Kiwi Medical Devices Pvt Ltd Case Solution

  • That gives competitive advantage to the company, in terms of distribution channels throughout the world.
  • On the other hand, in all given condition, the Indonesia is most favorable in all factors, as compared to other countries. Meanwhile, it is another concern for the company that what type of entry mode should it adopt to enter into the Indonesia.Since, there are three type of entry modes in the country, subcontracting, shelter option and third one is wholly owned subsidiary.
  • Meanwhile, it is important for the company that, it should transfer its production facility to the Indonesia.Given that it has expertise in the medical device manufacturing industry. Because, there is no other competitor that would have such a huge experience in the medical device industry. Similarly, it can be determined that, company should make it its advantage.
  • Since, there are many complications in the market to understand. Because, the increasing competition has emphasized over outsourcing the production facility in the country. Meanwhile, many companies has already outsourced their production facility to low cost country, which has given them edge over the Kiwi to compete with. Since, they do not have much expertise and resources as kiwi does have.
  • Therefore, it is important for the Kiwi to outsource its production facility to another country that would lower the cost of production and operations costs as well. Similarly, it would enable company to again compete with the competitors in the market, with the reduced and competitive prices.
  • Meanwhile, it can be determined that, kiwi has good reputation in the market and has brand name as well. Therefore, it would be able to leverage the investment for the Kiwi industries and approach the developing countries. Similarly, it would be able to get back the market share as well.

Question 2

Scenario 1

  • On the other hand, if the labors living and working in the UK are sent back to their home to Slovakia, then the unemployment in the Slovakia would increase.That would reduce the hourly compensation in the country. However, if we compare the how would government of the Slovakia would react to that then, the government would lower the hourly compensation in the country.So that employment rate increase in the country, and unemployment rate decrease in the country.
  • Similarly, if we increase the score of the labor costs from the 50 to the 80, then overall score of the Slovakia would increase from the 59.1 to the 71.6.That would be attractive to the many competitors in the market. However, the increasing complexities such as the labor skills, transportation costs and lead time is also important before making any decision.
  • However, in this situation the Slovakia is not favorable, unless the score exceeds the score of Indonesia overall. Indeed, in the given condition of score the Slovakia increases, due to the declined labors hourly compensation. Meanwhile, it does not exceeds the score of the Indonesia at all. Therefore, in this situation the Indonesia is more favorable as compared to the Slovakia.
  • Consequently, increasing complexities has emphasized over the use of the low labor costs,for competing with the competitors in the market. Indeed, there are many complications to understand in the market. Since, there are many political, economic decisions.That could influence the costs of the labor and other operations costs as well.

Scenario 2

  • On the other hand, if the illegal Mexicans living in the United States are forced by law to be deported out of United States to the Mexico.Plus the government of United Statesimpose the chicken tax on the Mexico that would increase the unemployment in the country and significantly reduce the hourly labor compensation in the country.
  • On the other hand, it can be determined that, high unemployment in the country would negatively affect the country’s labors costs. Because, it would decline generally. But, on the other hand, it can be determined that, there are many complications and complexities in the market, that has emphasized to lower the rising costs of the labors and operations as well.
  • Meanwhile, if we take a look at our model to analyze what effect of change would haveover the score of the Mexico, then it can be determined that the weight for the changed from the 50 to 70. Meanwhile, the overall score of the Mexico would change from the 73.1 to77.1. Indeed, it is yet below the score of the Indonesia, since the weighted score of the Indonesia is 79.1.
  • On other hand, it can be determined that, there are some complex situations in the market that has emphasized over the lowering the labor costs and the cost of operations to be competitive in the market. Meanwhile, the score of the Indonesia is much better than the score of the Mexico. Therefore, it is main concern for the company that,it should take appropriate steps towards the market dimensions.
  • On the other hand, it can be determined that, there are many complications in the market. It is because on one hand competition has increased and on other hand the need for cutting the cost of production has increased, due to the competition. Similarly, the Kiwi has ensure that, it heads towards the most suitable option in expanding the production facility to another location………………………

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