Travel Wise Concluding Case

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1. What type of entry mode would you recommend that Travel Wise use for its new line of clothing in U.S. markets? In foreign markets? Should the clothing be outsourced to suppliers overseas, or should Travel Wise consider building its own manufacturing facility here in the United States? The entry mode I would recommend for the new line of clothing in the U.S. markets would be a joint venture. It’s the easiest method to begin with, since the clothing business is a new market for Travel Wise. A joint venture will allow Travel Wise to attain knowledge on the clothing business while working with a company already involved in that market. This would give Travel Wise a fallback if the expansion is a bust since the company would be sharing the risks and costs with its partner. As for foreign markets, I would suggest the method of licensing. This way Travel Wise can avoid the costs and risks of opening an overseas market and can avoid having to put time and money into researching a foreign market while still making a profit/garnering royalty payments on their product. Since Travel Wise already outsources the manufacturing of their current products and has good relations with their foreign suppliers, it would be wise to outsource the clothing to suppliers overseas. Building a manufacturing facility in the United States is costly and would require a lot of planning, and would be a better idea to add to long-term plans. Another reason to outsource the clothing is labor costs—the book states that labor costs in China (a country that Travel Wise already does business with) are less than $1 an hour, as opposed to $24.59 in the U.S. 2. What features and services might Travel Wise offer on its expanded website that would appeal to travelers from Europe, Asia, and other parts of the world? There are quite a few features and services that can be added to the website to draw in

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