Global Marketing & Sales

This document provides an overview of global marketing and sales, including the importance of adapting marketing strategies to different countries. It discusses the process of conducting a marketing audit, segmentation, targeting, and positioning (STP), and market entry strategies. The case study focuses on Paytm, an Indian e-commerce payment system, and its plans to enter the UK market.

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Table of Contents
INTRODUCTION...........................................................................................................................................3
COMPONENT 1A..........................................................................................................................................3
Conduct a marketing audit......................................................................................................................3
Conclusion...............................................................................................................................................6
Segmentation, Targeting and Positioning (STP).......................................................................................7
Market entry strategy..............................................................................................................................8
Marketing mix elements..........................................................................................................................9
COMPONENT 1b........................................................................................................................................12
Individual assessment................................................................................................................................13
Introduction...........................................................................................................................................13
Critical evaluation as well as comparison between two internationalisation theories:.........................14
Use of two real life examples.................................................................................................................16
Conclusion ............................................................................................................................................17
1. Critically evaluate and compare two internationalisation theories...................................................17
2. Identify and two appropriate real-life examples to illustrate both internationalisation theories......19
3. Conclusion whether Uppsala model is still relevant in today’s business environment or not ..........20
Individual assessment............................................................................................................................21
INTRODUCTION.....................................................................................................................................21
1. Comparison of two Internationalisation Theories..............................................................................21
2. Application of Theories by real life examples ....................................................................................23
3. Conclusion.........................................................................................................................................24
REFERENCES..............................................................................................................................................25

INTRODUCTION
Global marketing refers to process for adjusting marketing strategies of organization in
order to adapt situations of other countries. It is marketing on worldwide scale that taking the
commercial benefit of the global similarities, differences and the opportunities in context to meet
with the global level activities. When the business market on the global level then global
marketing is helpful in enhance its customer base, bottom line and the traffic. Enhancing number
of the consumers which an organization has an effective method to enhance the sales (Keegan,
2017). Paytm is an Indian e-commerce payment system and also financial technology firm. This
was founded in year 2010 by Vijay Shankar Sharma. This company is available in around 11
languages and provides the online use cases for instance mobile recharges, travel, bill payments,
event bookings, movies and others with Paytm QR code. Paytm is going to enter in UK market
because it does not have any existence in UK. Under present report, there will be discussion
about conducting the marketing audit of Paytm marketing environment by considering the micro
and macro environment. The current STP strategy of company in domestic country will also be
discussed in the given report. In order to expand the business in other countries, some marketing
entry strategies will be discussed here in detailed manner.
COMPONENT 1A
Conduct a marketing audit
Marketing audit refers to systematic and comprehensive analysis of marketing
environment of business that consists internal and external. This covers goals, strategies,
principles and objectives of an organization in context to determine any issues or opportunity
areas and also recommended action course that better suits requirement of business. Marketing
audit is through review of the marketing plan, strategies, objectives and current activities that
being implemented in business. Marketing audit is a useful tool that the marketers can used in
contest to understand marketing ecosystem at present, developed better marketing strategies and
also solve underlying problems which may be revealed by using the audit process (De Mooij,
2018). This gives the management with an in-depth look at marketing operations of business that
in able to examine performance budget and also the available resources to department as a

whole. Paytm is a large size organization and it has largest number of branches in many
countries and this company is going to conduct the marketing audit in order to determine the
weaknesses of company and also the main factors which affecting the business operations of this
company. There are macro and micro to environmental factors which are mainly audit by the
company.
Micro environment audit- This consists all the factors which affecting the performance of
marketing from outside. It is a condition that exist in an economy as whole rather than in specific
sector or condition (Rastogi and Trivedi, 2016). There are some macro environment factors
which can impact on the organization performance and marketing activities given below:
Political and legal factors- Political factors that may affect of profitability and also
survival chances of company are diverse. The political risk may vary from sudden modification
in existing political regimes towards the civil unrest for main decisions that are taken through
government. In regards to this, it is to appraise extent of overall systematic political is that Paytm
Company targeting more pockets for its mobile wallet that may be exposed to by considering the
some factors such as level of political stability intellectual property is to be protected, integrity of
politicians and many others. After its incubation, Paytm has grown its activities and diversified
them. They started with mobile payment, bill payments and e-commerce. The organization has
built a wide number of consumers over a short amount of time. The business can have positive or
negative consequences for major changes to government regulations. The demonetization, which
turned transactional finances upside down, was one significant changes implemented by India's
government. On the other hand, Legal factors are related to understanding about laws and
regulation in recent. PAYTM TARGETING MORE POCKETS FOR ITS MOBILE WALLET
policies are not adequate in order to effectively secure PAYTM TARGETING MORE
POCKETS FOR ITS MOBILE WALLET and their workers, which makes it unwishable to repel
skilled and talented employees (Perera, 2017). While it has not been working on the market for a
long time, there have been substantial legal problems. One of company's latest legal issues was
when Paytm became a case that challenged the company's post-payment wallet bid. The legality
was challenged following submission of a PIL to the court alleging that Paytm payments Bank
Limited was given a bank license for payments while the company was not approved for
activities such as the disbursement of loans or credit.

Economic factors- These are the factors which burden to economy of country that Paytm
targeting more pockets for its mobile wallet for an instance changes in inflation rate, interest rate,
foreign exchange rate current stage of economic cycle and Gross Domestic Product. These are
the factors resulting impact on the aggregate demand, business climate and the aggregate
investment which have potential to make an organization more profitable. PayTm focuses on a
market risk management system-based approach. The management method is built so as to
promote prevention, identification and successful management of the company's key risks.
Paytm ensured optimum use of the company's cash flow by fund management and the company
takes into account business uncertainties by following rigorous cash management practices.
Indian Rupees are most important currency for Paytm (Fozer and et. al., 2017). The loss of
foreign currency exposes the company to foreign exchange rate fluctuations. The operations of
Paytm company are affected.
Socio- cultural factors- The social factors which impact Paytm targeting more focus for
this mobile wallet are deflection directly of society that the Paytm targeting more pockets for its
mobile wallet operates in as well as encompasses belief, culture, attitudes and the values that
majority of people may hold is community. Through understanding customers, their education
level, lifestyle and also believes would help in designing the marketing message as well as
products which would lead to venture becoming success. On the other hand, change in customer
preferences for shopping has benefited the group. There has been a major increase in the number
of customers buying goods online. Consumer loyalty was drawn by the easily paying service and
the range of items available online. It was good for Paytm, since the business was one of the
preferred payment methods for such e-commerce sites. The Paytm app is not accessible enough
for users by designing the choice to sign out. As a consequence, many users remain logged in
much of the time or fail to recognize the sign-out option. This can build considerable
vulnerability for the security purpose between users (Racz and et. al., 2018).
Micro factors audit- It consists factors in immediate operation area that impacting performance
as well as decision making. This expect of auditing strategy consists looking at internal factors
which can impact on performance of an organization. As Paytm is going to expanding its
business in UK country as this does not accept the foreign payments by digital wallet (Nandonde,
2019). Different factors including in micro factors given below:

Consumers- These are the people which buy services or products. They are the people
which use services or goods. Paytm company has registered its more than 200 million of people
for digital wallet and reaching milestone some internet organizations have in India. Paytm is the
largest payment platform in India which provides consumers and merchants with comprehensive
payment services. It consists merchant who are the clients and also involves in the trade or
business. Paytm enable the self-declared merchants in order to transfer upto 50000 directly in
bank accounts. Amount would directly settled to bank account of merchants. Over 7 million
merchants are supported with mobile payment solutions and customers are able to pay
seamlessly from cards, banking accounts and digital credit, inter Paytm is a leader of mobile
payments based on QR in India. With the help of this, people can easily transfer its money or can
make the digital transfer (Coker, 2016). As expanding in the UK country, Paytm can target the
large number of customer base and also enhance its customers or merchants.
Competitors- This includes any individual or organization that competes with someone
else. For industries that sell a particular product or service, a company in the same sector or a
related industry. One or more rivals will reduce products and services costs as businesses seek to
gain a greater market share. In context to Paytm, In UK, there are credit transfers, cheques, direct
debits and payment cards are available so there is a need to Paytm Company to launch its Paytm
application in UK country for the increasing customer base and also maximize the growth rate
(DeSarbo, Blanchard and Atalay, 2017). The main competitors of Paytm are MobiKwik, PayPal,
FreeCharge and Flipkart. It is necessary to Paytm to develop the better strategies which helps in
compete with the rivals at marketplace.
Conclusion
It has been concluded from the above mentioned information that there has been macro
and micro environment basis audit conducted by Paytm company in order to analyze its
marketing position and also the factors which impacting on their marketing performance as well
as operations. There has been discussed about the marketing audit that consists political and legal
factors, social cultural factors and the economic factors. On the basis of above analysis, it has
been discussed that the political stability of country develops a positive impact on the business of
an organization and the marketing performance as well. It is necessary to Paytm company to
focus on the tastes and preferences of customers and make changes according so that they can

easily use the Paytm services and do not face any kind of issues. There has been discussed about
the micro environmental factors which mainly impact on the Paytm Company while it will
expand its business in UK. It has been considered to main factors such as customers and
competitors. The population of UK country are more so from expanding its business in United
Kingdom company can able to target the large number of customers. As there has been discussed
that United Kingdom does not used any kind of payment applications and it mainly used transfer
from bank and cheques. UK country mainly used the credit, debit cards, cheque system to make
its transactions. On the other hand, from expanding its business in UK Paytm can also gain the
opportunities about the improving of business performance.benefits of paytm expand in UK
It is necessary that Paytm business should come to UK and also target the new market.
Through this, it can provide the financial services to the customers as related to transfer and pay
of money. With the help of Paytm, people can easily transfer the money to bank account and also
win the coupons. This is one of the effective way to enhance sales of business and also
productivity.
Segmentation, Targeting and Positioning (STP)
Segmenting targeting and Positioning is wider Framework that simplifies process of the
marketing segmentation. STP model is helpful for the marketers to craft their messages as well
as develop the relevant messages which engage the segmented and also the target audiences. STP
place on necessary role for getting the right customers (Astina and Mawardi, 2016). The STP
model allows marketers to prioritize ideas and create and then distribute customized and
pertinent messages to communicate with various audiences. The focus of STP is on commercial
performance, the identification of the most important segments for a business, and the creation of
a marketing mix and product placement strategy for each field.
Segmentation- It is related to activity of providing wider business market for customers,
including potential and existing consumers mainly consisting of customers based on same kind
of share characteristics. It is one of the main tools for the marketers to cater to target group. This
is process of dividing the market of potential consumer into various groups as well as segment
according to certain characteristics. Under this, marketing segmentation is on the basis of gender,
income level, place, age group lifestyle and uses. In context to Paytm organization the segment
of this company are the people which use Smartphones and also looking for the cashless

payment transactions (Handayani, 2016). These kinds of people are not carry cash and also make
believe in to the cashless transaction for using the digital transaction because it is safe and the
easy method of payment.
Targeting- The target market is a mechanism by which the target consumer is selected
from the whole consumer. The target market comprises group / groups of customer for whom or
to whom the product is manufactured is intended to satisfy, pricing shall be set, marketing efforts
shall be made and distribution networks created. The target group of Paytm is Urban tier1 tier2
cities that consist young and middle aged people. The young and the middle aged people are not
carrying the money or cash due to the fear of theft and stolen. According to them, Paytm is one
of the effective and easiest methods of payment on any things. In the Paytm application, they
need to login with it number, register with the bank account and after then set the password for
easy and safe transactions (Dewayana, 2018).
Positioning- It means the place in consumers 'minds that a brand occupies, and how they
differentiate themselves from competitors' goods. The strengths and weaknesses of company,
consumer and business needs, and competitive position are all taken into account in an effective
positioning strategy. Purpose of positioning strategy is to allow business to concentrate on
specific areas in which it can outline and overcome competition. In relation of Paytm, its
positioning can be used as alternative for the cash in order to make the payment for daily basis
requirements. Under this, people do not need to carry the money and with the help of their smart
phones they can make the transactions effectively (Adeola, Boso and Adeniji, 2018).
From the above mention information, it has been recommended that Paytm firm should
expand its business in to UK country because it does not use the Paytm application for its any
transactions. As through this, people of United Kingdom not to go to banks for money transfers
and doing any kind of payments. Paytm mainly works with the internet and it needs to link with
KYC. In UK with the help of using Paytm, a person or company can transfer the money in bank
account or to the other person. It is one of the safest and easiest methods of payment.
Market entry strategy
The market entry strategy is planned delivery and distributed methods of services or
products to new target market. An international system by which an organization sells its goods

and services to customers in other countries. This involves the commercialization of products
made in one country in another. As Paytm are biggest mobile payment and the commerce
platform of India. With the help of this, people pay by using their smartphones. The main focus
of this company is to enhance the cashless transactions (Lindsay and Antoniou, 2016). There are
different market entry strategies which Paytm company can be used:
Joint venture- It is commercial organization that mainly undertaken jointly through two
or more than two parties which sustain its distinct identities. Under this, two firms will work
together that deals in the similar backgrounds or sector in order to attaining the specific
objectives within given period of time. In context to this, Paytm can make the joint venture with
the existing country in which company wants to expand (Holtbrügge and Berning, 2018). With
the help of this, Paytm firm can easily enter and determine the customer preferences for making
the business successful. Under this kind of market entry strategy, profits and losses are equally
shared.
Start a subsidiary- Under this, company will register the firm in another country and start
its business. In this, firm can start its new branch and also use the promotion or advertisement in
order to aware the people regarding its services for gain the attention of large number of
consumers (Ahi and et. al., 2017).
Acquisition- Under this, one firm buy the shares of other firm in order to gain the control
of that organization. Buying the more than 50% of stock of target company and also some other
assets that permit the acquirer for making the decisions regarding new assets without approval of
stakeholders of an organization. In regards to Paytm, it can acquire any small firm and setup its
business (Ayden, Demirbag and Tatoglu, 2017).
Merger- It is a combination which brings together two existing firms in one new firm. There are
various forms of fusions and also different explanations why businesses complete variants. The
new company would have a greater market share, allowing the company to make economies of
scale more profitably. Competition would also be reduced and prices for consumers will increase
(Al-Omari and et. al., 2018).
On the basis of above mention market entry strategies, it has been recommended that
Paytm should use Start a subsidiary entry strategy as in this firm will register its new branch in

UK in which it does not exist before. In this strategy, Paytm will use the online advertising
strategy to aware the people regarding the services and the facilities provided by Paytm. The
online advertising strategy brings the visibility to the Paytm in everywhere as well as motivates
people in order to try offers to run brand.
Marketing mix elements
Marketing mix is explained as the set of tactics and actions that an organization mainly
uses to promote the product or brand in market. The main purpose of marketing mix is to
communicate with target market (Vadhani, 2016). As Paytm firm is focusing on expanding its
business in UK and on the basis of segments and targeting there are some changes needs to adopt
by Paytm in its Paytm application for making it better and expanding it in the UK market. There
is a need to Paytm to standardize its marketing components. Different components of marketing
mix mention below:
Products- Paytm is paytm system through e- commerce medium. This started its operated
as B2B Company but realized necessity of participation of consumers and after then opened B2C
option. This provides the mobile recharging, DTH payment movies, bill payments and other
payments. In India, Paytm is one of biggest online payment portal and this gives the consumers
with different services such as E- wallet and online shopping. Through Paytm, people can
purchase the grocery items, clothing and home products. In order to expanding its business in
UK, Paytm firm can develop a new option in its application and that is share market. Through
this, people can attract towards it and also easily invest their money into share market.
Price- Paytm is medium that aids in pay the bills in easy way without going to related
offices and also standing in queue for the payments. Paytm is helpful for the people in online
transfer, debit cards, online banking and saving accounts. Paytm has been a creative, easy-to-use
app, thanks to its characteristics and the price policy. The firm was the first to launch a cashback
trend and offered a cashback in wallets instead of discounts. Paytm receives its commission
revenues that occur with transactions. In addition, money deposited in e-wallet is also used to
generate revenue via interest. When this company will launch its application in UK, it will give
the discounts to customers and also give the money benefits to them also. In this country, Paytm
should give the cashback and some other benefits such as movie tickets, shopping vouchers, food
coupons to the consumers so that they will be loyal and use the Paytm more.

Place- In India, Paytm has Pan- India presence and has set up the headquarters at Noida
in Uttar Pradesh. It has launched its recharge website through using mobile application. The
application is also available on iOS, Windows and Android devices (Sahai and et. al., 2018). It is
also accessible through the browser. Launched in 2014, Paytm Wallet has become India's largest
mobile payment services platform. Paytm application can be used on mobile phone and laptop
both having the internet connectivity. When Paytm will expand its business in UK, it will also
provide the access on mobile phones or laptops. With the help of this, people can make Payment
at anywhere such as restaurants, hotels, bars, supermarkets, buy tickets and other places by
connecting its bank account with this. There will be no need to carry the cash to people or swipe
their debit or credit cards. People of United Kingdom can use the Paytm with an easiest way or
safe method.
Promotion- It is related to aware the people regarding the products as well as services
which are mainly offered through an organization. With the help of promotion, company can
give specification about products to people for their better understanding. To build greater brand
awareness, Paytm has implemented an aggressive and innovative marketing approach. As part of
the advertisements, they introduced net banking and launched many schemes. Ad promotions
through television, magazines, newspapers, billboards and radios were seen across many outlets.
This was also heavily focused on mouth ads. Demonetarise bills have worked extensively to
promote it and generated tremendous publicity and a rise in active users. The organization also
actively engaged in sponsorship of numerous activities, tournaments, etc. that made the brand
highly noticeable. As an official sponsor and supporter of Indian cricket team, Paytm is also a
significant contributor to the brand worldwide popularity and visibility. In order to launch Paytm
in United Kingdom, company will advertise through celebrity so that the people of that country
can be attracted more. Other than this, in advertising, company can involve the people or retailers
which use the Paytm and get benefits of it. From this, people of UK will understand the
importance of using Paytm and will gain the better benefits.
People- Paytm is service brand and provides the importance to its consumers and its staff
members. In this organization, there is more than 13000 staff members are working as part of its
strong people strategy in marketing mix. Other than the employees, it has more than 3 million of
merchants which accept that Paytm as payment mode because it is safe and instant mode of

payment. It has developed in bounces and leaps as this has 75 million applications download
(Vijay and Srivastava, 2019). While expanding its business in United Kingdom, Paytm company
should provide the training to the people or employees that it will hire to doing the work in
Paytm. Apart from this, Paytm company will conduct the seminars and campaigns to provide the
information to people regarding use of Paytm and about the benefits of using different features of
it in a better manner.
Process- In this, Paytm has the many business interface as well customer friendly
processes for ease of making the transactions safely aand quickly. This marketing mix involves
the process about using the Paytm in right manner. The users must transfer some money with the
net banking, debit / credit cards, IMPS or some other methods listed by their bank, once they
have registered with Paytm. If the money is a Paytm wallet, the customer's e-money transfer
codes and seller's numbers are used. As this is new company and has also concentrated on
customer service processes, as it expands rapidly. In expanding business in UK, process will be
same but there is a need to Paytm Company to provide the better customer service because the
people of that country will be new users and they can face the complexities while registering on
Paytm application or at the time of doing any transaction.
Physical evidence- This is related to presence of brand with merchants and consumers.
The application installed on Smartphone is the most important physical evidence for the Paytm
because the user interface is the most important time for customers to pay and sell the payments
to receive. In addition, it is easy to identify the blue Paytm logo. The appearance at the outlets of
stickers, hanging posters, Paytm posters, and others gives the brand a physical presence. This
element of marketing mix will be the same in United Kingdom. By the blue logo, user can
identify the completion of transactions and also Paytm will send the personal message to the user
mobile number to check the details about transaction (Venkatesh, 2017).
COMPONENT 1b
Reflective statement of team work
Current research is based on global marketing as it is based on the process of implementing as
well as analysing the marketing strategies that help in company in expanding their business in
another country. This study provides vast information that help researcher and company is

effectively attaining their target and end outcomes. This project is done through proper team
work that help in improving the possibilities of accomplishing all the set goals and targets
without any kind of disputes and problems as well. Mainly, this research is based on the Paytm,
is famous company and also going to enter in UK market with the aim of enhancing their brand
image in another country or location as well. In this project team working is one of the crucial
activities because without team work, there is certain issues and uncertainty that may negatively
impact over the project outcomes. While performing activities of project, each and every team
member have their own roles and responsibilities that can be beneficial in improving the overall
efficiency level and at the same time also may increase the better collaboration among all the
team workers. In this regard, one of the main strengths of teamworking is that proper
communication and connection among team members that support in completing the project or
module in well effective manner. Furthermore, team working also includes all the ethical
dilemmas at the time of executing project as all the information of company keep confidential so
that firm can easily improve their performance. Apart from this, team members also face issues
at the time of executing the module like conflict between team members, take more time of
addressing the issues, improper coordination, lack of team motivation and many more. All these
are negatively impact in managing as well as implementing the project activities in systematic
manner. As a team member, we have proper coordination at the time of collecting relevant
information about the project and module. We also focus on managing each and every task
activity in a specified time frame that may reduce the possibilities of any kind of delay in
completing the module. At the time of performing project, our overall performance of good
because all the are having their specified roles and responsibilities within the module through
which each and every activity can be done properly by eliminating any kind of error. Mainly,
there are some major issues that faced by team members such as conflicts due to different values,
inefficiency and many more. By this team members can fail in attaining their task and activities
and at the same time also arise challenges while completing the module activities. With the help
of this project, our team learned a lot as they learn how to perform in a team and how to attain
the predetermined target of a module. Team work is important for us to accomplishing the
module project. Through which we can improve our team building and at the same time we also
try to manage all the issues that faced within this topic so that in next one we can easily complete
the module activities.

Individual assessment
Component 2
Introduction
Every business organization wants to expand their operational activities in other countries
with the aim of generating larger profitability level. In this different strategy of global marketing
is also play a crucial role as it provide a wider area and platform to company in developing their
business activities at market place. This will directly contribute in enhancing the overall
performance of company at market place. In context of this, Paytm is a leading online company
that going to expand their business in UK market in order to increasing their market share. For
this company also use various internationalisation theories that help them in developing its
positive brand presence and also make their performance more competitive.
Critical evaluation as well as comparison between two internationalisation theories:
Internationalization is the method of involving businesses or organizations in
international markets. The idea of organization internationalization is growing rapidly in the
modern world, as many organizations of established and emerging or developing countries are
taking advantage of the ability to carry out their business transactions internationally.
Internationalization is the process of making products and services available on the market
outside the country of origin in which they are made or the region in which they originate.
Business goes international in order to compete for resources that are scarce within their country
and to sell their goods with the aid of the global economy. The company that is internationalizing
must improve its position in such a way that it can comply with the rules and regulations that
have been laid down by foreign countries, so that they can perform their business transactions
effectively, in addition to demonstrating the ability to deal with volatility and the exchange rate
and the contradictory policies of those countries. In context of this there some effective model of
internationalisation such as Uppsala model and network marketing model. Both are effective for
company in entering into new market at global level. Both models can be understood by
following description:
Uppsala model:
The cycle of internationalization of Uppsala is a blueprint for the company's selection of
the market and the mode of entry as it moves internationally. The theory was first developed by

Wanger in 2009 while watching Swedish films. In their model, they made an experiment that
companies internationalize by pursuing a sequence of chains of establishments. This idea was
later refined and based on four key aspects that the firm would pursue when going international.
These include, in particular, business experience and engagement, engagement to decision-
making before entering the international market, Establishment of a global sales division and the
company's current operations, which are divided into various stages, and to follow true aspects of
change when internationalizing the product. In context of this, an effective awareness of this
theory's contribution to the market helps the management of an emerging company succeed in
internationalizing its business enterprise. According to this model, there are two forms of
international commitment awareness. As, these are practical objectives and aspect of an
organization that can be moved from one market to another in the course of carrying out an
international business transaction or looking for an international market. The second is the
experimental expertise that one firm can benefit from experience. This theory suggests that an
organization's experience and dedication to a specific market has an impact on its dedication
decision and on the manner in which companies have taken decisions on current
internationalization activities.
Network theory of internationalization:
Network Theory of Internationalization claims that recent new companies or emerging
economies do not follow a step-by-step method of internationalization, internalize their market
transactions and other aspects of firms through the availability of network partners' tools. In this
context, many emerging nation-state firms that are internationalizing are to be surrounded by one
or more networks via ties with their manufacturers, contractors and customers. Mainly, A
business network is defined as a collection of two or more interconnected business relationships
that bind the business organization together by exchanging information, ideas and products
between the participating entity. Networking as a source of business intelligence and expertise
that can be retained as a long-term usage for businesses when there is no longer a partnership
with the host country. This means that networking is a way of doing business transactions and
extending business from home country to host country without the aid of the host country, as the
knowledge was kept before the networking process. Therefore, Network plays a critical role in
the conduct of international business transactions and serves as a bridge for internationalization

between firms. The network theory underscored the potential of the parties involved in the
internationalization of firms by developing a closer partnership with consumers, suppliers and
distributors, which encourages the internationalization of firms. The partnership that has been
developed allows firms in the process of internationalization to create mutual confidence and
commitment to market awareness.
Use of two real life examples
Paytm, is an Indian multinational e-commerce and finance company that provides online
facilities such as mobile recharge, payments of utility bills, booking movie tickets etc., Paytm
was founded in the year 2010 by Vijay Shekhar Sharma. After a successful run in India, now
company is thinking of establishing its business in United Kingdom.
Most of the companies wants to expand its business in foreign environments so they
adopt the method of “internationalization”. It is a symbol of success and progress, as now
company can reach out to a large number of customers. In the process of industrialization there
are many complexities thus, different scholars have designed several theories adopting which
company can easily accomplish their task of establishing their business. Two of the theories that
will be discussed in this assignment are Uppsala model and Network Model.
Uppsala Model: this model has a theoretical base of behavioural theory and tends to explain
how gradually company increase its involvement at international level. All this is done with the
help of psychic distance and establishment chain. Generally, it has two patterns first one explains
about how a company can engage its business operations and develops itself in foreign market
through “establishment chain”. Second one is by “physic distance” which means, organisation
tend to enter into the market which they understand and where loss and uncertainty is low i.e.
where company can see large amount of opportunities for having a better business growth.
Therefore, it can be said that for establishing business with this pattern requires a lot of
experience of targeted market. Moreover, Uppsala Model has four core concepts divided into
state aspects: includes market commitment, market knowledge and change aspects: current
activities, commitment decisions. All these are inter-linked with one another and generally
depends upon each other. Therefore, while establishing this business it is important that company
consider all the factors so as to operate its business in an effective manner. For example: Paytm,
in its initial stage of establishing its market can use “establishment chain” pattern. This will help

them in making connection with different firms, suppliers and other people in United Kingdom.
For instance: to start off, first Paytm can offer option of online bill payments than gradually can
move towards other choices like tickets booking for moves, amusement parts and different
events. Besides this, they can join hands with key partners in United Kingdom such as Banks
with escrow services, hotels, shopping centres etc., moreover, this will help them in having a
proper understanding about the market and people of United Kingdom. Therefore, after gaining
experience company can now finally implement “physic distance”. Thus, all these activities will
help them in running their business in an effective manner.
Another example is Reliance, is a multinational conglomerate company operate its
business in India and also expand at international level for generating larger profitability and
competitive success as well. As it committed to innovation led, exponential growth in the
different areas such as hydrocarbon exploratory and production, petroleum refining, natural
resources, retail and telecommunications. In context to internationalisation process in case
company use network theory they does no responsible for follow traditional ways. As they
responsible for build strong network with people like suppliers and customers as well. For
attaining the same, company using various tools to invite or attract large number of customers
towards its services.
As per above comparison of two different organization and their internationalisation
process network theory is consider as an important method and theory in expanding their
business at global level. The main reason behind this is that it is cost effective and also assist in
inviting more and more people towards its services.
Conclusion
From the above-mentioned assessment, it is having been concluded that, expanding
business into another country is not an easy task as it creates various issues in-front of company
but at the same time also provide wider area or opportunities to attain higher success. In this
various internationalization theories such as Uppsala model and Network Model. Both theories
are beneficial in improving the possibilities of attaining success within another country. But on
the other side, building network with the customers play a crucial in internationalisation process
as it help in inviting more and more customers towards the company products and services. In
context to this there are some drawbacks and limitation with Uppsala model is that it is

deterministic and also interdependencies within the another marketplace. As network theory of
internalization is an effective theory that help in providing various opportunities in-front of
company i.e. Paytm and Reliance for expanding their business activities in market place.
Individual assessment brief
1. Critically evaluate and compare two internationalisation theories
Internationalization is the procedure of involving enterprises within international market.
Respective concept is increasing day by day because several organisations of developed,
emerging or developing nation are taking up opportunity to their business transaction
internationally (Głodowska, Maciejewski and Wach, 2019). There are several theories which has
been developed by different researcher for addressing internationalisation concept of an firm in
several manner. Out of all these theories two are described below :-
Uppsala model – It is one of the most discussed dynamic theory and it explain
internationalization procedure of companies which namely how an business firm learn as well as
its impact of learning on international expansion (Belhoste and et. al., 2019). The theory of
Uppsala model was developed by Wanger in 2009 while watching Swedish films. Uppsala model
focus on four main aspects which on organisation should have to follow while expanding
business at international level. It comprises generally knowledge related to market and
commitment, here commitment is related to decision making at the time of entering within
foreign market as well as establishment of a foreign sales subsidiary and present activities of
organisation which is classified within different stages and to adopt several change aspects while
the internationalization of a firm. In addition to this, these are objective knowledge of company
that can be transfer from one market to another within procedure of doing international business
transactions or for searching international market. Respective theory conclude that commitment
as well as knowledge of organization to specific market affects by their decision to commitment
and also the manner of firms decision taking on current activities of internationalization. The
Uppsala internationalization model has been divided within four different steps of entering
within international market which cannot be viewed in independent manner of company
situation, market and market knowledge (Małys and Fonfara, 2019). These steps are as follows,
Step 1 –No regular export activities (sporadic export), Step 2 – Export via independent

representative (export mode), Step 3 – Establish of foreign sales subsidiary and Step 4 – Foreign
production/manufacturing
From the perception, they discover that organizations ordinarily start their development
in a clairvoyant close by showcase. There, they have upgraded information available and more
control of assets, from that point bit by bit when the organizations have become increasingly
experienced and gained better assets, they grow to the more separation showcase. (Through
distance market, they refer both to the social separation; too the distinctions in language,
governmental issues, topographical and the trouble to procure information and data from the
market). Besides, frequently organizations entered another market through fare before foundation
of outside deals auxiliary or remote creation. Uppsala model contributes at wide level in
understanding internationalisation process of company but within some fundamental basis
company also suffer to describe total internationalization process. It meant to be its original unit
of analysis before considering changes within business environment during last 20 years and its
impact on theory development.
Network theory – First internationalisation theory was challenged through another model
which is named as network theory (Prashantham and et. al., 20919). It has been argued by
respective internalization theory that modern organisation are not following is step by step
procedure of internalization as they internal their business transaction as well as other form as
back through assistance of availability of resources of network partner. According to some
common researcher it has been identified that most of the emerging countries form which are
nationalised should we suppose to be surrounded by one or more network via linkage through
their suppliers, contractors as well as customers. Here business network is defined as set of two
or more than that interconnected business relation to connect company together to exchange of
information, goods, idea within participation of company. Thus, in internalization of business
network play important role as well as act as a bridge for internationalisation within organisation
(Forsgren, 2016). In addition to this, respective theory emphasized the ability of parties which
are involved within internationalization of firm through establishing closer relation with
suppliers, customers, distributors and so on which help in internationalisation process of
company.

There are two internationalisation processes which company can use but they both are
totally different from each other. Because in Uppsala theory company have to follow each and
every step of expansion process. Whereas, network theory is challenging this process because as
per respective theory it is no need of following such steps but they have to only build network to
those who play important role in internationalisation process such as customers, distributors,
suppliers and so on.
2. Identify and two appropriate real-life examples to illustrate both internationalisation theories
Explanation - Eggfree Cake Box is company which started their journey in 2008 with small store
and its first store is in heat of East London. Mission of respective company was to provided new
concept to UK market i.e., delicious fresh cream celebration cake which made without using
eggs and provide on demand services. Customers don’t need to compromise for taste due to
eliminating eggs. In 2019, respective company have more than 120 plus branches and they are
trying to expanding more within this year.
Evaluation - For internationalisation process if company will use Network theory then they need
not to follow some traditional way by following any step. They have to build network with the
people who help them in their expansion such as suppliers they are important for Eggfree cake
Company because for daily preparation of cake there is requirement of material which comes
from suppliers. Along with this, there is need of building relation with distributors also who will
help respective organisation in supplying their cakes to customers (Deszczyński, Fonfara and
Dymitrowski, 2017). Moreover, customers are most essential part so for building contact with
them there is requirement of several promotional activities for which social media is best
platform. It include several tools by using which company can attract large number of customers
such as face book, Instagram, Twitter, LinkedIn and so on.
Explanation - PayPal is American company which is offering online payment system that
support online money transfer as well as services. It is alternative of traditional paper methods
such as check and money order. PayPal was founded in 1998 and serving Almost world but in
nations they are not serving trying to expand their business.
Evaluation - Thus, for working at international level it is important for business fir, to implement
suitable theory within their working such as Uppsala model of internationalisation. In which they

have to follow four steps i.e. Step 1 –No regular export activities (sporadic export), Step 2 –
Export via independent representative (export mode), Step 3 – Establish of foreign sales
subsidiary and Step 4 – Foreign production/manufacturing (Karami, Wooliscroft and McNeill,
2019). It is lengthy process and have to implement each and every steps in appropriate manner
for establishing business at international level.
Comparison - From this comparison of two organisations and their internationalisation process it
has been determine that network theory is more suitable for modern business. It is short and not
expensive to implement and help in gaining outcomes in effective manner related to
internationalisation.
Application – For both of the organization implementation of internationalization process is not
expensive as they can expand business at global level and accomplish desired outcomes in
effective manner.
Conclusion - As per respective theory it has been identified that their is requirement of only
building network with people who play important role in internationalisation process such as
suppliers, distributors, customers and many more.
3. Conclusion whether Uppsala model is still relevant in today’s business environment or not
After going through entire discussion of internationalisation theory it has been
summarised that, in today’s business environment Uppsala model of internationalisation is not
relevant because it include several steps within it which company have to follow while
expanding business at international level (Vahlne and Johanson, 2020). This is the major reason
that Uppsala model is not suitable as well as it is also traditional method which cannot suit
modern world. Along with this, there is requirement of building networks with people who play
important role in internationalisation process such as customers, suppliers, distributors and many
more. They are important network which help in easy internationalisation of business as well as
also in conducting daily operations in appropriate way. Apart from this, there are several
limitations also of implementing Uppsala model explanation are as follows, Uppsala model is too
deterministic as well as does consider interdependencies within different country markets. Along
with this, respective model is not suitable for service industry organisations. Moreover, it is also
not valid in situation of highly internationalized firm as well as industry. Thus, in today’s

competitive business environment Uppsala model of internationalisation is not suitable. So for
better expansion in effective manner company have o implement network theory of
internationalisation within their working. As it has been proved by comparison above within two
different business firms.
Individual assessment
INTRODUCTION
Internationalization is a strategy which include making products & services adaptable as
possible so that it can be properly as well as easily enter into different national markets. It is
important for an organisation to first internationalize before localize goods and services. It is the
practice of developing products, internal operations and services to expand into international
markets (Coudounaris, 2018). This section covers Uppsala model of internationalisation with
relation to international business expansion. In addition to this, there is a comparison among two-
internationalisation model along with real life examples that explain both the international
theories in a proper manner. Moreover, the relevancy of Uppsala model in today’s business
environment is cover in this section.
1. Comparison of two Internationalisation Theories
The organisations face difficulties and challenges at the time of expanding internationally
its business. For this, it is essential for firms to make international market selection and opt the
mode of entry through which they can enter into market properly. There are various models of
internationalisation that is used by companies in a proper manner. These models are Uppsala
model and born global model of internationalisation. The difference among this model is given
below:
Basis Uppsala model Born global model
Definition It is one of the dynamic
theories, which state the
procedure of
internationalisation of an
organisation. it describe the
process of incremental
It is a theoretical model in the
area of internationalisation,
which is based on the
reasoning of dynamic and
change model that explain the
internalization process in an

commitments and experiential
learning that leads to an
evolutionary development in a
foreign market. This model
was based on the empirical
observation of Swedish
manufacturers in the year
1966.
effective manner. This model
was proposed by the Knight
and Cavusgil in the year 1996
and some changes is made in
2004.
Key Elements The Uppsala model has strong
base in domestic market and
gradually gain knowledge as
well as experience before
developing the process. It is
best suited for heterogeneous
market place and for the
company who offer customised
products and services.
This model believe that world
is one market place. The
knowledge and experience is
gained at early stage. This
model is suitable for
homogeneous market place or
for the companies who offer
standardised products in
market.
Importance This model consist of direct
correlation that is stronger
market commitment and better
market knowledge (Dow,
Liesch and Welch, 2018). In
addition to this, it involve an
in-depth study of foreign
markets which is important for
companies to understand in
order to enter into new market.
This model is based on the
differentiation strategy and is
focus on providing superior
quality to customers. In
addition to this, it determine
specialize customer needs and
involve the process that occur
low cost to the company when
expand the business activities
and operations globally. It is
rely on the external facilitators
that is a company that easily
enter as well as withdraw from

international or foreign
markets.
Advantages One of the benefit of this
model is, it is characterized by
high specificity & description
of the organisation actions. In
addition to this, it is base &
inspiration for development of
other theories of
internationalisation.
Herein, the entry as well as
withdraw from international
markets is easily that is
consider as one of its
advantage. Along with this,
this model is consider by large
number of companies in order
to do business abroad.
Furthermore, this model help
in reaching divers & large
number of audience that has a
positive impact on profitability
of an organisation.
Disadvantages The drawback of model is not
ever firm is domestic oriented
from the starting. In addition to
this, it does not include other
form of businesses like
licensing, franchising and
many more. Moreover, the
model did not discuss about
the reasons behind or
associated with foreign
investment.
It is determine that born global
firms is less stable and gain
success in market. in addition
to this, it neglect efforts of the
traditional exporter and
consider limited tangible
resources.
The table above shows a comparison between both the business models that organizations use while
expanding itself into new global market places and establishing their presence. A basic interpretation
which can be addressed from the above evaluation is both the models are efficient and effective for

businesses according to their nature size and scope. Both the business processing systems have their pros
and cons with which businesses have to deal in shorter or longer period of time.
2. Application of Theories by real life examples
Uppsala model: Uppsala model is one of the theories describing the process involved in
internationalization and globalization of organizations and entities. according to this model the
nature of expansion is more of a protective approach where the company 1st expand itself in
nearby markets with lower market commitment and then move to higher risky and larger
markets. This model state the internationalization process as sequential, slow and gradual. Which
represents integration of knowledge about foreign markets. One of the example is Zara, the
company followed this model by first making entry into geographically close markets. For
instance, Zara launched flagship stores in strategic locations to develop recognition & with an
aim of obtaining market information & accumulating experience (Vahlne and Johanson, 2020).
By the assistance of Uppsala model, its mangers obtain experience that help in operating locally,
and assist Zara to add more number of its stores in adjoining areas.
Born global model: Born global model is a business process according to which entity
establish itself with a vision of globalization and moving into International by expanding and
developing new markets. The major born global model that businesses use are export and import
for moving into International markets and establishing their customer base. This model is mainly
used by companies that offer standardised products in the market. By applying this model, the
companies can easily enter into foreign markets. Moreover, it help in reaching large number of
audiences that has positive impact on the profitability of company that is enter into foreign
markets. One such example is VALVITALIA, initially the company uses this model to enter into
new market as it is assist is cope p with the dynamic changes. The company was established in
the year 2002 and at present, it exist in more than 93 countries. Born Group model is adopt by
mangers as it offers the standardised goods and services in different countries.
3. Conclusion
From the above study, it has been analysed that it is essential for a company to study about
market conditions and customer requirements before go internationally. It is important for a form
to select mode of entry to enter into foreign market and analyse the risk associate with it. In
addition to this, there rea different models of internationalization such as Born Global, Uppsala

model. It is determine that Uppsala model for today’s business is not relevant as still it does help
in understanding the reason and benefits of foreign investment. Furthermore, it does not include
other form of businesses such as licensing and franchising that is used by most of the companies
nowadays in order to enter into the international or foreign market.

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