Armstrong's Market Expansion

Paper Summary:

This paper discusses the strategic issues associated with Armstrong Holding's market expansion project as it considers either the Mexico or Italy market for market entry. It discusses the various opportunities and risks associated with each market. The paper concludes by presenting a recommendation for Armstrong Holding that the Mexican market holds the most promise and provides best cost-benefit analysis for market expansion.

Table of Contents:
Abstract
Comparative Analysis
Opportunity/Risk Rationale
Recommendation

From the Paper:

"Another opportunity within the Mexico market is the size of its labor force. Not only is the labor force considerably larger than that of Italy but it is also less expensive since the GPD per capita in Mexico is roughly $10k while the GDP per capita in Italy is a little over $30k (Mexico, 2006). The overall cost of doing business in Mexico is substantially lower in the Mexican market than it is in the Italian market. Add to these opportunity costs the added benefit of lower transportation costs for both supplies and product into and out of the market and the cost-benefit for the Mexican market becomes substantially better than that of Italy. This cost-benefit is also increased by the lower operating costs associated with green field operations where Armstrong currently has some sales and supply channels already in place within Mexico but would need to organically grow all of these assets in the Italian market."

Sample of Sources Used:

• Mexico. (2006). World Fact Book, CIA (Online). Retrieved Nov.27, 2006 from: http://www.cia.gov
• Pearce, J. & Robinson, R. (2005). Strategic Management- Formulation, Implementation, and Control (9th Ed.). McGraw- Hill/Irwin, New York.

More papers on Armstrong's Market Expansion:

• Case Study # 131018 : "Armstrong Holding and Market Expansion"
• Business Plan # 129573 : "Armstrong in Mexico"
• Term Paper # 99485 : "Product and Service Standards"

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