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International Business Proposal

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Tagcy Radiology Services is on the cutting edge of technology in the radiology field. The decision to expand into the United Kingdom (UK) would be a great step in growing and expanding our facilities. Becoming involved in international trade can help our business:

* Enhance domestic competitiveness by finding less-expensive suppliers

* Increase sales and profits

* Gain global market share

* Reduce dependence on existing markets and suppliers

* Extend the sales potential of existing products with relatively low development costs

* Stabilize seasonal or cyclical market fluctuations

* Enhance potential for corporate expansion

The expansion process is fairly inexpensive; however, taking this step is a long process that requires a lot of training. The staff responsible for international sales and marketing must get training in this and most of all; they need to utilize the services and resources of the Federal and State Department of Commerce (Marshall, 2009). The Department of Commerce would be able to help answer the following questions and many others that we may have:

* Would the price be more or less than what you charge domestically?

* Will you hire domestically or outside the country?

* What are barriers to entry?

* Are there any limits of supply?

* How will foreign consumers react to your service offerings?

* How will you pay for imports and receive payments for exports?


Pricing our firms imaging services are a primary concern to our company; solid profit margins, revenue generation, and the ability to grow internationally all depends on price. The decision to expand internationally into the United Kingdom would certainly bring pricing considerations; pricing must be competitive in local markets. The pricing structure in the United Kingdom would be surprisingly similar to the cost of imaging in the United States; but would only incur a slight increase in x-ray and ultrasound modalities in the underserved community. However, the CT imaging modality in the U.K. would suffer a decrease in price for self-pay patients because the Hereford Radiology Group offers a single region, fully inclusive price of $400; significantly lower than the $900 to $1200 expected price domestically (Low cost, n.d.). The covered costs paid by private insurance and the referred NHS patients would incur costs closer to the U.S. domestic prices that our imaging practice expects. The United Kingdom currently has a nationalized health plan that is available for all "ordinarily resident" citizens; provided by public funding of the National Healthcare System (NHS) (Boyle, 2008). However, a large private insurance funded network does exist in the United Kingdom to expand the coverage, and provide for those who are not yet permanent citizens of the country.

Barriers to Entry

The expansion of our firm into the United Kingdom market must be efficiently planned because of the barriers to entry into this European country. The United Kingdom has a significant trade policy that acts as a barrier to foreign companies that want to operate in their country. This policy trade barrier reviews the type, trade volume, type of business, and impact on the economy of any foreign business that wants to open locally (Harbord, 1994). In addition, the United Kingdom closely reviews the entry barriers from absolute cost advantages, strategic first mover advantages, vertical integration, refusal to supply, predatory



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