South Korea is the seventh largest exporter in the world, and ninth in imports. After the Korean War, South Korea slowly traded with China (which is the #1 importer to South Korea), then the United States, Japan. South Korea is going to be one of the hottest markets, due to the proximity of it’s location for distribution of good to and from to China, United States, the United Kingdom, Europe and Russia. More and more Multi-national companies are wanting to relocate to South Korea, due to a lack of different restrictions, more free trade, more negotiations with free trade with Singapore, and it’s proximity with other Asian markets.
COVID-19 has only affected the economy a little, with unemployment up from 2019 from 3.8% to 2020, where it only rose to 3.9%. When COVID-19 first hit South Korea, foot traffic with retail went down, but grocery shopping, and home delivery escalated to 55% from January to February 2020. Imports and exports slowed down to a crawly, but in early 2021, demand became higher for goods and services around the world, and their beginning to export more even during the co-variants that are hitting most of the world with COVID-19 variants. China will remain to be South Korea’s number one exporter and importer, and China has the external process of keeping itself at #1 for imports and exports, due to external factors, they can name their price, since they have that much control, and they often control imports coming into South Korea. As less and less of restrictions are slowly waned away, they can have more free trade with the United States, the European Nation, Russia, etc. South Korea is our ally, our friend, and in the future should be our business partner, as long as they stay free, we will stand behind them.
Philippines is an example of a country that is likely to be the next top prospect for international trade soon. The Philippines is described as one of the fastest growing economies in the world. Although the current growth is taking place in the capital, Manila, the government intends to ensure that other parts of the country are also conducive to business development. The government is achieving this goal by developing infrastructure and implementing policies aimed at reducing poverty (Navarro Amper & Co 2017).
For different reasons, the country has been selected as the next best prospect for international business. First, its Gross Domestic Product is growing at a fast rate. In 2019, the country’s GDP growth grew by 6. 0%. Research shows that the country’s economy is projected to be the 16th largest economy globally in 2050. The implication is that economists around the world believe in Philippine’s capacity as the next top prospect for international business. Second, the countries had a population of about 1.09 million in 2020 and close to 1.11 million in 2021. Population growth is expected to continue to rise. This factor is extremely attractive to international companies because it means a ready market for goods and services.
There are different types of companies that have the potential to flourish in the Philippines. Manufacturing is one of these areas of commerce. The government is committed to developing infrastructure to support the successful establishment of manufacturing companies. The good infrastructure will increase the ease of access to raw materials and transportation of finished products to the markets. Professional services is also an area of commerce that can thrive in Philippines. The new developments will increase the demand for professionals in the country and therefore it will be prudent for companies to establish firms that will offer these services (Navarro Amper & Co 2017).
ToolsCorp is Tennessee-based company with a national footprint. ToolsCorp delivers personal service, like that found in the old Mom-and-Pop stores, but with a national reach. With this mentality, ToolsCorp has become the market leader in tools in the United States. In order to maintain or accelerate the rate of growth ToolsCorp has experienced, expanding into the international markets is necessary. Few tools manufacturers and distributors exist in the national market, but the need for tools is great. This demand without supply to meet that demand creates immense opportunity for ToolsCorp. The Netherlands is a vibrant, English-speaking country in the European Union. The Netherlands economy is strong, ranking as the most competitive economy in the European Union and the fourth in the World (Invest in Holland, 2021). The global power tools market is expected to grow by 4% each year through 2027 mainly due to the increasing DIY projects and home renovations by individuals and businesses (Reportlinker, 2020). Few competitors exist in the Netherlands market. These include: Toko International and FERM International BV. By current estimation, the valuation of ToolsCorp is $10B. ToolsCorp will maintain the mom-and-pop essence in the international market by hiring local salespeople and executives from the Netherlands. Marketing efforts will be directed specifically for the Dutch. Approximately, $20 million is needed to enter into the Dutch market and successfully launch ToolsCorp in the Netherlands. Return on investment will occur at the 10 year mark.
Tools Corporation has been making great strides in the past year and has plan to expand outside of their home state in the future. Tools Corp originated in Nashville, Tennessee as a small warehouse that manufactures yard tools such as push mowers, drive mowers, hedgers, leaf blowers and power chains to name a few.
We will review the strengths, weaknesses, opportunities, and threats otherwise known as SWOT analysis. This will allow us to hone in on the current market trends and forecasting as well as the current operating principals and review strategic objectives. We will also use TOWS analysis so that we can get a different perspective on this information. We will also take care to involve our team and consumers to receive feedback internally and externally.
Using the SWOT and TOWS analysis we are able to pinpoint our success point which in this case is the quality of or products. We were also able to receive feedback on out consumers directly who enjoy the thorough work that goes into constructing our products however they wish it were easier to obtain. Though we are a huge warehouse we don’t distribute to all possible home stores.
In conclusion, our findings gave us a look into the things that we need to work on and develop a strategy to improve and expands. The changes that we make can then be translated amongst all departments and we can move in unison to apply new operating principals. As we take the initiative to address any outstanding issues moving forward we are also able to address our mission and vision all growth and direction.