The market entry strategy for Lafarge Tarmac is through joint venture. The new venture would be 50:50 venture of Lafarge and Tarmac. The market entry strategy of the new joint venture is through market expansion. This the companies achieves by integrating the market of the two companies along with the leverage of the abilities and product differentiation of the two companies brought together. Lafarge brings in innovation and technical expertise within the existing market of the company while the plant network and the existing customer base and market reach would help the joint venture company to make a strong entry in to the market (Cavusgil, Ghauri and Agarwal, 2002).
However, given the present economic situation, the company can do with
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The massive financial burdens that are associated with the substantive growth strategies are avoided by this process strategy. This helps the company to consolidate its position and place itself in the share market and acquire finances through public offerings before changing strategy to substantive growth strategy (Festel, 2010).
Since the companies have recently formed a joint venture the slow growth path would allow the integration of the two managements of the companies. The logistical and financial challenges demanded by substantive growth can be tough to handle by the new management of the company (Moore, 2010).
However a slow growth path can give times and scope for the competitors to gain market share and surge ahead in business. The slow growth strategy can result in the company losing out market share to the competitors and miss out on the opportunity to gain market share in new or untapped markets (Moore, 2010). Investors and shareholders may also pose a significant problem in case of limited growth strategies as investors would want the fastest returns for their money invested in the company. This investor pressure is often tough for management s to