International Business Management: Market Selection and Entry Modes of Hayward Tyler (Luton)

This research report explores the existing international business, market selection and entry modes of Hayward Tyler (Luton), a global leader in industrial pumps, motors and other engineering solutions. The report recommends a new market entry mode and country of choice for expanding their operations in the international market. The report uses models such as PESTLT, SWOT and Porter’s five force analysis to determine the best country for expansion and recommends a Greenfield venture as the new entry mode strategy.

INTERNATIONAL BUSINESS
MANAGEMENT

EXECUTIVE SUMMARY
The current research report is being commissioned to explore the existing
international business, market selection and entry modes of Hayward Tyler (Luton), which is
a global leader in industrial pumps, motors and other engineering solutions and is based in
UK. The report has focused on the existing international strategy being adopted by the
company and has recommend a new market entry mode and country of choice to be used by
the firm for expanding their operations in the international market. Based on the application
of models such as PESTLT, SWOT and Porter’s five force analysis, it has been determined
that the best country where the firm should expand themselves is New Zealand. Further, on
the basis of varied justification a new entry mode strategy that is Greenfield venture is being
suggested to the firm for expanding in the international market.

CONTENTS
INTRODUCTION .....................................................................................................................................4
REVIEW OF LITERATURE ........................................................................................................................4
Company ...........................................................................................................................................4
Entry modes ......................................................................................................................................5
International trade ............................................................................................................................6
COUNTRY OF CHOICE ............................................................................................................................7
ENTRY MODES OR MODELS ..................................................................................................................8
PESTLE................................................................................................................................................8
SWOT ................................................................................................................................................9
Porter’s five forces model ...............................................................................................................11
RECOMMENDATIONS .........................................................................................................................12
CONCLUSION ......................................................................................................................................12
REFERENCES ........................................................................................................................................14

INTRODUCTION
International business is a systematic process of application of business across the
boundaries of the nations at the international level. It emphasize on the goals of the
companies and resources of the globe on the global business. There are many benefits of
expanding business in the international markets, for example, expansion of the existing
market, spreading of business risks, bringing foreign exchange, economies of scale,
improvement in the international relations and so forth (Aaker and McLoughlin, 2017).
Pertaining to this, the main aim of the present research study is to explore the existing
international business, market selection and entry modes of Hayward Tyler (Luton), which is
a global leader in industrial pumps, motors and other engineering solutions and is based in
UK. The report will focus on the existing international strategy being adopted by the
company and will recommend a new market entry mode and country of choice to be used by
the firm for expanding their operations in the international market.
REVIEW OF LITERATURE
Company
Speaking in relation with the firm Hayward Tyler (Luton), it is founded in the year
1870 and is being offering engineering solutions throughout the world. They are famous for
the development and centre of design of the Wet Stator motor pumps including the
submersible motor. The firm is being engaged towards offering leading customers services
seeking help from their efficient teams (Hayward Tyler, 2021). They are considered as the
most trustworthy suppliers with the main foundation in UK, China, India and US. In addition
to this, the services, design and production of Hayward Tyler is being offered through
manufacturing precarious electronic pumps for meeting out the requirements of the energy
industry across the world. The main aim of the company is nothing but to offer reliable as
well as innovative solutions to the energy sector of the world and keeping this mission in
mind, they are planning to enter in different parts of the world which have not been explored
by them yet (Escaith and Miroudot, 2016, Hayward Tyler, 2021). Furthermore, the company
is the only supplier of UK which are supplying industry specific source testing and they also
have one of the most advanced facilities for specialty motor production in the world. Other
than this, many improvements and enhancements are being done by the firm in relation with
the services, performance, reliability and maintenance (Hayward Tyler, 2017). They are still
making efforts to improve the environment capability by producing motors for sustainability.
4

Entry modes
Talking in relation with international expansion, it positively impacts the survival of
the businesses, their growth as well as profitability. Through steeping into the new global
markets, the companies can acquire new knowledge and experience which can be further
utilized for building supplementary value creating skills. Furthermore, when the firms
ventures into the global marketplace, they compete with different giants operating in the same
industry which helps in drawing multiple understanding and knowledge foundation in the
context of marketing functions, production and research and development operations for
learning novel abilities that increases their existing abilities (De Mooij, 2017). One important
theory that is being considered by the company for making decision regarding expanding into
the international markets is internationalization theory (Ahokangas, 2018). This theory states
that each and every firms has an aspiration of expanding their own internal markets at times
when the dealings might be done at the inferior costs with the firma and will keep on carrying
out the same till the advantages and costs of further in internationalization is paralleled to the
margin (Buckley and Casson, 1993, De Mooij, 2017, Escaith and Miroudot, 2016). For the
purpose of creating an edge over the competing firms in the market, Hayward Tyler is
harvesting and exploiting their knowledge through adopting different entry modes. The
capability of the company in managing as well as cultivating knowledge is the main
differentiation towards the success and the failure (Escaith and Miroudot, 2016).
Figure 1: Trade-offs in each of these entry strategies for international markets
(Saxena, 2019).
The above figures explains different trade-off for different entry modes being selected
by the company such as licensing, joint venture, indirect exporting etc. The company has
adopted entry modes such as acquisition, partnership and exporting for occupying the major
share of the market (Coviello and McAuley, 2019, Saxena, 2019).
5

 Partnership and exporting – The company also have a global footprint with the
operations grounded in china, India, UK and USA. Seeking help from partnership and
exporting, the firm has also opened their new sales office in Shanghai, China in the
year 2015 (Doole and Lowe, 2018). Speaking more in terms of the global expansion
of the firm, for the reporting reasons, they have split their business into two important
segments that is original equipments as well as aftermarket. Hayward Tyler (Luton)
makes an important contribution to the original equipment business and India and
Vermont forms the aftermarket business. Both these segments are showing an
augmented revenue of thirteen percent over the previous years. Acquisition – In addition to this, in the year 2017, the company has entered into
acquisition with the Avingtrans Engineering Technology Group (Baker, 2014). This
acquisition has offered an important prospect to the company to increase their success
and growth and advance their strategic emphasis on the performance critical electric
motors as well as pumps for the global energy as well as chemic industries.
 Licensing and partnership agreement – Moreover, the company has also entered into
licensing and partnership agreement with Ruhrpumpen, which is one of the leading
manufacturer of pump systems across the world, for better serving the civil nuclear
power industry (Porter and Kramer, 2015). This recent partnership with the respected
company will offer a great opportunity to Hayward Tyler to broaden their markets as
well as offering to the nuclear market of the global.
6

(Saxena, 2019).
Thus, overall from the analysis it can be said that the firm has been majorly engaged
into exporting, acquisition and partnership entry modes for stepping into the international
markets (Baker, 2014). This complete diversity of the markets as well as broad geographical
coverage offers the company with an important degree of suppleness and protection from the
opposing fluctuations in the market in any individual market (Armstrong and et.al, 2019).
International trade
Articulating in relation with the international trade, it is being referred as the
exchange of capital, merchandise and services throughout the international boarders as there
is a requirement or need of products and services. In most of the nation international trade is
being presented as an important share of GDP (Shiozawa, 2017, Doole and Lowe, 2018).
However, Wasserman and Haltman disagrees with this definition of international trade and
stated that it involves transactions and activities amid the residents of varied nations. Earlier,
this trading used to take place however, the social, financial as well as political significance
has been augmented in the current centuries. In relation with the case company that is
Hayward Tyler, conducting international trade is not an easy process in comparison with the
7

domestic trade (Shiozawa, 2017, Escaith and Miroudot, 2016). This is due to the fact that
when such type of trade takes place amid two or more countries then factors for example,
policies of the government, currency fluctuations, rules and regulations, economy, market
influences and judicial system impacts the process of trade. Perhaps, for facilitating as well as
justifying the process of trade amid nations of varied financial standing in the contemporary
age, there has been formulation of some global economic firms such as World Trade
Organization which supports in facilitating as well as growth of the international trade amid
nations (Samuelson, 2017).
The company has survived for around 200 years and more mainly because they have
been evolved with the passage of time. They have entered and captured a major share of the
global energy sector and industry and with the little support and encouragement of the
government, Hayward Tyler will be able to attack those markets which have not been
captured by the firm till yet. The company has recently made an investment in their Luton
plant site which has helped them in increasing the plant’s efficiency as well as quality of the
manufacturing plant. This will significantly support the company to succeed in the
international markets as they can showcase themselves about their achievements to the
overseas customers (Escaith and Miroudot, 2016, Shiozawa, 2017). The main aspect of the
strategy of the group is growth and this typically involves relying on the major international
markets such as power for India and China, oil and gas for Nuclear and other chemical and
industrial. All these markets, in which the firm is operating are quite competitive in nature
and thus, to succeed in the international trade, the firm is required to keep up with the
innovation and technological change (Coviello and McAuley, 2019).
COUNTRY OF CHOICE
Talking in relation with the country of Choice, the selected nation in which the case
company that is Hayward Tyler (Luton) should expand is New Zealand. The nation provides
comparatively prosperous as well as sophisticated market with open along with transparent
environment of business. Additionally, the democratic system of the nation is also stable
which will going to offer different opportunities to the company to achieve growth in this
market (Economic overview, 2020). Other than this, New Zealand also ranks quite high in
honest along with integrity measures of the business and these characteristics of this nation
incline to counterbalance the small size of the market (Shiozawa, 2017, Samuelson, 2017).
Speaking about the recent trend that Covid19, which has affected the whole economic and
businesses across the world, News Zealand has rapidly responded with this pandemic
8

effectively and supported many nations as well as in managing the potential financial as well
as health crisis. Furthermore, after the economic recession of the year 2008 and 2009, the
country has received quite well in comparison with the other developed nations of the world
(Lyal, 2016). The annual growth has been witnessed as 2.1 percent since March 2010 which
is clearly reflecting the resilience of the economy. The average growth of the nation is also
expected around 2.3 percent. The Industries around the country are wide and are receptive to
novel and creative technologies that helps in reducing the cost and augment the production
capacity. Therefore, from the above analysis, it can be said that the market size of New
Zealand is quite ideal for the technology and engineering based export firms like Hayward
Tyler (Luton) for testing and expanding the market (Economic overview, 2020).
ENTRY MODES OR MODELS
PESTLE
It is a tool or method used by company to gain a macro picture of a business
environment. With the help of this tool, the managers of the firm can find out external
environment or factors that might impact a business operation/ activities.
Source: (Pestle analysis, 2022).
 Political- New Zealand follows the parliamentary democratic system of government.
The country has a stable political environment with the lowest corruption level as
compared to other countries (Achinas and et.al., 2019). A small change in laws or
policies related to tax, tariffs and trade restrictions might impact a business. Before
9

implementing any strategy or make any decision the firm need to keep track on
changing policies to avoid any uncertainty. Economic- The country is an economically well managed and having various types of
industries such as tourism, retail, hospitality and construction etc. plus, import-export
and its policies is also well maintained. The country exports fish, fruit, meat, dairy
and many more to different locations like USA, japan etc. Large number of industries
is the reason behind choosing this country (Achinas and et.al., 2019). Before
implementing any system the cited company needs to focus on changing GDP,
Interest rates, inflation, unemployment rates. Social- Nowadays, customer’s purchasing power is totally influenced by social trends
(Riwayadi, Deliabilda and Panahatan, 2021). The country falls under the best country
in terms of satisfying customer from employment benefits, social support system and
others. Due to increasing crime rate in the country, the people have to face challenges
during their working hours. This has impact household income, so before
implementing any social strategy the cited firm needs to keep track on these factors. Technological- The country has made growth in the tech industry. There are many
other fields that have a great demand which includes software, business and
marketing, online servicing and many more (Pestle analysis of New Zealand, 2022).
The best part in this country is almost 140000 females are working in the tech
industry which has provided good benefit to country's economy. This is the best
opportunity for Hayward Tyler (Luton) Ltd to expand its business in this country and
hire talented people to achieve its tech goal.
 Legal and environment- The safety minister of the country have increased the
minimum wage from 17 to 20 dollars which provide great opportunity for cited
company (Achinas and et.al., 2019). The country is most charming tourist destination
in the world, but it is also facing issues related to air pollution, soil erosion and
deforestation (Christodoulou and Cullinane, 2019). Nowadays, customer are more
attracted towards eco-friendly services, so Hayward needs to focus on this trend.
10

SWOT
Swot analysis is a method used by business entity in order to do a situational analysis
of the firm. By having this method, Hayward Tyler (Luton) Ltd managers can make
important decisions related to international expansion of business.
Source: (Song, Wang and Zhu, 2018)
Strengths- Hayward Tyler (Luton) Ltd is one of the leading organization in the UK,
providing services related to pump supplier. The company hold good position in the market
and use effective strategies to reviewing its market position.
 Hole, Snehal and Bhaskar, (2019), says The company provide good servicing to its
customers and maintain customer relationship to achieve high level of satisfaction
among present customers and focused on attracting new clients by offering them
varieties of services.
 On the other hand , The firm has built a reliable distribution network which help them
to reach majority of its potential customers says (Escaith and Miroudot, 2016,
Hayward Tyler, 2021, Nandonde, 2019). Because without understanding strengths
firm cannot achieve success.
 In addition to this, it has built a good and positive environment among dealers and
distributors where they not only promote or support firm's services but also want to
invest in training the team of sales and marketing.
 Plus, the company has a strong supplier base which helps them to solve issue related
to supply chain management.
11

Weaknesses- These areas should be developed and improved by the company in order to
gain competitive advantages in the industry.
 Nowadays, research and development is the fastest growing method used by new
players in the market (Nandonde, 2019). They invest more on R&D in order to
compete in the industry. The major drawback of the cited organization is: Hayward
Tyler (Luton) Ltd is spending a lot on R&D, it has not been able to match the level of
competition with the leading players in terms of innovation and technology.
 According to (Nandonde, 2019). Due to heavy competition in the market, the firm is
not able to handle the risks, issues and challenges present by the new entrants in the
market segment. Hence, the firm has lost small market share which can impact its
sales and marketing. In order to deal with these challenges, the firm has to build
internal feedback mechanism directly from sales department (Song, Wang and Zhu,
2018).
 It has been noted that the firm is not maintaining its financial planning properly which
sometimes create issue for them. The firm also face challenges in which they have
limited access outside core business.
Opportunities
 Due to heavy competition in the field of innovation and technology, it is the best
opportunity for the company to adopt new technology standard and grasp benefit of
government free trade agreement and policies. By doing so, they can easily enter new
market like New Zealand (Hole, Snehal and Bhaskar, 2019).
 As per the government policy, the low inflation rate and relaxation in tax rates bring
more stability in the industry (Song, Wang and Zhu, 2018). By adopting new
customer trends the firm can open up a new market and it provides a great benefit for
the firm to build new revenue stream in the competitive world.
Threats
 Nowadays, industries are using high technology and new innovative ideas to attract
customers. This development by the new players could be a serious threat to Hayward
Tyler (Luton) Ltd in the future.
 Song, Wang and Zhu, 2018, says Due to the demand of the highly profitable goods is
seasonal in nature thus this could be threat for the firm because any unlikely event
12

during the peak season may affect the performance of the firm and also its market
position.
Porter’s five forces model
Threats of new entrants Due to new entry, the company has more pressure to provide
new value proposition to its clients (Hole, Snehal and Bhaskar,
2019). To deal with this, firm has to innovate more in services.
Bargaining power of supplier Suppliers are responsible to use their negotiating power to
extract high price of services. Due to this, company has to suffer
in the industry. To deal with this, Hayward need to build
efficient supply chain with multiple suppliers.
Bargaining power of buyers As customers are more demanding and want to buy services at
minimum price (Zinina, Antamoshkina and Olentsova, 2020).
This put pressure on the company's profitability. To deal with
this company has to build a large customer base.
Threats of substitute services
or product
When substitute product is available for customer then they will
go for it. It means when a new service meets a similar need of
clients in different ways, then profitability suffers says Irfan and
et.al., (2019). To deal with this, firm need to understand the core
requirements of clients.
Competitive rivalry If the competitive rivalry is intense among the existing players
then it will impact prices and reduce the profitability. To deal
with this, firm needs to build sustainable differentiation.
On the basis of above mentioned analysis, it has been evalauted that company can
focus on piggybacking as a mode of entry to work effectively. It also can authorized to gain
entry into restricted area by having this method.
RECOMMENDATIONS
Based on the above analysis of entry modes through application of different models it
can be said that the best market to enter is New Zealand through adopting Greenfield venture.
For the purpose of having straight functioning existence in the foreign nation with complete
control then this entry mode is quite suitable for the company (Haker and et.al, 2018). In this
process, the firm can establish a new wholly owned subsidiary from the scrape or can also
13

buy any existing firm in the Ne Zealand. Although, the firm will going to face many
difficulty in Greenfield ventures as it involves complex procedures and is also involves high
cost, however it affords the maximum control of the company and this provides probability of
offering more than average returns to the company (Aaker, Kumar and Day, 2018).
Furthermore, the cost as well as risks of establishing a whole new business in different nation
is quite high. This entry mode strategy will going to offer one significant benefit to the
company that it will have knowledge as well as expertise of the existing market through
employing nationals of the host country or from the rivalries.
CONCLUSION
To conclude, Hayward Tyler (Luton) Ltd. is a pump supplier situated in England
wants to expand its business into new market via international strategy. With the help of
SWOT and PESTLE analysis and 5 forces, various department of the firm can effectively
coordination to make planning and important decisions. Among all the best method is
PESTLE analysis of the New Zealand to understand their systems and policies before
entering the market, managers needs to keep track on country's trend.
14

REFERENCES
Books and journals
Aaker, D.A. and McLoughlin, D., 2017. Strategic market management: global perspectives.
John Wiley & Sons.
Aaker, D.A., Kumar, V. and Day, G.S., 2018. Marketing research. John Wiley & Sons.
Achinas, S. and et.al., 2019. A PESTLE analysis of biofuels energy industry in Europe.
Sustainability. 11(21). p.5981.
Ahokangas, P., 2018. Internationalization and resources: An analysis of processes in Nordic
SMEs. (Vaasa, Denmark: Thesis for Doctorate in Universitas Wasaensis).
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2019. Marketing: an introduction.
London: Pearson Prentice-Hall.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Buckley, P.J. and Casson, M., 1993. A theory of international operations. in Buckley, P.J., &
Ghauri, P.N. (Eds). The Internationalization of the Firm: A Reader (pp.45-50),
London, UK: Academic Press.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability. 11(21). p.6046.
Coviello, N.E. and McAuley, A., 2019. Internationalization and the smaller firm: A review of
contemporary empirical research. Management International Review, 39(3), p[p.223-
256.
De Mooij, M., 2017. Global marketing and advertising: Understanding cultural paradoxes.
Sage Publications.
Doole, I. and Lowe, R., 2018. International marketing strategy: analysis, development and
implementation. Cengage Learning EMEA.
Escaith, H. and Miroudot, S., 2016. Industry-level competitiveness and inefficiency spill overs
in global value chains. 24th International Input-Output Conference 4-8 July 2016.
Haker, A., Zahra, R., Ireland, D. and Hitt, M.A., 2018. International Expansion by New
Venture Firms: International Diversity, Mode of Market Entry, Technological
Learning, and Performance. Academy of Management Journal, 43(5), pp.25–50.
Hole, Y., Snehal, P. and Bhaskar, M., 2019. Porter's five forces model: gives you a
competitive advantage. Journal of Advanced Research in Dynamical and Control
System. 11(4). pp.1436-1448.
15

Irfan, M. and et.al., 2019. Competitive assessment of Indian wind power industry: A five
forces model. Journal of Renewable and Sustainable Energy. 11(6). p.063301.
Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Porter, M.E. and Kramer, M.R., 2015. The Big Idea: Creating Shared Value. Harvard
Business Review,
Riwayadi, E., Deliabilda, S. A. and Panahatan, M. B., 2021, August. PESTLE ANALYSIS
OF FINANCIAL TECHNOLOGY IN INDONESIA. In International Conference on
Innovations in Social Sciences Education and Engineering (ICOISSEE) (Vol. 1, No. 1).
Samuelson, P., 2017. A Ricardo-Sraffa Paradigm Comparing the Gains from Trade in Inputs
and Finished Goods. Journal of Economic Literature, 39(4), pp.1204–1214.
Shiozawa, Y., 2017. The New Theory of International Values: An Overview. In Shiozawa,
Oka and Tabuchi (Eds.) A New Construction of Ricardian Theory of International
Values. Singapore: Springer Science.
Song, Y., Wang, H. and Zhu, M., 2018. Sustainable strategy for corporate governance based
on the sentiment analysis of financial reports with CSR. Financial Innovation 4(1).
pp.1-14.
Zinina, O., Antamoshkina, O. and Olentsova, J., 2020. Evaluation Methods of Enterprise
Competitiveness of Mobile Phone Retailers. Advances in Economics, Business and
Management Research. 128. p.558.
Online references
Economic overview. 2020. [Online]. Available through:
<https://www.newzealandnow.govt.nz/invest-innovate-in-new-zealand/nzs-business-
environment/economic-overview>. [Accessed on 11thMarch 2022].
Hayward Tyler, 2021. Hayward Tyler Signs Multiple Agreements with Ruhrpumpen,
Expanding Nuclear Capabilities. [Online]. Available through:
<https://haywardtyler.com/hayward-tyler-signs-multiple-agreements-with-ruhrpumpen-
expanding-nuclear-capabilities/>. [Accessed on 11thMarch 2022].
Hayward Tyler. 2017. Hayward Tyler Acquired by Avingtrans, Looks to New Growth.
[Online]. Available through: <https://haywardtyler.com/hayward-tyler-acquired-by-
avingtrans-looks-to-new-growth/>. [Accessed on 11thMarch 2022].
Lyal, A., 2016. SMALL CAP SHARE TIPS: Engineering manufacturer Hayward Tyler sees
67% growth in a year. [Online]. Available through:
<https://www.thisismoney.co.uk/money/markets/article-2347386/SMALL-CAP-
16

FOCUS-Hayward-Tyler-sees-growth-green-engineering.html>. [Accessed on 11thMarch
2022].
Pestle analysis of New Zealand. 2022. [Online]. Available through.
<https://howandwhat.net/pestel-analysis-new-zealand/>. [Accessed on 11thMarch
2022].
Pestle analysis. 2022. [Online]. Available through.
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-analysis/>.
[Accessed on 11thMarch 2022].
Saxena, D., 2019. Modes of Entry into International Business [Advantages &
Disadvantages]. [Online]. Available through <https://www.superheuristics.com/5-
modes-of-entry-into-international-markets/>. [Accessed on 17thMarch 2022].
17