Firm expansion in the U.S Essay Example | Topics and Well Written Essays - 500 words

Firm expansion in the U.S - Essay Example The company lacks experience selling outside its regional comfort zone. A strategy that could help the company quickly penetrate other US markets is to formulate a strategic alliance with a competitor. The competitor should be a medium to large size firm that has an established network of distribution across all parts of the United States. This option can help the company increase sales volumes, but the profitability of the firm will be lower because the partner has to get his cut of the earnings. The strategic alliance deal should be negotiated in a manner that the company does not give up too much of its profits. Offering an equity participation in the company can persuade the partner to get a lower margin of the profits. A second strategy that the company could implement to expand its sales though out the United States is the implementation of an aggressive online marketing strategy. Ecommerce in the United States in 2010 reached sales of $153 billion (Plunkett Research, 2011). Th e company has a lot of good products that could be very attractive for online customers. A way to increase sales is by getting a freelance workforce to help increase the sites traffic and sales.