International Entrepreneurship: Strategies and Models for Market Entry

This document discusses the concept of international entrepreneurship and explores the strategies and models used for market entry. It covers the importance of conducting a PESTLE analysis, using Porter's five forces model, and implementing the marketing mix. The document also highlights the significance of targeting the European Union and Scotland as potential markets for expansion.

International
Entrepreneurship

Table of Contents
Table of Contents.............................................................................................................................1
INTRODUCTION...........................................................................................................................2
CW1.................................................................................................................................................2
Research product/ services..........................................................................................................2
Research appropriate markets (eg size, growth, customers etc)..................................................4
Research countries/regions (eg finance, culture, ease etc)..........................................................4
Critically synthesize, analyse and evaluate your information.....................................................4
Explain what market entry strategies you would use, why these are appropriate and how you
would apply them........................................................................................................................4
Demonstrate what marketing mix you would use and how you would implement these, in any
necessary product/service changes..............................................................................................6
Justification of which target market would be best to enter........................................................6
CW2.................................................................................................................................................7
Select and critically evaluate one of the appropriate models, frameworks or theories which you
have used in the process of CW...................................................................................................7
How has the formative feedback have received influenced approach to learning and how has
that feedback helped (or not) you apply your international entrepreneurship models,
frameworks or theories?..............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCE................................................................................................................................10
1

INTRODUCTION
International entrepreneurship is the process that covers discovery and enhancement of
different opportunities across the national boundaries in order to creating future products and
services. This is consider as global dream of all entrepreneurs as they wants top e3nter in to
international market and increase their business activities. Such entrepreneurs have special
knowledge and experience that helps to manage and organise activities and cross the national
border (Drobyazko and et. al., 2019). This is important for organisation and person to have
different types of products and planning which can help to take the competitive advantages.
Entrepreneurs are playing different role as they bring new ideas and thoughts in their business
and attaining the business goals. To understand about this Eggfree Cake Box Limited that is UK
based organisation providing cakes without using eggs. This cake is most on demand which
helps to establish their business in new market. This report is classified in two sections the first
covers different models and strategies that uses to enter in to international market. Moreover,
second section covers appropriate uses of model that helps in international process and running
business effectively by targeting two nations.
CW1
The Egg free Cake Box Limited opened its first store in the heart of East London in 2008.
The mission of organisation is to provide the UK market with new concept, by delivering
delicious fresh cream celebration cakes that is prepared without using eggs. This organisation
wants to increase their sale by providing variety of products and services by entering in to
international market. The target market for Egg free Cake Box Limited is European Union and
Scotland that will help to increase their sale and profitability. The management of such
organisation are making strategies and plans to enter and getting the competitive advantages
effectively (Kraus and et. al., 2019).
Research product/ services
The Egg Free Cake Box Limited is cake making company that is providing products and
services effectively and managing activities in competitive world. The feature of such cake is so
light and fluffy which is made to a high and recipe are using day by day. The quality and value
of products is fantastic, delicious product and best in taste which attracts customers and
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managing the business performance in international market. The Porter’s five forces model is
used by such organisation that helps to take the competitive benefits such as:
Porter’s five forces model – This is competitive analysis which is developed in 1979by
Michael E Porter. This is used to evaluate the competitive strength and position of their business.
This mode is used by Egg Free Cake Box Limited that is defined below:
Bargaining power of suppliers – This has stated that how easy it is for suppliers to drive their
prices. In European nation, there are many suppliers who are selling raw materials is purchased
by Egg Free cake Box company at supplier’s prices. It has been seen that there are less number
of organisation who are baking egg free cake. Therefore, it is an opportunity for such
organisation to buy raw material from suppliers after bargaining. The power of suppliers in
international market is low which helped to establish a business and get competitive benefits
(Boudreaux, Nikolaev and Klein, 2019) (Sergi and et. al., 2019).
Bargaining power of buyers – This means how it is easy for buyers to drive the prices
down in order to buy the products and services. The target market for chose organisation is
European Union state such as London where number of buyers who are demanding egg free
cakes. The bargaining power of buyers in such market is low that is giving benefits to Egg Free
Cakes Box Limited to sale its different products and services at their set prices that can help to
make the profits and productivity.
Competitive rivalry – This is main driver that involves capability and capacity of competitors in
order to run their particular business. In other words, competitors are those who are selling
products and increasing their business activities. In context to Egg Free Cake Limited
competitors are bakery and food court that also get prepare egg free cakes on special demand of
customers which has created a competition and running their business effectively (Kollmann,
2019).
Threat of substitution – This means there is close substitution product exist in market
which has running business by attracting customers. In European Union there is substitution of
cakes are Apple Sauce, Nut Butter, Yogurt and Butter milk that can be used by people instead of
cake. These are also creating competition and have chances to reduce the selling.
Threat of new entry – This means probable markets attracts new entrants which impacts
on existing organisation negatively. In target market such as European Union threat of new
entrants is high which is reducing productivity and profitability of organisation. In context to
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Egg Free cakes Box Limited, there are high threat of new entrants which means any one can
enter in to international market which has created competition and reduced the productivity.
Therefore, it can be competition for Egg Free Cakes Box Limited which can reduced
organisational productivity. The manager of such company focuses on their strategy which helps
to face the competition and running their business effectively.
Research appropriate markets (eg size, growth, customers etc)
This is important for any business organisation to focus on their strategy and maintain their
business effectively. The size of Egg Free cakes Box Limited is small which is making cakes
without egg and planning to grow their business by crossing the borders of their nation. Such as
it expanding its business in European nation that will help to increase number of customers.
Research countries/regions (eg finance, culture, ease etc).
In this, organisation should research regarding finance, culture and ease that are
important to run any business and managing the activities. In context to, Egg Free Cakes Box
Limited is entering in to international market such as EU and Scotland where they arranges
finance from personal resources or loan from angel investors who can easily provide finance and
supports to run their business effectively. On the other side, they are focusing on culture of such
nation which helps to deliver kind of products and services effectively.
Critically synthesize, analyse and evaluate your information
From the above it has analysed and evaluated that all collected information are right
which will help to enter in to international market such as EU and Scotland that will help to grow
the business and capturing high market share. For this, managers get the information and make
strategies which helps to set the international business (Kollmann, 2019).
Explain what market entry strategies you would use, why these are appropriate and how you
would apply them
While running a business it is important that to analyse the countries and region where
organisation is going to expand their business by using sources, finance and culture which helps
to run a business. To analyse the European nation in context to expand their business PESTLE
analysis is defined below:
Political – this factor is related to political system where government formulates rules and
regulation to run their business. To expand and enter in to European Union, management of Egg
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free Cakes Box Limited is required to follow all government regulation which are formulated by
their government. This helps to run their business by applying all policies and regulation which
has impacted positively.
Economical – This factor has states that economical condition and rates of a nation which
helps to run a business. It consider inflation rates, interest rates and GDP rates which has
impacted on business. In European country the interest rate is stable which helped Egg Free
cakes Box Limited to enter its business in international market and attracts their targeted
customers effectively. With the help of stable interest rate such organisation arranges raw
material and other resources by getting loans which helped to increase business performance.
Social – This factor of PESTLE analysis states that different types of people are living in
countries so it is important for organisation to understand the needs of people and provide
products accordingly. In context to, Egg Free Cakes Box Limited, managers are focusing on
needs of people as how many people are interested to get egg free cakes which helps to get ideas
and supports to run their business by entering in to international market (Hoogendoorn, van der
Zwan and Thurik, 2019).
Technological – This is related to automation and new technology which helps to run
business and increasing activities. Egg Free Cakes Box Limited is adopting new technology and
automation which helps to run business and increase the organisational productivity. the manager
of such organisation also bring new technology in delivery process which has impacted on
international entry positively.
Legal – In this, organisation is required to follow all legislation which are important in
business and maintaining their business. As Egg Free Cakes Box limited is entering in to
international market so it needs to follow employment laws, minimum wages, anti-
discrimination, labour laws etc which are running in those country in which it is going to
establish its business. This supports the business and maintaining business performance.
Environmental – This factor states that organisation should care of environment that can help to
run business and maintain business performance by increasing trust of people. The management
of Egg Free Cakes Box Limited is following the minimal wastages and carbon effect laws which
has impacted positively on business and managing the business activities. This increases trust of
people and make sure them they are providing better quality of products by maintaining
environment clean.
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Demonstrate what marketing mix you would use and how you would implement these, in any
necessary product/service changes
Marking mix is a strategy which involves various elements can help to increase the
organisational productivity and profitability. The marketing mix in context to chosen
organisation are as defined:
Product – The product which is going to provide by Egg Free Cakes Box Limited is egg
free cakes and other cookies which are make from cream and delicious ingredients that will help
to attracts number of customers in international market.
Price – The price for such products or Cakes without eggs is starting by € 500 that is
reasonable and appropriate prices will help to increase the number of business activities and
customers. Moreover, it will adopt competitive pricing strategy that will help to influence
customers.
Place – This organisation is going to introduce its new business in international market
that is European country and Scotland will help to expand the business and getting the
competition benefits.
Promotion – This organisation is using different sources of promotion such as magazine,
newspapers, you tube, websites etc. that will help to provide information and influence
customers to buy it.
Physical evidence – The physical evidence of Egg Free Cakes Box Limited is interior structure
and online websites that create a perception of people mind (Hoogendoorn, van der Zwan and
Thurik, 2019).
Process – Managers are using operating and transformation process that will help to
accept the changes and increase the business productivity.
People – Egg Free Cakes Box Limited is having sales manager, marketing, food
department, delivery boys etc. who are working consistently and running their business
effectively.
Justification of which target market would be best to enter
From the analysis of target market it has determined that European Union is the best to
enter in to market as there is highest population who are demanding variety of products and
services will help to attracts customers. As here are, different culture and tradition of people are
living who have demand of egg free cake that can help to make them satisfied and increase the
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business activities by entering in to international market. For example, London is the largest city
in UK which is also considered as third largest European city overall. It has a population of
around 7.5 million which helps to maintain the business effectively. the target of managers to
understand the needs and wants of people then introduce them kind of products and services so
they feel good and make right decision to buy (Audretsch, Belitski and Desai, 2019).
CW2
Select and critically evaluate one of the appropriate models, frameworks or theories which you
have used in the process of CW
From the above CW1 it has evaluated that different types of frameworks are used by Egg Free
Cake Box Limited such as PESTLE, Porter’s five forces model and 7Ps of marketing Mix that
are used at different places and maintain the productivity. the aim of such organisation is to enter
in to international target market for this they has decided to expand their business in European
Union and Scotland that helps to manage the business activities and performance effectively. The
managers of such organisation are focusing on needs and wants of people which helps to attain
the business goals and increasing business activities effectively. In CW1, different model are
discussed as porter’s five forces, marketing mix and macro factor which has impacted positively
and supports to increase business productivity. PESTLE analysis is selected model out of all
discussed that uses to know which factor has impacted on business and how it limits or bounds to
establish their business in international markets. This also states which factor has impacted on
business and helps in process of internationalisation the business. To go international there is
needed to have full information and strategies that give power to stable in competitive market
and run their business effectively (Pahnke and Welter, 2019).
Egg Free Cake Box Limited is following the political regulations and policies which are
running in European Union and Scotland that helped to run business in international market and
increase the business profitability. In relation to economic factor, inflation rate and interest rate
of EU and other country is stable that supported to get loan at low interest and increase the
business activities effectively. In social factor, managers are considering demand of people and
their culture which has impacted on business positively and maintain profits. On the other side,
technological factor such as innovation and new technology will help chosen organisation to
establish their business in other country out of the UK or residence country. All legal such as
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employment, anti-discrimination and minimum wages act are effective acts which helps to run
business freely or without any boundation. This organisation uses this framework in
internationalisation process that will helps to attracts number of customers and increasing
organisational brand image. This is important for organisation to focus all above these factors
which have impacted highly and affects the business performance efficiently. All factors are
important for organisation that cannot be control and helps to run a business and increase brand
image in other counties or region (Audretsch, Belitski and Desai, 2019).
How has the formative feedback have received influenced approach to learning and how has that
feedback helped (or not) you apply your international entrepreneurship models,
frameworks or theories?
From the above report it has reflected that feedback is another important process or
procedure which should be taken by organisation while providing products and services. With
the above analysis management has established their business in international market and
running business effectively. In this, they also get feedbacks from customers in such countries
where they have delivered their egg free cakes that uses to bring improvements in existing
products accordingly. If there is any needed to bring changes in existing product and taste then
managers should find out the new process that can help to provide better quality of products,
attracted to customers and increase organisational performance. This feedback helped Egg Free
Cake Box limited to manufacture better quality of product d with delicious taste helped to enter
in international market by offering fantastic cakes.
Application of international model and theories
Porter’s diamond model – This is economic diamond model which uses by organisation
to expand their business in different nations that helped to become more competitive in markets.
This model is used to get the competitive edge and taking competitive benefits. Egg Free cakes
Box limited is using Porters diamond model that are as defined:
Firm strategy – This refers as national context in which organisation operate their
business largely by determining how it is creating, managing and organising activities. This
states domestic rivalry which is instrumental to internationalisation competitiveness by creating
sustainable and strength capabilities of organisation. In Egg free Cakes Box Limited, managers
are pushed to innovate and improve their productivity in order to take competitive benefits. This
make strategy when organisation is going to enter the international areas.
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Factor condition – In European Union and Scotland there are many natural resources
such as skilled labour force, high infrastructure, human resources, finance and scientific
knowledge which helps run business in international market by creating competitive advantages.
Demand condition – In this factor, managers of Egg free Cakes Box Limited are sophisticated
demand conditions from local customers to international customers. It also pushes to bring
innovative ideas, improve quality and grow the business in international area by using their skills
and capabilities (Wang, Hung and Huang, 2019).
Relating and Supporting industries – This factor provides foundation that uses to
expand business from national to international country. In context to Egg Free Cakes Box
Limited, suppliers are considered as related and supported activities that helps to enhance
innovation more efficiently and creating high quality inputs.
Government – This is another activity which supports to chosen organisation to enter in
to international market by encouraging and pushing companies to raise their aspirations and
move towards higher level of competitiveness.
Chance – This means some organisation can get chance to gain the competitive positions that
can help to run a business effectively. Egg Free Cake Box limited is small size organisation that
is using this model to get the chance of leading advantages from providing better quality and
delicious taste Cakes (Wang, Hung and Huang, 2019).
Therefore, this strategy will helps to imple4ment the plans and enter in to international
market by offering their unique products and services effectively.
CONCLUSION
From the above report it can be concluded that international entrepreneurship is the process
of establishing a business from national to international market. PESTLE analysis is used to
know which factors can impacts on business and how it is running business. Porter five forces
and Diamond model is used to get the competitive benefits and taking advantages. On the other
side, marketing mix is the framework which is uses to all these factors and how they can
influence customers which has impacted on business.
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REFERENCE
Books and Journal
Drobyazko, S., and et. al., 2019. Entrepreneurship innovation model for telecommunications
enterprises. Journal of Entrepreneurship Education.
Kraus, S., and et. al., 2019. Digital entrepreneurship. International Journal of Entrepreneurial
Behavior & Research.
Boudreaux, C. J., Nikolaev, B. N. and Klein, P., 2019. Socio-cognitive traits and
entrepreneurship: The moderating role of economic institutions. Journal of Business
Venturing, 34(1), pp.178-196.
Sergi, B.S., and et. al., 2019. Entrepreneurship and economic growth: the experience of
developed and developing countries. Entrepreneurship and Development in the 21st
Century, pp.3-32.
Kollmann, T., 2019. E-Entrepreneurship: Grundlagen der Unternehmensgründung in der
digitalen Wirtschaft. Springer-Verlag.
Hoogendoorn, B., van der Zwan, P. and Thurik, R., 2019. Sustainable entrepreneurship: The role
of perceived barriers and risk. Journal of Business Ethics, 157(4), pp.1133-1154.
Audretsch, D. B., Belitski, M. and Desai, S., 2019. National business regulations and city
entrepreneurship in Europe: A multilevel nested analysis. Entrepreneurship theory and
practice, 43(6), pp.1148-1165.
Pahnke, A. and Welter, F., 2019. The German Mittelstand: antithesis to Silicon Valley
entrepreneurship?. Small Business Economics, 52(2), pp.345-358.
Audretsch, D. B., Belitski, M. and Desai, S., 2019. National business regulations and city
entrepreneurship in Europe: A multilevel nested analysis. Entrepreneurship theory and
practice, 43(6), pp.1148-1165.
Wang, S., Hung, K. and Huang, W. J., 2019. Motivations for entrepreneurship in the tourism and
hospitality sector: A social cognitive theory perspective. International Journal of
Hospitality Management, 78, pp.78-88.
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