Market Entry Strategies Analysis

This assignment delves into the world of market entry strategies employed by businesses. Students will examine different approaches to entering foreign markets, such as exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries. The analysis will consider influential factors like institutional frameworks, cultural differences, transaction costs, and competitive dynamics. Students are expected to evaluate the advantages and disadvantages of each strategy and discuss their suitability based on specific industry contexts and organizational objectives.

INTERNATIONAL
BUSINESS
DEVELOPMENT

Table of Contents
INTERNATIONAL.........................................................................................................................1
INTRODUCTION...........................................................................................................................3
Rationale.................................................................................................................................4
LITERATURE REVIEW AND CRITICAL ANALYSIS..............................................................5
PESTLE Analysis of Bonia Group ........................................................................................5
Market entry strategy of Bonia Group ...................................................................................8
Impact of these strategies in various sectors..........................................................................9
Risk Analysis........................................................................................................................10
CONCLUSION..............................................................................................................................11
Recommendations................................................................................................................11
BIBLIOGRAPHY..........................................................................................................................13
INTRODUCTION
International business development is the process in which a company expands its
operations in foreign lands. . The motive of an organisation is to increase number of branches at
global. This in turn helps the organisation in developing the market segment by catering to the
needs of large number of consumers. Basically it targets the countries which are not developed .
They want the sustainability in the development of international business. For that the
organization have to analyse the atmosphere of the market in various nations. In present
scenario, many companies are looking forward to extend their business in other countries
(Chang, S.J., Van Witteloostuijn and Eden, 2010). The big corporates are adopting the strategy to
expand operations in nations such as: Brazil, Russia, India and China. These nations have
growing demand for various products that generates a growth opportunities for the business units
into consideration. . Bonia Group is one of the popular companies in Malaysia that has
established its first store in 1994 at the Thereafter, the company has opened many stores in
Malaysia and international market. It is mainly dealing in retail selling of fashion stuff and food
product, . It is a market leading company which has a big share in the market of Malaysia, also
the brand has developed variety in their products to attract the new generation. The company has

its stores in Portugal, Germany, Belgium and Netherlands. Now, the company wants to open
their store in Brazil which have traditional economy.
To develop their business internationally, each company has to adopt an effective
business strategy. Similarly, Bonia Group have their own strategy to enter the competitive
market of Brazil. Strategy has made on the basis of few factors on which are so important in
international business development such that communication improvement, globalization of
market, competition is everywhere but awareness is a big thing, company should have
information about the market and he entrepreneur should have the Craftsman approach of
entrepreneurship.
In this report the initial research about the market of Brazil has discussed. They should
know that how the company can use their potential to enter in the market of Brazil(Cantwell,
Dunning and Lundan, 2010.). So a literature preview and critical evaluation of the each factor
that is involved in the business development, has outlined in this framework. Market analysis,
targeting the selected markets, selection of entry modes through which they enter to the market.
According to the foreign market the firm have made a plan for marketing and business purpose.
To meet the international objective, company should expand their resources in other countries
and for that it has to grab the opportunities which can be helpful in such expansion.
Rationale
Brazil have cultural based economy as their economy depends on their traditional
business. The main purpose to start the business in Brazil that it have so much potential in their
economy. When the market has crashed in all over the world but the outcome from Brazil's
market was still getting the profit. Its an expectation of the world that in next 20-30 years Brazil
will be the 5th largest economy in the world. The other companies in the market are doing so well
thus there is a large scope for the Bonia Group to open their stores in the market of Brazil. They
will have so much opportunities to set up their business successfully in initial stage.
The Bonia Group can target the clothing market as the local people are so influenced with
the different trends in fashion. The each sector of market is improving slowly but steady, So
much relaxation the government gives to the company to develop their
infrastructure(Birkinshaw, Brannen and Tung, 2011). The company will have tax incentives to
make a better start in the competitive environment of market. Brazil exporting the raw material

to the other countries, so its an opportunity for the entrepreneurs of Bonia Group they can jump
in that market with their attractive product and services.
Brazil have made a relationship on commercial side which have 5 themes such that
innovative technology and green technology, facilitation of trade and development of business,
cooperative society of intellectual property, different standards and methodology, enterprises of
small and medium size. The market of Brazil gives priority to the new and innovative products
which are not even accepted from the other countries. The south east area has more opportunities
for the new companies if they want to develop their business. But now where so many incentives
and others offers are provided from the government so the Bonia Group can grow sin each area
of Brazil.
Bonia Group can enter the market because they have so innovative products also the its
fashion trends are so popular in Malaysia and many other countries where they already have their
stores(Doz, 2011). Organization can lead the food market by providing the better quality of the
product and and they should have attractive approach to show that product in the market.
Business development in Brazil is quite beneficial for Bonia Group.
LITERATURE REVIEW AND CRITICAL ANALYSIS
PESTLE Analysis of Bonia Group
Bonia Group is the top retailer company in the current retail market of the Malaysia. To
develop the new business of Bonia Group in Brazil, there is a vast requirement for the market
strategies and the PESTLE analysis require to study that Brazil is suitable for the Bonia Group
market set up or not. Each and every organization have their different market strategies and
tactics to survive in the current market trend(Govindasamy and et. al.,2011). Moreover, the
different retailer companies follows the several analysis to approach the marketing strategies and
target goals. Retail organization mainly set their specific target market and have an efficiency to
bring the customer's demand in the new market trend. Bonia Group is realizing that for the long
term benefits, the Pestle and swot analysis help them to reach the long term goals at very great
extent. For the market set up of Bonia Group in Brazil, need of the Pestle analysis is very
important for the study of the current market environment of Brazil(Pestle and Colvard, 2012).

Bonia Group is looking for gaining the great benefit to set the market at Brazil and provide the
best services to the customer's of Brazil. Pestle analysis for the Bonia Group is given below:
Political factors: Political factors are very major factors that affect the new market set up
of every organization in the form of changing the rules and policies by the government and also
the pressure groups has a great impact on the market set up of Bonia Group. Retail organization
might be affected by several acts of the government like health and safety act, sales protection
act, disability discrimination act, sex discrimination act and many more that affect the market of
the Bonia Group. Moreover, many of the political factors that affect the new business in the way
of the policy change by the Brazil government, policy of the retail market would be changed, tax
policy and more. These are the factors that affect the marketing entry strategies of the Bonia
Group at Brazil's retail market. This analysis mainly concern the ability of the organization that
has to be follow the different rules and policy of the government and take the effective initiative
which are helpful in the growth of the Bonia Group.
Economical factors : In this analysis Bonia Group's marketing strategy affected by the
changing of the economy and market trend as well. These market changes indirectly affect the
economical growth of the company and production or supply services as well. Bonia Group is
the top brand retailer and has the effective contribution in the gross domestic product of the
country. A strong monetary fund is very effective approach to sustain in the economical
changeable environment which holds the low exchange rate made by the import or export
operations. Brazil's economy directly affect the marketing strategy of the Bonia Group, which is
also affected by economy policies of the international monetary fund. The strength of policy
supports the business cycle of the Bonia Group in the matter of economic condition(Dane and
Cody, 2010).
Social factors: In this analysis, Bonia Group mainly focuses on the demographic changes
of the Brazil's population and it is having the great impact on the growth of the firm. These
factors can directly affect the new buying perception of the market and also the production of the
company. Social changes directly forces to the company's current processing in the way of
conduct further research about the product and develop the process and invent the new product
that help to earn the trust of the market of Brazil. Organization may found the new market
strategy that help to enhance the business at all over the market of Brazil. Bonia Group has that

type of capability to sustain the market changes of the Brazil and accept the challenges by
competitors(Ulca and et.al., 2013).
Technological factors: In this analysis Bonia Group has that type of ability to adopt the
latest technology of the Brazil's market trend. In this case, there are various factors that affect the
business like software development changes, and more. Recent technology provide a great help
to the business growth and the improvement of production rate as well. By applying the new
technology, Bonia Group reduce their labour cost and increase the rate of technologies.
Legal factors: This analysis mainly includes the efforts of the company which abide by
the law like terms of tarrifs, trading policies, taxation, insurance policies and more. Bonia Group
mainly focuses on the consumer's requirement and supply the services accordingly and to sustain
the same they follows the legal factors of Brazil's government as well. Because most of the
policies and rules are apply by the government and these rules are affect the Bonia Group's
marketing strategies. Bonia Group is very concern about to deliver the best services to their
customer's and give the importance to customer's right.

Porter Diamond model
The porter diamond referred to as the porter diamond theory of national advantage. It is a
kind of model which has designed to assist understand the competitive advantage nations or
group possess due to certain factors available to them. The American strategy professor Michael
poster has been developed this model in order to aid business by understand their competitive
position in global market. Bonia Group can easily understand their competitive position in the
global market like Brazil by use of this model. According to the Michael porter, there are four
kind of cluster that is firm strategy, structure and rivalry, demand condition, factor condition and
related and support industries. With help of this model cited firm can able to know that how
national advantage can translate into international advantage. Bonia Group can gain the internal
advantage by use of this model. There are four determinants which are as follows-
Factor condition: This factor includes the production related elements like material
resources, human resources (labour costs, qualifications and commitment), knowledge resources
and infrastructure. As per the Anton, R., 2015By considering this factor and its element, Bonia
Group can analyse its internal knowledge and infrastructure in the international market. Factor
condition can be implies as a profitable and beneficial factor sound in the new country. This
factor assist in developing a more competitive firm in the country. With help of high skilled
workforce, Linguistic abilities of workforce, rich amount of raw material and workforces
shortage, company can develop high level advantage and benefits from business in the
international market.
Related and supporting industries: According to Grünig and Kühn, 2015 In the
international market if the local supporting industries and suppliers are more competitive, then
Bonia Group will potentially get more cost efficiency and receive more innovative parts and
products. This thing potentially lead to greater competitiveness for Bonia Group. The success of
the company is also depends upon the supplier and related industries within the country. In the
Brazil, Bonia Group can able to gain high quality of suppliers because of the similar industry are
available there. This thing will be more beneficial for the cited venture in the international
market.
Home demand conditions: The demand of the customer in the market is another major
consideration while any firm operate its business in the international market. According to the
Tayar and Jack, 2013, High demand of product and services can lead the high profitability and

sales for the organisation. In the international market Brazil, Bonia Group have to analyse
demand of customer related to product and services. If the local market for the product is larger
and more demanding at home than in foreign market, then Bonia Group put more emphasis on
the improvement than the foreign companies. This thing assist in increasing the global
competitiveness for the Bonia Group in the Brazil country. In addition to this, there always exist
an interaction among the economies of scale, transportation cost and size of the home country. If
customer have high level demand then it directly possessively influence company's profitability
and sales.
Strategy, structure and rivalry- As per the Anton, 2015 This factor is related to the way
in which an organisation is organised and managed. Organisation structure, strategies and
business system plan a very crucial role in the company in order to attain determined objective
and success. It focuses on the condition in a country that determine where a company will be
established. The structure and management system of the corporation in various countries can
potentially affect competitiveness. Bonia Group have to consider effective strategy, structure and
business system in the Brazil.
Market entry strategy of Bonia Group
Bonia Group is a one of the leading retail sectors which has occupied a prominent
position in the marketplace. Company is planning to develop new chain in Brazil where it can
generate more profits by introducing their product range. In this case, the company needs to
conduct an analysis of market so as to ascertain potential demand and competition prevailing. In
order to get established into new market segment, the company is supposed to formulate
effective strategies. Marketing strategies are based on information about the current market
position and proper knowledge about the existing competitors. It is through proper planning that
the company get easily enter in new market and successfully introduce products(Ang,
Benischke and Doh, 2015.).
There are various marketing strategies that are formulated to target new market segment.
In this report, Ansoff model is adopted to evaluate adequate expansion strategy for the
organisation. Further, the marketing model is a strategic planning tool that helps in providing a
proper working method of implementation. This model helps to generate growth in marketplace.
In this model, there are four key aspects for expansion: Market Penetration, market development,
product development and diversification. In order to expand business operations, Bonia Group

has opted the strategy of Market development. Henceforth, in this case, firm has to also develop
their entry mode strategies to enter in new market. There are various ways through which
company can establish itself in new market segment.(Tayar and Jack, 2013.)
Direct exporting: it is the process of selling of goods and services produced in one
country to other country. Whereas; Direct exporting is a selling directly into the market .
Licensing: Licensing is the most essential part of any new business where it is a legal
confirmation agreement to introduce product. With help of licensing political risk is minimized
and helps the business unit to quickly expand operations without any risk.
Partnering: Partnering is way to provide two different persons are get together. Which
means other are the two persons are get partnership in business concern and then go for target
new market to generate more profit. Bonia Group get parnership with other one’s to get enter in
new market.
Joint venture: Joint venture is a form of partnership where Bonia Group connected with
two companies and they both are agree with doing work together in target market . In this
situation risk and profits are generally shared equally.(Laufs and Schwens, 2014. )
Buying a company: this strategy is helpful to for above cited company to enter in new
marketplace easily which means in some market companies are buying a small scale company
which are help them to enter in new market.
Strategic alliance: In strategic alliance cited company get merged with some another
company to enter in new market. This is a cooperative agreement between two firms. with the
help of merger company creating new products and new technologies.
Impact of these strategies in various sectors
Company use various type of strategies for new business expansion these are the strategies are
help them to successfully established in new marketplace. Company get more productive and
generate high profitability with the help of all these strategies. But somewhere these strategies
are create influences in different sectors which means these strategies had render impact on
different organisational activities as follows:
Corporate culture: In corporate culture company has face various issues to apply new
strategies. Where as in an organisation some people are use to habitat with old technologies in
that case they create resistance to change environment. They all are not comfortable for new

working practices. This will mark bad impact on the new business environment. In that situation
employee get back off the whole process so in that case employee turn over ratio is increase in
that situation. (Brouthers, 2013. )
Advertising: Advertisement is create a buzz in current marketplace about their products.
with the help of some advertising strategies company get introduce their products easily. Firm
had to create some innovation and creativity in advertisement where as with the help of
advertising people are knowing their Bonia Group's products. Proper advertising is helpful to
generating more profitability. So advertisement create a good impact on whole organization to
achieve successful goals. Company apply social media marketing tool for advertising their
product.
Risk Analysis
In Brazil, company will use the social media marketing which have incurred various
kinds of risk related to the company's information. According to the (Grünig and Kühn, 2015)
while company uses the social media marketing then it is issue related to the daily update.
Company requires providing information about product and services to customer with help of
social media channels like Facebook, twitter etc. On the various channels of social media,
company can transfer their product related information like features, prices, etc. If company does
not properly update on the various channels then customer may mis the right information about
the product. As per the (Risk Analysis for Social Media Marketing. 2012) On the other hand
customer can easily put their review and comment on the channels so if customer put their
negative comment on the channel then it will show to all customer who are engaged with page of
social media. So it can be said that there are various kinds of advantage of social media
marketing for Bonia Group but it also incurred some kind of risk.
Different functional area: Strategies are some time create a problems in different functional area.
There they all have own strategic tool to achieve goals . In that situation new marketing modes
are changes whole organisational departmental strategies . So it will create a some problems and
misunderstand in between different function are. This problem is create a huge impact on
organisational productivity. In that case company has face conflicts and misunderstanding
between employees and top management. This will decrease organisation profitability and render
impact on new market business and product range.

CONCLUSION
The report is concluded that by following all planning procedure of research proposal is
essential for expansion of Bonia Group through establishing its new branch is Europe. Different
data collection methods are considered for gaining accurate business performance and market
value of entity. In this regard, various tools and techniques are obtained for analysing market
value through PESTLE and porter's five factors. Therefore, methodologies for increasing
strength of organization for effective competitive and marketing strategies are considered. In
addition to this, through report, learners understand systematic process through research proposal
and increasing efficiency of organization. Hence, several kinds of tools and techniques related to
project planning and accomplishing tasks are determined through this assignment. Including this,
varieties of new technologies and tools are obtained by online marketing and remains benefited
for increasing marketing and competitive strategies of firm. Methods to increase efficiency of
organization to make place in market that impacts on various components of organization are
considered through this research proposal. Hence, different ideas generated for activating
business operations and creating developing environment of entity. Moreover, project manager
of organization roles to analyse accurate business position that leads to preparing strategies for
action plans as well enlargement of entity are achieved effectively. (Holtbrügge and Baron
2013)
Recommendations
The report has been presented varieties of tools and techniques for establishing new
branch of Bonia Group in Europe. It is determined that organization effectiveness can be
achieved by using different strategies for implementing action plans and following planning
procedure efficiently. In this regard, it is require for project manager to analysing all business
operations and looking for environment of Bonia Group in overall Malaysia. Through this
project planning, initially, it is necessary to conduct proper market research and analysing all
factors including business strategies of entity. However, different environmental determinants
are required to be focused for enlargement of entity through establishing its new branch in
Europe. In accordance to this, several planning tools are to needed to be followed for gaining
effectiveness of organization at high level. Moreover, for retail sector entity, company should

recognize its strength, weakness and opportunity at workplace and further preparing strategies
for implementation and enhancing quality services of Bonia Group. In addition to this, by
establishing good relationship with other business entities influences market positive as well
remains helpful for increasing strength to face competition in market. Therefore, competitive and
marketing strategies of entity can be increased through using different tools and technologies to
reach out set goals. However, good reputation of organization can be achieved through this
project planning procedure. In accordance to this, it is necessary for entity to preparing strategies
and analysing all environmental factors of organization. It influences competitive and marketing
strategies to face competition and making place in market. Thus, determining all research
proposal's is valuable for increasing efficiency of entity.
Hence, by recognizing all environmental factors including PESTLE and porter's five
factors are useful for enhancing strength of organization as well liable for expansion of entity at
large scale. In this regard, it is obtained that researcher of Bonia Group must collect information
systematically that considered as key tools for preparing planning procedures to be followed on.
It is interrelated with expansion of business entity and increasing quality services of entity. Thus,
the present research proposal should be followed efficiently to gain positiveness at high level. In
accordance to this, a new branch of Bonia Group in Europe can be established effectively that
impacts on marketing and competitive strategies. However, by preparing action plans and getting
contribution of each worker of the entity, organization can meet set target effectively. It
influences positive and developing environment of firm that affects market value of entity to
increase productivity as well profit earning capacity of firm.

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