Airware's Entry into Foreign Markets
             We at Airware decided to enter the European, Asia, and Latin American Markets immediately. We felt that by moving first into these markets it would give us a competitive edge over many of our competitors. We at Airware decided to expand outside our domestic market for a few reasons. One of the first reasons we wanted to enter the foreign markets to gain access to new customers. By expanding into foreign markets we thought that this would offer potential for an increase in revenues, profits, and saturating certain countries with our shoes. Another big reason was to achieve lower costs and enhance the firm's competitiveness. With this our company was driven to sell in more than one country because the sales volume achieved in our domestic market really isn't large enough to capture manufacturing economies of scale, and with this we thought we could drastically improve our firms cost competitiveness. Probably the most important factor in our decision in moving into foreign markets was to spread our business risk across a larger market base. By doing this our company spreads our business risk by operating in a number of different foreign countries rather than just depending on operation in our own country. All these factors played an important role in our decision to operate in certain foreign countries. Below are strategies that would be used in a multicountry strategy.
             • In a multicountry strategy like the one we have here with Airware, plants are scattered across many host countries, each producing shoes suitable for that country and the surrounding countries.
             • Strategies are adapted to practices and cultures of each host country. Sometimes you can transfer ideas that work successfully in one country to another country whenever you see it can be advantageous. Here costs can be very high because regulations vary from country to country as far as what you can marke...