Chabros International Essay Example | Topics and Well Written Essays - 1750 words

Chabros International - Essay Example Dubai is on the decline mostly due to tough economic conditions. A closer analysis of the facts provided in the case study would suggest important management and strategic issues which firm needs to focus on. Two of the important management issues are mode of entry as well as the marketing strategy of the firm. When entering into international markets, firms have relatively diversified options to exercise. From exporting to the establishment of a Greenfield projects, firms can choose the right strategy based upon the overall situation and the resources available to the organization. However, in order to expand into any market, it is also critical to highlight and explore language and cultural differences as well as the institutional differences as these factors tend to have significant impact on the way a firm has to develop its marketing as well as HR strategy. The initial strategy adapted by the firm was to enter into joint ventures with the firms which were not located in the region. This therefore created strong cultural and interpersonal issues for partners who were not used to the overall culture and business norms of the region. As such the firm entered into the market without actually making an effort to understand the local dynamics and importance of having local partners. Since firm was entering into different markets for the first time it was therefore important for it to either start through the exporting or founding joint ventures with the local firms. However, the firm, actually opened wholly owned subsidiaries in those regions with 100% ownership therefore the necessary capital was tied up in establishing new facilities. Secondly, the firm focused on one market while continued to expand in other markets despite the fact that major chunk of its sales were coming from one single market i.e. Dubai. Rather than