International Business Plan Company \'S\':

International Business Plan

Company 'S': The pros and cons of U.S. market entry at this time

To enter the U.S. market at this time, Company's must take into consideration the slowing-down of the U.S. economy, and consumer unwillingness to part with dollars for new goods, if the older ones will suffice. For some items, replacing large, durable goods is unavoidable, in the case of refrigerators, for example, or cars. But sofas, tables, and other types of furniture are usually regarded as 'lifestyle' or decorative goods, particularly if they are from an international manufacturer of note.

On the other hand, if the's Company offers a reasonably priced alternative to more expensive merchandise for U.S. consumers who are looking for new home items, this could result in the company benefiting from its ability to provide substitute goods for more expensive furniture. Also, the stark, minimalistic aesthetic of the Scandinavian company could be a plus, during a time when consumers are seeking a more pared-down aesthetic. The problem remains that furniture tends to last a long time, does not become technologically obsolete, and thus is relatively easy for consumers to 'cut back on,' as opposed to food and shelter.

The issue of shelter is also important, given the current housing crisis in the U.S. Consumers are always more willing to buy more furniture when they are decorating a new home, since they frequently have to leave furniture behind at their old homes or require new furniture to suit the design of the old home. But if consumers are buying fewer new homes and are moving or acquiring second homes less frequently, they will need less furniture.

Granted, the dollar is weak, which makes the U.S. A potential boon for a European country, but that also means that American consumers may be less willing to buy international goods. The price of fuel, although cheaper in American than in Europe, will still add to start-up costs, no matter how strong the Euro. On the pro-side, if consumers do not wish to vacation during a time of escalating fuel costs, they may decide to redecorate their homes instead. Interest in home improvement has increased dramatically in recent decades, particularly with the rise of home improvement and do-it-yourself television, magazines, and other media. But on the con side, disposable income may be reserved for fuel, not for new home amenities. Please remember that Americans are not used to paying so much for gasoline, unlike Europeans!

Furniture such as tables and chairs can also be acquired used, and there has been a new boom of second-hand merchandise exchange through online venues such as Craig's List, in addition to thrift stores and personal sales. Shopping patterns that could also threaten the's Company in America is the predominance of Wal-Mart, Costco, and other major department stores, where consumers are diverting more and more of the purchasing power. If the's Company chooses to sell mainly through its own stores, consumers might be less apt to travel to such locations, if they feel that they can get a cheaper price through a large department or warehouse store.