Buy custom Business Strategy essay
SBE came to be in 2002, quickly rising as one of the most magnificent forces in hospitality, real estate and amusement. It has established a flourishing collection of prized hospitality and lifestyle destinations that it develops and manages through its Hotels, Restaurants, and Nightlife and Real Estate groups. Currently, SBE is expanding its services into the New York City, Miami, Las Vegas and Houston markets. SBE’S partners with the famous plan icon Philippe Starck, Matthew Rolston, who is perfect in photography pop background celebrity and chefs José Andrés, Katsuya Uechi and Danny Elmaleh.
In its efforts to expand, SBE’S planned partnerships will be of considerable importance since SBE will be able to reach wider customers since firms are able to reach a wider audience than when the firm is working alone. It relies on the other's reputation in its main area of operation. Clientele may not even recognize the firm in their domicile country has partnered up with an inside firm. They only know they are getting a wider range of services or improved products (Lorentz & Rea, 2001).
Another advantage that SBE will get through its corporation is that it will be able to enlarge through the assistance of the local by facilitating the firm get its products into a foreign market since a company in the overseas market knows the commerce culture of the area and can facilitate faster, more resourceful expansion. Furthermore, SBE with its partnered firms shares resources through planned corporations to develop their employees, and assist one other in mounting a periphery in the market. Both companies share information on the technology desired to do the work. Both associates profit from the new expertise that advances their position in the market (Coakes, 2003).
Strategic partnership increases the exposure of each partner in the marketplace. Hence, SBE benefits from the exposure that its partners have in their local markets.
Kenya could be an extremely lucrative place for the company to venture. This is because most people of late are thinking of investing in real estate and hospitality industry. Therefore, getting partners in Kenya for the company is not going to pose any challenge in entering the Kenyan market. Some cities such as Nairobi and Mombasa in Kenya are so much involved in the real estate and hospitality industry. Another reason for the company to venture into Kenya, could be because of the peace in the country, flexible rules and regulations and also because Kenya protects the intellectual property rights and the contract laws.
When entering into a foreign market, some of the strategies that SBE could use include exporting; licensing, Joint Venture and Foreign direct Investment. Exporting involves marketing and direct sale of domestically-produced goods in another country. Therefore, SBE could export some of its products including the services it renders into other countries. This act will facilitate its entrance into the foreign market since the firm’s products will have recognition in the foreign market. Licensing, on the other hand, permits the company in the target state to use the chattels of the licensor. Once the firm has license, it could sell any of its services to the foreign market.
SBE could also involve itself with direct investment in the foreign countries by owning amenities in the marked nation. In its efforts to expand, SBE could face challenges from the local firms, which include the following. The firms might find it hard to establish since the local firms have full establishments in the country. Marketing its services might also pose an immense challenge since they will have to convince the market that their services are far much better than their competitors. However, in its implementation of the strategic partnership, SBE experiences several challenges. These challenges include: Resistance to change by some firms in executing of strategy since it involves taking up amendments in the ways of doing things. This also means that members of the firm and members of the firms it wants to partner with have to be convinced that the need for change and the chosen approach is the right one. This might pose a formidable challenge in SBE’S need for expansion.
Political and legal influences also play a prominent deal in a local firm’s efforts of trying to go international in its strategic plans. The political relations amid a firm’s state of headquarters and one more may, through no responsibility of the firm’s, turn out to be a main subject (Jeong, 2005). Another challenge is that SBE’s strategies might be weak or inappropriate. This implies that there is the lack of a realistic and honest assessment of the firm which might lead to the growth of a weak, unsuitable or potentially unattainable plan. A weak plan may also result from excessively aspiring or impractical firm influential, or partners who adopt an ill-fitting policy with respect to the firm's current position, or market competition (Brewer, 2007).
Ineffective leadership within the corporation is another challenge. SBE’s planned corporations will fail when firm leaders are incapable of carry out the complicated resolutions agreed upon in the plan. Insufficient leadership attention is another challenge as the firm's Management Partner may discover that they are immersing in other firm affairs. Even with the many challenges, Los Angeles-based SBE continues to be the best in the worlds of comfort hospitality and real estate growth.
Buy custom Business Strategy essay
|The Role of Public Relations||Compensation Strategies|