edf40wrjww2CF_PaperMaster:Desc
Attila Okner
Professor Moos
T-Th 9:30
Megahertz Paper
4/12/06
The Foreign Gamble
In the world today, economies would not survive without getting involved somehow in international trading, or manufacturing. Since economies are driven by supply and demand, corporations have to find equilibrium in manufacturing cost, quality, growth, and selling price. Every business in the world strive to grow as much as possible by gaining market shares in different regions, however before investing capital internationally they must establish a stable domestic firm that operates an efficient infrastructure and overall are profitable. In 1998, a U.K. based broadcasting company called Megahertz decided to invest into other parts of the world; Middle East, Africa, and Eastern Europe. Those regions suffered from poor broadcasting capabilities and Megahertz took the opportunity to move into those markets to compete globally. Megahertz has already established their primary activities including R&D, Productions, Marketing and Sales, and after-sale services in the U.K. Question is can Megahertz take off internationally and expand to markets other than the U.K. as Ashley Coles; managing director of Megahertz, wanted it to? Let’s find out.
Western Europe was Megahertz’s dominant market. However, most of those countries have developed broadcasting capabilities with up-to-date technology, and companies such as Megahertz who provide different sized broadcasting vehicles have no long term expandability in the region. In turn, [developing] countries such as in Africa, the Middle East, and Eastern Europe do not have such capabilities for broadcasting, therefore Megahertz wanted to ...