Including the developed nations and the remote places
Barbados an island that is located in the Caribbean region. It has a strategic location as it is near to the ocean area, which allows easy trade. Along with this, it has a tropical climate, which means hot and humid most of the year (Mohan et.al, 2020)
Political- There have been many improvements in the financial position of Barbados but the Government efficiency is still lacking as they are still not successful in implementing measures for curbing corruption, money laundering, and terrorist financing. This poses a concern for investors. Barbados has implemented double taxation agreements with many countries. It has also participated in the promotion and protection of investment with many countries. Barbados is approved by OECD. The rate of corporate tax is very low at 1.75 percent for international business (Heritage, 2021)
Environmental- Since Barbados is positioned just north of the equator, it receives sunshine in large amounts all year round. Therefore, it is not worth thinking about the lack of solar energy in Barbados (Heritage, 2021)
SWOT analysis of Nokero
Social- It is evident that there is a vast difference in the social and economic status of North America and South America. The income of people living in Barbados comes under the middle-income category. This implies that people may not be able to buy an expensive product, so the business investors have to provide affordable products if they really want to attract people and build a vast customer base. Additionally, the estimated population of Barbados is less than three lakhs (Heritage, 2021).
Technological- The Information and Communication sector in Barbados is growing rapidly and has a lot of potential due to foreign direct investments. They have modern telecommunication systems along with up-to-date digital technology. Barbados is providing excellent software development and Information Technology services (Callaghan, 2017). This means Barbados has no less than superior technology.
The strengths of Nokero are Patented technology, innovation, the strategic location of headquarters, and sustainability. The weakness of Nokero is its supply chain problems and integrating social goals (sustainability) with a business goal (earn profit). Opportunities of Nokero are untapped markets in developing nations, association with NGOs and similar agencies for further growth, devising methods for utilizing natural resources for reducing carbon footprints. Threats of Nokero are long-term sustainability, competition from private players like Philips Lighting, Brinkman, Westinghouse, Coleman Cable, Eglo, D. light, Himin Solar, Shenzhen Jiawei Solar Lighting and Nbsolar.
Barbados is the new addition to their target market. Expanding to Barbados is a great idea; however, before they actually expand, they should have an in-depth understanding of international business strategies. They need to evaluate how they can cater to different markets and customer segments that are geographically dispersed by choosing an international business strategy simultaneously addressing the supply chain problems. They also need to cut down on their distribution cost so that they can still keep their product affordable. This contribution aims to recommend an international expansion strategy for Nokero in the Barbados region in the Caribbean. Since it is situated near the equator, therefore, receives sunlight in abundance. It will be an ideal place for Nokero to expand its business, thus fulfilling its business requirements and social responsibility.
It can be concluded that Nokero can adopt two international expansion strategies so that they can have accessibility to their target market, delivering to the remotest areas. The former, that is the international strategy, will aid them in making their product accessible to most of the population living in Barbados and it can increase their import-export activities. In the latter, global strategy Nokero can establish a fulfillment center in Africa to resolve the supply chain issue though the product offered is similar. There are zero variations since both strategies will aid them in expanding their horizons into the market of Barbados. Their aim to enter into the Barbados market will be an excellent strategic move since they will be able to employ the developed tactics for the Barbados market to other regions having similar characteristics. Though they are required to set up the establishments in the foreign market, setting up the fulfillment center in South Africa is considered an excellent strategic move since they will address the critically proclaimed supply chain issues. Adopting these methods will significantly minimize their supply chain problems, thus reducing their distribution cost (Luo, et .al, 2009). Initially, they will be able to provide solar bulbs to the people of Barbados in remote areas.
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