Case Study Going International with Local Product

Only available on StudyMode
  • Download(s) : 85
  • Published : April 9, 2011
Open Document
Text Preview
Indigenous Potteries Ltd. Is a company located at #2 Pelican Craft Centre, St. Michael, Barbados. The pottery was opened in 1994 and is owned by Mr. Hamilton Wiltshire (affectionately called Hammy) and his wife. Mr. Wiltshire has been practicing the art of pottery for over 20 years and in addition to the excellent training he received in Barbados, Mr. Wiltshire has also been trained in Italy, being a recipient of an OAS fellowship granted in 1985.

Indigenous Potteries has a staff of 7 dedicated potters who strive for excellence, a quality that comes from a love of the art form. The business produces finely crafted earthenware and stoneware made mainly from Barbadian clay-kaolin, from the Scotland District area in the eastern part of the island. Only natural, environmentally friendly materials are used in their products and they are fired to stoneware temperatures about 1240◦C, making them durable. Other products are fired to earthenware temperatures of 1140◦C. The products are oven proof, microwave and dishwasher safe, food safe and lead free.

The business’s opening hours are 8.30am to 5 pm Monday-Friday; 8.30 am to 2 pm on Saturdays. All of the production is done at the company itself while the retail outlet, “The Clay Gallery” is only yards away where a wide range of items are displayed. Bearing the slogan “Indigenous themes with a Contemporary flair,” the company takes the old styles of making pottery and remodel and redesign them into contemporary and modern styles. The business offers services such as custom orders, wedding gift lists and corporate gifts.

Most of the products are sold to visitors as they make up 92% of their customer base. The products are advertised through various means such as; local media, tourist related magazines, word-of-mouth and the company’s website.




The labour in England ……
The cost of materials ……..
There are a number of West Indians living in England and specifically in the area in which we intend to set up, Brixton 


International business is concerned with transactions taking place across national borders for the purpose of satisfying the needs of individuals and organisations. It must be noted that these businesses have headquarters in one country but operate in other countries (Rugman and Hodgetts, 2000. p3). There are many reasons for going international, the most popular being: To guard against the risks and uncertainties of the domestic business cycle. By establishing operations in another country, the negative effects of local economic swings can be reduced. To tap the growing world market for goods and services.

It is a response to increased foreign competition and to protect world market shares. A desire to reduce costs by reducing export and transportation costs, etc. To avoid tariffs.
To take advantage of technological expertise by manufacturing goods directly.

Porter’s Determinants of National Competitive Advantage

In order to “go international”, a company must create the necessary factor conditions, have a strong, local demand for their product, have related and supporting industries that are internationally competitive, have a suitable strategy and structure and domestic rivalry that encourages innovation, a knowledge of the government rules and regulations that affect international operations and finally, they must develop an international perspective.

Competitive global success is a result of rigorous competition at home that pressures the companies into improving and innovating. This in turn builds up the companies’ strengths and puts them in an excellent position to compete internationally. To “go international” successfully, the strategic approach to business must be expanded to include...
tracking img