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E-mail Case Study Entry Strategy to Vietnam for OMI Dr. Lee

E-mail Case Study Entry Strategy to Vietnam for OMI Dr. Lee. What OMI want?. Strategic Corporate Presence in Vietnam Sales of 5 Million dollars a year Time pressure Management Control. Entry Strategy to Vietnam. Understanding of the company Manufacturer/distributor

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E-mail Case Study Entry Strategy to Vietnam for OMI Dr. Lee

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  1. E-mail Case Study Entry Strategy to Vietnam for OMI Dr. Lee

  2. What OMI want? • Strategic Corporate Presence in Vietnam • Sales of 5 Million dollars a year • Time pressure • Management Control

  3. Entry Strategy to Vietnam • Understanding of the company Manufacturer/distributor International trade experience: North America and Europe 25 years of experience US $200 Million a year Good cash flow/reserve A plant in Japan (excess capacity)

  4. Entry Strategies Options • Wholly owned subsidiary • Joint Venture • Representative office (Export from Japan’s plant)

  5. Decision Criteria • Financial Requirement WOS>JV>RO • Time Requirement WOS>JV>RO • Sales potential WOS>JV>RO • Management Control WOS>RO>JV • Type of Industry-Government Approval Issue RO JV WOS • Excess Capacity in Japan

  6. Hiring Decision • Robert Clinton-John Sato-Lisa Wang • Important factors to consider: • Management Experience • Work Experience • Cultural Background • International Experience • Educational Background • Age • Gender

  7. Case study questions: • 1. Evaluate the advantages and disadvantages of various entry strategies that the company could use to sell motor bike in Vietnam. • 2. What entry strategy do you recommend and why? • 3. Evaluate the strengths and weaknesses of the three candidates (Bob, John, and Lisa). • 4. Who would be best to lead the expansion? Why? • 5. What other information would be most helpful in making this strategic staffing decision? • 6. Would you recommend OMI's expansion plan under the current A. economic condition and B. exchange rate trend of Vietnamese currency?

  8. Forecast for Motorbike Sales14% annually • Forecast for domestic sales using the average motorbike-per-person approach • Motorbike clinic program-air control • Motorbike/car possessions in Asia

  9. Motorbike News in Vietnam • About 21 million motor bikes (3M-1998) (one for four Vietnamese) • 2 million new motorbikes registered in August • Rapid growth and high competition Motorbikes:14% growth yearly Cars: 10% growth annually • New ‘Rice Cookers’ Law (Dec. 2006)

  10. Three biggest motorbike sellersCompetition • Honda: 1,000,000 units in one year • Yamaha • Taiwan’s Sanyang

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