Expanding NIO into European Cities: Managing International Business

This essay discusses NIO's expansion into European cities and the use of international business theories for market expansion. It also analyzes the advantages and disadvantages of electric vehicles in the market.

Managing International
Business

MAIN BODY
Globally expansion of NIO into two European cities
This essay provides details about the Nio company, which is mainly expanding it
operations into the European cities for attaining the gaol as to provide high quality product and
services to the large global users. This essay it mainly provides details about the expanding the
Nio into the European cities also through using one of IB theories for international market
expansion.
The Nio is mainly recognized as the multinational automotive manufacturer, which is
specializing for Selling the electric motor cars and developing the batteries with providing the
convenience of charging the cars. The Nio cars are mainly known as the tesla for target market as
it does nit make its own cars by partnering with other which is mainly the state owned
manufacturing companies. With starting its electric vehicle, the company is mainly planning to
enter and start delivering its cars into the European markets. As by selecting the two European
international markets as the Rome and the Madrid. While expanding and serving the electric cars
in the European economy results in attaining growth as it surrounds of the rich country with
being employing by considering th e high standards of living of the individual. By expanding the
Nio cars and deriving to Rome in September to benefits the company to earn the remarkable
revenues which helps in strengthening the company. Managing the international business mainly
aims in defining about serving and expanding the business into the international markets as for
growing and attaining profits for the company.
The cites in the Europe as the also mainly helps in expanding and serving the electric
cars and helps the Nio cars to innovate more products of the companies. Also, it is mainly
recognized as the most successfully country for expanding the business by exploring the city
with employing the transformation with using technologies and been rewarded with the best title
as the European green city hub. Rome is being recognized as the top 10 for accessing and taking
the public services. In this essay for expanding at delivering the Nio cars to Europe city as in
Rome mainly helps in assisting the company to attain its gaols for providing the high quality
services and products to the consumer by attracting the global users to purchase its cars
(Tønnesen and et.al., 2019). For expanding the business into the European countries the main
aim of the company to expand internationally and in the Europe as it is mainly recognised for
serving and being friendly towards the electric vehicles. With planning to build the stations for

changing and swapping the batteries easily in Europe. The market is highly ascertaining for
adopting the clean energy cars and preferring the Ev' s to drive from the emerging highly market
brands. But while expanding into the international European markets in the European cities the
company may face certain challenges as to high taxes, the imports, tarries restrictions also the
pricing challenges while entering into cities like Madrid and Rome.
Furthermore,, International business is always useful for the organization that wants to
earn higher revenues for the future. Moreover, while operating in global market it is very
essential that all the resources are fully acquired so that not many difficulties had to be faced by
the business while conducting the operations (What Are the Advantages of International Trade?,
2022). Furthermore, in the context of Nio that has been successful in operating in home country
and has experienced workforce the current plan of expanding its network in the Norwegian cities
is good option. Apart from Rome the company could also expand to Madrid city that is second
largest in Europe. Also, the major benefit of expanding into this city would be that city is
surrounded by mountains and also aims that all companies should have the major sustainability
goals while conducting any of the business operations in the city areas .Thus, the Nio ES8
electric seven-seater sport utility vehicle will help the company to generate greater sales in these
regions thus making business success in long run. Furthermore, by opening the store the in local
area in Madrid city it would create more brand awareness and would also attract the potential
customers to buy the goods of the company. Also, Madrid city is totally inspired by all those
projects that are diverse and innovative as it is helpful for its own economic growth and
development in the future. Also, the city is planning strategies that will help in introducing the
sustainable business plan and therefore Nio would be benefited from this aspect as company
aims in becoming quality service and product providers in various regions
Moreover, through becoming the global brand the Nio would be able to maintain the
competitive advantage and also able to generate maximum revenues in against some local
competitors in Europe. Also, electric vehicles(EV) are pollution free and also cost very less in
terms of further more, the EV product of Nio would be of great help and promoted by the local
authorities of Europe on large scale without creating any kind of restrictions and interventions.
Moreover, with thought of building service stations it would avoid the risk of the buyers to find
the nearest points to charge the batteries of vehicles (Li and et.al., 2019). However, to execute
the plan in Madrid it would require that all the funds are available on timely basis and also any

business need time to establishes itself successfully in various markets as there are import export
restrictions or any other challenge that might cause problems in the implementation of the set
plan successfully in the Europe cities.
Moreover, through case study it can be said that though the plan of Nio to operate in the
international markets like Rome and Madrid is quite good but even though there are possible
chances that the new electric vehicles are not liked by the masses either due to its prices or any
other negative factors that might negatively impact the sales of the business in long run.
Critical analysis in response to one international theory
The recent Nio plan for expanding in cities like Rome is quite good as city is quite
famously known for being less polluted and not very busy that would help the company to
expand easily and increase the sales of electric vehicles. On the other hand city like Madrid is
another good option for the firm as it is city that have the best views (Contractor and et.al.,
2020). Also, it aims to be sustainable and therefore product of Nio like electric vehicle is
expected to be liked by the masses and is having much wider scope. Moreover, one of the
international business theory that might be linked with current scenario of Nio is The Eclectic
Paradigm that states that any business that wants to operate in the global markets have to take
into the consideration the three main elements so based on that better plans might be developed.
Furthermore, one such is ownership advantages that means that it is very essential requirement
by any firm and its consist of trademarks, patent, logo, monopoly power and much more so that
certain short and long term objectives of the business might be accomplished on the specified
time.
Moreover, the next is locational advantages that needs to be assessed by expanding the
firm so that it would be able to specify where the value added activities had to be placed while
conducting various business operations (Eclectic Paradigm, 2022). Furthermore, the location
advantage by the firm could be analysed through conducting various internal and external
analysis such as SWOT, PESTLE and applying the porter five forces model etc. for the target
markets so that resources are not wasted and also maximum efficiency could be achieved while
conducting the business activities in the future. Lastly the last element in this theory is complete
analysis of the internationalization advantages in terms of reduction in the overall
transportation cost, controlling cover the operations and avoidance of various tariff and other
barriers so that maximum revenues are generated from various operations.

Thus, the use of this framework could be very helpful for the Nio that is planning to
conduct its operations in European cities. Moreover, through analysing all three advantages in
both the cities it would be able to estimate the success of the selling of the electric vehicles and
estimated profits to be earned in the years. Furthermore, this theory would help the firm in
organizing various resources and also planned its activities in systematic manner. Moreover, it
would allow in developing of the risk plans so that corrective actions if required any could be
taken on time (Nippa and Reuer, 2019). Hence, this model states that if Nio uses this theory and
identifies that all the there elements stated above are very strong for European cities than it
should go for the foreign direct investment and also it can be said that eclectic paradigm helps in
bringing the transaction cost theory and even though it is critically analysed that this theory
ignores the multiple entry modes of the firm in one country. Furthermore, it is best suited for
manufacturing companies other than digital service firms in the country.
Moreover, Nio needs to analyse global business environment through identifying all the
factors such as political, technological, social, environmental and much more so that best
business policies and working might be done in due course of time. Furthermore, it can be said
that this international theory would be different for both the cities as they have different
advantages and disadvantage and therefore requires full detail investigation (Reuber and et.al.,
2018). Also, electric vehicles business is very large in European countries and also existing
competitors like Zoe, made by France's Renault and Volkswagen etc. also have the best policies
through which they are selling the products successfully. However, this international business
theory would work the best if there is proper knowledge of the target markets and Nio have the
expert teams that are ready to provide the best solution in the complex situations.
Furthermore, this model believes that all the diverse firms have almost similar aims and
objectives, and they respond in the changing circumstances in the similar way. However, this
theory could not be strategic tool in long run as market condition keep son changing from time to
time. In-spite of demerits this model is good for the company like Nio because it helps in
identifying the interrelation among the factors and helps in providing the broader context on how
different business work for the future. Moreover, this theory of would help the cited firm in
determining the overall value that would be derived form any particular approach and would also
help in analysing whether it is good to conduct the business nationally or internationally.

Also, when we talk about the two different cities like Rome and Madrid that are best
known pace of Europe it is likely that using this theory the firm would be able to conduct
business trade in the most the easiest manner. Furthermore, as both the cities are trying to
become sustainable and environmental friendly using this theory would provide additional
advantage to business as the resources would be the utilized fully and greater competitive
advantage than would be maintained.
Furthermore, all the multinational enterprises that have been successful because of the
reason that there entry to international market is done after complete analysis of all external and
internal factors in detail (Sherman, 2021). Moreover, Europe is considered to be top ranking
countries in terms of choosing the business and thus using this theory and having the team to the
well qualified employees the firm would be able to sell large number of electric vehicles in both
the cities as they have the similar risk and opportunities for different industry and sectors.
Presenting the Literature and Evidence
Theme 1 : Describing the concept of the internationalization of business
As per Buckley and Casson (2021) internationalizations refers to designing of products
and services in way that could be easily consumed by large masses across various regions.
Moreover, most of the business have been able to successfully generate more revenues and build
the greater brand reputations through conducting the business on global level. Furthermore,
domestic marketing is having the limited reach to the people while working in global markets
allows the people to consume variety of the goods and services from other parts of the world.
However, some critically argues that international business is not easy at it seems as it is ongoing
and complex process where the rewards are earned after long time. Moreover, it involves lot of
funds and the resources to conduct the business in various parts and hence the small business that
are operating on small scale might not find it suitable. Furthermore,Verbeke, Coeurderoy and
Matt, (2018) stated that only those companies would be able to survive globally that are bringing
innovative products that have unique attributes in it. However, Lundan (2018) critically argued
that if the company in spite of having the best products does not have strong strategic plans and
marketing techniques than it would not be able to sell the goods on large scale in international
markets. Also, Kahiya (2020) said that there are various ways through which the company might
operate internationality such as joint venture, partnership, FDI etc. that again depends on the
long term objectives of the firm for the future. Although all these forms of internationalizations

have their respective merits and demerits that have to be closely analysed by any firm before
entering into the target market so that additional cost and time might be saved and also success
could be ensured for long run.
Theme 2 : Analysing electric vehicles market and their relative advantages and disadvantages
According to Nielsen, Eden and Verbeke (2020) stated that there is growing demand of
electric vehicles in the market and more companies are designing vehicles that would be able
serve the needs of each individual. Also, electric operated vehicles have more sales in market
because they are environmental friendly and also they save the additional cost that is otherwise
involved in fuel. However, Hernandez-Pozas and Carreon-Flores (2019) argues that the electric
vehicles market is not good as it had the major disadvantage of lack of sufficient fuel stations
that create problems for the consumers to charge their vehicles in time of emergency situations.
Also, in certain reports is had been seen that as these vehicles are fully battery operated the cost
of the maintenance is very higher than could not be bear by the common people that are having
minimum wages.
Moreover, Alon (2020) stated that electric vehicles have the large scope in the market
due to the growing popularity and its convenience that even the normal household would be able
to afford easily for one time. Also, in the current times when most of the people are concern
towards the protecting the environment, new inventions like the electric vehicles would also be
promoted by government of various countries on large scale through providing enough
incentives and subsidies. On the other hand, Chang, Witteloostuijn and Eden (2020) critically
argued that these cars does not have wider scope in the near future as in comparison to the fuel
operating cars as these cannot travel long distances and need to be charged on timely basis that
is the difficult when the fuel stations are not available.
Theme 3 : Impact and use of international business theories within the business
According to Reshetnikova and et.al., (2018) there are various international business
theories that would help any type of business to grow and expand to different regions
successfully. Furthermore, the benefits of using these theories is that business would be able to
plan and use its various resources in the most systematic manner. Moreover, using these theories
business would be able to assure best risk management in various target markets and also longer
product lifespan across various regions. However, these theories have certain limitation as
business are affected negatively by cultural and the language barriers and therefore these aspects

are sometimes overlooked by the firm that makes its working ineffective in international
markets. Furthermore, Blackburne and Buckley (2019) Stated that international theories and
models are very helpful as they allow firm that wish to operate globally in identifying the
relationship between all the factors that affecting the business and thus helps in development of
proper plans that would be used in the future running of the business.
Moreover, Di Giovanni, Levchenko and Mejean (2018) stated that using this theories in
useful in way that it make the international trade practice easier and the also helps in identifying
the competitors that are operating within the industry so based on that proper plans could be
undertaken. Although, Poulis and Poulis, (2018) critically argued that common factors through
internal and external analysis could be analysed but uncommon factors like changing customer
preferences and emerging competitors would not be identified that would further create problem
for the business to expand globally in various regions. Also, lack of the professional and
qualified team and incomplete market analysis would not make the use of the any of the
international business theory success during the specified period.
CONCLUSION
From the above report it can be concluded that Nio company that had been successful in
various regions is only because the best strategic decisions that are taken by the top management
over the years. Moreover, the present report had identified through case study that Nio plan to
expand its existing network and working in global market would be good only when all the
factors are closely identified. Further, the study had also applied one of the international business
theory named Eclectic Paradigm and also analysed it majors advantage through which the cited
business would be able to increase the sales in Rome and Madrid cities of europe. Also, the
significance and use of such theories in these cities had also been explained in detail. Lastly, the
report had provided evidence of the whole case study through presenting the literature review
for better understanding of various concepts

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