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Managing International Operation Case Study: Institute of Marketing & Management
Managing International Operation Case Study: Institute of Marketing & Management
TMC
Weakness
1-A number of small Pakistani companies have been operating with smaller overheads and have eaten in to TMCs market share. 2-Unlike a number of small companies ,TMC does not produce solid coloured towels and is thus unable to meet the demand for this product line , this is making it vulnerable to competition from newer and smaller producer of towels in Pakistans. 3-The profit margin of 5% on current product line on white towels is very low. 4-It will loose favour from United States importers if it cannot supply dyed towels to complement its current product line.
A-2 TMC foreign and domestic market analysis is as follows TMC is largest manufacturer of towels in Pakistan and mainly into export with United States America counting for sales up to 90% and rest coming from number
of European countries. TMC solely for export, management is not fully committed to exporting but also has a decade of export behind it. TMC has started experimenting with European markets .In the commonwealth of independent states (CIS), profit margin are 5% for white towels and 10% for dyed towels .Barter has, in past been the preferred mode of payment in the area now covered by CIS .This and TMC limited marketing experience in the area are disadvantage .As a regard Western Europe, TMC lacks of marketing experience in the region is major weakness. As far as domestic market is concerned the company is facing stiff competition from small towels manufacturer with more modest overheads. Demand is growing for dyed towels and company is aware some competitors are making dyed towels to meet the demand and likewise company is also aware the United States can anytime pass legislation of not importing towels from Pakistan.
Market Development
TMC should concentrate on both its domestic market as well as international market not only in United States of America but other European countries. This would provide advantage to turn to other market such as Common Wealth of states and Western Europe. This will help company to turn to other countries in case of recession and also provide company with international presence, exposure and experience and greatly increasing companys potential customer and sales base.