ribe case F 
To: Upper Management
From: Justin Claybrook
Date: September 16, 2014
Type: Ribe Entering New Markets
I, Justin Claybrook, would suggest Ribe entering China because the pros outweigh the cons. They have upward price trends and decreasing freight rates in China. The 10,000 square meters in (NIP) also serve as a plus because this allows companies to initiate production quickly at a low cost. The biggest con on entering the Chinese market is the 1 million dollar investment due to the subsidiary. The main competitive challenge facing Ribe in the near future is figuring out how to balance its initial business and its core competency, which is manufacturing steel parts along with its new consulting and outsourcing branch Rimadan. The largest challenge facing Ribe with its supplier network is that if business is moved to China they are facing a 38-day freight time. They must also build their network with suppliers in Eastern Europe.
Ribe should develop new business areas and specifically enter into China. They already have a 10,000 square meters building in the Nordic Industrial Park, and most of that area is aimed for companies specifically trying to rent a production cell. Usually Ribe charges its clients for its services but with the NIP building clients could avoid this capital being tied up. When it comes to offshoring China serves as one of the leaders for global expansion. There are 3 different categories that you can measure the global expansion on. After weighing China against two other countries that are possible candidates for expansion it appears to be the best. The overall business attractiveness chart comes from averaging the other three numbers together. One con of global expansion into China is the freight time of 38 days, which could cause delay in orders from companies if they decide to change orders suddenly. These types of situations are calculated risks and China has plenty of other great reasons to locate there. Forecasting demand
From: Justin Claybrook
Date: September 16, 2014
Type: Ribe Entering New Markets
I, Justin Claybrook, would suggest Ribe entering China because the pros outweigh the cons. They have upward price trends and decreasing freight rates in China. The 10,000 square meters in (NIP) also serve as a plus because this allows companies to initiate production quickly at a low cost. The biggest con on entering the Chinese market is the 1 million dollar investment due to the subsidiary. The main competitive challenge facing Ribe in the near future is figuring out how to balance its initial business and its core competency, which is manufacturing steel parts along with its new consulting and outsourcing branch Rimadan. The largest challenge facing Ribe with its supplier network is that if business is moved to China they are facing a 38-day freight time. They must also build their network with suppliers in Eastern Europe.
Ribe should develop new business areas and specifically enter into China. They already have a 10,000 square meters building in the Nordic Industrial Park, and most of that area is aimed for companies specifically trying to rent a production cell. Usually Ribe charges its clients for its services but with the NIP building clients could avoid this capital being tied up. When it comes to offshoring China serves as one of the leaders for global expansion. There are 3 different categories that you can measure the global expansion on. After weighing China against two other countries that are possible candidates for expansion it appears to be the best. The overall business attractiveness chart comes from averaging the other three numbers together. One con of global expansion into China is the freight time of 38 days, which could cause delay in orders from companies if they decide to change orders suddenly. These types of situations are calculated risks and China has plenty of other great reasons to locate there. Forecasting demand