Prior to making a decision on whether or not to invest in the identified market, a thorough analysis of both institutional strengths and weaknesses will be administered. One positive attribute held by Cameron Corporation is the aspect of profit generation. The organization makes a net profit of approximately $ 500 million. This large profit indicates the presence of efficient operations and marketing strategies within the company’ s structure. In this case, similar management approaches will increase the chances of making profits within the new market. Henry (2012) says that on the aspect of risks, Myanmar features as one of the most corrupt nations in the South Asian region.
This means that Cameron’ s operation within this nation may encounter influence from either internal or external fraudulent acts. Internal risks of fraud may manifest will manifest in the form of asset and resource misappropriation. On the other hand, external frauds may involve theft or vandalism of property by rebel groups operating within Myanmar. However, these risks are expected happenings, and there is no guarantee that they may occur. On the other hand, the strength in management reflected on profit generation is real.
Therefore, it is advisable to enter the new market. In order to further ensure that entry into the market is feasible, it is appropriate to consider conducting an objective VRIO analysis. According to Claude and Smith (2008), VRIO analysis evaluates the viability of an investment project with respect to both the product characteristics and the organization’ s qualities. In the case of Cameron Corporation, the product in the subject involves production equipment within the oil and gas industry. Based on relevant information, the most lucrative market section on Myanmar’ s oil industry is the production section.
This means that the value of production and drilling equipment will exploit available opportunities within the new market. In the case of rarity, actual trends in the ground suggest that the Myanmar oil industry is in dire demand of oil drilling and procession equipment.
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