- Yes. Resene should look forward to expanding overseas.
Resene should expand overseas to more countries since they already have their international chains of distribution, and licensing of their products has already been done in the involved countries. Although it may seem a risky venture for the company, it is worth taking. A lot of the research by the company’s marketers show that there are many potential markets some even being twice or thrice the size of the company’s current market. In fact, Australia has been depicted to be five times the size of paint market available in New Zealand. This situation is an excellent indication and also a motivation for the company to venture and expand its services internationally.
Little growth has been experienced in the architectural and paint industry in Australia and New Zealand. Other markets are showing progressively high rates of growth which should motivate the company to cross more borders in search of these growing markets. This step will help Resene to grow itself.
Competition is also another factor that the company should consider because it controls only 23% of the Paint industry in New Zealand with its closest competitor controlling 22%. This situation sounds a warning alert for Resene so, in order to gain more popularity and revenue, it should expand overseas.
- Yes, Resene should seek to venture into industries outside its own.
It is evident that Resene suppliers are aware that Resene is a more innovative company than its competitors. The suppliers also inform Resene of the new trends in building materials that are currently being used. This information enables Resene to produce products to meet the market needs.
Throughout its 55 years of existence, the company has managed to come from the bottom to the first place in the paint industry in New Zealand. This growth makes it a recognized paint company due to the strengths and popularity of the many brands of paint it produces. Resene also produces high-quality construction products.
As the leading among the paint companies in New Zealand, Resene is the only company that is still incurring research and massive advertisement costs since it comes last in ranking and as a business. It has to spend those extra dimes to keep up with the competition.
Resene was formerly a family business owned by the Nightingale family. This position limits the company’s ability to acquire some resources. The business’s expansion is limited in New Zealand, but more hope is building up on the transformational stage.
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