Analyzing Market Entry Challenges in Emerging Markets

The provided assignment content includes a mix of academic articles and books from various fields such as business, marketing, and research methodology. The papers explore topics like market entry challenges in the European Union, performance implications of multinationality, and opportunities and challenges in Latin America. There are also publications on qualitative research methods, the international business environment, strategic management, and supply chain management. Additionally, there are online sources discussing potential barriers to foreign market entry and a handbook on impacts of international business and political affairs on the global economy.

RESEARCH
METHODOLOGY

TABLE OF CONTENTS
TASK 1: RESEARCH DESIGN PROPOSAL................................................................................1
PART 1........................................................................................................................................1
Introduction and Background of the study..................................................................................1
Rationale of the study..................................................................................................................1
Problem statement.......................................................................................................................1
PART 2: LITERATURE REVIEW.................................................................................................2
Meaning and significance of international expansion.................................................................2
Challenges faced by companies during international expansion.................................................4
PART 3: RESEARCH METHODOLOGY.....................................................................................6
PART 4: DATA ANALYSIS..........................................................................................................9
Gantt chart.................................................................................................................................10
REFERENCES..............................................................................................................................12

TASK 1: RESEARCH DESIGN PROPOSAL
PART 1
Introduction and Background of the study
In the modern era with the motive to operate efficiently every business has started to
expand its operations in the international market. Further, it is well known fact that there exist
large numbers of opportunities at global level which business can easily grab (Carpenter and
Dunung, 2016). Expansion in the foreign market provides base to company so as to serve
number of customers and enhances brand image in the market which is regarded as one of the
main objective behind carrying out operations in the environment.
For conducting the present study Lidl will be chosen as one of the organization which
operates in retail sector of UK. Firm is well established brand and known for the range of
products it offers to its target market. At present company is planning to expand its operations in
the foreign market due to which organization has to consider the range of challenges which can
influence its operations.
Rationale of the study
The main reason behind carrying out the present study will be “To identify the challenges
faced while developing business into foreign market: A case study of Lidl, UK”. While entering
into the global market it is necessary for business to consider the range of challenges so that
overall performance may not be affected due to this (Abraham, 2014). No doubt, market size at
international level is wide but there exist large numbers of issues for which company has to
prepare effective plans well in advance for boosting overall productivity.
Problem statement
The main problem linked with the present study will be to identify the range of
challenges which Lidl will face while expanding its operations at international level. Further, this
is one of the main problems and by gaining information about the issues in foreign market it is
possible to operate efficiently.
Aim: The main aim behind carrying out the present study will be “To identify the
challenges faced while developing business into foreign market: A case study of Lidl, UK”.
Further, following will be the objectives for the study which are as follows:
 To understand the meaning and significance of international expansion
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 To identify the key challenges faced by retail businesses during global expansion
 To recommend the effective ways through which Lidl can easily operate at global level
Research questions:
Following will be the research questions for the present research:
 How important is the international expansion in the modern era?
 What are the key challenges faced by retail companies during global expansion?
PART 2: LITERATURE REVIEW
Section 1: Introduction
Literature review part is associated with undertaking views of various authors and experts
linked with the topic. Further, the present study will be associated with identification of
challenges which Lidl will face while entering into international market. Further, considering
views of various authors will provide base to the entire research and it will become possible to
accomplish aim of the study. Apart from this, various authors have done research in past which
helps in knowing about the range of challenges which business has to deal with while operating
in the global market (Luo, 2002). The main sources which will be used are books, journals and
online articles which are directly linked with the topic. Apart from this, it will support in
increasing reliability along with validity of the present research. Literature review part will
highlights the studies done by various authors and what are the key findings of such research. In
short, without considering views of different authors it is not possible to conduct research in
effective manner and has positive impact on the entire research being carried out.
Section 2: Main body
Meaning and significance of international expansion
As per view of Alcantara and Mitsuhashi (2013) international expansion is regarded as
the process of crossing national boundaries for carrying out business operations in the market. In
the modern era, to accomplish desired goals along with objectives every business has started to
enter into global market so that large number of opportunities can be grabbed easily (Alcantara
and Mitsuhashi, 2013). Further, it provides opportunity for new scale along with profits which is
regarded as one of the main motive of firm behind carrying out operations in the market. In
country like UK, every firm has started to indulge into the activities of global expansion so that
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overall market presence can be increased easily. However Zakaria and Norhayati (2016) argued
that retail companies in the market have started to enter into other market so that growth
opportunities can be grabbed easily. No doubt, at international level market size is wide and
companies at provided opportunity to serve large number of customers who differs from one
another in the form of taste, preferences, religion etc (Zakaria and Norhayati., 2016).
One of the main motives behind foreign expansion is to work with advanced technology
where at present every business has employed modern tools so as to increase business efficiency.
Undertaking advanced tools allows firm to perform on wider platform and superior products can
be offered to target market as per their expectations. As per the views of Worthington (2005),
competition level is rising at faster pace in the market due to which adoption of advanced tools is
the only way through which business can accomplish its long term goals along with objectives.
On the other hand, while taking expansion decision into the foreign market business has to deal
with large number of challenges which affects organizational productivity. Such challenges are
competition, political, environmental, legal etc (Worthington, 2005). By dealing with different
issues it is possible for enterprise to become leader in the market and it will have positive impact
on the brand image also.
Various reasons are present due to which businesses operating in the market indulge into
practices of global expansion and it involves reaching new customers, enhancing cost
effectiveness of operations and following customers at global level. Companies are required to
indulge into proper planning at the time when decision is taken to operate at global level. No
doubt, to operate at global level is not easy for organization as customers may differ from one
another in the form of taste, requirement, religion, culture etc. According to Delios (2012) with
the motive to support expansion at global level it is necessary for business to carry out market
research so that overall need along with requirement of target market can be known easily. The
entire retail market of UK is changing at faster pace where every business wants to enter into
new market so that it is possible to become leader in the market. One of the ultimate objectives
of every business in the market is to increase market share along with profitability (Delios,
2012). Therefore, expansion at global level provides benefits in the form of financial growth. In
short, it depends on every business the plans prepared to grab opportunities in the market.
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Challenges faced by companies during international expansion
As per view of Anderson (2009) when any business takes decision to expand its
operations at global level then it is necessarily required to consider the range of challenges which
have to be faced in the market. Competition is regarded as one of the main challenges which are
being faced by companies as product offered by firm has its close substitute. Due to this reason,
it becomes difficult to enhance sales volume of commodities (Anderson, 2009). Further, large
numbers of companies are entering into the foreign market in every industry due to which it is
having adverse impact on existing players along with companies which are presently operating in
the market. Moreover, to deal with this issue it is required for business to focus on different
strategies such as product differentiation, market development etc. This can bring favorable
outcomes for the business but it is required to ensure that product qualities along with other
attributes are capable enough of attracting customers. According to Wang, Kozlowski and
Ouyang (2008), the challenges present at global level prevent business from accomplishing long
term goals and objectives. Due to presence of globalization every company has started to take
initiative for entering into the international market and this has contributed in enhancing the
competition level. Another challenge faced by business at global level is political barrier where
government has introduced various laws and regulations which vary from one nation to another
(Wang, Kozlowski and Ouyang, 2008).
Therefore, it is required for organization to comply with the government regulations and
sometimes it becomes necessary to modify operations are per the laws developed. In case if
organization does not follows guideline introduced by regulatory authorities then it becomes
quite difficult to survive in the market. Apart from this, international expansion requires large
amount of funds and for the same business has to search for the appropriate sources through
which financial needs can be satisfied easily. In short, company has to avoid the situation of
inadequacy of finance so that new customers can be served easily by organization. However
argued Garita and Mauricio (2015) that to determine the overall financial need is difficult task
for business and it is also one of the main challenges being faced by company while expanding
its operations. Further, technology adoption is also one of the main issues where it is well known
fact that every business at global level carries out operations with advanced tools. Therefore,
company who is planning to enter into global market has to employ advanced technology so that
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business productivity can be enhanced easily and it can assist organization to survive in the
market for longer period of time (Garita and Mauricio, 2015).
Environmental is also another type of challenge being faced by business where external
parties have introduced guidelines which every company has to follow with the motive to reduce
environmental impact. Therefore, organizations have to modify their operations so that adverse
impact on the surroundings can be reduced to extent. So, these are some of the key challenges
which businesses have to face at the time when they take expansion decision and in case if all the
issues are tackled easily then it is possible for firm to survive at global level easily and are
fruitful for business also in every possible manner.
Development of effective marketing plan is also one of the main challenges which
business has to face during international expansion. As per the views of Yildiz (2013), it is
necessary for business to develop appropriate marketing strategies so that brand awareness is
possible in the market. Further, effective promotion is also required through which business can
easily share crucial information linked with products and this can assist in enhancing sales
volume. Development of effective promotional strategy is the key to organization success and
provides support to business in every possible manner (Yildiz, 2013). Apart from this, human
resource management is also one of the main challenges which company has to face as
international expansion requires hiring new staff members who can manage all the key
operations of firm. According to Jauhari and Rishi (2012), hiring knowledgeable employees
helps business to survive in the market for long period of time and provides long term benefits.
Further, skills are necessarily required for smooth functioning of business operations and this
acts as development tool for enterprise. Moreover, to search for talented workforce is not easy
for firm and this objective can be accomplished if effective recruitment policy is adopted for
betterment of the company. By dealing with each and every challenge it is possible for business
to enhance its long term strength and can provides in accomplishment of desired objectives
(Jauhari and Rishi, 2012).
However, Hamilton and Webster (2015) argued that access to raw material is one of the
main challenges being faced by business during international expansion. In the new market
sometime it becomes difficult for business to undertake raw materials through which it is
possible to carry out production. Companies operating in retail sector have to search for suppliers
so that products can be supplied timely (Hamilton and Webster, 2015). Apart from this, to
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deliver appropriate services requires strong relationship with suppliers and it can be one of the
main reasons behind success of enterprise at global level. Further, development of strong
relationship with suppliers is necessary for business and it can easily support in accomplishment
of long term goals along with objectives. As per the views of Dawson, Larke and Mukoyama
(2006), legal challenges are high in case of retail industry where every business is required to
comply with the practices such as safety standard, quality etc. Through this, it is possible for
organization to survive in the market for longer period of time and it will have positive impact on
the overall performance also (Dawson, Larke and Mukoyama, 2006).
Conclusion
The literature review being carried out has supported in understanding about the range of
challenges being faced by the businesses when decision regarding expansion is taken. Views of
different authors along with experts considered have supported in answering all the research
questions. Further, the themes have been formed as per the aim of the research which is also
beneficial for the study. Organization has to analyze all the major challenges before expanding
its operations and through this it is possible to grab all the opportunities which are being present
in the market. Moreover, main focus is on identifying the key issues which Lidl will face while
expanding its operations at international level (Hill and Jones, 2012). Therefore, all the major
challenges are competition, political, legal, environmental, etc.
By dealing with the major challenges it is possible to sustain in the global market for long
period of time and this can act as development tool for management. Views of different authors
have highlighted that competition is one of the major challenge which is being faced by firms at
international level and for sustaining in the market it is necessary to develop effective strategies
such as product differentiation, market penetration etc. Apart from this, other challenges such as
political, technological etc may also have adverse impact on business productivity and for every
enterprise it is necessary to deal corrective actions for dealing with the issues being faced while
operating in the new market.
PART 3: RESEARCH METHODOLOGY
This part highlights the main tools and techniques employed for conducting the research
in effective manner. Further, selection of tools depends on the nature of research and is
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significant for the entire study. Following will be the techniques which will be employed for the
present research considering the overall aim of the study:
Research design: It is the blueprint of the study and outline how the entire research will
take place. Different types of research designs are present which involves descriptive,
exploratory, explanatory etc (Jensen, Dawson and Falk, 2011). Descriptive design supports in
providing description of the study, exploratory focuses on exploring new ideas, etc. Considering
the present study descriptive design will be adopted through which it will become possible to
provide description of the topic being selected for research. Further, selection of this design will
assist in identifying the key challenges being faced by businesses during international expansion.
Research approach: It supports in knowing the type of study which is being carried out.
Two types of approaches are present which are used in the study namely inductive and
deductive. In inductive approach results move from specific to general and in deductive one it is
vice versa. Considering the present study inductive approach will be used will be used where
results will move from specific to general (Denzin and Lincoln, 2011). The entire study will be
carried out from point view of Lidl and on the basis of results recommendations will be provided
to entire retail sector. Apart from this, deductive approach will not be beneficial for the present
research as results flow from general to specific which is not possible in case of present research.
Data collection: It is one of the most important parts of the study where information has
to be collected from the sources present with the motive to gain expected findings with the help
of this. Two sources of data collection are present namely primary and secondary which are used
for obtaining information. Primary information is collected for the first time and information is
not used in the earlier studies. On the other hand secondary information is acquired with the help
of books, journals and online articles which are associated with the topic (Gioia, Corley and
Hamilton, 2013). Considering the present study both sources will be employed where primary
information will be collected with the help of questionnaire through which it will be known what
are the challenges faced by business while expanding operations into foreign market. On the
other hand secondary information will be collected with the help of books, journals and online
articles which are relevant with the topic.
Sampling: For conducting overall research in effective manner it is necessary adopt
appropriate sample size. Considering the present study sample size of 5 managers working in
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Lidl UK will be undertaken. Further, technique of purposive sampling will be employed for the
same through which main purpose of the study can be fulfilled easily.
Data analysis: It is regarded as one of the most important part of research methodology
where information collected is analyzed so as to gain expected findings with the help of this.
Two techniques of data analysis are present which are used in the studies and it involves
qualitative and quantitative. In qualitative technique, different themes are formed for analyzing
information and it supports in knowing the overall response provided by the respondents from
whom data has been collected (Novikov and Novikov, 2013). On the other hand, when
quantitative technique is employed then statistical themes are formed for analyzing the
information such as mean, mode and median. Considering the present study qualitative technique
will be employed where different themes will be formed for the information which will be
collected. This will support in knowing whether the aim and objectives set for the study have
been accomplished or not. Further, selection of right analysis tool will enhance in increasing the
efficiency along with reliability of the study which is also beneficial for the research.
Ethical issues: At the time of conducting study it is necessarily required to consider
ethical issues so that it may not influence reliability of the entire research. Considering the
present study information will be collected from primary source and it is possible that managers
of Lidl may not be able to share important information with researcher (O'Leary, 2013).
Therefore, to deal with this issue researcher will ensure well in advance that information will be
secured in separate place so that third parties will not be able to access it. Further, data will be
collected from managers after sharing with them the aim and objective of the study and this will
support in carrying out the research in appropriate manner and expected results will be attained
through this.
Limitations of the study: In every research some limitations are present which
researcher has to consider necessarily so that overall reliability along with validity of study may
not be influenced. Considering the present study time and cost will be major limitations which
will be faced during conducting study. Researcher will collect information from managers
working in Lidl, UK and it is a time consuming process (Soni and Kodali, 2012). Therefore, it
will enhance the time required for conducting the research. Apart from this, due to rise in time
required for conducting research overall cost will increase. Moreover, one of the main limitation
of the study will be that research will be carried out from point view of retail sector where Lidl
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will be chosen as one of the organization. Therefore, some other sectors can also be chosen for
conducting research in effective manner and it will enhance scope of the study. Therefore, these
are some of the major limitations associated with the study which researcher will consider for
conducting study in an appropriate manner.
Research validity and reliability: The entire study which will be carried out will be
reliable and valid too. Further, information will be collected from reliable sources especially
secondary sources where data published after the year 2000 will be considered and this will
support in making study valid. Apart from this, entire research will be valid as the entire range of
information has been acquired through the sources which will be trustworthy and it will assist in
conducting study in effective manner. Reliable along with valid study will support in answering
the research questions which will be fruitful for entire research and can support in
accomplishment of the overall aim being developed for the study.
Therefore, these are some of the tools which will be employed for conducting the overall
research in effective manner. Further, it will provide base to the entire research and adoption of
appropriate tools can lead to expected outcomes. Apart from this, every tool has been adopted
after considering the nature of the research.
PART 4: DATA ANALYSIS
This part plays most important role in the study where information gathered is analyzed
so as to obtain expected findings with the help of this. Two techniques of data analysis are
present which are employed in the research which involves qualitative and quantitative. In
qualitative technique themes are formed for analyzing information which supports in knowing
the overall response provided by the respondents from whom data has been collected. Selection
of appropriate data analysis technique is necessary as it can enhance reliability of research. On
the other hand, quantitative technique is also present where statistical tools are employed for
analyzing the information (Denzin and Lincoln, 2011). It considers mean, mode and median
which are effective enough in analyzing the data which is crucial for the research. Further, all the
ethical issues have been undertaken which can influence entire research. Main issues will be
linked with data privacy; protection etc. and they will be considered while conducting the
research. Apart from this appropriate time plan has been prepared for conducting study where
each part will be given appropriate time.
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Considering the nature of present study, qualitative tools will be employed for conducting
research where different themes will be formed on the basis of information which will be
obtained with the help of primary sources. Apart from this, data will be present in non numeric
form which will be one of the main reasons behind considering qualitative method for analyzing
the information. On the other hand, qualitative technique will not be employed in the present
study as numeric data is not present where it will not be possible to apply statistical tools such as
mean, mode and median. Therefore, in this way the range of analysis method which will be
selected will be beneficial for the entire study can assist in accomplishment of overall aim. Apart
from this, both results of primary and secondary study will be analyzed with the help of which it
will become possible to know what are the key challenges being faced by Lidl while entering
into the foreign market and is beneficial for the entire study in every possible manner. This will
assist in attaining expected outcomes and can enhance reliability of the research also. Overall
data analysis will support in knowing whether the key strategies employed by Lidl for sustaining
in the competitive market are effective or not. This can be fruitful for business in every possible
manner and can assist in grabbing long term benefits to the business.
Gantt chart
Activity Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9
Writing
Research
Proposal
Identifying
various
literatures
Finalizing the
aim and
objectives
Drafting
literature
review
Collecting and
analyzing
secondary
data
Developing
research
approach
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Drafting
research
methodology
Accumulatin
g data
Drafting
Findings
Analyzing
data
Completing
remaining
chapters
Submitting it
to tutor and
awaiting for
the feedback
Revising the
draft
Printing and
binding
Submission
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REFERENCES
Books and Journals
Alcantara, L. L. and Mitsuhashi, H., 2013. Dynamics of entering politically risky foreign
markets. Management Research Review. 36(6) .pp.580 – 595.
Dawson, J. Larke, R. and Mukoyama, M., 2006. Strategic Issues in International Retailing.
Routledge.
Delios, A., 2012. International Business: An Asia Pacific Perspective. 2nd ed. FT Press.
Anderson, J., 2009. Expanding globally with local vision: foreign market entry and the
value chain. Journal of Business Strategy. 30(5) .pp.32 – 39.
Wang, F. Kozlowski, W. and Ouyang, M., 2008. Facing the challenges of expansion in the
European Union: A review and evaluation of the Polish UHT milk market. International
Journal of Emerging Markets. 3(1) .pp.71 – 86.
Denzin, N. K. and Lincoln, Y. S., 2011. The SAGE handbook of qualitative research. Sage.
Garita and Mauricio., 2015. Business Development Opportunities and Market Entry Challenges
in Latin America. IGI Global.
Yildiz , E. H., 2013. Performance implications of multinationality: moderating role of foreign
market entry mode. Multinational Business Review. 21(4) .pp.334 – 357.
Jauhari, V. and Rishi, M., 2012. Challenges faced by the hospitality industry in India: an
introduction. Worldwide Hospitality and Tourism Themes. 4(2) .pp.110 – 117.
Gioia, D. A., Corley, K. G. and Hamilton, A. L., 2013. Seeking qualitative rigor in inductive
research notes on the Gioia methodology. Organizational Research Methods. 16(1).
pp.15-31.
Hamilton, L. and Webster, P., 2015. The International Business Environment. Oxford University
Press.
Hill, L. W. and Jones, R. G., 2012. Strategic Management: An Integrated Approach. 10ed.
Cengage Learning.
Jensen, E., Dawson, E. and Falk, J. H., 2011. Dialogue and synthesis: Developing consensus in
visitor research methodology. Visitor Studies. 14(2). pp.158-161.
Luo, Y., 2002. Multinational Enterprises in Emerging Markets. Copenhagen Business School
Press DK.
Novikov, A. M. and Novikov, D. A., 2013. Research methodology: From philosophy of science
to research design. CRC Press.
O'Leary, Z., 2013. The essential guide to doing your research project. Sage.
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Soni, G. and Kodali, R., 2012. A critical review of empirical research methodology in supply
chain management. Journal of Manufacturing Technology Management. 23(6). pp.753-
779.
Worthington, S., 2005. Entering the market for financial services in transitional economies: A
case study of credit cards in China. International Journal of Bank Marketing.
23(5) .pp.381 – 396.
Zakaria and Norhayati., 2016. Handbook of Research on Impacts of International Business and
Political Affairs on the Global Economy. IGI Global.
Online
Abraham, M., 2014. Top three potential barriers to foreign market entry. [Online]. Accessed
through http://www.tradeready.ca/2014/fittskills-refresher/barriers-foreign-market-entry/.
[Accessed on 20th February 2016].
Carpenter, A. M. and Dunung, P. S., 2016. International Business: Opportunities and Challenges
in a Flattening World. [Online]. Accessed through
http://catalog.flatworldknowledge.com/bookhub/3158?e=fwk-168388-ch10_s02.
[Accessed on 20th February 2016].
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