OTHMAN YEOP ABDULLAH, GRADUATE SCHOOL OF BUSINESS
MBA (ATC) SHAH ALAM
Master of Business Administration
International Business (BFMA6043)
Dr. Nik Ab Halim Nik Abdullah
Case Study Assignments
( Play Safe at Home, or Take A Risk Abroad)
March 3, 2013
Case Study Question 1
I think Coe’s was very successful in United State because first of all they able to open 1000th store and attracted 100 customer in just one month, this shows the strategy that they implemented is very helpful to customer to purchase goods and helpful to them to pay in credit term monthly. Coe’s strategy were different from other competitor especially Mr. Rental taking over the market in South Tucson, Unites States. Basically Coe’s emphasized ownership whereby the customers became owners by the end of their leases compared to the competitors and on the other hand able to give lower price for the purchases and higher fees with fix 12 months credit term for those affordable to pay and have good earnings. In United States, the market are easy to enter because able to adapt the culture and know the customer’s needs and requirements. Coe’s successful because able tackle customers heart in different strategy. Moreover, the employee working for Coe’s are very experienced and able to train well. The strategies may not all can translated to Mexico because different country have different cultures, people, economics, politics and competitors. United state success may help Coe’s to growth and identify their weakness better to move forward expand business in Mexico. Entry to Mexico market will have different type of challenges and not like US market, whereby getting people to work and to train cannot be as easier as in US getting experienced people. Moreover, all the location in Mexico are far from one another places, transporting the products to customers are difficult also because of road conditions very bad and places are far away which consumes time and energy and most probably cannot deliver on time. Coe’s to expand business in Mexico need to identify the best location to determine their business strategy. Language also another barrier in Mexico because they only able to speak Spanish. Market in Mexico is attractive and large because weak competitors in Mexico and not like US full with competitors and new strategy every day. In general the strategy implemented in United States not all can be translated to Mexico as it must see the local needs, cost, products and standardization of brand.
Case Study Question 2
Coe’s failed in Puerto Rico because no proper strategy introduced based on the country culture and need, most of the customers skipped payments walked away with products without making any payments and after that Coe’s have to close down their business just 12 months. Why? Because no proper training given to the Managers to handle customers and get collections on time. Puerto Rico, even though it's "US Territory", the laws differ significantly. The business model fails because the customers don't have the same incentive to pay items back. The Coe’s learnt from experience in Puerto Rico were bad debts and rouge customers. While the market had only two main players which is had a definite edge, the state of the economy makes it imperative that risk the business and plan for growth from multiple markets. International business operations cannot run as an extension of the national one because this is a mistake made regularly by companies taking another wings out of their home country. Coe's would also need to evolve a unique mode of operation, specifically around managing credit and filtering prospective customers before they plan the roll out. The experiences from Puerto Rico may be a good guide, but care should be taken that they have local managers finalize the processes and lay out operating procedures....
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