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Case Study example - Growing Paderno Business in the U.S.
Pages 3 (753 words)
Name: Instructor: Course: Date: Paderno’s Expansion into the US Market Growing Paderno’s business in the United States might not be the best approach for the company, especially as they will require two separate packing costs, inventories, and enormous advertising costs in the US (Yan & Luo 44)…
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It can help them to reduce issues to do with personnel movement into and out of the US and legal and tax issues in the US. In addition, the combination of financial and technical attributes of the two firms will improve their competitive edge, which is a fundamental advantage in a market, which is as aggressive as the US. With several types of partnerships available to Paderno, entering into a joint venture with a US company will be a good choice. They can structure the JV in two ways; either contribute resources to the creation of a new entity that will be operated in collaboration, or enter a partnership agreement allowing the entity to be run as a partnership (Yan & Luo 45). The latter will be the best choice since it will allow them to leverage their Paderno brand, as they will one of the partners. Entering such an agreement will enable Paderno to decrease their dependency on the Canadian market. This will help them in reducing risks so that if their Canadian market share suffers, they have the US market to compensate (Glover & Wasserman 28). It will also help them to extend their target market by engaging a partner to market their products in the US market under the other company’s name, while also advertising the product as being a joint venture with Paderno Canada. ...
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