Different Strategies Employed by Businesses to Enter Emerging Markets

Research Project

Topic: Different strategies employed by businesses to enter emerging markets
INTRODUCTION
Overview of Research
Globalisation is considered as historical process that aids in human innovation as well as
technological progress or advancement. It is mainly refers to developing the consolidation of
effectiveness in all around world generally funds, movement of goods and facilities in around the
borderline of particular country. In 20th century, several countries agreed to the lower tax on
products, tariffs which are imported from the other countries. In 21 century, globalisation has
changed system, political view point, social group etc. in a detailed manner (Alejandra Gonzalez-
Perez, 2013). The globalisation can be seen as scheme to open global economy and associated
development in trade. It is an integration to economy of country with economy of world where
services and products, capital move across border and where the financial markets of country are
impacted through fluctuation in global market.
Background of Research
Globalisation is explained as procedure of interaction as well as integration among
people, organisations and government of different nations. It is compulsive through international
trade and also investment made through using the information technology. Globalisation is vast
concept and plays a necessary role in development as well success of the international business.
It is regarded as vast term that is mainly applied to depict all the commercial transactions for an
instance investment, transport, sales, logistics and many others which occurs among two or more
than the two regions countries and nations beyond political boundaries. ASOS is British online
fashion and the cosmetic retailer. This firm was situated in year 2000 in London and its main aim
at the young adults. It sells more than 850 brands and as its own accessories and clothings. This
company has become global business with almost 60% of its business coming from foreign
countries. Providing fully localized experience of buying to key international markets was
cornerstone to success of ASOS e-commerce (Alexander, 2013). This form make innovation as
well as fashion sense in its business in order to attract large number of the consumers effectively.
In this present era, organisations use the various strategies to enter in to the emerging markets
such as franchising, joint venture, mergers & acquisitions and many others.
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Rationale of Research
This research is based on analyse effectiveness of globalisation and various strategies
employed through the businesses to enter into emerging markets. Globalisation is a wider
concept that helps in plays a necessary role in functioning as well as operations of business.
Under this, company use different strategy to enter in to the emerging markets in an effective
manner. Research aids in provide knowledge about concept of globalisation. Investigator
conduct study for the purpose of developing capabilities as well as knowledge base of an
investigator (Apăvăloaie, 2014). The personal reason behind conducting this study is self interest
of learner.
Research Aim
Aim of this research is “To analyse effectiveness of globalisation and various strategies
employed by businesses to enter into emerging markets”
. A study on ASOS.
Research Objectives
 To understand concept of globalisation.
 To identify importance of globalisation to ASOS business.
 To examine benefits of globalisation which ASOS can get from entering into emerging
markets.
 To determine different strategies through which ASOS can enter in to emerging markets.
Research Questions
 What is globalisation?
 What is significance of globalisation to ASOS business?
 What are benefits of globalisation which ASOS can get from entering into emerging
markets?
 What are various different strategies through which ASOS can enter in to emerging
markets?
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LITERATURE REVIEW
It is explained as comprehensive summary of previous investigation on specific area. It
surveys books, sources, scholarly articles which are concerned with the specific area. It should
describe, enumerate, evaluate and also clarify the past research topic. This area of research is
based on the secondary method of data collection. For conducting research, researcher use the
various sources like books, articles, journals, internet sources etc.
Concept of Globalisation
According to John Williamson, (2018) Globalisation is regarded as procedure on
international integration that develops from an interchange of the ideas, products, services and
some other culture components. In this, globalisation is identified as process that enhance
exchange of the cultural and national resources in all over the world. The globalisation helps in
give opportunities to organisation for enhance their growth and profitability in global market.
Globalisation is regarded as possession through which the local markets can each at international
level and give contribution towards improving an economy of country. In addition to this,
globalisation aids in develop the better or positive communication among the two different
countries. Feature of economic procedure is mainly used through organisations to adverse
implicitly towards economic process. On the other hand, it is a group of action of national
economies with global economy with the help of using trade, superior flow of funds, foreign
direct investment and make innovation in technologies.
The globalisation implies opening of the nationalistic and local perspectives to wider
outlook of interconnected world with free transfer of services, products and capital across
national frontiers. It is a procedure of globalisation that has significant business, economic and
also social implications.
Significance of globalisation to ASOS business
As per viewpoint of Jan-Emile van Rossum (2017) Globalisation is defined as procedure
that spread products, services in world. As ASOS deals in fashion industry and it provide its
clothes in all over the world by its stores and e- commerce. It conduct its business operations by
using the phone app, social media, website and other ways. With the help of using globalisation,
company can target the Large number of consumers and offer them its designer clothes
according to needs and demands of customers. It will aids in enhance profit level and market
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share in international market. Other than this, some of the other advantages related to
globalisation to ASOS business given below:
Competitive advantage: Large and small size business firms take global enlargement to
achieve the benefits in a better manner. For an instance, main focus of ASOS is on expanding its
business operations as well as activities within emerging markets under which its competitors do
not direct have very first-mover advantages and permit them to develop the high brand
recognition customers before their competitors. In modern era, main consideration of every firm
is to give higher competition to its competitors in context to gain the competitive benefits at
marketplace.
Diversification: Many of the businesses firms expand its business at internation level in
context to diversify their activities, assets and action which can be protect bottom line of
company against any kind of unforeseen events. In context to this, ASOS business firm can
conduct its operations in emerging markets for purpose of develop unique services as well as
products which can help in generate the higher revenue.
Benefits of globalisation which ASOS can get from entering into emerging markets
According to Tejvan Pettinger (2017) Globalization is consider as an necessary role in
entering into emerging market as it provide support to organization in order to operate business
activities at across the world. Mainly, it support in economical development of different nation in
the globe. Through this, company can established their positive brand image in easy manner. In
addition of this, globalisation also provide path and new market in which company can easily
make their performance more productive. In this context there are some benefits of globalisation
for organization during entering into emerging market:
Identify new market: One of main benefit of globalisation is that it introduce new market
wherein company operate their business activities with the aim of enhancing profitability level.
With the help of new market, firm can improve their customers base and established competitive
advantage from its rivals.
Opportunities to expand business: Globalisation is an activity through which business
organisation operate their business globally with aim of capturing larger market share. As it
increase the competition
level at market place that promote innovation within the organization.
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