Ethiopia Case Analysis
Recommendation for ShoeCo
ShoeCo should enter Ethiopia using a joint venture strategy with a focus on local manufacturing. They’ll have the benefit of scouting the local Ethiopian market but also take advantage of the tax benefits to export to other nearby countries and capture their markets as well. Not only that but they’ll be able to take advantage of the very low labor costs to run the factory, allowing them to keep their prices in these emerging markets competitive.
Recommendation for CareCo
CareCo should enter Ethiopia with a Joint venture. A JV has benefits of their historical model of partnering with local companies, while still maintaining control to try to avoid the plateau. CareCo already has high brand awareness in the market and with the population and incomes growing they can be in a position to take a major share of the personal care market.
Recommendation for MedCo
MedCo should enter Ethiopia using a wholly owned subsidiary. They benefit in multiple ways, mainly that they can have a better chance of controlling their intellectual property and preventing infringement. Also, as a local manufacturer they would benefit from the tax breaks for manufacturing. The political analysis of Ethiopia is very important for MedCo.