In the case study 3-2, Sperry/MacLennan Architects and Planners, is considering taking their firm global by expanding into the United States. The firm specializes in recreational facilities and is contemplating branching out to expand their market and opportunities. Mitch Brooks a junior partner is by some of the slowing down of the market and intends to present the expansion plan to the directors in their October meeting.
Drew Sperry is one of the two senior partners and the founder of this one-man organization in 1972 in Nova Scotia.Throughout the seventies the firm sustained substantial growth and had added an additional 14 employees, and two other branches. The additional locations helped add local presence and meet licensing requirements during a very aggressive growth period. During the eighties the firm came upon hard times and laid off but three of the partners. In 1983 the firm was awarded the aquatics facility for the Canadian games and gained national recognition for their sports facility expertise.
Despite winning several awards the firm went through many hard times but fought to stay competitive during this period.The firm won the Canadian Architect Grand Award is prestigious because it is voted upon by fellow architects. The reputation of the firm allowed them to win several more bids for recreational facilities but because of increased competition the firm is considering moving to the United States to export their hard-won expertise. One concern in moving their services is that architects are licensed provincially, and the documents are not readily transferrable from province to province.
To account for the issue, some firms enter into joint ventures with local companies.S/M also found that when dealing with large projects a considerable amount of time spent dealing clients, even more reason to have a local presence. An additional concern, especially in Nova Scotia is that there is a lack of loyalty and often the bids are given to the lowest offers. S/M prides itself on a superior level of service, which is not apparent in bids only concerned with monetary savings. S/M countered this by concentrating on buyers looking for premium products and service.
M's philosophy is to provide quality products with quality service for quality clients. In a report entitled precision planning and Perseverance: Exporting Architectural Services to the United States, several niches were identified by Brooks as most likely to match S/M's capabilities. Among the report, Universities were known to be loyal to local firms and represented a potential market for S/M to capitalize on. This proved to be a valuable market because at that time most universities had older, outdated facilities presented numerous opportunities for the firm.An additional concern for S/M was that most firms in the Unites States were well ahead of Canadian firms in the use of CADD for everything from conceptual design and facility management.
Despite good intentions, S/M could not get CADD up and going but is in the process getting financial assistance in switching their processes over. To address the issues at hand, S/M should consider market research prior to making any drastic moves or changes. The market was changing drastically and planning for all of the potential issues was only the beginning of extensive research that should be done.Identifying potential customers is one piece of research that should be taken into account.
An additional concern to consider is the geographical area identified for the expansion. To maximize the firm's resources, potential markets should have the best opportunity for growth. Additional information to consider is the business environment in the United States. Although S/M has a great reputation in Canada, there is no guarantee that this will transfer to the United States. A thorough understanding of customs, ideas, and business practices in the United States should also be considered.An extensive SWOT analysis should be done on the opportunity as well; this will help weigh the opportunity against all existing factors.
The firm conducting the SWOT would use standardized research methodology to ensure the highest levels of data quality to benefit S/M. The value of market research in this particular case would prove substantial. An understanding of the market, potential issues, and a list of opportunities would be a valuable commodity for S/M. The firm is being forced to invest a considerable amount of their resources in CADD, and any setbacks could affect current and future success of the organization.International marketing research shares many commonalities with its domestic research, problem definition, methodology design, fieldwork as well as final report and recommendations. The major differences between the two involve disparities that spring from political, legal, economic, social, and cultural differences across countries, and the problem of comparability of research results.
International marketing research: A global project. By conducting extensive market research and investing resources in international market research, S/M could stave off and account for the many changes they would face.