Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1...........................................................................................................................................1 Description on development of global marketing concept..........................................................1 Discuss development of global marketing concept with use of academic sources.....................1 Provide example that supports portfolio entry.............................................................................1 TASK 2...........................................................................................................................................2 Background of chosen Brick country..........................................................................................2 Description on evaluation of political risk for chosen country....................................................2 Discussion on trade, tariff and non trade barriers between UK and chosen country Brick........2 Summarise the advantages and disadvantage for UK firm to move into new market.................3 TASK 3............................................................................................................................................3 Company of real business world..................................................................................................3 Factors that affect foreign market entry mode decision & model that can help the company to chose the right entry mode...........................................................................................................4 TASK 4............................................................................................................................................5 Fashion retailer that uses franchise..............................................................................................5 List of markets that has been chosen by Top shop to use franchise............................................5 Advantages and disadvantages of franchise entry method..........................................................5 Benefits of franchise entry method for Topshop.........................................................................6 CONCLUSION...............................................................................................................................6 REFERENCES................................................................................................................................7
INTRODUCTION Global marketing defined as process that inclusive of planning, producing, placing and promotion of product and services. It is crucial for firms that offers product and services that have universal demand (Agarwal and Wu, 2018). Thus, preset report is based on global marketing that is relate to expansion of product and service into another market. Henceforth,assignmentwillcoveractivitiesastodevelopglobalmarketingconcepts, components that affects on the selection of the entry mode within new market. Lastly report will lay emphasise on entry method that aids to have international expansion. TASK 1 Description on development of global marketing concept. Global marketing concepts aids to business in many ways. This allows customer at world wide level to be better informed and more focused on product and service that offer by firm. However, creation of global branding and marketing strategies aids entity to adapt, change and provides services that can full fill customer demands. Henceforth, beneficial aspect of this concept are as- It tends to improvise economies of scale in production and distribution. This enhance power and scope. It leads to have lower marketing cost. Discuss development of global marketing concept with use of academic sources. As per the view ofMcDaniel and Gates, (2019)stated that global marketing is crucial for firms that provide product or services to adapt to the conditions of other countries. In contrary to stated thatGraham, (2019)global marketing defined as to sell the product and services of the enterprise at the international level. Therefore, it is inclusive of process as to plan, produce, place and promote commodities at the world-wide level. Henceforth,De Mooij, (2018)stated out that international trade aids to enhance the business functions by reaching potential clients within the market.In contrary toMcDaniel and Gates, (2019)stated that globalization is mainly for growing interdependences that are coming together in context of global economy and to make international trade much easier. However, globalization allows to have free movement of goods, services and people across the world in seamless mode. 1
Provide example that supports portfolio entry. The global expansion aids to have competitive advantage to the enterprise. For example- IKEA is Swedish founded multinational group that works as to design and sell ready to assemble furniture, home accessories, kitchen appliances etc. Furthermore, IKEA has taken initiatives to expand their working in Serbia, South Korea, China, India etc. It is main driving force to offer trendy functional commodities and determine strategic position to enhance key performance indicators. Therefore, strategic global outsourcing of commodity manufacturing enables Quoted enterprise to effectively reduce the price of commodities. TASK 2 Background of chosen Brick country. The global expansion can be conducted in grouping acronym referring to the countries like Brazil, India, China and Russia. Henceforth, internationalization will be conducted in India. Therefore, Indian subcontinent is the site of civilization as ancient in the world (Andersson, Evers and Gliga, 2018).As per the research, the economic situation of IndiaGDP growth is expected to speed up to 7.6 per cent in 2019-20 from an estimated 7.4 per cent in the current fiscal ending March 2019. Henceforth, the growth rate has been declined to 7.4 per cent a year later.This is one of the seventh largest country by area. Thus, expansion of the product and services will be beneficial in order to gain competitive advantage by internationalization of commodities. Description on evaluation of political risk for chosen country. Businessfoundationsuggestsforeignfirmsandinvestmentguarantorsonevaluationand management. India is having the strong political condition (Kasemsap, 2018). Therefore, by expansion of business within the boundaries of will be beneficial as it impacts investor, consumer confidence etc. Recently, foreign investors has identified that there is no control over the external events as this can adversely affect the commercial viability of their investment and future expansion within India. These developments are inclusive of- Slow down in legal decision due to political instability. Adverse changes or unpredictability on foreign investment. To have fluctuation in inflation, interest and currency rates. The unexpected delays and cost overruns happened due to overlapping jurisdictions of legal authorities (Gupta, Gupta and Gupta, 2019). 2
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Henceforth, the political risk is kind of Macroeconomic issue such as high interest rate, civil unrest and social issues. Legal authority actions like confiscating the company assets make this all typical to acquire financing and this can also affect the ability of firm supply chain to support the product activity. Therefore, it can be mitigated with proper actions as are- By managing the credit risk. Legal authorities' inability to honor its financial obligation that can quickly spread to private sector. To ensure supply chain that can withstand unplanned disruptions. Discussion on trade, tariff and non trade barriers between UK and chosen country Brick. The UK has no specific trade or investment barriers. There are no restriction on the transfer of capital or reparation of profits. Furthermore, free trade agreements leads to have reduction in tariff barriers. Additionally, Non tariff barriers can impact the all forms of goods and services (Özsomer, 2019 Sahu, 2018). Henceforth, few barriers that are exists within the UK are almost key attribute to the UK implementation of EU directives and regulations. Henceforth, it has been identifies that United Kingdom has no significant trade investment and has no restriction on the transfer of the capital. Within India, the most common non-tariff barriers is the restriction on imports that maintained with the help of importing licensing requirements. Additionally, India has also eliminated its import licensing necessities for the consumer commodities, certain products face licensing that relate to trade barriers. There are certain commodities that are subjected to licence relates with the trade barriers.Hence, one of the most common trade barrier is related with prohibition or the restriction on the imports through licencing requirements.Therefore,barrierto tradeis a government-imposed restraint ontheflowofinternational goods or services. Summarize the advantages and disadvantage for UK firm to move into new market. Globalization termed out as interaction of one economy with all the other economies in the world. Henceforth, this can be related with terms of financial transactions, trade, production and education etc. Additionally, it led to enhance market competition by having fluctuation in the pricesofcommodities(Asseraf,LagesandShoham,2019).Therefore,advantagesand disadvantage for UK firm to move into market of new market of India defined in following manner as are- Enhance employment-It leads to enhance the employment opportunities. 3
Greater investment-This allows to have creation of an environment for flow of capital and to make investment in the other countries. Technical adaption- It allows to have free flow of technical advancement from one country to another. Improve quality-With the help of global expansion, the quality of the commodities can be improved and this also leads to have reduction in the cultural barriers. Disadvantage- Balance of payments-The international expansion can also enhance the imports than increment in exports that leads to increase trade deficit and balance of payment problem. Redistribution of power-Global marketing paves the way for redistribution of economic power at the national level and this can also lead to have domination by economically powerful nations over the poor countries. TASK 3 Company of real business world Top shop is a British multinational retailer that is well-known for its unique stylish fashion clothing, accessories, make up & shoe. Top shop retailer belongs to Arcadia group that is also known as its franchisor. Arcadia do not only have Top shop but also consists other retail outlets like Dorothy Perkins, miss Selfridge etc. With the help of franchising entry mode, Topshop is now focusing on expanding its business to new dynamic markets as it has strength that its offers variety of products at affordable prices (Ali and Akter, 2018). Factors that affect foreign market entry mode decision&model that can help the company to chose the right entry mode There are several methods of entering in international market such as joint ventures, direct export, franchise, strategic acquisitions etc. different modes have some strengths and weaknesses and it becomes difficult for companies to decide the best and appropriate method of entering in international market. There are several factors that affect foreign market entry mode decision which includes: Market size:It is called one of the main factor for those companies who wants to expand their business in international market and want to made foreign entry mode decision. Companies who have larger marketsize like Arcadia and its all franchisee,they require selecting the entry mode who can give long term commitment. 4
Level of competition:It is external factor that can have impact on selection foreign market entry mode. For responding effectively to competitors and being in a competition it is important forArcadia and Topshop fashion retailerto analyse this factor while selecting entry mode. Availability of company resources:For entering in foreign market, it is essential for Top shop fashion retailerto have enough human and financial resources. Selection of entry mode is depends on this factor as some entry modes have several advantages but are costly (Tulung, 2017). Model for choosing the best entry mode: For choosing the right entry mode there are some factors which should keep in the mind like location advantage, ownership advantage, internationalization advantages etc. With the help of Porter's diamond model,Topshop can decide and selectthe best foreign market entry mode on the type and size of their business. It helps companies to understand that why certain industries within a particular nation are competitive internationally, while others might not. It also shown importances and benefits of market entry modes which can be appropriate for companies. It mainly shows location advantages as in which country and location, an organization wants to expand its business. So, it can be said that Diamond model is the best used model when analysing foreign direct investment decision (Porter-diamond-model, 2018). TASK 4 Fashion retailer that uses franchise Topshop is a British multinational private retailing company (Zhang, 2018). Headquarter of this retailer is in London, UK. It offers higher quality of clothing, shoes & accessories and it is a part of Arcadia group. It is stated that it has around 510 shops including franchised. Approximate 300 shops of this retailer in UK and offer services to the people of around 37 countries. For entering in international market it uses franchise mode.It is owned by Arcadia group(Franchiser of Topshop,2018). List of markets that has been chosen by Top shop to use franchise According to the market analysis franchising entry strategy is being used by Top shop due to the unique market that this retailer is aiming. It is stated that Arcadia group accomplished its goals to conquer the global fashion market with Topshop. It is also identified that a well- known British fashion retailer has opened its first flagship store in China in Shanghai. 5
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Franchising business of Topshop to explore the Chinese market. It is also looking for its expansion in Mexico, South Korea and South Africa. There are approximately 450 Top shop stores across the UK (Lists of market chosen by Topshop,2016). It has also revealed its multi channels expansion plans in China of its partnership with Shangpin.com. It has 5 shops in Japan. It is also reported that Topshop is going to open 5 more stores in US. It opened and expanded its business as a franchise in New Zealand. Advantages and disadvantages of franchise entry method There are several advantages and disadvantages for those companies who want to make a strong presence in an overseas market with having minimal risk (Mussina, Anarbay and Nurgali, 2018). Advantages: Franchise has lower cost than others entry modes as there is no requirements of investing much money (Weaven and et.al., 2018). Franchisee company can expand their business into several regions without investing as they do not require to invest in research, marketing because of having a strong image in the market. It does not require investment in promotional and advertisement as business use a recognized brand name (Hoffman, Munemo and Watson, 2016). Disadvantages: In the type of franchisee entry mode, there is a less control as business and franchisee can not make changes without running into disagreement and they have to take permission of their franchiser and follow all rules.(Bobek and et.al., 2019) Legal actions are costly as compared to others entry modes because in this type, franchiser have some control and they take main and important decisions. Benefits of franchise entry method for Topshop Top shop started planning for international expansion to the United State. It also announced 5 year international expansion plans to open new shops across Australia, Asia etc. There are several benefits of franchise for Top Shop fashion retauiler as it made its business and expand it rapidly by using franchise entry mode (Bobek and et.al., 2019). Arcadia is an established brand & franchisor of Top shop and by using its recognized brand name, Top shop attracted wider range of customers and increase bnumber of its stores in UK. Top Shop alo new different and attractive techniques & trade secrets of brand. Franchisor of this fashion retailer also invested in training & assistance, so it does not require 6
investing in, Hence it increases its sales by decreasing overall cost. CONCLUSION From the above study it has been summarized that global marketing played a vital role for those products that are in universal demand. The selected company used some strategies for global marketing development. It has also shown about political risks which are being faced by BRIC countries. It has several factors that influence foreign market entry mode decision along with model that helped the company to chose the best and appropriate entry mode. Further this study has shown the importance of franchise as the best suitable entry mode for the selected fashion retailer company. 7
REFERENCES Books and journals Agarwal, J. and Wu, T., 2018.Emerging Issues in Global Marketing. Springer. Ali, M.J. and Akter, S., 2018. Human Resource Management (HRM) Practices: A Case Study on Arcadia Group, UK.Global Journal of Management And Business Research. Andersson, S., Evers, N. and Gliga, G., 2018. Entrepreneurial marketing and born global internationalisation in China.Qualitative Market Research: An International Journal. 21(2).pp.202-231. Asseraf, Y., Lages, L.F. and Shoham, A., 2019. Assessing the drivers and impact of international marketing agility.International Marketing Review.36(2).pp.289-315. Bobek,V.andet.al.,2019.INTERNATIONALFRANCHISINGINTHEFASHION INDUSTRY-THEFRANCHISEEANDFRANCHISESTOREMANAGERS PERSPECTIVE.Ekonomska misao i praksa.(1). pp.359-379. Bobek,V.andet.al.,2019.INTERNATIONALFRANCHISINGINTHEFASHION INDUSTRY-THEFRANCHISEEANDFRANCHISESTOREMANAGERS PERSPECTIVE.Ekonomska misao i praksa.(1). pp.359-379. De Mooij, M., 2018.Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited. Graham, P., 2019. Stuart Rubin, Global Marketing Manager. InMusic, Management, Marketing, and Law. Springer, Cham. Gupta, D.K., Gupta, B.M. and Gupta, R., 2019. Global library marketing research.Library Management. Hoffman, R.C., Munemo, J. and Watson, S., 2016. International franchise expansion: the role of institutions and transaction costs.Journal of International Management.22(2). pp.101-114. Kasemsap, K., 2018. The roles of corporate marketing strategies and brand management in the globalretailindustry.InDigitalMarketingandConsumerEngagement:Concepts, Methodologies, Tools, and Applications. IGI Global. McDaniel, C. and Gates, R., 2013.Marketing research. Singapore. Mussina, K.P., Anarbay, A.M. and Nurgali, A.N., 2018. THE ESSENCE, CONTENT AND ROLEOFFRANCHISINGINMODERNECONOMICS.InДОСТИЖЕНИЯ ВУЗОВСКОЙ НАУКИ 2018(pp. 163-166). 8
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Özsomer, A., 2019. Some recent influences on global consumer culture.International Marketing Review. Sahu,M.P.R.,2018.ImpactofGlobalEconomicCrisisonIndiaandtheASEAN Countries.NOLEGEIN-Journal of Global Marketing.pp.12-20. Tulung, J.E., 2017. Resource Availability and Firm’s International Strategy as Key Determinants Of Entry Mode Choice.Jurnal Aplikasi Manajemen.15(1). pp.160-168. Weaven, S. and et.al., 2018. Predicting organizational form choice from pre-entry characteristics of franchisees.Australasian Marketing Journal (AMJ).26(1). pp.49-58. Zhang, H., 2018. Evoking presence in vlogging: A case study of UK beauty blogger Zoe Sugg.First Monday.23(1). Online Porter-diamond-model2018.[ONLINE].Availablethrough:<https://www.business-to- you.com/porter-diamond-model/> Lists of market chosen by Topshop. 2016.[ONLINE]. Available through: <https://www.just- style.com/news/topshop-reveals-china-expansion-plans_id129589.aspx> FranchiserofTopshop.2018.[ONLINE].Availablethrough: <https://www.theguardian.com/business/2018/aug/09/arcadia-parts-company-with- chinese-franchise-partner-shangpin> 9