Entry into Foreign Market Essay Example | Topics and Well Written Essays - 1500 words - 2

Entry into unlike Market - Essay ExampleDespite Cameron International federations involvement in otherwise developed nations, the companys action and innovative approaches towards development of oil extraction equipment may hinder the desired achiever if it fails to establish the actual needs of the oil drilling fabrication in Myanmar. The run a risk involved in the companys strategical introduction in foreign market places is the lack of query and development programs to establish the unseen barriers, and the dependence on its large capital base for diversification of investments (Griese, 2004). Certainly, the risks of production that prompted to the explosion of BP oil rig revealed technological failures thus the companys profitability should not mete out to guarantee success in Myanmar since technological breakdowns might lead to expulsion and exploitation from the mining industry (Crouch & Maclean, 2011). Arguably, the institutional risks present in the oil extractio n corporation serve as deterrence to success in entering the Myanmar oil industry. The institutional risks born to the multinational corporation are financial, human resources, and the unified social responsibility practices (Meyer, 2010). However, the management is certain of prosperity in the market due to its capital measuring stick set aside for the investment. VRIO analysis to determine the existence of support to entry VRIO analysis in Cameron club establishes a strategic scheme towards the global market approach. Firms draw their market entry strategies to reflect their heap statements and determine the success of objectives upon any of the corporations segments. Ideally, VRIO abbreviations denote value, rarity, imitating or counterfeiting, and organizations competitiveness in guaranteeing profound market entry variables (Griese, 2004). As an organization, Cameron International boasts everywhere its business success in the continued production of oil services and equipm ent. The sectoral approach in the nix production industry enables the CAM Corporation of continued innovation of ideal equipment in correlation to the raising performance together that seeks to denote its demand need to deliver value to the mining companies in order to become the global market attraction in supplying valves and fittings in subsea oil wells. Secondly, the company asserts that its segment strategy is to enable corporations and countries to meet their energy services needs (Duncan, 2009). CAM targets those companies that operate in petroleum and natural gas exploration and extraction. Due to the strategic involvement in the energy industry, the company is arguably a leader in the production and marketing of pressure control equipment critical for competent oil and natural gas extraction programs. The companys underlying strengths of rich history in production of valves used in exploration sites in over 300 countries acquaint vast opportunities towards success in it s bid to enter the Myanmar oil industry. CAM competes with FMC Technologies and National-Oilwell Varco as the market challenger and market follower respectively (Lincoln, 2007). Therefore, the VRIO analysis declares proficient support in CAMs entry in the Myanmar oil production industr