Entry into Foreign Market Essay Example | Topics and Well Written Essays - 1500 words - 2

Entry into Foreign Market - Essay Example Despite Cameron International Corporation’s involvement in other developed nations, the company’s production and innovative approaches towards development of oil extraction equipment may hinder the desired success if it fails to establish the actual needs of the oil drilling industry in Myanmar. The risk involved in the company’s strategic entry in foreign markets is the lack of research and development programs to establish the unseen barriers, and the dependence on its large capital base for diversification of investments (Griese, 2004). Certainly, the risks of production that prompted to the explosion of BP oil rig revealed technological failures thus; the company’s profitability should not serve to guarantee success in Myanmar since technological breakdowns might lead to expulsion and exploitation from the mining industry (Crouch & Maclean, 2011). Arguably, the institutional risks present in the oil extraction corporation serve as deterrence to success in entering the Myanmar oil industry. The institutional risks born to the multinational corporation are; financial, human resources, and the corporate social responsibility practices (Meyer, 2010). However, the management is certain of prosperity in the market due to its capital amount set aside for the investment. VRIO analysis to determine the existence of support to entry VRIO analysis in Cameron Corporation establishes a strategic scheme towards the global market approach. Firms draw their market entry strategies to reflect their vision statements and determine the success of objectives upon any of the corporation’s segments. Ideally, VRIO abbreviations denote value, rarity, imitating or counterfeiting, and organization’s competitiveness in guaranteeing profound market entry variables (Griese, 2004). As an organization, Cameron International boasts over its business success in the continued production of oil services and equipment. The sectoral approach in the ene rgy production industry enables the CAM Corporation of continued innovation of ideal equipment in correlation to the raising performance together that seeks to denote its essential need to deliver value to the mining companies in order to become the global market leader in supplying valves and fittings in subsea oil wells. Secondly, the company asserts that its segment strategy is to enable corporations and countries to meet their energy services needs (Duncan, 2009). CAM targets those companies that operate in petroleum and natural gas exploration and extraction. Due to the strategic involvement in the energy industry, the company is arguably a leader in the production and marketing of pressure control equipment critical for competent oil and natural gas extraction programs. The company’s underlying strengths of rich history in production of valves used in exploration sites in over 300 countries acquaint vast opportunities towards success in its bid to enter the Myanmar oil industry. CAM competes with FMC Technologies and National-Oilwell Varco as the market challenger and market follower respectively (Lincoln, 2007). Therefore, the VRIO analysis declares proficient support in CAM’s entry in the Myanmar oil production industr