International Business: Market Selection and Entry Strategies for Unicorn Grocery

INTERNATIONAL
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
An overview of the organisation and rationale for going international.......................................3
Critically discussing which country they should enter................................................................4
Relevant academic theories/models related to the process of international market selection and
entry strategies.............................................................................................................................6
Identifying Barriers that will be faced as the organisation expands internationally....................8
Critically evaluating a relevant implementation approach for the internationalisation process
for the specified target market...................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business internationalisation can be said to be the expanding of business of an organisation in
the markets of foreign countries and is making the products or services of the organisation
available in the international markets. Taking a business to international markets helps the
business to attract new potential customers and the business to grow in various different
markets. This assignment is based on Unicorn Grocery, which is a local grocery store in the
UK. This report will outline the overview of the organisation and the rationale as in the reasons
and importance of going international. Further, a country that should be chosen by the
organisation will be recommended and a critical analysis of the recommended country will be
done. The report will also highlight various theories and models that can be used for
international market selection and entry strategies and barriers in expanding internationally will
also be outlined. And a critical evaluation of a relevant strategy that can be applied by the
organisation for entering in the specified market will be done.
MAIN BODY
An overview of the organisation and rationale for going international
Unicorn Grocery is and interdependent store is one of the largest wholefood grocery store in
the UK and was founded around 26 years ago. It is a workers co-op and is run democratically
by the members or owners. The co-operative store has a flat management structure as every
member/owner has equal rights of participation and equal rate of pay. The store is located in
Chorlton-cum-Hardy, Manchester, England. The business focuses on fair-trade and local
sourcing and trades mostly in organic stuff. It sells variety of food and drinks which are fresh,
dried and processed. It also has general grocery, household and bodycare items(Overview of
the company, 2022). It has also won BBC Food and Farming Awards as the ‘Best Food
Retailer’.
The main business model of Unicorn Grocery is to often purchase in bulk and mainly through
the manufacturers directly, process it on-site to add value to maintain competitive margins and

prices which enables the organisation to match supermarket prices and compete with them. Its
core principle is of co-operative organisation where there are no outside shareholders or
owners and the employees are the members who receive the generated profits and benefits.
As expanding internationally has been a very prominent goal of most of the businesses. It is
because expanding in a foreign market and growing internationally has a lot of benefits for the
businesses(Dabić and et.al., 2020). The company can grow and earn better profits by
expanding in the new markets. As it gives competition to the supermarkets, it can surely attract
more customers from the foreign markets as well. The company can have a better saturated
market by expanding in the markets outside UK and generate more revenues. The company can
have overall organisational growth as it can procure better talents and resources from the
foreign market, which can improve the quality of products and services of the organisation. By
diversifying the market, the company does not have to depend solely on one country and can
compete at international level and get a gain in its sales which will ultimately improve the
profits of the organisation(Lahiri, Mukherjee and Peng, 2020). Going international also
improves the company’s goodwill and foreign investment opportunities.
Critically discussing which country they should enter.
They should enter India as it is one of the most rapidly growing countries in the world that has
opened up new resources for both local and international brands. It also has the second-largest
population in the world which can be beneficial for the company to boost their sales as more
number of people means more sales.
A critical analysis of India can be done using the PESTLE analysis in which the Political,
Economical, Social or Socio-Cultural, Technological, Legal and Environmental dynamics of
the country are studied to understand the various factors that could affect the organisations and
businesses working in the country. These factors also determine the scope of profitability and
growth in the country.
 Political Factors
Political stability of a country the business operates in play a great role in its
profitability and growth. The political factors include the government rules and
regulations including the trade policy, corruption, income tax, labor tax, and all other
taxes impact the businesses(Pestle analysis of India, 2022). The political situation of