Business Expansion in a Foreign Country

Business expanding
in a foreign Country

INTRODUCTION...............................................................................................................................3
BACKGROUND INFORMATION ON CHOSEN COMPANY......................................................3
BACKGROUND INFORMATION ON BUSINESS ENVIRONMENT.........................................4
ANALYSIS OF BUSINESS ENVIRONMENT.................................................................................6
CONCLUSION....................................................................................................................................7
REFERENCES....................................................................................................................................9

INTRODUCTION
Business expansion is stage where an organisation reaches the point for growth as
well as seeks out for several more options in relation of generating profit. In addition to this,
there are different forms of business expansion which include opening company in another
location, adding sales employees, adding franchisee’s, forming an alliance, entering new
market, expanding through internet and many more. This report is based on Paytm which is
Indian e-commerce payment and financial technology company. It was founded in 2010 by
Vijay Shekhar Sharma as well as serving at worldwide level.
Respective company is trying to expand their business in Germany and their
expansion tool will be FDI (Foreign Direct Investment). Germany is consider as an attractive
nation for FDI but in recent years global recession as well as subsequent Eurozone crisis have
hampered influx of foreign direct investment (Germany: Foreign Direct Investment, 2019).
Moreover, Germany have highly powerful and diversified industrial network as well as they
also have highly skilled manpower who have good command over English, favourable social
climate, stable legal network, reliable infrastructure and location at the heart of Europe. In
addition to this, financial and insurance sector was investing 9.6% in 2017. Thus, when
Paytm expand their business in Germany they will gain several business advantages, increase
customer base, high revenue and many more.
Respective report will give overview of business organisation along with its size,
legal form as well as current international operations. In addition to this, PESTEL analysis on
the basis of country will conduct in which company will expand. Moreover, porters 5 force
model will also applied for studying specific market. In the end section, recommendation will
be given related to the business scenario.
BACKGROUND INFORMATION ON CHOSEN COMPANY
Paytm is India’s largest leading payment gateway which offers comprehensive
payment services for customer as well as merchants. Respective company is offering mobile
payment solution to approx. 7 million merchants and also allow customers to make seamless
mobile payments from bank accounts, cards as well as Digital Credit within others. In
addition to this, with the launch of Paytm Payments Bank, aim of respective organisation is
bring banking as well as other financial services to half-a-billion un-served people. Moreover,
Paytm offers online use-cases such as utility bill payments, travel, mobile recharge, events &