D081/ QBM3 Task 2 WGU Performance Assessment,
SWOT Analysis and Risk Assessment for Market
Entry
D081/QBM3 Task 2: SWOT Analysis and Risk Assessment for Market Entry
A. Risk Identification and Analysis
Identify at least two risks the company encounters when entering the emerging
market, with detailed descriptions of the impact on the company.
# Risk 1: Production Adaptation and Regulatory Compliance (External)
The company must redesign its product to comply with National Fisheries
Development Board (NFDB) regulations. These regulations require the use of
recycled Indian plastics and mandate enhanced water-resistant treatments due to
India's climate and coastal demands . The impact on the company includes:
- Financial Impact: Redesigning the product increases manufacturing costs, may
require new supplier relationships, and could delay market entry .
- Technology and Performance Risk: Failure in the newly modified boat due to
material or design issues would damage customer trust and reduce adoption rates
among local fishermen .
- Supply Chain Challenges: Finding locally sourced plastics in India that meet both
environmental sustainability requirements and durability standards for long-term
1
, use poses significant challenges. The market for environmentally friendly
sustainable plastics is likely small, potentially increasing operational costs .
- Penalty Risk: Non-compliance with NFDB regulations could result in fines and
reputational damage, as the company prides itself on being environmentally
friendly .
# Risk 2: Personnel and Cultural Challenges (External)
Entering the Indian market presents significant human resource and cultural
integration risks. The company operates in a low-context culture with direct
communication, whereas India has a high-context culture where communication is
often indirect and relies heavily on context and nonverbal cues . The impact
includes:
- Communication Barriers: Direct communication from U.S. employees might be
perceived as offensive by Indian employees, creating challenges in managing a
diverse workforce. Language differences can cause miscommunications and make
it difficult to understand local laws .
- Organizational Alignment: The company's decentralized decision-making
structure may not align with Indian work expectations, leading to
misunderstandings, inefficiency, and slower production . This could delay
prototype development and market entry.
- Hiring and Integration Challenges: Challenges include language barriers,
socioeconomic factors, integration into the company's decentralized culture, and
differing Indian work/training expectations . These factors could adversely affect
the brand's reputation and sales.
# Risk 3: Marketplace Price Acceptance (External)
2
SWOT Analysis and Risk Assessment for Market
Entry
D081/QBM3 Task 2: SWOT Analysis and Risk Assessment for Market Entry
A. Risk Identification and Analysis
Identify at least two risks the company encounters when entering the emerging
market, with detailed descriptions of the impact on the company.
# Risk 1: Production Adaptation and Regulatory Compliance (External)
The company must redesign its product to comply with National Fisheries
Development Board (NFDB) regulations. These regulations require the use of
recycled Indian plastics and mandate enhanced water-resistant treatments due to
India's climate and coastal demands . The impact on the company includes:
- Financial Impact: Redesigning the product increases manufacturing costs, may
require new supplier relationships, and could delay market entry .
- Technology and Performance Risk: Failure in the newly modified boat due to
material or design issues would damage customer trust and reduce adoption rates
among local fishermen .
- Supply Chain Challenges: Finding locally sourced plastics in India that meet both
environmental sustainability requirements and durability standards for long-term
1
, use poses significant challenges. The market for environmentally friendly
sustainable plastics is likely small, potentially increasing operational costs .
- Penalty Risk: Non-compliance with NFDB regulations could result in fines and
reputational damage, as the company prides itself on being environmentally
friendly .
# Risk 2: Personnel and Cultural Challenges (External)
Entering the Indian market presents significant human resource and cultural
integration risks. The company operates in a low-context culture with direct
communication, whereas India has a high-context culture where communication is
often indirect and relies heavily on context and nonverbal cues . The impact
includes:
- Communication Barriers: Direct communication from U.S. employees might be
perceived as offensive by Indian employees, creating challenges in managing a
diverse workforce. Language differences can cause miscommunications and make
it difficult to understand local laws .
- Organizational Alignment: The company's decentralized decision-making
structure may not align with Indian work expectations, leading to
misunderstandings, inefficiency, and slower production . This could delay
prototype development and market entry.
- Hiring and Integration Challenges: Challenges include language barriers,
socioeconomic factors, integration into the company's decentralized culture, and
differing Indian work/training expectations . These factors could adversely affect
the brand's reputation and sales.
# Risk 3: Marketplace Price Acceptance (External)
2
