El Mawardy Jewelry: Expansion During a Recession

Qatar, Now!

El Mawardy should expand into Qatar first, capturing the opportunities provided by an recession right now at the moment. Expansion during an recession lowers the capital requirements, some may even tie up low costs for several years. As a Egyptian company relatively unaffected by the financial crisis, El Mawardy is in a strong position to expand into the healthy and growing Middle East Market.

The rationale for expansion

Not everyone hurts during an recession. While some businesses struggle to stay open during the recession, others find opportunities to expand. El Mawardy is very strong in customized service, this shall provide an edge to stay through an recession. The marketing costs spent will also be money well spent. Even if people who heard of the brand might not be in the position to buy at the moment, they will get the message and remember. It still a good idea to take the market share first and get the rewards later. Many companies have grabbed the chance of expansion during an recession, by deliberately putting the considerable effort into expansion, the message shall be sharpened, this gaining a competitive edge. El Mawardy will be more alert, more future focused, and ultimately more stable.

The Strategy

The company will need to go overseas not only for its continual development, it is also a proven strategy during economic uncertainty.  A Global growth strategy allows a El Mawardy to invest in more than one option so that the company does not risk everything on a single opportunity. if El Mawardy concentrates only on market penetration within Egypt, the company will eventually reach a point of saturation and be forced to look at relying solely on other market development strategies.

Jewelry is a great store of value during an recession, and they most often appreciate in value as time goes on. A commodity can only be considered as an investment when there is a readily available market for buying and selling. Given the relatively stable...