International Business Assignment : ABC Continental Limited
Added on 2021-01-02
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International Business
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................31. Detailed strategy proposal based on extensive and relevant market research.........................32. Research has identified...........................................................................................................4a. Key business drivers behind company's expansion into the UK.............................................4b. Important barriers to trade and it’s protectionist policies which hamper new venture...........5c. Ethical, social and legal issues which are taken into account.................................................6d. Cross cultural issues relevant to proposed venture.................................................................73. Evaluating feasibility..............................................................................................................8a. E-commerce option versus other methods of expansion ........................................................8b. Aspects of international marketing ........................................................................................9c. Potential impact of BREXIT on the venture.........................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONInternational Business is a trade of goods and services across the national borders or at aglobal level. This process includes cross border transactions of goods and services between twoor more nations. Main aim of this project report is to build an understanding about businessstrategy for international business purposes. In order to fulfil this aim, ABC Continental Limitedis selected. This company wants to enter in international market by establishing their market inUnited Kingdom. This company is planning to establish a new e commerce venture to sell infantcotton wear. In this project report, various strategies are proposed which are based on relevantmarket 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 projectreport in order to ascertain aspects of international marketing. Potential impact of BREXIT areidentified along with various methods for expansion in international market (Botha, Kourie andSnyman, 2014).MAIN BODY1. Detailed strategy proposal based on extensive and relevant market researchABC Continental Limited is planning to enter in international market by establishing anew venture in United Kingdom. It is important to develop an extensive market research toascertain most suitable strategy to enter in international business. By considering the nature ofbusiness which has been planned to launch by ABC Limited and the market demand, there arefew proposed strategies which are discussed below:Direct Exporting - This is a tool which can be used to enter in a new market. In thisstrategy proposal, products and services of ABC Limited can directly be exported to UnitedKingdom for selling purposes. This proposal requires individuals in UK which can act as theiragents so that they can ensure smooth functioning of their business. There are various benefits ofthis proposal, the most important advantage of this strategy is that there is no requirement of anyphysical office in UK which can help in reducing cost of establishment. ABC Limited shouldensure one thing and that is to build a close relationship with their agents and distributors. Theserepresentatives can act a their staff in new market and can have gather all important marketinformation about trends, changing choices and preferences (Hamilton and Webster, 2015)3
(Source: Proposed strategies for entering in International market, 2018)Licensing - This is an another proposed strategy which is in which ABC Limited can setup an arrangement in which they can transfer the rights to any other company in UnitedKingdom to sell their products. In this strategy, ABC Limited can provide license to some othercompany in order to provide them all the rights. This proposal can result in acquiring highermarket as they can provide license to some large retailer by which they can increase their marketshare as well as their sales. There is a limitation of this strategy also as this brand image of ABCLimited will automatically be linked with their licensed company.Franchising - This proposed strategy is most common for business which plan to enter ininternational market. Using this strategy, ABC Limited can expand their business. Under thismethod, ownership of name is transferred to other party or existing business so that the entity canuse brand name of ABC Limited and can increase their sales. Using this proposal, this companycan sell their organic infant wear easily.Joint venture - ABC Continental Limited can enter in international market by jointventure. Under this proposed strategy, two business join together to conduct a lawful business.
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