International Business: Overview, Impacts, and Entry Strategy

This report provides an overview of international business, focusing on the case study of Kambi group PLC in the gaming industry. It discusses the impacts of host country conditions on the internationalization process and analyzes the cultural factors influencing the company's operations. The report also recommends an appropriate entry strategy for expanding business services in India.

International business

Table of Contents
INTRODUCTION...........................................................................................................................1
CRITICAL ANALYSIS..................................................................................................................1
Overview of organisation.......................................................................................................1
Impacts the host country conditions.......................................................................................2
Analyse the host county’s culture and its impact on the internationalisation process of the
company.................................................................................................................................4
Appropriate entry strategy and the internationalisation strategy............................................6
CONCLUSION & RECOMMENDATIONS..................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
International business is define as trade of services and products, technology, capital or
knowledge in international marketplace as to generate new revenue potential and exposed to
foreign investment in order to undertake new opportunities (Ghauri, Grønhaug and Strange,
2020). For growth present report has been conducted on Kambi group PLC operate their
operations in gaming industrial segment and offer products related to online gaming and casinos,
Software and associated services. In this report formative discussion has been made on company
overview and impacts the host country conditions on company internationalisation process.
Lastly recommendation and appropriate strategy for entry is being mentioned in this report for
company.
CRITICAL ANALYSIS
Overview of organisation
Kambi group PLC conducts their business operations as a business- to- business provider
of sports betting services. This has been evaluated that respective entity provide software
platform with front-to-end user interface, risk management, odds compiling and consumer
intelligence. This company operate services in gaming industrial sector and perform their
operations with more than 863 employees. It has been identified that this leading B2B service
provider of premium sports betting products aim to deliver ultimate solution and services to their
partners with having main vision to develop the world leading ultimate service and solution to
our partners. Further it has been determined that with highly skilled employees which is one of
the most important strength in terms with resource of entity offer innovative services through
which they earn maximum revenue. According to the recent published data by Kambi group PLC
in the year 2020 it has been identified that this sports betting technology organisation Revenue
amounted to €27.9 (Q1 2019: 21.0) million for the first quarter of 2020, an increase of 33%
comparatively to last time frame (Kambi Group plc Q1 Report 2020).
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This has been identified that Kambi plc is looking forward to launch business services in
international market place, India as this country is one of the fastest emerging economy around
the world (Case study - emerging and developing country – India. 2020). With their new
technology and innovation this company aim towards providing a to incubation players and enter
this new market place in order to seize maximum share. Along with this, it has been determined
that, Kambi will provide its Sportsbook and technology services to build a sports betting
experience with gamification at its core. In addition to this it has been evaluated that in order to
track record their internationalisation process respective entity implements strategies in order to
assure maximum success.
Impacts the host country conditions
In order to ensure success of internationalisation process it is essential for an organisation
to identify factors that are prevailing in micro environment segment of host country along with
their impact upon entity business operations. In relation to this mentioned below pestle analysis
of host country, India is being defined through which Kambi group PLC can effectively able to
conduct their operations while assuring maximum economic advantage.
Pestle analysis: Pestle analysis is a strategic framework that allows organisation to identify
elements that are prevailing in external environment in order to identify competitive strength in a
well defined and effective manner.
Political:
India is one of the largest democracies around the world that run on federal form of
government (Wettstein, Santangelo and Stahl, 2019). This has been evaluated that political
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environment of country mainly get influenced by different elements like government policies,
ideologies of several politician parties and politician interest. This however impact upon business
organisation by multiple political factors. Though, it has been evaluated that country is well
developed in terms with taxation system, as it has been identified that number of taxes like sales
tax, income tax, service tax has been imposed by union government. In addition to this
government of country also increases free business by offering variety of programs to
organisation. With the help of stable political environment of country Kambi group plc can
conduct their business operations in well effective manner.
Economic:
In terms with this factor it has been evaluated that, India is one of the emerging economy
around the globe and with the help of many economic policies there is constant improvement in
economic environment of country. In addition to this it has been evaluated that this country is
also falls under largest economies around the world in terms of GDP, as in the year 2018 GDP of
country was around $2.7 trillion. Thus, by taking assistance of economic growth, flexible
taxation rates, interest rates, structure tax system Kambi PLC can assure success of their
internationalisation process in best effective manner. In addition to this that has been identified
that India tax system is define as a favourable for business expansion as country government
proposed many foreign investment promotion policies in order to promote foreign investment in
nation.
Social:
This factor is having significant impact upon business operations of a company. It has
been identified that India is having giant consumer market as this country is second largest
populous nation, it’s creates significant opportunity for multinational companies to operate their
business services while assuring maximum growth (Buckley and Casson, 2019). In addition with
it has been evaluated that with having affordable and accessible labour force of India Kambi
group PLC can conduct operations in cost effective manner. Along with this, communal
harmony is India’s one of the greatest strength as country is having multilingual, multi-ethnic
and multi religious elements that makes this country most attractive marketplace comparatively
to other nations in different sectors. Further it has been evaluated that living standard of
individual is gradually improving and middle class individual income is increasing on continuous
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basis with good disposable income. Thus, with the assistance of taking advantage of these factors
Kambi group PLC can attract consumers in this marketplace effectively.
Technological:
According to this factor it has been evaluated that respective country is having great
percentage of self sufficiency in context with total power energy need. Along with this
government of nation along with institutes as well as agencies are continuously engaged in the
process of developing number of strategies and plans to involve power sector technology.
Further it has been evaluated that India is most technologically advanced nation around the globe
and many tech giants including Apple, Facebook, and Microsoft are investing in respective
nation. This country is termed as a key destination for outsourcing work that creates significant
opportunities for companies. By taking assistance of strong technological advantages of India
Kambi group PLC can effectively assure success of their internationalisation process.
Legal:
This is one of the most essential factor of pestle analysis as in this different type of legal
legislations and regulations are being imposed by country government in order to facilitate
organisations to conduct their business operations in lawful manner, as India is famous
destination for forest direct investment. Thus, country offers significant market for companies to
operate services. However in order to conduct a services in effective manner it is essential for
Kambi group PLC to abide legal obligations like minimum wages act, antitrust law, consumer
law, health and safety law, employment law in order to effectively collaborate with central
government to gain many advantages.
Environmental:
In this, factor Kambi group PLC is required to abide many environmental laws like
recycling, minimum wastage and restriction rate on CO2 emission in order to have significant
concern towards environment. In addition to the company is required to implement
environmental and ecological law in order to make sure that that their business operation does
not affect country environment in any manner.
Analyse the host county’s culture and its impact on the internationalisation process of the
company
Hofstede theory of management
Power Distance Index
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This factors mainly emphasize upon identifying power distribution in a respective culture
environment, in this if there is unequal distribution of power than it demonstrate high power
distance while if there is low power distance it indicates equal power distribution. In this it has
been identified in terms of that India is having high level of inequality in terms of wealth and
power distribution in society (Aswathappa and Dash, 2020). In this it is essential for Kambi
group PLC to engage their employees in decision making process of organisation in order to gain
maximum benefits and conduct their organisational services with efficient hierarchical model.
Individualism versus Collectivism
In this factor it is essential for respective organisation to ensure that they did not divide
their organisational department, as in this there will be less or no interaction that affect
operations of entity in number of ways. In this it is important for Kambi group PLC to abide
collectivism approach and conduct brainstorming sessions as to effectively generate new ideas
among employees with organisation. In addition with this it is essential for organisation to
maintain effective balance between both collectivism as well as Individualistic approach and
provide opportunities to share positive and healthy relationship with employees. It further allow
organisation to ensure maximum benefits.
Masculinity versus Femininity
According to this factor masculinity mainly focus upon material rewards, achievement
and assertiveness while on the other hand, Femininity focus upon care, corporation. In this it is
essential for Kambi group PLC to take advantage of efficient strategy in order to maintain equal
balance between masculinity and femininity as both cannot exist with each other. By taking
assistance of both these two factors organisation can create a culture of hard and soft
environment to conduct their operations in effective manner.
Uncertainty Avoidance Index
This factor emphasize upon ability to handle unpredictable and a certain outcomes. In this
it has been evaluated that high index states high conservatism and resistance to accept new ideas
while on the other hand, low index demonstrate less resistance and high acceptance. In terms
with present scenario it has been evaluated that in India tolerance for the unexpected is high as in this
individuals is having a medium to low uncertainty avoidance level and they undertake risk and changes
rather than avoiding. Thus, it has been identified that respective country is having efficient traits
that allow Kambi group PLC to establish their business in feasible manner.
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Long-term orientation versus short-term orientation
India have high score in terms with long term orientation, as in this it has been evaluated
that comparatively to western societies countries India is having significant tolerance capacity.
Individual in respective country is having effective ability to adopt change or have efficient
capability to change according to situation. With the assistance of this factor Kambi group PLC
can effectively able to fulfil consumers and employees expectations while assuring maximum
profitability with having efficient plan and strategies.
Appropriate entry strategy and the internationalisation strategy
In order to expand business services in India Kambi group PLC by taking advantage of
partnering entry strategy can enter successfully in country marketplace with simple form of core
marketing arrangement (Kahiya, 2020). It has been identified that this strategy effectively help
Kambi group PLC as it has been evaluated that India is having culture in which both social and
business is different comparatively to other nations in which company is currently operating their
services. It further allow organisation to formulate partnership in order to maximize their revenue
generation capability and become market leader. In addition to this Kambi group PLC by taking
assistance of transactional internationalisation strategy can adopt combine approach of global
and multi-domestic strategy in this entity can effectively able to undertake use of both local
responsiveness and low cost structure as per according to the local conditions of India in order to
provide their standardized services and products at same time.
CONCLUSION & RECOMMENDATIONS
As per the above mentioned report it has been recommended to Kambi group PLC to
develop plans and strategies by accessing India business environment in order to evaluate their
own capabilities. It effectively allow respective organisation to gain significant benefits. In
addition to this by taking assistance of partnering and transactional strategy company can
effectively able to capture maximum market shareholding in respective area. Along with this
organisation is also recommended to evaluate external factors that are prevailing in country
market segment in order to develop their partnership with leading entities as to gain maximum
benefits.
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REFERENCES
Books and Journals
Ghauri, P., Grønhaug, K. and Strange, R., 2020. Research methods in business studies.
Cambridge University Press.
Colgrave, J., International Business Machines Corp, 2020. User access to a registry of business
entity definitions. U.S. Patent 10,558,983.
Kahiya, E.T., 2020. Context in international business: Entrepreneurial internationalization from a
distant small open economy. International Business Review, 29(1), p.101621.
Aswathappa, K. and Dash, S., 2020. International Human Resource Management|. McGraw-Hill
Education.
Vandenberg, R.J., 2020. Multilevel models in international business research: A commentary.
In Research methods in international business (pp. 433-438). Palgrave Macmillan, Cham.
Kurt, Y. and Kurt, M., 2020. Social network analysis in international business research: An
assessment of the current state of play and future research directions. International
Business Review, 29(2), p.101633.
Wettstein, F., Giuliani, E., Santangelo, G.D. and Stahl, G.K., 2019. International business and
human rights: A research agenda. Journal of World Business, 54(1), pp.54-65.
Buckley, P. and Casson, M., 2019. Decision-making in international business. Journal of
International Business Studies, 50(8), pp.1424-1439.
Online
Case study - emerging and developing country – India. 2020. [Online]. Available
Through<https://www.bbc.co.uk/bitesize/guides/zgwm4j6/revision/1>
Kambi Group plc Q1 Report 2020. [Online]. Available
Through<https://www.globenewswire.com/news-release/2020/04/24/2021464/0/en/
Kambi-Group-plc-Q1-Report-2020.html>
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