Bright Paint Industries (BPI) : Expansion Through Internationalization

One fine evening of February 2018, while sitting on his rocking chair, the CEO of Bright Paint Industries (BPI), recalled the experience of exporting paints to Afghanistan and its financial returns. At the same time he recalled the exhibitions of UAE in 2015 and 2016. Since 2016-2017, the top management was analyzing growing demand in local and foreign markets and very much concerned about implications of (1) rising competition from unorganized paint sector, (2) the customers' trend towards using alternatives to paints like wall papers etc. and (3) ease of doing business in Pakistan due to persistent energy crises and other factors. Keeping in view the above said issues and its existing presence in paint industry for last four decades, the company is now considering two options (1) expand its existing operations in Pakistan and cater the foreign markets by export from here or (2) set up a plant at some foreign location and fulfill orders from there