Entry into foreign market Assignment Example | Topics and Well Written Essays - 1500 words

Entry into foreign market - Assignment Example Analyzing the market condition in Myanmar, have shown ample opportunity for the foreign companies to expand and enter Myanmar. Investing in Myanmar can sound very lucrative as the market is surrounded with diverse range of business opportunities and is rich in natural and mineral resources so Cameron International Corporation has all the valid reason to expand its business and expand into oil and gas resources in Myanmar. However with opportunities of the company to enter Myanmar, the foreign country is also associated with risk such as low economic growth. The economic growth is rated below the potential growth about 6% in the fiscal year 2012-2013 which is driven by FDI in sectors such as infrastructure, oil and energy. Consumption seems to remain stable built it does not contributes towards the economic growth due to the population under the poverty line. Inflation is expected to reach about 5.8% in 2012 and 2013 and this is because of the inability of the central bank to induce m onetary growth. The GDP is also expected to deteriorate along with the service sectors. Further Myanmar had in the past two set of exchange rates which recently changed into a single exchange rate which aims to remove distortion of market favoring the mode of entry through FDI. Myanmar is among the emerging market and has been undergoing economic as well as political reform and doing business in Myanmar are subject to risk and thus Cameron International Corporation should thoroughly investigate the conditions of the market. before entering the market. But Myanmar has huge opportunity and it is feasible to enter the market. VRIO Analysis The VRIO framework was initiated by Barney and VRIO stands for Valuable, Rare, and Inimitable and organized (Kazmi, p.127). Valuable: If Cameron International Corporation enters Myanmar, it will be valuable for the company as Myanmar is well versed in natural and mineral resources and the company entering the market with its oil and gas will proved t o be valuable for the company and the economy as a whole. Therefore it can be said that the entry into Myanmar market is valuable and should be encouraged so that better opportunity and business prospective are developed and leads to economic growth. Rare: Cameron International Corporation provides flow equipment and pressure control equipment for both land and sea oil rigs and incurs revenue of $6,134.8million along with net profit of $562.9million in 2010. Since Myanmar has huge natural and mineral resources, the company will be able to utilize it effectively. Inimitable: the work done by the companies are hard to imitate as it requires heavy capital and huge brand name. The company has a huge brand name and is able to generate