Concept of Emerging Markets - PDF
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Added on 2020-10-22
Concept of Emerging Markets - PDF
Added on 2020-10-22
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Table of ContentsPART 1-RESEARH PROPOSAL...................................................................................................1INTRODUCTION...........................................................................................................................1Contribution of the research........................................................................................................2LITERATURE REVIEW................................................................................................................3Theme 1: To identify the concept of emerging markets and different foreign market entrymodes..........................................................................................................................................3Theme 2: To determine the factors affecting the choice of an entry mode.................................3Theme 3: To identity the significant importance of market entry strategies for the businesssuccess.........................................................................................................................................5RESEARCH METHODOLOGY.....................................................................................................6TIMELINE.......................................................................................................................................7PART 2- RESEARCH PROJECT ..................................................................................................9EXECUTIVE SUMMARY ............................................................................................................9METHODOLOGY..........................................................................................................................9RESULTS/ FINDINGS.................................................................................................................11DISCUSSION................................................................................................................................15CONCLUSION .............................................................................................................................24RECOMMENDATIONS ..............................................................................................................25REFLECTION...............................................................................................................................26REFERENCES .............................................................................................................................28
PART 1-RESEARH PROPOSALINTRODUCTIONIn order to promote the new product or services in the market the most important thingthat businesses do is to identify their potential market area to gain profit maximization. Globalbusiness is the opportunity for any businesses who wants to expand its operation activities togenerate significant profit outcomes (Ward, 2016). Meanwhile, companies also facing manychallenges and failures to get to the final stage due to wrong selection of market entry modes.Present research project has been based on the different strategies employed by the business toenter emerging markets. In order to take into the deep knowledge, researcher also taken helpfrom different resources, methodologies to collect the information on globalisation and it'semerging market strategies. Globalisation defines the new change within the organisation withinnovation and creativeness. Globalization of business is the change in a business from acompany associated with a single country to one that operates in multiple countries. Presentresearch based on globalisation where it will be taking topic the different strategies employed bybusinesses to enter emerging market. Moreover, this research project will also be covering theprimary and secondary research with the help of using different methodologies. hBackgroundIn present situation of market, whether it is medium scale business or small scalebusiness are wants to sell their product or services at global market. Internationalisation is theprocess of adapting exchange transaction modality to international markets. In other words,globalisation is now become the mainstream phenomenon in the market. That helps businesses toget more profit and customer attention towards the company profitability. Such as TESCO wantsto open up their new expansion in China Emerging market that helps company to explore therange of services to new buyers as well. China is a huge market where the company can easilyget the higher opportunity to explore the market operations for getting higher business growth.The focus of the study is to identify the different strategies that company could adopt enter intothe new emerging market. It also helps to redefine the business with new people, customer needs,technologies and many more. Limitations of the researchLimitations of the present research are the factors that sometimes affect the wholeresearch process and make difficulties to collects data or information. In present research there1
will be a statistical or data limitations due to which it can suffer from limited impact from factorssuch as strong regional focus. Statistical limitations can also stem from study design, producingmore serious limitations in terms of interpreting the findings. Another limitation of the study canbe wrong research design which can also be the threat for the researcher. Contribution of the researchGlobalisation has contributed to the process of business growth in each areas. Presentstudy will contribute in terms of development in technologies change, economies of scale, helpsin identifying the differences in tax systems, less protectionism, growth strategies oftransactional and multinational companies. However, the researcher conduct the study onglobalisation and identifying the business opportunities. RationaleThe reason behind this study is to explore the best emerging market entry mode to thecompany in order to expand the business activities. Besides that, study finds the most efficientinternational market entry strategy for companies moving from developed/transition economy toan emerging market growth. Internationalization is the broad concept that makes the industrymost innovative and challenging in order to meet out the goals and objectives. So that, the mainpurpose of this research is to know the deep understanding of the importance of globalisation inorder to promote the business and profit earning capacity.Aims : “To investigate the different strategies employed by businesses to enter emergingmarkets”. A study based on TESCO. ObjectivesTo identify the concept of emerging markets and different foreign market entry modes.To determine the factors affecting the choice of an entry mode. To identity the significant importance of market entry strategies for the business success.Research Questions Q. What are the concept of emerging market and different foreign market entry modes ?Q. What are the factors affecting the choice of an entry mode ?Q. What are the significant importance of market entry strategies for the business success ?2
LITERATURE REVIEWTheme 1: To identify the concept of emerging markets and different foreign market entrymodes.According to Marquis and Raynard, (2015), In order to expand the business activity andtheir market on international they need to decide on a market entry strategy, Which comprise anentry mode and a marketing plan. In order to expand this market there are several market entrymode strategies. In other words, emerging market economy is one in which the country isbecoming a developed nation and is determined through many socio economic factors. Allemerging countries progressing towards the growth or development. According to Leonidou andet.al., (2017) there are number of market entry modes that helps to get the best idea and effectivelearning opportunity. such as Exporting is one of the first market entry strategy which is themarketing and direct sale of domestically produced goods in another country. Commerce is atraditional and well established method of reaching foreign markets. Commercialism is aconventional and well established methods that helps Tesco to the reaching China Market.Exporting is the marketing and direct sale system that helps company to begin the new journey inthe business goals. Another strategy for supporting roles are Licensing which is again veryessential permits a company in the target country to use the property of the licensor (Five Modesof Entry Into Foreign Markets, 2019). This strategy is intangible, such as trademark, patents andproduction and techniques. As per Marquis, and Raynard, (2015) Licensee pays a fee inexchange for the rights to use the intangible property and possibly for technical assistance. Theadvantage of licensing is they providing high rate of return to the company in order to meet outthe best advantage goals and results. The benefits of licensing are political connections anddistribution channel access that may depend on relationship.Theme 2: To determine the factors affecting the choice of an entry mode.According to Rauter, Jonker and Baumgartner, (2017) There are different factors thataffect the business entry modes in different manner. Such as external factors, internal factors,transaction specific behaviour and desired mode characteristics etc. Such as external factors thataffect the choices of an entry mode by managers are those factors that controlled or influencedby the firm. All these factors includes production factors, sociocultural factors, political factorsetc. in order to have knowledge of market factors are very significant for the company to explorethe different more market opportunities. Apart from that, there are all other factors that affect the3
business such as different environment and culture between company home country and the hostcountry. According to per Hohenthal, J., Johanson, J. and Johanson, (2015) another factoraffecting is internal factors that might get affect the decision making power of market entrymode. It would directly affect the long term decision making power that affect the overallbusiness activities. These factors includes firm size, amount of international experience andproduct or services characteristics. Other factors are transaction specific factors as the namealready indicates, transaction specific factors refers to the factors related to the transaction madeby the company. These factors get affected by the transaction costs and the tacit nature of knowand how. This affect the business opportunity and gain the long lasting effects and challengingtarget opportunity and goals. All these factors directly or indirectly affect the businessopportunity and goals in different context and manner. Generally, transaction costs occur whenthere is no fair competition in the markets. That also make involves and affect the business goalsand opportunity in order to meet out the best developing results. According to Rauter, Jonker andBaumgartner, (2017) there are some barriers who restrict companies to open up the newoperation market into the new market position. This would affect the ineffectiveness andinappropriateness to get the challenge. Companies entering into the new market face problems orincreased costs because of the business environment and they way which companies operates.For example: marketing services might be prohibitively expensive. One of the challengingbarrier that might be affect Tesco is Monopolies situation represents a very serious barrier. Thissituation arise when the company is the only seller of that particular goods or services in themarket. Monopolies might be the state owned or can be created through takeover of competingcompanies. In other words, it would also impact the business in different so many manners andtarget opportunity. Monopoly is the situation which represents a very serious barrier that affectthe business in very effective manner. Monopolies might be state owned or can be createdthrough takeovers of competing companies. If entering companies cannot access an efficient orcost effective and distribution networks that makes the good or services are unlikely to besuccessful. As per Leonidou and et.al., (2017) Another barrier is legal protection that might becreating uncertainty for the businesses. For organisation new environment is not friendly andtheir legal requirement that direct affect the business growth. 4
Theme 3: To identity the significant importance of market entry strategies for the businesssuccess.According to Hohenthal, Johanson and Johanson, (2015) Market selection is the first andmost important step to understand launch a product or service overseas. Apart from that, it alsodiscovers the new learning growth that helps company to develop in a more motivating manner.The main importance of market entry strategies that are most significant challenging marketopportunity and task that makes the best developing opportunity through company can make newdeveloping opportunity to gain market attraction. Globalisation is very important and challengingbusiness activity that makes company more popular and effective task. Market entry modestrategies are very much effective and required ways that helps company to get the global reach.All these entry modes also helps to local company to get interact at international level thatdirectly increases their high market share and growth for future.Apart from that, it develops the new market with new product development is the bigopportunity to enter into the new state that makes the process more clear and challenging.Expansion of business is good for the future development which is very important and good forthe good opportunity task. According to Hohenthal, Johanson and Johanson, (2015) Exporting isthe easiest and most effective and most commonly used method of entering a new internationalmarket. This is helpful to promote the business opportunity and long lasting way of challenging.Market entry strategies also very helpful and challenging getting market position. 5
RESEARCH METHODOLOGYResearch Philosophy : This is the vast element of research methodology that helpsresearcher to conduct detailed research (Kumar, 2019). In other words, for a businesses'dissertation devoted to research philosophy in detailed manner to gain the best advantage growthresults. There are two types of research philosophy; Interpretivism and Positivism. Positivismresearch philosophy is very difficult to be explained in a precise and succinct manner. In otherwords, Positivism approach is based on facts which is authenticated at some level of time.Present study will be uses Interpretivism method to take the study further. Research Approach : Research approach is the another effective research method thathelps to accomplish aims and objectives. Research approach is of two types- deductive andinductive research approach (Mackey and Gass, 2015). Deductive approach conduct the studyon the basis of hypothesis and inductive research conduct study on the basis of reasoning whichstarts from taking new initiatives. Present research will be using Inductive approach tounderstand the concept of emerging market and identify the different ways of market entrymodes. Research design : Research design is the layout of study under which it conducts, it hastwo types exploratory and conclusive. Exploratory research design generate the specific aim ofthe research. In contrast, conclusive aim is to give the all answers of research question. Studywill be uses Exploratory research design.Sampling : Sampling is the method of research that define the specific group ofindividuals that helps to accomplish the research. It is of two types probability and non-probability sampling. Present study will be uses simple random sampling by taking 25employees of Tesco.Data Collection : Data collection is the process of collecting data through differentmanner into the best effective manner into the best practices and challenging manner. There aretwo types of data collection method - primary and secondary method. Present study will be usesboth primary and secondary data method by the help of questionnaire and literature reviewrespectively (Flick, 2015).Data Analysis : Data analysis is the secondary process after data collection whereresearcher analysis and evaluate the data on the basis of two method quantitative and qualitative6
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