Md International Focus On Latin America Case Analysis
1. Why did MD International focus on Latin America? What are the benefits of this regional approach? What are the potential drawbacks?
When Al Merritt founded MD International in 1987 he chose to focus on Latin America. Merritt was familiar with the area and he wanted to take advantage of changing government regulations in the region. Many Latin American countries were opening their markets at the time and also expanding their health care spending. Together, these created an ideal situation for MD International to expand. While focusing on a single region allows MD International to be an expert in the market place and capitalize on economies of scale and scope, it also limits the company’s ability to diversify when conditions in the local …show more content…
MD International is currently able to offer assistance to sellers as an expert in the region and is also able to gain the economies associated with operating in a single location. If MD international chooses to expand its services it will need to develop the type of knowledge and connections in the new region that it has in Latin America. Some students may suggest that the company consider joining forces with a distributor in the new region as a way to speed up the process and lower the cost of expansion. Other students however may wonder whether such a move could ultimately damage MD International’s reputation as an expert in Latin America.
3. How important has government assistance been to MD International? Do you think helping firms like MD International represents good use of taxpayer money?
Many students will probably suggest that government assistance has been quite important to MD International. The company has taken advantage of various services including help with circumventing customs restrictions and getting financing. Many students will probably agree that these services do ultimately benefit tax payers because they help MD International bring together buyers and sellers which in turn helps the export sales of U.S. manufacturers creating more jobs for U.S.
When Al Merritt founded MD International in 1987 he chose to focus on Latin America. Merritt was familiar with the area and he wanted to take advantage of changing government regulations in the region. Many Latin American countries were opening their markets at the time and also expanding their health care spending. Together, these created an ideal situation for MD International to expand. While focusing on a single region allows MD International to be an expert in the market place and capitalize on economies of scale and scope, it also limits the company’s ability to diversify when conditions in the local …show more content…
MD International is currently able to offer assistance to sellers as an expert in the region and is also able to gain the economies associated with operating in a single location. If MD international chooses to expand its services it will need to develop the type of knowledge and connections in the new region that it has in Latin America. Some students may suggest that the company consider joining forces with a distributor in the new region as a way to speed up the process and lower the cost of expansion. Other students however may wonder whether such a move could ultimately damage MD International’s reputation as an expert in Latin America.
3. How important has government assistance been to MD International? Do you think helping firms like MD International represents good use of taxpayer money?
Many students will probably suggest that government assistance has been quite important to MD International. The company has taken advantage of various services including help with circumventing customs restrictions and getting financing. Many students will probably agree that these services do ultimately benefit tax payers because they help MD International bring together buyers and sellers which in turn helps the export sales of U.S. manufacturers creating more jobs for U.S.