled, qualified human resources that can help to successfully expand the business in new market. This will provide opportunity for growth, expansion and income. Venturing abroad will provide bigger market which implies increased revenue and more customers and also will allow business to realize the economies of scales (Ronakainen and Czinkota, 2002).

The expansion of venture into Asia will significantly increase the number of potential clients as well as suppliers. In addition to this, there will be less competition and Super Homes can progress quickly to capture the market share. It will also assist the organization to attract customers by offering high quality of homes. Global business operations will also provide good prospects of learning new ways of doing things. The company can apply this knowledge and capacity in another market (Tielmann, 2010). Venturing abroad will increase the revenue growth of firm and will help it to successfully survive into market. This will also enable the firm to source the labor, raw material or other resources at lower cost. Knowledge gained by company through global business will help to serve well and will also provide new insights about the domestic as well as international market. This will decrease the cost of production and will offset the cost of exporting. It will also assist the firm in increasing their reputation among the customers of UK as well as Asia which results in employee motivation.


In order to sell prefabricated houses, Richard Hadland, the marketing director of Super homes has been using various methods. They have their retail outlets in order to sell their homes. Organization provides detailed information to their potential clients about the houses which they are going to sell at their retail outlets. This helps them to solve the issues of their customers and to gain their trust.
The company also uses internet for selling the houses under which they show the images of homes on their website. They offer high quality of homes which highly attracts customers and encourage them to go ahead and purchase the same. Online selling plays a significant role in the sale of homes manufactured by Super Homes (Nance-Nash, 2013). It provides opportunity to attract large number of people and to increase sales which leads to revenue generation. In the present era, most of the organizations use online selling as it helps to gain attention of large number of people. It is a highly cost effective method.

They also use personal selling in order to sell their homes as it helps them in development of healthy relationship with clients. Personal selling is one of the most effective methods in which sales personnel effectively influence the potential clients to buy the homes developed by them. This method assists them to gain commitment of customers and increase the sales of organization. The employees of firm solve the issues of buyers on the spot which helps to make sales faster (Sashi and Karuppur, 2002).

In addition to this, Super Homes uses agencies for selling of house. These agencies are aware about the expectations of potential customers which help them to sell the houses of the firm. They use sole agencies as they have detailed information about the market trends which assist them to increase sales of company and to generate revenue.

Apart from above selling methods, Super Homes sell their houses to builders in order to increase their revenue. Builders have knowledge about the potential clients and their expectations are directly connected with them. This method helps them to increase their sales in the competitive business environment and to achieve success.

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These are the different methods of selling that are used by Super Homes in their country. Richard Hadland can utilize some techniques from the above discussed methods of selling while they carry out their operations into Asia. They can use online selling as this will be highly effective method to communicate with large number of population and to gain their attention (Frankel, 2011). Firm can show attractive videos and images of the houses sale by them as this will assist them to gain attention of potential clients. It will be a cost effective revenue generation technique which will increase the sales of the organization. This will increase the selling opportunities and will result in savings the operational and set up cost. In the modern era, most of the people are using internet in order to make purchases and therefore online selling will be helpful for Super Homes to expand their business in Asia. This method will assist the firm to gain competitive advantage in new market and to achieve success in the changing business environment (Buckley, 2002).

Super Homes can also open their retail outlets in Asia for selling homes. This will help them to directly communicate with customers and to solve their issues regarding buying of homes. It will assist in development of healthy relationship with customers and will also increase the number of buyers for firm. This will also be an effective method for selling homes in new market. It will provide an opportunity to meet the expectations of people and to gain their loyalty. The use of this method will assist them to increase their customer reach and will enhance the potential clients for firm (Brady, 2010).

Apart from above methods, organization can use agency for selling their constructions. Super Homes is expanding their venture into Asia and this will be large market for organization and hence the use of agency will assist them to increase their sales. Firm will be less aware about the movement of new market and therefore use of agency will provide detailed information about market trends, technological advancements and the expectations of customers. This method will help in expansion of venture into Asia and will increase the foreign exchange earnings than can be used for further business expansion. Hence, Super Homes can utilize online selling, selling through retail outlets and selling through agency in order to expand their venture into Asia (Carrigan, Marinova and Szmigin, 2005).


There are various market entry strategies that can be employed by Super homes for entering into Asia. These strategies vary with risk, cost and the degree of control that can be exercised over them. The market entry strategies that can be used by Super Homes are enumerated below:

Joint venture: Super Homes can utilize this strategy under which they can work together with another company of Asia that also carries out its operations in selling of prefabricated houses (Hodgetts, 2005). Both the companies can create a third firm in which profits and risks will be shared equally. There are various factors that Richard should consider while selecting the joint venture strategy and some of them are as follows:

Capital contribution: Richard needs to consider the contribution of capital by both the firms. This will be useful in deciding the risk and profit share of both. It will also be required for future capital contribution in the business.

Governance: In the joint venture, governance is equally shared between the parties irrespective of their interest and ownership. Both the companies will share equal responsibility and will need to contribute their efforts equally for expansion of business into Asia (Brown, Kenney and Zarkin, 2006).

Retention of identity and mission: Richard should consider the identity and mission of Super Homes while entering into joint venture with another company of Asia that is involved in the same business. This will assist in successfully carrying out their operations and to develop longstanding relationship with partner.

Selecting the right partner: The marketing director of Super Homes needs to select the right partner in order to achieve success in long run in the new market. Richard should evaluate the capacity and willingness of companies with whom organization can enter into joint venture in order to start their venture into Asia (Sara, Emilia and Sharma Dharam, 2014).

Reversion rights: They should form the provision of rights which specifies that the process and conditions of ownership of the firm will be transferred to the other organization in future. If any of the firm fails to fulfill their commitment then the reversion rights will help to take decision about transfer of ownership of joint venture.

Transaction risk: The transactions become more complex because of joint venture as creation of trust, chemistry and the shared vision required time. This increases the length of time needed to complete a transaction which enhances the level of risk. Hence, Richard Hadland also needs to consider the transaction risk while entering into new market through Joint venture (Rollins, 2009).

Merger and acquisition

Super Homes can enter into Asia through merger and acquisition in which they can merge with similar type of firms or can acquire that firm in order to successfully start their business in Asian markets. This will provide quick access to the local market and will help them to enlarge their market share. This strategy will assist them in optimum utilization of resources and will minimize the risk in trade (Spees, 2013).

There are some factors which need to be considered by Richard Hadland while utilizing the merger and acquisition strategy and these are enumerated below:

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Administration: The marketing director of Super Homes needs to take into account the compatibility of financial system. They also need to evaluate the standards of accounting practices and the competency of managers as well as key executives. Apart from this, organization needs to consider legal issues and contract ramifications as this will aid them to achieve success into new market.

Staff: Organization should take into account the capabilities of their existing employees as they are required to meet the expectations of merger and acquisition strategy. This will assist them to achieve desired outcomes in new market (Terpstra, 2000).

Suppliers: Super Homes should identify the supplier needed to carry out their operations in Asia. They need to analyze whether their current suppliers can meet the new terms of strategy or they should develop relationship with new suppliers.

Control: The marketing directors will have to consider the level of autonomy and the current management in the business. They should analyze that whether their expenses will be managed by their existing management or through new approval process (Hastings, 2012).

The merger and acquisition strategy is highly time consuming, expensive and loaded with potential problems and therefore marketing director of Super Homes needs to clearly understand the importance of this deal and to consider aforesaid factors in order to attain growth in market share. They need to make sure that respective cultures of both the firms are compatible and the actual business should include the combination of both cultures (Ford, 2004).


From the above report it can be articulated that expansion of business operations in abroad helps organization to enlarge their market share and to achieve competitive advantages. This also assists firm to diversify their risk and increase their foreign exchange earnings. Venturing abroad enhances the capacity and expertise of firm and provides new business opportunities. There are different methods of selling that can be used by organization in new market such as online selling, retail outlets and selling through agency. Firm can enter into new market through Joint venture and merger and acquisition strategy.


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