International Business: Market Selection, Entry Strategies, and Barriers Faced by Organisations

International business

Table of contents
Introduction .....................................................................................................................................1
Main body........................................................................................................................................1
Recommended country to enter into the international business. ...........................................1
Theory/models related to the process of international market selection and entry strategies.3
Barriers faced by organisation while expanding business internationally. ...........................5
Critically evaluate a relevant implementation approach for the internationalisation process for
the specified target market......................................................................................................7
Conclusion.......................................................................................................................................8
References .......................................................................................................................................9

Introduction
International business emphasise on the transactions that are made between the countries,
individual and other across the borders and involves the exchange of capital, goods and services.
A successful organisation is desire to expand its business internationally so that it can grab the
market opportunities in abroad(Mukherjee, and et.al., 2022). Such as it can be able to find the
new customers which leads to increase in sales and reducing the operation cost of the business
and increase their revenue. It allow the business to be explored in many part of the world and
also able to get the new talent with more diverse education and language skills that enable the
organisation to gain the competitive advantage. In this report, the organisation that has been
focused upon is The Local Chelsea which is a local cafe in London, UK. The report will cover
the how the cafe will expand it business and which country it will choose to be expanded in.
further it will explain the theories or models related to the process of selection of the
international market and strategies related to entry. Moreover, it will demonstrate the barriers
that are faced by the organisation while expanding the business internationally and discuss the
approach to be implemented for internationalisation process.
Main body
Recommended country to enter into the international business.
The Local Chelsea cafe desires to expand its business in Switzerland which is one of the
top country of Europe where business can be expanded easily. The GDP of the country is worth
679 billion dollar and grows at 1.4% annually and the unemployment rate is just 3.3%.
Therefore, it is considered as a good place to expand the business for which the reason are
described as under:
 Enter into new market: The Local Chelsea cafe can enter into the new market to grab
the opportunities that are existed in the foreign country(Casson, 2021). These
opportunities may be consisted of demand for the products in the foreign market or get
advantage of trends changing to favour the products and also find absence of competition
to abroad that can provides the firm a big profitable advantage.
 Increase sales and profitability: When the business is expanded into the new market so
it assist the organisation to increase their sales and provides opportunity to increase their
profits. Therefore, going global may provide new resources of revenue to a business
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concern(Schmidt, and Santamaria-Alvarez, 2021). It provides greater return on the
investment that are made to the foreign country. Thus, The Local Chelsea cafe can secure
long term success for the business by expanding in the international market.
 Enlarge the customers base: By entering into the international market through e-
commerce or a collaborative sales partnership which provide an opportunity to the
company to increase the customers base. The company can build new network by
offering their great services to the customers which helps in enhancing their experience
and encourage them to repeat services. Theretofore, The Local Chelsea cafe should look
for the partnership with the other business and also use the social media to increase the
customers base.
 Create economies of scale in production: The company can globalise its business is to
achieve the favourable economies of scale. This help the organisation in reducing the
cost of the operations and allow able to pay the higher returns to the investors and allow
itself to economise the transport and distribution network(Sinha, and Chowdhury, 2021)
(. The company also able to produce its goods at cheaper cost which assist it improving
the product and increase the base of the customers.
 Access to new talent: This is the advantage for The Local Chelsea cafe as it would be
able to get the labour that are more productive, advance language skills, diverse
educational background and more. When the company make international expansion so it
get opportunity to hire the new talent which assist the organisation to improve the
innovation output. Therefore, a business concern may get the benefits from the foreign
market by expanding there.
 Cost savings: The company also able to save cost of the business operations when
expend into the new market in foreign country(Jafari-Sadeghi, and et.al., 2021).
Therefore, The Local Chelsea cafe can get the advantage of expansion of the business as
it helps in reducing the cost of manufacturing the products due to the cheap labour cost
and get affordable talent.
 Stay ahead of competition: The Local Chelsea cafe can gain the competitive advantage
when enter into the new market with diverse products because when the organization
enter in the market where the competitor do not operate can easily move to the
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