Strategies for International Business Expansion: A Case Study of ABC Continental Limited

International Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Detailed strategy proposal based on extensive and relevant market research....................3
2. Research has identified.......................................................................................................4
a. Key business drivers behind company's expansion into the UK........................................4
b. Important barriers to trade and it’s protectionist policies which hamper new venture......5
c. Ethical, social and legal issues which are taken into account.............................................6
d. Cross cultural issues relevant to proposed venture.............................................................7
3. Evaluating feasibility..........................................................................................................8
a. E-commerce option versus other methods of expansion....................................................8
b. Aspects of international marketing.....................................................................................8
c. Potential impact of BREXIT on the venture.......................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
International Business is a trade of goods and services across the national borders or at a
global level. This process includes cross border transactions of goods and services between two
or more nations. Main aim of this project report is to build an understanding about business
strategy for international business purposes. In order to fulfil this aim, ABC Continental Limited
is selected. This company wants to enter in international market by establishing their market in
United Kingdom. This company is planning to establish a new e commerce venture to sell infant
cotton wear. In this project report, various strategies are proposed which are based on relevant
market research. Key business drivers are also analysed in this report along with ethical, social,
legal and cross cultural issues. Barriers to international trade are also mentioned in this project
report in order to ascertain aspects of international marketing. Potential impact of BREXIT are
identified along with various methods for expansion in international market (Botha, Kourie and
Snyman, 2014).
MAIN BODY
1. Detailed strategy proposal based on extensive and relevant market research
ABC Continental Limited is planning to enter in international market by establishing a
new venture in United Kingdom. It is important to develop an extensive market research to
ascertain most suitable strategy to enter in international business. By considering the nature of
business which has been planned to launch by ABC Limited and the market demand, there are
few proposed strategies which are discussed below:
Direct Exporting - This is a tool which can be used to enter in a new market. In this
strategy proposal, products and services of ABC Limited can directly be exported to United
Kingdom for selling purposes. This proposal requires individuals in UK which can act as their
agents so that they can ensure smooth functioning of their business. There are various benefits of
this proposal, the most important advantage of this strategy is that there is no requirement of any
physical office in UK which can help in reducing cost of establishment. ABC Limited should
ensure one thing and that is to build a close relationship with their agents and distributors. These
representatives can act a their staff in new market and can have gather all important market
information about trends, changing choices and preferences (Hamilton and Webster, 2015)
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Licensing - This is an another proposed strategy which is in which ABC Limited can set
up an arrangement in which they can transfer the rights to any other company in United
Kingdom to sell their products. In this strategy, ABC Limited can provide license to some other
company in order to provide them all the rights. This proposal can result in acquiring higher
market as they can provide license to some large retailer by which they can increase their market
share as well as their sales. There is a limitation of this strategy also as this brand image of ABC
Limited will automatically be linked with their licensed company.
Franchising - This proposed strategy is most common for business which plan to enter in
international market. Using this strategy, ABC Limited can expand their business. Under this
method, ownership of name is transferred to other party or existing business so that the entity can
use brand name of ABC Limited and can increase their sales. Using this proposal, this company
can sell their organic infant wear easily.
Joint venture - ABC Continental Limited can enter in international market by joint
venture. Under this proposed strategy, two business join together to conduct a lawful business.
This company can join with any organisation which already based in United Kingdom (Huang-
Horowitz, 2015).
2. Research has identified
a. Key business drivers behind company's expansion into the UK
Key business drivers are the aspects which impact on the performance of the business.
ABC Continental Limited is planning to expand their business by entering into market of United
Kingdom. There are various external and internal key drivers for this business which are
discussed below:
Infrastructure - The most important driver of expansion is the infrastructure of that
location or area where company is planning for expansion that is United Kingdom. In order to
ensure suitable growth and development of this company it is important to develop appropriate
infrastructure. This element includes various facilities which are important to business and their
lacking can even adversely effect organisation performance. This involves IT systems, processes
and many more.
Funding - Another key driver of expansion of ABC Continental Limited is finance and
funding by which operations of this organisation conducts. Funds is the capital which can help
business to grow faster. For example: ABC Limited can attain more funds from various sources
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