Strategis to success, for local companies in global emerging market: A case study on Dartmoor Somatic

RESEARCH PROJECT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Introduction............................................................................................................................1
Background of study...............................................................................................................1
Rationale.................................................................................................................................2
Research aim..........................................................................................................................2
Research objectives................................................................................................................2
Research Questions................................................................................................................2
LITERATURE REVIEW ...............................................................................................................3
RESEARCH METHODOLOGY.....................................................................................................6
DATA ANALYSIS & FINDINGS .................................................................................................9
QUALITATIVE ANALYSIS ..............................................................................................9
QUANTITATIVE ANALYSIS............................................................................................19
CONCLUSION..............................................................................................................................24
RECOMMENDATION.................................................................................................................24
REFERENCES..............................................................................................................................25
APPENDIX....................................................................................................................................27

Research title: “strategies to success, for local companies in global emerging market- A case
study on Dartmoor Soap company”.
INTRODUCTION
Introduction
Emerging market refers to developing countries which include some characteristics of
developed market or it can be said as the type of nations that are investing in greater productive
capacity (Cuervo-Cazurra and et.al., 2018). Thus, the present research project would be
conducted on the strategies which local companies may adopt for expanding their business in
global market. Firstly, aims and objectives will get developed by the scholar so that a proper path
created for conducting efficient study. Further, for presenting in-depth grasp of work, proper
analysis has developed through literature review section. For conducting research in more broad
area, appropriate method will be evaluated with proper analysis of findings upon it. Lastly, in
the section of conclusion and recommendation own suggestion will be provided based upon
study which has conducted.
Background of study
Emerging market economy refers to an economy of nation's which is currently
progressing for becoming more advanced in order to generate rapid economic growth and
industrialisation. However, globalisation has a huge impact on the growth in such economies. It
is because of globalisation is the factor which has brought free trade across the world through
which consumers can avail supply for any of the foreign goods in country (De Mooij, 2018).
That is why, emerging market generally has lower per-capita income both social and political
instability, higher unemployment and lower level of business activity through which customers
easily adopted the goods and services which offered by any entity in such country. Thus, the title
strategies to success, for local companies in global emerging market has been selected by the
scholar for conducting efficient research study. However, it is also true that in current market of
business, demand of foreign goods is higher among customers of emerging market because of
which many entities across the world trying to conduct their operation in franchising of global
market.
However, in these regards a case study of Dartmoor soap company has been selected
which generally deals in the business of providing natural soaps and skincare products to
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customer. Entity in the market of UK has effective business operation and to expand their
business, entity has option to conduct operations as franchising in emerging market.
Rationale
The fundamental reason of selecting this research study is to understand the concept of
both emerging market in a globalised world and to grasp the learning about functions as a
franchisee business. However, thousands of studies has been previously conducted to analyse
aspects of emerging market economy in regards with globalisation but this topic as far from
being exhausted in research area (Flick, 2018). Other than this another reason behind this
research study is to eliminate the gap in existing pool of writing literature review so that efficient
study will get presented upon which other market researcher will also get relay. This research
work will also help in improving academic career.
Research aim
“To analyse if the effectiveness of Franchising in global market, can be one option for
success of Dartmoor Soap Company”.
Research objectives
 To explain how franchising is facilitated by globalisation.
 To understand the importance and the effectiveness of franchising on business growth.
 To identify the issues and challenges faced by Dartmoor soap company while competing
in global market.
 To find what alternatives strategies and recommendation can help Dartmoor Soap
company to succeed in global market.
Research Questions
 How globalisation has facilitated the franchising business in the global market?
 What is the importance of franchising in business growth?
 What are the challenges and issues faced by Dartmoor Soap company while competing in
global market?
 Why alternative strategies, as franchising, will help Dartmoor to succeed in global
market?
LITERATURE REVIEW
Theme 1: explaining, globalisation which facilitated franchising business in global market.
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According to Gillespie and Riddle (2015) it is stated that globalisation has prompted
franchisors to develop their thinking on the level of world as it is a common market and it has
also emphasis such business to emphasis on common needs across the societies. However, it is
also true that new landscape of global market has shaped the way organisation develop its
strategic factors, industry structure and also environmental conditions. The factor which has
facilitated the emerging market so popular is cost differentials, greater connectivity and easy
adoption of goods and services by consumers of emerging economics. This is the result which
help organisation across the world to enhance their business in emerging market through which
greater profitability gets increases. Other than this, one mentioned engines which influence such
economy is global mass media, tourism, immigration, pop culture and international marketing
activities which conducted by transactional companies. Such aspects of activities in emerging
economic helps the Dartmoor company to enhance their strategy to conduct business operations
in emerging market through which profitability gets increases.
On the contrary Lasserre (2017) stated that in today's world, entrepreneurs are trapped
into their need to explore globalised world which was inevitable where most of the entities are
encounter between different tribes, nations and cultures. This is the main factor of globalisation
because of which there is huge development of competition among businesses for the terms like
innovation and fuelled imagination. The main problem which franchisee's has to face is increased
market competition which relate to the terms like product, services, cost, price, target market,
technological adoption and also quick response. The main problem in doing business in
emerging market is the lack of managerial and entrepreneurial talent through which hurdles in
such functions cannot be handled smoothly. Another factor which greatly influence franchising
business is regarding lack of capital through which international expansion cannot be enhanced.
Thus, in accordance with such analysis, Dartmoor entity needs to firstly conduct the market
research through which effective strategies will get develop for enhancing the business operation
in emerging economy for generating profitability.
Theme 2: The importance of franchising in business growth
In the views of Child, Kilroy and Naylor (2015) franchising work as a factor of potential
growth strategy. It is because it provides a developed way for through which business operations
can be conducted with ongoing guidance where chances of getting growth is higher than getting
failure. In regards with this author stated that franchises are a type of mechanism in order to
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develop conceptual distribution. It is because it has a great social and economic importance
where large number of people are working in this type of business which may improve survival
rate for any entity who wants to conduct its business operation in this way. According to current
market situation, it is analysed that the presence of franchise in the form of organisation is
unquestionable, because such development has taken place in the context of sales and growth of
the market which can only be facilitate through organisational form. Businesses which wants to
enter in this form did not have to conduct much of the promotion in market because the
consumers are already been aware of such brand and they automatically get attracted to purchase
its product and services. That is why it is been said that the franchising is known for alternative
model regards with development of distribution because of which it has importance in strategies
of marketing in both general and distribution. Thus, it is very effective strategy for local
businesses if they want of expand their business in the market of franchisee.
However on the contrary it is propounded by Crane, Kawashima and Kawasaki (2016)
that though franchising is considered as potential growth factor but it has some demerits too
where the first and foremost impact is that the owner must have to enter into a formal agreement
with franchisor where he/she will not able to formulate its own way of conducting business
operations. Such business will only get successful of there will be a some kind of creativity that
is why it did not have guarantee in achieving growth.
Theme 3: the type of challenges and issues faced Dartmoor Soap company if they compete
in global market.
According to Thite and et.al., (2016) it is true that globalisation has brought a tremendous
opportunity for businesses to expand their business at global level but it to have some challenges
and issues which might entity to face while operating at such huge level. First and foremost issue
in this form is different cultural issues. It is because the countries which included in emerging
market economy is mainly China and India and both have different cultural background and
aspects. However, in regards with India it has huge cultural trend where people did not follow
the say aspects of adopting goods and services. Author has divided the issues of global emerging
economy is in Macro and Micro. In the macro issue, factors like political/regulatory,
financial/economic and socio cultural issue has been segregated with technological infrastructure
as well. In Micro factors like competitive consideration, local infrastructure such as
transportation and logistics network and availability of mass media for advertising has been
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segregated. Thus, in order to operate in such global economy, entities first have to conduct
proper market research regarding what consumers like to prefer and what they already have.
Mode of entry is the another issue which companies need to face. It is because of customisation
of marketing mix or development of completely new product will must be the main criteria of
conducting such function.
On the other hand Tallman, Luo and Buckley (2018) state that there are no challenges
and issues which entity will have to face in globalised platform because it has huge variety of
option through which organisations will able to adopt structure of market easily and comfortably.
The one best option to enter in this market is franchising where new entrant did not have to
conduct much of the market because customers are already aware about the brand and product
and services they offer. However, such marketer also did not have to develop strategies for
gaining loyal customer base because customer automatically gets attracted once the brand gets
establish. Thus, the Dartmoor Shop company did not have to go through much of the struggle if
they conduct their business in the form of franchisee.
Theme 4: alternative strategies, as franchising, will help Dartmoor to succeed in global
market
In the words of Appiah-Adu, Okpattah and Amoako (2018) it is analysed that
international franchising is the type of strategic way to reduce the dependence on demand of
domestic market and to achieve new form of growth, revenue and profitability worldwide. It is
true that expansion of brand globally generally involve low type of risks. It only requires
minimal investment and offers a huge potential capability in achieving profitability of business.
However, franchising is mainly referred as pooling of resources and capabilities for gaining
strategic marketing, distribution and sales goal of company. Thus, in regards with entering into
new overseas market with additional customers, this is the best way which entity may prefer.
Essentially as a contractual entry mode it only prefers a type of licence agreement which indicate
a low degree of risk where in addition company did not have to worry about fund generation as it
provides design, equipment, organisation and marketing with the contractual partner in target
market through which possible rapid growth will get achieved (5 challenges in new global
market and how to overcome, 2019). Thus, in the context of Dartmoor company it will provide
opportunity for further expanding of business. It provides effective strategy through which entity
will able to meet international requirement and its targeted profitability.
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