Ingogo Entry Strategy

INGOGO ENTRY STRATEGY 1
1 Executive summary
The aim of this report is to propose efficient strategies for Ingogo to expand
internationally. The work started with an introduction which explicates on the market
opportunity in India pinpointing external environment. Borrowing some content from the
previous market report, journal, publication, and textbooks, this report will recommend the best
way the Ingogo Company will start its operation in India.
This work extensively assays India business environment using metrics such as doing
business index and trade competitive index. The two measures indicate that India is a
competitive market for taxi business due to high population, improved infrastructure, sound
government and business policies which provide enabling milieu for international business
(World Bank 2019). As such, the economy seems to be attractive for both national and
international companies.
The report also critically analyses the strategies which igongo uses on its backyard to
provide its product to customers. With huge capital base and willing investors to invest in, the
company is deemed fit to explore a new market. The needs for a new market is to expand its
customer base, increase income, explore more opportunities and lower cost through economies
of scale.
Feasible strategies that were found it be appropriate were to use its well-established price
strategies such as affordable charges, and quality control (ingogo, 2019). The second strategy is
to buy another local firm so that it can operate as a local firm, reduce competition and have many
customers. Additionally, strategies that favor entry strategy includes product differentiation and
promotional and marketing strategy (Albaum &Tse, 2001). Promotional steps call for social
media market, joint venture while product differential involves charging different market
segment different price.
The last part emphasized that the human resource issue are prevalent but the ultimate
solution is using a mix of ethnocentric and polycentric to allow a smooth transition of home
country traditions. Ultimately, the report concludes the report by encouraging the company to
implement includes collaborative strategies, distribution, marketing, differentiation,
diversification, and human resource strategies. In effect, it will be successful.

INGOGO ENTRY STRATEGY 2
Table of Contents
1 Executive summary.................................................................................................................1
2 Introduction..............................................................................................................................3
3 Company background..............................................................................................................3
4 Additional country analysis.....................................................................................................3
4.1 Aspect considered in doing business................................................................................3
4.1.1 Importance of improved business regulation.............................................................4
4.2 TRADE COMPETITIVENESS MAP..............................................................................4
5 Recommendation strategy and entry mode..............................................................................5
5.1 Examination of organization objectives, capacity, and aim of expanding for a foreign
country.........................................................................................................................................5
5.2 Capacity............................................................................................................................5
5.3 Aims for international expansion......................................................................................6
5.3.1 Improve profit margin................................................................................................6
5.3.2 Diversifying the business...........................................................................................6
5.3.3 Economies of scale....................................................................................................7
5.4 Igongo strategy in Australia..............................................................................................7
5.5 Marketing entry strategy...................................................................................................7
5.6 Recommended entry strategy............................................................................................8
6 Marketing and R&D consideration..........................................................................................8
6.1 Products and services........................................................................................................8
6.2 Advertising partnering......................................................................................................9
6.3 Social media......................................................................................................................9
7 International HRM issues and considerations.........................................................................9
8 Appendix................................................................................................................................11
9 Reference...............................................................................................................................12

INGOGO ENTRY STRATEGY 3
2 Introduction
INGOGO is a growing firm that has the potential to expand globally. As such, this work
will focus on Asia specifically India. A brief description will be given as well as that of the
company to show why the region is ideal for INGOGO Company. Further, a SWOT analysis will
be conducted to show a solid feature of the company which enable it to be a market leader than
the other close competitors
The report further highlights why the said country is best to venture in. competitive
strategy of the firm will also be discussed. After explaining this part, the second section
demonstrates the entry strategy and propose a sound recommendation for the market. Moreover,
important market and R&D features including competitive strategy will be mentioned.
Thereafter, challenges that INGOGO might face in managing human resource will be assayed.
Lastly, the report will offer a suggestion on how an organization can do to hone its production
capacity.
3 Company background
Background of INGOGO and India is attached at the appendix
4 Additional country analysis
India designs business policies and supports regulatory delivery to provide a transparent
and predictable business landscape favorable for international competition, business entry, and
expansion (De Groot, Olaf, and Miguel Perez Ludeña, 2014). With this regard, World Bank has
indicator called doing for business which shows the efficacy at which business get incorporated,
obtain permit, get connected to electric, get access to credit, transfer property, protection
investors, enforcing contracts, engaging in international trade However, the index indicates the
small business enterprise faces encounter different issue when they set up and instigate business.
4.1 Aspect considered in doing business

INGOGO ENTRY STRATEGY 4
4.1.1 Importance of improved business regulation
World Bank data indicate that regulatory environment impact affects many facets of
economic outcomes like growth, productivity, informality, and employment (Worldbank.org.,
2019). Recent research concluded that the positive impact of enhancing business regulation
(Adler, Gustavo, 2017). A notable example is that the country has enforced an annual self-
clarification system where an individual can do annual clarification. Also, annual the business
expiration period has been extended from five years to ten years. Such has eliminated annual
renewal of licenses. Competitive federalism approach that India has applied to a business setting
agenda has led to more than 7000 reforms. Those reforms have brought commendable results in
business regulation. For instance, less procedures which has strongly LinkedIn the process of
starting businesses.
According to the world economic forum, India Is ranked as number 58 globally as a
competitive country in the world. It’s competitive as risen from 2007 to 2018, from 55.17 to 58
respectively. In 2015 it performed excellently reaching the highest points while in 2007 it
recorded the lowest index, that it is 71 and 42 respectively.
The recent 2018 report on a global competitive index which examined 140 countries
introduced a new methodology which underscored the value of innovation, human capita agility,
and resiliency (Malhotra, 2014). This market not only the drivers but also the elements of
economic success in the industrial revolution. In effect, the GC1 was changed to 1 to 7 from 0 to
100. The higher the score the successful the country is performing. GCI report is made of 9787
variable that is categorized into 12 pillars with the most invaluable features. This includes
macroeconomic stability, skills, health, ICT adoption, institution, infrastructure, financial system,
labor market, product market, innovation capability, business dynamism, and market size
(International Monetary Fund, 2017b). The below data demonstrates the India competitive index
based on historical data which shows longer term and short term prediction, lowest and hosted
index attained news and surveys census and actual data as updated on 29th June.
4.2 TRADE COMPETITIVENESS MAP
Trade competitive map offers offer market analysis outlook for approximately 240
countries. Each outlook fives a series of tools to give strategic market research, macro-economic