Spectrum Industries: International Market Entry
A. S. Vasudev Rao and Amol S. Dhaigude
T A Pai Management Institute, India
Debmallya Chatterjee
S P Jain Institute of Management Research, Mumbai, India
Volume 14: 2019, pp. 373-388; ABSTRACT
This case illustrates the challenges faced by Spectrum Industries, an Indian-based Small and Medium Enterprise (SME), while expanding into the international market. The company was engaged in the manufacture and sale of food processing machinery in the country, with a colour sorter as its leading product. Amidst increasing market competition, Spectrum wanted to expand into foreign markets. Mr. Jeevan, the CEO and owner of Spectrum Industries, wanted to analyse and evaluate the factors that could impact the expansion process, and accordingly, decide upon the right expansion strategy. The use case, at a macro level, also points to the problems faced by SMEs in expanding their business beyond borders. The case provides students the opportunity to identify the various factors that SMEs should consider while selecting the countries to expand into; and also understand the timing and scale of entry. It also encourages them to analyse the advantages and disadvantages of different entry modes that Spectrum could take and strategize the best way forward.
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