Alternatives of the Greenonetech of the Global Expansion - Paper Example

One of the alternatives that Greenonetech have come up with is the global expansion of its provoltaic market. To achieve this, the company have entered into the partnership with Kioto so as to use its technology in its development initiative. The partnership have further been boosted by the demand for solar PV worldwide is high, and this will provide and this means that there is an already market for the product. Also, with global warming, environmentalist are calling for secure energy supply, energy independence and minimization of carbon footprint through the use of sustainable and low-carbon energy technologies and this is a boost to the company as it aims to expand the market.

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The economic growth of various countries is improving, for instance, countries such China, and South-East Asia, Latin America, India have been recently named as the fastest growing economies, and this means that the demand for energy as the countries become economically vibrant.

Some benefits come out when companies enter into a partnership. Firstly, the two companies will bring their expertise together and come up with a complementary product. When the two companies work together, there is reduction threat of substitute since two companies might dominate the market and become more efficient thus discouraging their competitors from competing. Notably, the partnership means that the ideas are being shared, and this being the case, a more useful and quality product is developed. Kioto is more advanced, and little expertise from Greenonetech will trigger a right combination of specialization. Another advantage is that there will be diversification of markets as both companies will share their already established distribution channels to explore more markets and make more products available. However, there are some challenges that the firm might face while expanding the global its global market. There is stiff competition on the world market from already established multinational corporations that enjoys high market share. Secondly, there some risks that accompany venturing into new markets such as customer competition from local businesses that are well established at the grassroots level. Thirdly, there is rule and regulation from various governments that aims at promoting local markets. Fourth, the economic fluctuation is some regions that main the cost of operations to be high due to inflation that is experienced in countries. Lastly, the costs of exiting the market are high once the company is well established in a particular region.

Alternative Two

Greenonetech intends to explore the Chinese market, and the company has realized the only way to exploit the market fully is to partner with one of its competitors that is conversant with the target market. Through such partnership, the company will benefit in various ways. T begin with, Greenonetech will face less competition since most of the Chinese companies produces a low-quality product. The company will be able to grow its international market specifically in China. Coming together means that they cooperate to develop one product hence there is a reduction of non-differentiable product in the market. The issues related to intellectual property are highly reduced now that the two companies that almost share things such as industrial design are working together. Lastly, the two closely related companies are working together, and things like infringement claims are entirely reduced.

However, there are disadvantages in this alternative. For, example, if the partners fail to meet requirements in securing technology could also hamper the companys competitive position. Secondly, many small businesses operate in China, and this has led to increased risk associated with sharing IP and patents. Furthermore, as the companies enjoy dominance in the region, there is stiff competition from other firms that are targeting the same market. The other disadvantage is that the companies will lack international brand recognition since they have focused on only one country. Lastly, the risks losing the marked its market share due to ever growing competitors that are making use of technological advancement.