Black Swan Data's International Expansion Strategy: A Case Study on Entering Switzerland

This report discusses Black Swan Data's plan to expand internationally by entering Switzerland with its SaaS service. A Pestle analysis was conducted to determine the feasibility of the country. Transnational strategy was recommended for internationalization and franchising as an entry mode.

Individual report

ABSTRACT
In this competitive era, companies should provide innovative ideas to the business and
this in turn help to attract new customers. Similarly, the present study also based upon Black
Swan Data who wants to enter in Switzerland with its SaaS service so that other company get an
advantage to determine the trend among customers. Further, in order to determine whether the
country is good option to invest, Pestle analysis has conducted which reflect that all its external
factors are good and it is a good option to invest into Switzerland. Thus, using transnational as an
internationalisation process quoted firm can expand a business and franchising will be an entry
mode that assist to gain strong competitive advantage and maximise the profit as well.

TABLE OF CONTENTS
ABSTRACT....................................................................................................................................2
INTRODUCTION...........................................................................................................................3
ANALYSIS AND DISCUSSION...................................................................................................3
Brief overview of a firm and rationale for going international...................................................3
Critically describing which country need to be recommend to enter..........................................4
Critically evaluating the relevant strategy for an internationalization process for a specific
target market................................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Brexit and covid-19 has change each organization and most of the business undergoes
towards international growth. Though, it is not easy to implement international business growth
strategies. The current study also shed a light upon ways that can be used by the business in
order to grow their current position. Fir the present study, the chosen organization is Black Swan
Data which is London based technology and data science company which offer advance
technologies to different organistaion in order to identify the potential trends and customer
behavior. The present study will provide an overview of a company and reason for going
international. Moreover, it will further critically present in which country company wants to
enter and reasons behind the same by using appropriate framework. Further, it will evaluate the
relevant strategy for an internationalisation process with regard to a specific target market. Along
with this, study will determine an entry method for a marketing managing operations.
ANALYSIS AND DISCUSSION
Brief overview of a firm and rationale for going international
Black Swan Data is the chosen firm for this report and it is London based technology that
provide social prediction i.e. SaaS platform known as Trendscope. With the help of this,
company determine the potential trend and customer behaviour, also most of the top firm also
uses this technology in order to attract new customers by offering the products as per their
demand (Hart and Halden, 2020). Company was found in London by Steve King and Hugo
Amos in 2011 and in each year, business mainly increases their financial performance. This
shows that company have potential that help to increase the brand image and that is why, it has
listed under Sunday Times Sage Start-up Track 15 in which it has identified one of the top fastest
growing start up firms.
The rationale for going international is such that it will assist the business to improve the
brand image and meet the demand of other companies as well. In addition to this, expanding
abroad also gives a company to access to new customers and gain a competitive advantage as
well. Pryke and Allen (2019) also stated that mostly company expand globally in order to
provide reliable services to their international client and generate new opportunities for the

company as well. In the same way, quoted firm also generate more revenue and diversify the
products line so that best outcome can be generated. However, current the Black Swan Data is
only operated in UK, but expanding the business in Switzerland also assist to access the new
talent pools and new technology so that companies can also implement ways to attract the
customers. Hence, it assist to lower down the production cost and allow business to improve
profit margin. Overall, attracting new customers and investing into new opportunities assist to
create better outcome so that sales can be improved. Thus, investing into Switzerland will be
beneficial for the company to improve the brand image and gain competitive advantage as well.
Critically describing which country need to be recommend to enter
The company wants to enter into Switzerland and rationale for choosing this company
over other is such that it is declared as one of the most innovative country with an access to a
multicultural and multilingual market. Apart from this, to determine whether the country is
feasible for Black Swan Data, pestle analysis has been performed in order to examine external
environment is suitable to entered or not. Moreover, the quoted country also have an impressive
economy and consumer market which assist to gain strong competitive advantage (Antošová,
Hausmann and Pfeifer, 2021). So, it can be stated that being innovative in nature, company can
also focus upon the exports so that global networking can be helpful for the business as well. In
order to evaluate the overall country’s analysis, Pestle analysis need to be performed that help to
analyse whether the business is feasible to expand and meet the defined aim. With this strategic
tool, company determine the external environment and determine whether it is a good choice to
expand the business into this country or not. Therefore, the analysis of Switzerland is as
mentioned below:
Political factor: The political system of the country is republic which means that people
are interested to tool participate into the decision making process. Moreover, the country also
maintains a good relationship with its neighbouring countries and this in turn shows that
investing into this will be beneficial for the company. In addition to this, the country is world’s
safest and most secure country (Ricci and et.al., 2021). Somehow, Brexit also affected the
performance of a country but soon, with the help of different strategies, country groom and
develop a stable government. This factor reflected that country have a stable government and

that is why, investing into this country will be far beneficial and also suggest Black Swan Data to
improve its own performance.
Economic factor: As per the survey under 2019, it has been identified that Switzerland is
the 20th largest economy in world, however pandemic again make fluctuation in its economic rate
but with the passage of year, it again uphold its position. Also, the data shows that the country
have a minimal and low employment rates i.e. 3.2% as compared to other countries and this in
turn reflected that youngsters and old age people are employed, so investing in this country will
be more beneficial in term of finding human resource (Pestle analysis of Switzerland, 2022). Due
to having healthy trade relationship with other country, it can be also stated that to determine the
trend of customer by smart technologies will be beneficial for the country and also generate
strong relationship with UK as well.
Social factor: The chosen country is the only one which is good in term of wealth,
education, health and quality of life. However, it is the one of the most populous country in
Europe but the people live a luxurious life because it has a lowest birth rate (Shatskaya,
Balakirev and Divanyan, 2021). Majority of the people are well educated and that is why, they
can ready to accept the new changes into the market. However, there is a high standard of people
living in this country which means that expensive life style might diminish the purchasing
power. Therefore, investing into this country might be helpful to determine the outcome and this
in turn assist to raise the financial performance of a company as well. Moreover, Switzerland is
also well known for its punctuality and strong ethics, so it will be beneficial for the company to
invest into this to provide better outcomes.
Technological factor: The country is well known for its advance technology and that is
why, it is one of the most innovative country in 2019 ranking in the world. Having a strong
education background will also assist to make the people learn about AI and machine learning.
This will be beneficial for the new company in order to invest into this area which assist to raise
the financial performance. In addition to this, it has been also stated that with the help of
effective IT knowledge, Black Swan Data also assist to make improvement in the operations that
in turn causes positive impact over the business performance. Therefore, it can be stated that
investing into this country will be more beneficial for the business and generate a better outcome
as well.

Legal factor: The factor is deal with laws and regulation so having a stable government
reflected that the country is not harsh towards their citizen. Also, when the new country wants to
invest into this then there is a need to comply with essential laws which include employment
law, equal opportunity act etc. Further, the government always promotes establishment to all
types of business and that is why, it will be beneficial for the company to improve the business
performance (Medne, Lapiņa and Zeps, 2022). The minimum wages of the country are also good
which always improve employment rate. By considering all the legal factor, company can easily
improve the business performance and sustain the brand image at global level as well.
Environmental factor: Under this factor, tourism is consider one of main source of
economic growth such that it contribute to around 5% to the GDP. Therefore, country might face
enormous environment challenges and lead to cause water as well as air pollution. However,
devastating flood in Western side in 2021 also cause loss of many lives. That is why, if company
wants to enter into this country, then there is a need to comply with Sustainability act so that
effective outcome can be generated and improve the business performance.
By considering all the external environmental factors, it has been analysed that
Switzerland is the best option over other which in turn help quotes firm to enter. It is so because
the government is stable and having strong economic performance which assist to provide many
future opportunities to Black Swan Data. Apart from this, the company already deal with
advance technology and that is why, technological factor also contributed to the improve the
brand image of a company (Leonavičienė and Burinskienė, 2022). Thus, it can be stated that
investing into this country will help to improve the business performance and sustain a brand
image at global level. Hence, investing into Switzerland will also help to generate a better
outcome in term of sales, Human resource and access to international opportunity as well. On the
other side, it has been critically evaluated that due to sudden fluctuation in country’s economic
rate might affect the successfulness of a company and lead to failure as well. Therefore,
investing into new country might be consider as a good opportunity for Black Swan Data and
this in turn causes positive impact over the business.

Critically evaluating the relevant strategy for an internationalization process for a specific target
market
By analysing the external environment of the country, it has been analysed that company
took a good step to expand the business by implementing SaaS into Switzerland. For that
internationalisation strategy need to be used which help to improve the condition, However,
people in other country have their own choices and it is essential for the quoted business to
analyse the same so that the same will be offered to them. Generally, there are four main types of
strategy that can be used by the company in order during international process which includes
International, multi-domestic, global and transnational. Among all, the chosen organisation will
consider only transnational strategy which assist to balance the desire for a lower costs and meet
the preference of a people. Costa and et.al., (2022) also supported that it is an action where
business decides how to conduct an activities at global level. The latest example of top brand
who uses the same is McDonald. Therefore, if the chosen company also uses this strategy then it
will be more beneficial because by analysing the need of customers and then offer the same to
them will help to access range of customers towards them.
The biggest advantage of using this strategy is such that it causes less cost as compared to
other strategy and also prioritise the global standardisation as well. It is mainly focuses upon the
resources and that is why, the additional cost incurred by company will decreases. On the
critically side, it can be stated that due to having political, legal and operational risk within a
country might causes major issue for Black Swan Data. It is because to solve the same, it
required expertise which is not possible. Apart from this, Kuster and Rezende (2022) reflected in
their study that most of the company do not have enough knowledge pertaining to using
transnational strategy and that is why, they do not use the same. In this, lack of research
pertaining to foreign market affect the business and considered as a major shortcoming for the
business. Along with this, another demerit of using this strategy is risk of loss of control in which
company do not make decision and due to loss of marketing the chances of failing increases.
Overall, it can be stated that if an organisation wants to invest into the new country then
there is a need to analyse which strategy need to be used by the company during
internationalisation. Similarly, opting transnational over other will be more beneficial for the
company because it help to increase the sales of a company which contribute to raise the profit

and improve the brand image as well. Whereas other strategy only assists to raise the economies
of scale by offering the same product into a market in order to generate a better outcome. Thus,
for Black Swan Data, complying with transnational strategy over other will be more beneficial in
order to create a better outcome and attract new customers towards it.
Entry modes
When a company is planning to move into new country, then there is a need to choose the
entry modes so that it will help to generate a better outcome. However, there are many methods
used by the company on the basis of their requirement which include licencing, franchising, joint
venture, direct exporting and importing. Also, to meet the need of the target audience,
franchising is considered the best method to improve the brand image (Costa and et.al., 2022).
Under this entry mode, company should involve with the other franchisor who is already dealing
to other/same product and services. This in turn assist to take the name of that company, use the
services and offers to the existing customers as well. The biggest advantage of using this method
is to reduce extra cost of the company and gain the already developed royalty so that best
outcome can be generated. Pedersen (2022) argued that by using this method, company should
provide franchise some money from the profit earned and this in turn help to attain the growth as
well. Sometimes, due to reputational damage might also affect the business and might be lead to
generate negative impact over the customer’s base. However, the initial cost of the company is
quite high and that is why, many companies do not use the same, but quoted firm has a strong
financial performance so opting this method over other is far beneficial.
Marketing
If the company wants to enter in other country, then there is a need to use effective
marketing strategy that helps to let people know about new offers and products. Similarly, The
Black Swan is also enter into Switzerland and for that there is a need to opt best marketing
strategies so that customers and different clients analyse the same. For that, digital marketing
tools in which SEO and social media marketing platform will be used. The rationale for choosing
this method over others is such that almost 90% of the people uses social media marketing so
using Facebook, Twitter will be more beneficial in order to generate a better outcome (Pereira
and et.al., 2022). Apart from this, with the help of SEO, company can take its official website to

top so that the sales of a business will be increases and attract new client who want to use SaaS
to determine the trend among people. Overall, it can be stated that with the help of this marketing
strategy, quoted business can easily implement the brand image at global level which assist to
raise the customer base.
Managing operations and managing human resources
Currently the company is only dealing in UK and that is why, while starting operations in
Switzerland required effective human resources who can easily manage the operations. With the
help of Hofestde 6-dimension model, it has been analysed that the rate of masculinity culture is
high and that is why, The Black Swan data should also hire male’s employees so that the long
term relationship can be maintained. Also, majority of the employees should be from
Switzerland so that they can suggest as well as influence the clients easily in order to use the
offered services. In addition to this, it can be stated that to manage resources, company should
keep the use of resources effectively in order to create a better outcome and improve the
performance of a company as well (Amoah, Tiew and Yap, 2022). Along with this, the company
is mainly deal with software and that is why, there is a need to manage the supply chain so that it
does not cause any negative impact and improve the business performance as well. The quoted
firm is deal with IT industry and that is why, there is a need to opt effective operation
management tool in order to improve the business performance.
Overall, it can be stated that for managing human resources, company can also provide
effective training sessions so that employees can be understand about their own roles and
improve the brand image of a company by offering effective outcome. Further to reduce the
wastage, it is also suggested to use key approaches of operational management like Six sigma.
Lean model in order to improve the business performance.
CONCLUSION
By summing up above report, it has been concluded that the company already has a
strong brand image at global level and that is why, investing into different market will be more
beneficial to attract other clients as well. Thus, according to country analysis it has been
summarised that with the help of Pestle analysis Switzerland has a strong political and economic
environment that assist quoted firm to implement effectually. Moreover, it can be also stated that

business should uses transnational internationalisation process which in turn help to enter into an
effective way. Also, it has been also summarised that with the help of franchising as an entry
mode method, company can generate an effective outcome and met the set objectives as well.
Hence, by analysing an external environment, company can generate a better outcome and
sustain brand image at global level as well.

REFERENCES
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Online
Pestle analysis of Switzerland. 2022. [Online]. Available through: <
https://swotandpestleanalysis.com/pestle-analysis-of-switzerland/>.