Bright Light Innovations: the Starlight Stove

Only available on StudyMode
  • Download(s) : 856
  • Published : November 13, 2012
Open Document
Text Preview
Opportunity analysis and critical issues hidden in this case As the increasing pace of globalization, more and more companies seek opportunities to involve in the international trade. Expanding the market share and maximize the profits is the purpose of those companies. However, it is unlike the education. Most universities especially public universities are non-profit organization. Their purpose is not to earn enough money; on the contrary, the purpose of universities is to provide training and knowledge for students in order to benefit the society. In return, students pay appropriate fees and government provide monetary support to the university so that university can gain the ability to do the research and develop its hardware and software. In this way, university can have a sustainable development. So university can benefit from seeking opportunities in international expansion. First, students from different countries and cultural background can share their experience. It is a good chance for students and universities to participate in international market. Secondly, international universities can share resource with local universities. On the one hand, it can help develop the universities from developing countries; on the other hand, international universities can also gain advanced experience they are lack of. Thirdly, international universities can maximize their influence by cooperating with local government or some research institutions. In this case, Bright Light Innovations aims to opening its market in Nepal. In order to explore this market, the company considers a series of criteria. The first one is the “total population” and “population growth”. This factor established the foundation of consumption power. Jianfa Shen points out that the population is one of the factors to affect the market demand (Jianfa Shen, 1998). The more people live in the country, the larger potential market exists. The second one is the “natural climate”. Climate change determines the consumer’s consumption behavior to some extent (Seljom, 2011).Considering that the temperature of Nepal is very low, the Bright Light Innovation provides stove to local people who are in the need of warm. The third one is the “living habit of local people”. According to Jaime Alonso-Carrera’s study, “individual preferences are subject to both habit formation and consumption spillovers” (Jaime Alonso-Carrera, 2004). The case shows that most people in Nepal uses firewood as the main source of the energy. Due to this reason, the products of stoves meet the needs of local people. What’s more, the company also considers “political policy”. Whether the local government support or against the kind of products is the factor to affect the entering in the international market. The fourth hidden critical issue in this case is the “infrastructure” in Nepal. Well infrastructure contributes to the potential growth of the company (Weiland, Scott J. 2012). If the company needs to set up a factory in the local place, infrastructure including electric, water, traffic and others should be considered. Finally, “income” determines the purchasing power in the local market. More income means more potential consumption to some extent. Alternatives and product lunch in foreign market

The reason why Bright Light selects Nepal as its target market is that the market and the company can benefit from each other. Following factors can be contributed to the access of the products to Nepal. First, the local government can benefit from the company. Bright Light decides to set up a plant in local place; it helps the government solve the problem of employment. More people can be employed as the factory setting up; besides, the company can reduce much cost by setting up a factory in local place. Second, Bright Light helps protect the environment to some extent. As its stove is more efficient than traditional one, people will use less firewood. In this case, the forests can be protected and...
tracking img