Brighton Mobile TV is a Small and Medium Sized Enterprise (SME) that manufactures TV sets installed in cars and boats. Business has declined recently as foreign rivals from emerging markets are increasing competition. Because Brighton Mobile TV does all its manufacturing in the UK, it lacks cost advantages and price competitiveness. After analyzing the problem facing the firm, you have come to the conclusion that Brighton Mobile TV should move its production to an emerging market (China, Mexico, Turkey, South Africa, India or Brazil). But top management knows little about internationalisation. Making pertinent reference to the International Business literature and concepts, write a memo to the CEO based on the guidelines below:
Give your reasons why Brighton Mobile TV should internationalise its manufacturing operations bearing in mind the differences between domestic and international business.
Decide on an appropriate emerging market country in which to manufacture, and give your rationale for the choice.
Identify and discuss the risks and other challenges Brighton Mobile TV would most likely encounter if it moved production to an emerging market country.
State your planned FDI entry strategy, and discuss your reasons for this strategy.
Discuss the advantages and disadvantages that Brighton Mobile TV should expect from manufacturing in an emerging market country.