Against this backdrop, which of the following ideas poorly support the CEO's interpretation of the potential of the Indian option? A) Gaining market share has proven to be an effective approach to promote growth and profitability of a company for companies in similar industries B) Transferring production from US-based factories to Indian facilities to support accessing cheaper factors of production C) The Indian toy market seems increasingly saturated, with many domestic firms well-established and growing number of international companies targeted it for expansion.
Philadelphia-based KidsPlay WorldWide is a leading producer of educational toys, such as building blocks, arts and craft supplies, and intellectually anchored board games. Recently, following increasing news about the implication of globalization, the CEO reasons that it’s important to expand into the global market.
Presently, given its compelling demographic profile, namely a growing number of small children with parents concerned about their cognitive development, the company has targeted India for initial expansion.
However, the Director of Marketing has various concerns, worried that expanding into India, by diverting top management’s attention as well as company resources, would significantly weaken KidsPlay WorldWide's market position in the US.
There are also growing concerns within the company’s leadership ranks about whether investment into Indian operations is the most cost-effective strategy for the long term.
Against this backdrop, which of the following ideas poorly support the CEO's interpretation of the potential of the Indian option?
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