The Jonas brothers are looking for new markets for four major reasons: the incre

Question

The Jonas brothers are looking for new markets for four major reasons: the increased safety regulations in the US, increased competition, high insurance costs to cover legal risks for owners, and children’s safety groups. The brothers believe their trampolines are safe and that they furnish beneficial exercise to children and adults (as well as being a good source of family entertainment). They believe it is essential to find new markets outside the US.

To learn a little more about the business, here are two links that may help you visualize the business idea. Indoor Trampoline Parks, International Indoor Trampoline Parks, Trampolines Show Big Bounce Injuries

Using the four ways of doing business chart strategies such as global, transitional, international and multi Domestic, help the Jonas’ decide whether to go global or to stay local while improving the current business in a holistic manner.

Explain how you arrived at your answer and what other factors must be considered in choosing a strategic option.

Explanation / Answer

When a business grow and the domestic market reach to saturation point in some degree, it will be best for the organization to diversify the market and geographical territory. The case of Jonas Brother seems that they should expand their market and venture into other geographical market. To do so they should enter other market and global strategy can fit it.

I do think that Jonas Brother should opt for global strategy because from the facts of the case it is pertinent that the market it is operating have little scope for them to expand more. They have some concern with regard to cost and other associated things in the market. It will lead to increase in cost and hence their profitability will decline also regulatory measures debar the product from more penetration in the market. If they enter the global market they will have face lesser regulatory measues than that of US and acquire more customers through penetration.

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