International Marketing Analysis: Morrisons Expansion Strategies

This report provides an analysis of international marketing concepts, comparing them to local marketing approaches, with a specific focus on Morrisons' potential expansion. It explores the rationale behind international marketing, the various routes to market, and key criteria for market selection, with a recommendation for physical outlets in the Japanese market. The report also examines market entry strategies, specifically the joint venture approach, and discusses the importance of factors like political stability, competition, economic conditions, and cultural sensitivity. The report provides a comprehensive overview of the international marketing landscape, offering valuable insights into Morrisons' global strategy and competitive advantages. The report provides a detailed analysis of the scope of international marketing, the rationale for Morrisons' international expansion, and the different market entry strategies the company can adopt. The report then analyzes the key criteria and selection process used by companies for analyzing international markets, with a focus on the Japanese market. The report concludes with recommendations for Morrisons' international marketing approach, and provides a summary of key arguments in the global versus local debate.

LONDON COLLEGE OF BUSINESS STUDIES
INTERNATIONAL MARKETING
Student: Magdalena Vijan (30053)
Unit tutor: Dr Mohamed Eseleni

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Executive Summary
The report has been helpful in understanding the concept of international marketing aspects in
comparison to the local marketing approaches. It has been noticed that Morrisons can be
expanding their business operations in the Japanese market with the help of the physical outlet
concept as it will be beneficial for making the customers understand the different kinds of
approaches which will be capable for them in improving the scenario and gain competitive
advantage. Through the help of Joint Venture approach, it will be suitable for Morrisons in
expanding themselves and generate high effectiveness.

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Table of Contents
Introduction......................................................................................................................................3
Overview on Morrisons...................................................................................................................3
Analysis and Defining International Marketing and Differences with Local Marketing................3
Scope and Concepts of International Marketing.............................................................................4
Rationale for Morrisons for Marketing Internationally...................................................................5
Various Routes to Market Morrisons..............................................................................................6
Analysis of Specific Route which should be adopted by Morrisons...............................................7
Key Criteria and Selection Process Used by Company for Analyzing International Market.........7
Analysis of Market Entry Strategy..................................................................................................8
Conclusions and Recommendations..............................................................................................10
References......................................................................................................................................12

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Introduction
The report throws light in analyzing and critically evaluating the context of the
international market and providing insight into the fact in understanding the fact how the
companies should be adopting the marketing strategies for the different markets. Moreover, the
scope of the international market needs to be identified in comparison to the local market with
the different valid points for justifying the same successfully.
Overview on Morrisons
Morrisons is the fourth largest chain of the supermarket which is present in the United
Kingdom economy. The company was founded in the year 1899 and it is headquartered at
Bradford, England. Firstly, the company began as the egg and bread seller in the Rawson Market
in United Kingdom and in the year 2004, the store locations of Morrisons tried to increase the
range of the products and services for catering the needs of customers successfully. Till the year
2019, the number of employees includes 110,000 and there has been increase in the level of
revenue till the year 2018 which has been amounting to Euro 17735 million (Morrisons.com
2020). The different products which are sold by Morrisons include the food, drinks, clothing, and
magazines along with others which have been capable of meeting the needs of customers
successfully.
Analysis and Defining International Marketing and Differences with Local Marketing
As commented by Yang (2018),International Marketing is considered to be performance
of the different business related activities which are being designed for planning, promoting and
pricing the different products for directing flow of the goods as well as services of the company

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to the different customers or the users in more than one nation for increasing their level of
profitability. The nature of customers in the international marketing is different and diverse from
one another which need to be taken care by the company successfully. On the other hand, as
opined by YangandGabrielsson (2018), the local marketing is the aspect wherein the company
will be selling the different products along with services in one specific market which will be
effective for generating profitability successfully. It is limited to the home country which means
that the areas which are served are small and the risk factors which are included in the same are
less as well.
Scope and Concepts of International Marketing
In case of the international marketing, there are different scopes which need to be
analyzed in an efficient manner for managing the growth prospects of the company successfully
which are defined as follows:
It helps in increasing the emergence of the open world economy which means that the
international marketing can cater the needs of different customers successfully. The businesses
can be using the SWOT and PESTEL analysis in understanding the opportunities along with
threats which can be present for the company in such market (Vellas 2016).
It is highly essential to expand the target market which is the key element that will be
beneficial in increasing the market share and customer base thoroughly. When the businesses
will be expanding the business operations, it will seem to be important for boosting the
reputation of the brand and it will be essential for the success of the company (Skarmeas,
ZeritiandBaltas 2016).

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It is important in connecting the business with the world as it will be giving the business
with competitive advantage and connecting with the different customers for improving their level
of efficiency in a successful manner (Sapouna et al. 2018).
Rationale for Morrisons for Marketing Internationally
Morrisons Company is situated in United Kingdom and in order to expand their business
in the international market, there are different rationales or reasons which need to be followed for
improving their effectiveness which are described as follows:
Firstly, in the United Kingdom market, there has been saturation of the domestic market
scenario which will be impacting the growth of the company.Thinking globally is becoming less
of an option and more of requirement. Morrisons can be gaining competitive advantage for
outpacing the competition level successfully (SamieeandChirapanda 2019). When Morrisons will
be expanding their business in the international market, it will be becoming the major driver for
the revenue growth. The expansion in international market tends to enhance their operations and
it will be maintaining stability along with security.
Moreover, expansion is being driven by desire which is related to increasing of the
market share along with driven by the open market approaches. Opening the new markets and
gaining such share in the respective market will be helpful for Morrisons in surviving and it will
be beneficial in improving the prospects of the business both in domestic and international
market as a whole (Pedada, ArunachalamandDass 2019). Morrisons can be tapping into the
higher profitability and it will be capable of entering the other overseas markets with more
favorable conditions which will be prevailing for them.

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In the United Kingdom, there has been availability of the other substitutes in the market
which can be impacting their business operations negatively. In such scenario, the trade deficit
occurs as the imports exceed the exports of the country and it impacts their profitability. In such
scenario, it is creating negative balance of trade and it will be creating pressure on the company
as well (Nes 2018). During such scenarios, Morrisons can be achieving the high level of
profitability and revenues within a short span of time when they will be expanding their business
operations in a suitable manner (Morgan, FengandWhitler 2018). There can be differences in the
foreign exchange rates which can be impacting the business negatively or positively. While any
product is being imported, the weaker domestic currency will be rising in the time of providing it
in the international market.
Various Routes to Market Morrisons
The different routes which are available to Morrisons include the following which will be
capable of making their business effective and efficient in nature:
Physical Shop Outlets- It is the first aspect which can be adopted by Morrisons for
expanding their business operations in different other international destinations. It will be
allowing the different customers in seeing the different products which are purchased by them as
opposed to the online stores (Katsikeas 2018). Morrisons can be able to attract the customers
while placing their showroom in the central location of the international market wherein they
will be expanding, and it will be appropriate for gaining strong base of customers.
Sale Agents is the second element which can be implemented by Morrisons as it will be
helping them in extending their customer base without any kind of extra costs incurred in it.

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Moreover, the sales agents who will be involved in the process reduce the cost structure and it
increases the presence and strengthens them effectively (Javalgiand La Toya 2018).
Online Selling Techniquesis the other option which can be adopted by Morrisons as it
has the lower set up and running costs than the physical outlet which needs proper set up and
high investment. There will be high level of scalability and there are no opening time restrictions
which will be beneficial for Morrisons in improving their business prospects successfully. There
will be higher margins along with better cash flow that will be capable for Morrisons in
improving the growth prospects in a suitable manner that will be enhancing their performance in
an efficient manner (Ibeh, Crick and Etemad 2019).
Analysis of Specific Route which should be adopted by Morrisons
In case of Morrisons, the most effective route which can be adopted is Physical Outlets
as there will be inclusion of physical contact with the products from the end of customers. In the
era of the increased level of competition, the company Morrisons in satisfying the requirements
of the different customers and improve their performance in the competitive business
environment successfully (Hult et al. 2018). Moreover, there will be assistants present in shop
which will be capable of attracting large group of customers in the market and improve their
performance successfully in comparison to the other options which are present.
Key Criteria and Selection Process Used by Company for Analyzing International Market
While entering in an international market, it is highly essential for the company
Morrisons to understand the different kinds of factors through which it will be helpful for them
in analyzing the opportunities and threats which can be impacting the growth of the firm in the

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respective market. In case of Morrisons, the company will be expanding their business in Japan
as there are few opportunities which will be effective for their success which are described as
follows:
Political Factors- It is the prime factor which needs to be considered as the political
stability is the key criteria which needs to be seen and analyzed by the company. It is important
for the companies to check whether the government intervention degree in the respective
industry in the respective country (Hapsari, Stoffer and Gunawan 2017). These are the different
factors which need to be implemented for assessing the actual attractiveness of the potential
market in a successful manner.
Level of competition- It is the second factor which needs to be implemented before
entering in the other international market. There can be other companies which could be
presented in the market where they want to expand their business. The competition from the
other companies can be impacting the performance of Morrisons; therefore, the USP is the key
element which should be generated by the Morrisons Company for expanding their business
operations and gain high level of competitiveness in the market in a successful manner (Hapsari,
Stoffer and Gunawan 2017).
Economic Condition-While entering in the international market, the economic condition
such as the level of employment and the rate of Gross Domestic Product needs to be checked
which will be suitable for improving the position of the company in a suitable manner. There can
be economic pressures which can be impacting the growth of the new global companies,
therefore, the level of the GDP is needed to be implemented that will be creating opportunities
for the company while entering.

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Cultural or Religious Situation- There can be differences in the culture of the countries
in which the company will be operating their business. There can be differences in the culture
such as in Japan, the different individuals prefer to be more formal in their approach while
dealing in business prospects, however, in other countries, it can be different which needs to be
analyzed and managed effectively.
Technological Factors- It is the other aspect which needs to be implemented by the
companies for expanding their business in the international market. There are different
innovations present in the retail or supermarket industry and in case of Morrisons, it is highly
recommended that the innovation should be the key element which needs to be seen and checked
in the country wherein they are operating. It will be capable of making the company compete
heavily and effectively (Eteokleous, LeonidouandKatsikeas 2016).
Analysis of Market Entry Strategy
As commented by Eteokleous, LeonidouandKatsikeas (2016), the market entry strategy is
considered to be the planned kind of distribution as well as delivery method of the different
goods as well as services to the new target market in a successful manner. It, moreover, means
the proper creation along with development of the contracts in the foreign country successfully.
There are different kinds of market entry strategies which are as follows:
Franchising- It is the first aspect which is the process for the rapid market expansion,and
it is gaining high traction in the market. There is reduced risk of failure which will be capable for
the companies in using the successful business model of the other company and generate
successfulness in the process such as McDonald’s or Starbucks which have expanded their
operations successfully.

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Advantages
 Freedom of employment and the proven trademark (Eteokleous, LeonidouandKatsikeas
2016)
 There is reduction in the risk of the failure
Disadvantages
 There can be higher costs included in the process (Eteokleous, LeonidouandKatsikeas
2016)
 Inflexible kind of franchise can be restricting to introduce changes
Joint Venture- It is the other technique which is the most common strategy which can be
done in form of collaboration such as there is sharing of risk and failure and it is possible for
generating and sharing profitability.
Advantages
 Sharing of risk
 Joint financial decisions
Disadvantages
 The different partners do not have full control of management
 Different viewpoints of different partners (Eteokleous, LeonidouandKatsikeas 2016)
Licensing- It is the other aspect of market entry wherein the firm of one country will be
allowing and permitting the other company in using the processing trademark in a successful

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manner. However, there is limited participation which can be impacting performance of the
company.
Advantages
 There is option for purchasing and buy into partner exist in provision
 It is the most effective way to start the business
Disadvantages
 There is limited level of participation
 Licensees can be becoming competitors
Conclusions and Recommendations
Therefore, form the analysis of the assignment, it can be concluded that the international
marketing is of great significance for Morrisons as it will be helpful for expanding their market
in different countries and generate high profitability and revenues in a successful manner. The
physical store approach is the most suitable one that can be implemented for growing in a
stronger manner in the other international market which is Japan in the present scenario. On the
other hand, there are different recommendations which can be included in the process of entry
strategies which can be adopted by Morrisons to expand effectively and successfully which are
as follows:
Morrisons can expand their business in the market of Japan as the political scenario is
highly stable and it will be helpful for them in improving their prospects of business
successfully. In addition, the level of competition is limited in competition to Morrisons as the