Wayfair Inc.
The sole reason driving people into the business is to make a profit. Companies providing goods and services to various countries have the potential of maintaining a substantial revenue. As the chairperson of Wayfair Inc. I have done my market research and found that the company can enjoy the advantage of monopoly when it goes global.
Wayfair Inc. is one of the American e-commerce companies selling furniture and other home goods. The company was initially founded in early 2002 popularly referred to as CSN stores. The company has it’s headquartered at Boston, Massachusetts with offices and warehouses across major American states. However, managers from various department s have put their suggestions forward in making the company go global. Research has shown that when the company opens its doors to other African nations, its five branded retail websites will considerably double their operation hence increasing the sales. Being the chairperson to the location selection committee is find this decision ideal for the company. However, as a specialist in marketing, I will put into consideration all the seven location decisions factors for better results.
One of the outstanding location decision factors is competition. Since the company faces stiff competition from other industries selling similar products, it is ideal, therefore to establish offices to countries where such rival companies have not developed. By so doing, Wayfair will make more fabulous sales before the competitors arrive. Moreover, rebranding and giving after-sale services will provide a platform that reduces the competition rate. However, as the company strategies for this crucial move, supplementary budgets have to be drawn to factor in the expected costs. In the long run, the company will have no choice but increase its expenditure thereby disadvantaging some of these departments.
Political risk and incentives as another factor to company location decision bring the advantage of diversification in terms of political instabilities in one country. If the company goes global, it will have better chances to advance as opposed to just operating in one country. In the event of political instability brought about poor political leadership say ion one country, Wayfair will still have more chances of success in the other nation. Different countries, on the other hand, provide business waivers and incentives to foreign companies. However put of probabilities, legal requirements are other nation are stiffened for international companies hence making such companies disadvantaged.
Wayfair will also have to come to terms with logistical operation as it contemplates going global. Opening doors to other countries have the advantage of acquiring diverse expertise globally who would bring their varied experiences to make the company realize its goals. However, the issue would be the increase in wage bills. Recurrent expenditure will eventually increase to maintain the company’s status. As one of the logistical market research, managers will have to weigh various options before making the –locational decision a reality.
Going global for companies in some instances makes companies enjoy the advantage of cheap labour besides having a reduction in rental facilities. In most of the urban American states where Wayfair has rented spaces for its business are highly charged, making the company spend more on its rental expenses. Moving to other countries, especially in the African continent would eventually reduce such costs since some of the remote places are not highly valued. Finally, the company will have to engage the local community in terms of proving employment as a requirement for some of the developed countries. This move will eventually benefit the local community at the sites. The company’s social responsibilities, however, would render the company increase its expenses to comply with some of the business policies in various countries.