Introduction:

For this assessment, the report writing will be written on the basis of a case study with regard to the “Forta Furniture Company”. The Forta furniture is at the moment showing an interest in increasing its international profile. However, the Forta Furniture Company is at the moment quite unsure of about which market to enter and what are the type of challenges as well as opportunities lies in such market (Bashir,2021). Therefore, they hired me as an international marketing consultant to guide them make the right decision and choose the right market for their Company. My task here, is to make a brief report that consists of appraisals of all of the potential market that the company (i.e., the Forta Furniture Company) can possibly enter in Germany and at the same time also provide them with details about the potential market entry strategy that would best suit the market that they will potentially enter (Ansell,2021).

Identification of an international market for potential development:

According to the case study presented with regard to the Forta Company, it is very clear that the company is planning to make investments in some potential international market. The company’s decision and desire of wanting to enter into potential new market is actually a very good idea, provided they find the right market and the right entry strategy. The market within which the Company (as in the Forta Company) have been existing till date is already saturated with many fierce competition because there are many other new entries into the market that potentially brings or comes up with offers that are quite superior and hence, such scenarios end up becoming a threat for the overall operation of the company (Cabral,2021). Also, it takes away the company’s competitive edge because of the fierce competition from its contemporary competitors. Therefore, in order to avoid such circumstances and also to make sure that the sustainability of the company remains intake, the Forta Company is looking for potentially new international market where it can potentially flourish and develop its business and brand (Nikjow,2021).

For another possibility, Forta may have moved into Poland, where customers had previously showed an interest in the company’s furniture. Following this choice, Petrescu believes that the company’s future growth will be facilitated in Western Europe, specifically France, Germany, and the United Kingdom, among other countries. She stated that this expansion was important in order for Forta to expand significantly since consumers in these countries were wealthy and the markets were large enough to support a small presence by Forta in these countries. For her part, she considered that joining Western Europe would be a challenging undertaking for which Forta was not yet equipped. It would be expensive to establish a brand in Western Europe, and it would be equally expensive to make mistakes.  (Hoicka,2021). The European and the Asian market are two markets which is known to be a gold mining area for many of the companies and organisations operating within the corporate sector and to think that the Forta company (being the big company that it is) has still yet to make or mark its footprint in the two stated market is not quite settling. Therefore, the markets which I think, the Forta furniture Company can develop its business are the European market and the Asian market. In the above two stated market, the Forta furniture company can potentially flourish well because of the uncountable business opportunities that lies in the two markets (JATMIKO,2021). There are many underlying reasons for choosing the European market and the Asian market. They are as follows-

A clear justification of your recommendation based upon the following analysis:

Evaluation of what you believe to be the primary opportunities and challenges/ threats:

Primary opportunities:

The primary opportunities that lie for the Forta furniture company for potentially investing in the German market and the Asian market are as follows-

• Both the German market and the Asian market are known to be a golden hub for many business opportunities. The reason for such statement is because both of these markets are known to have very level of consumption rate and that is why, by investing in such markets, the Forta furniture company can end up cashing in two of the biggest and the largest market across the globe at the same time gaining lots of visibility from millions if not billions of potential consumers (Panoutsou,2021).
• Another primary opportunity that the Forta company can enjoy by entering into the European and the Asian market is that the company will have accessed to many skilled workers which will help in better production of the company’s product. Not only that, the cost of labor is also quite low in both of these countries (especially the Asian market) therefore the company will be able to save a lot of its revenue which it can further invest to expand its business (Khuntia, 2021).

Challenges and threats:

• One challenge will be meeting the demands of the people because of differences in ethnicity and vice versa in Germany
• Bridging the gap that might potentially arise because of cultural diversity and language barriers (Gotham,2021).
• Following all of the legal requirements of the governmental policies.

A critical reflection of your client’s strengths and weaknesses and their sources of comparative and competitive advantage:

Strength of the company:

The strength of the company are as follows-

• They focus only at one segment of the market
• The company’s brand is already globally established and recognized
• The company’s position in the market is also quite strong

Weakness of the company:

The weakness of the company are as follows:

• Because of the company’s strict policy with regard to looks, it faces many scrutiny
• Very finite number of targeted markets in Germany
• High pricing of the company’s product.

Source of the company’s comparative and competitive advantage:

Some of the sources through which the Forta Furniture company attend its comparative and competitive advantages are as follows-

• The Forta Furniture company attends its comparative and competitive advantage from its unique designs which sets the company apart from its consumers (BAMBANG,2021)
• The Forta Furniture company also attends comparative and competitive advantage from its diver centric portfolio with regard to its product which is further enabling the company to target or aim at many varied segments within the domestic market all at once (TEGUH,2021).
• The Forta Furniture company also attends its comparative and competitive advantage from its strongly centric awareness and equity of the company’s owned brand.

Identification and explanation of what your analysis suggest is the most appropriate entry strategy into the new market for Forta with justification:

As stated earlier, the Forta furniture is at the moment showing an interest in increasing its international profile and therefore, the company is planning to make potential investments in some potential international markets where the company can establish its brand. And so, after thoroughly analysing the company’s current portfolio, it was concluded that the two markets that would be best suit the working environment of the Forta Furniture company are the German market and the Asian market.

Now, for the entry mode within the international borders, there are many modes through which a company can enter into the international market such as- the exporting mode of entry, the licensing and franchising mode of entry, the partnering and alliance through strategic means mode of entry, the acquisition mode of entry and vice versa. However, considering the nature of the Forta Furniture company will be the partnering and alliance through strategic means mode of entry because this mode of entry will enable the company to partner up with some of the local companies of the region and hence, the company will become easily familiar with the way of doing business in such market. Also, the amount of risk that could possibly hinder the company’s business also becomes greatly minimized. At the same time, the company will easily be able to understand and meet the requirements of the local customers of those regions.

Conclusion:

The report writing is written on the basis of a case study with regard to the “Forta Furniture Company”. Under this report writing, we discussed about many topics such as- identification of an international market for potential development, evaluation of what you believe to be the primary opportunities and challenges/ threats, a critical reflection of your client’s strengths and weaknesses and their sources of comparative and competitive advantage and lastly, identification and explanation of what your analysis suggest is the most appropriate entry strategy into the new market  of Germany for Forta with justification. However, despite the reduction of occurrence of risks, it will be better and safer for the company to set up a risk management team who will overlook all of the activities and operations that are being undertaken within the market chosen by the company. Lots of potentials opportunities for potentially developing and growing the company’s business lies within both the European market as well as the Asian market.

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