Conclusion

As globalization progresses, international expansion flows along with it. In view of this case

study, several factors were considered as the company ventures to a larger scale. The

company must understand the nature of the global environment because ongoing changes in

that environment are creating a plethora of opportunities, threats, and challenges. The desire

of Mr. Wong, the co-owner of family-owned Taiho, gives way to a vision for the business to

soar heights in international market. The process will not give Taiho a smooth sail, thus, for

it to work out, it must do careful planning, having a best strategy and analysis of it market

and competition. Going forward, Taiho sees continued international expansion as a major

engine of growth.

Taiho’s aim is to expand production and penetrate in US Market. Taking into account all the

aspects discussed in the case of Taiho, the analysts have come up with three different

alternative courses of action to address its major problem. These three alternatives include

expand and penetrate U.S. through Joint Venture, expand and penetrate U.S. through

Indirect Exporting, Expand and penetrate U.S. through Direct Exporting, respectively.

Though there are many different modes of entry in international market, these are utmost

appropriate to Taiho considering its operation and financial stability. To further differentiate

each alternative, the analysts enumerated various advantages and disadvantages. Identifying

the best alternative gives a tight selection process because each possess varied proposals to

Taiho.
Nevertheless, when it comes to the best alternative, the analysts single out alternative course

of action #3- Expand and penetrate U.S. through Direct Exporting. Through Direct

Exporting, Taiho will be able to establish a direct contact with a foreign trading partner, and

has the best opportunity for direct participation in foreign transactions. Furthermore, Taiho

will have a control over selection of foreign markets and choice of foreign representative

companies. They will not be tied to the changes of the business cycle of domestic market.

Hence, it will make them maximize what they can produce over the new foreign market.

Maximization of sales and increase in profit are among the benefits. Taken together, these

factors or advantages will help Taiho achieve its goal of expanding and penetrating US

market.

Therefore, the analysts prefer Direct exporting over Joint venture and indirect exporting. The

best alternative chosen may not eliminate threats and challenges, but, through the proper

action taken by Taiho including thorough preparation, this will yield greater success to the

company.