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MNB3702 ASSIGNMENT 2 SEMESTER 1 2024
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Contents
Introduction ................................................................................................................ 3
Motivation for Farox Technologies International expansion ................................. 3
Strategic objectives.............................................................................................. 4
South Africa will have a competitive edge as a market ........................................ 4
Selecting a country .............................................................................................. 5
Importance of Timing ........................................................................................... 5
Entry mode .......................................................................................................... 6
Conclusion ................................................................................................................. 6
References ................................................................................................................. 8
2
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Introduction
The main aim of this essay will be to concentrate on the company's trading activities
in African marketplaces, specifically South Africa. Farox Technology will be used as
an exemplary company to discuss and analyse in this case study. The company is a
significant participant in the telecommunications (technological) industry because it
sells a broad range of technological assets. Farox Technologies (FT) is an Indian
company that wants to expand into South Africa and other countries around the
globe. To put it another way, Farox Technologies will be headquartered in South
Africa (host country), while the business was founded in India (home country). FT is
a retailer of technological gadgets that specializes in a wide range of products such
as laptops, security cameras, and vehicle tracking devices, all of which are up to
date with the latest technological advancements around the world. Its core values
are founded on the quality and cost of the products it sells, which it achieves through
a variety of market penetration strategies. The industry in which FT operates, as well
as the competitive advantages it enjoys as a result of expanding into foreign
markets, will be discussed throughout the course of this research. Furthermore, the
essay will discuss the elements that led FT to choose South Africa over any other
African country such as Mozambique and Zimbabwe. Moreso, the FT entry method
will be broken down and demonstrated with real-world examples before the
discussion concludes with a conclusion.
Motivation for Farox Technologies International expansion
Farox Trading, as a retailer of different technological devices, is located in the
economy's telecommunications sector. FT discovered opportunities in the African
market, taking into consideration the ongoing globalization of production and
markets. The global desire for technological products such as security systems and
laptop computers is increasing according to Anwar (2018). Emerging countries, such
as South Africa, offer exceptional opportunities because their economies are still
growing (Hovering, 2017). During the phase of its foreign market expansion, Farox
Technologies established a number of goals that it aimed to achieve both in the short
and long run.
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