Airdri's Strategic Expansion into New and International Markets

This report analyzes Airdri, a UK-based company specializing in hand dryers and air purifiers, and its strategies for expanding into the international market, specifically the USA. It examines the advantages and disadvantages of importing and exporting, differentiating between merchandise and service trade. The report also evaluates various methods for SMEs to tap into international markets, such as franchising, joint ventures, and partnerships, comparing their pros and cons. Furthermore, it recommends appropriate import and export processes for Airdri, highlighting the importance of ethical and sustainable practices. The conclusion emphasizes the opportunities and challenges of international market expansion for SMEs, stressing the need for careful strategy selection.

Tapping into New and International Markets
Explanation of these importing and exporting activities in context of company is
mentioned below:
Importing: Importing refers to an activity to purchase products and service to a country
that was developed in another country. It consists action that organisation takes for purpose
of selling of products that are manufactured in abroad and bring to sell in a country in
which they are conducting business. Airdri will securing benefits of importing activities in
their business by importing cheap resources from foreign countries that allow them to
reduce cost of company. It also allows them to import advance technology that increase
productivity of company and also allow them to increase efficiency of company.
Advantage of importing:
 Importing of products and service provide advantage to a company as they can
reduce their cost of manufacturing as sometimes manufacturing of products and
service many results in increasing cost of company.
 It is providing different advantage to a company as it allows them to helps them in
emergency situation. There are various emergencies occur in a country due to
drought, natural calamity which does not allow a country to produce enough
products and service and in that situation, they can import products and service.
INTRODUCTION
International market refers to a market that are present outside geographic borders of a
country. It provides various opportunity to a company to expand their business in
international market as they can earn more profit there. It allows them to access of
various resources, technology and labours which market their business more efficient
and improve quality of their service (Ardito, Peruffo and Natalicchio, 2019). But at
same time, it creates various challenges in market. This project report includes
analysation of Airdri which is a UK based organisation that is offering hand dryers and
air purifiers to their customers. It is a business which is planning to expand their
business in international market in USA. This project report includes analysation of
analysation of opportunity and threat faced by companies in global environment. It
illustrates advantage to trading blocs of firm along with determination of importing and
exporting of process and practicalities involved. It also evaluates different ways in
which SME can tap to international market.
TASK 2
P5. Determination of advantage and disadvantage of importing and exporting of how to
secure a deal
Importing and exporting activities play important role in economy of a country
as it provides support to local business and provide opportunities to company for
expanding their business in international market (Li and Fleury, 2020).

Disadvantage of importing:
There is a risk of currency as due to fluctuation in inflation rate, business is
facing difficulties in international market (Lo and Campos, 2018). If importuning of a
company is more in compare to their export, then it can result in issues in currency
which create problem for a company like Airdri.
Exporting:
Exporting can be described as action that are taken by organisation for purpose
of selling its products and service in different countries.
Advantage of exporting:
Exporting good to other countries provide an advantage to getting knew ideas,
learning new techniques of marketing and management which helps Airdri to be more
competitive in market. It also leads to increased sales of company as it provides them
advantage to capture more marketing share. Airdri can secure a deal with using this
method as it allow them for purpose of selling of their products and service in other
country. It allow them to capture more profit and allow them to expand their products
and service to different countries.
Exporting products and service of Airdri in market of USA, company will get
benefit of getting more profit. It allows company to reduce their cost as it provides them
benefits of economy of scale as company can produce more units.
P6. Explanation of difference between merchandise and service import and export
There is a difference among service import or export and merchandise import and export.
Merchandise refers to efforts made by an organisation as well as individual for purpose of
promotion of products and service to their customers. Merchandise can be described as
physical foods like air planes, cars, furniture and other things which are developed in one
country and can be sold to another country. Service on the other hand includes considering,
web hosting, accounting service and other things which can be paid to other people.
Merchandise can be described as practices where tangible products are export to another
country where company can get opportunity for purpose of expansion of products and
service that can be easily accepted. Airdri is an organisation which are expanding their
business in USA where they develop products a per needs of people (Mic and Eagles,
2019). Needs of people in USA is different in compare to USA for which company needs
to develop product as per requirement of customers.
Service export and import can be described as activities in which earning of company
made through services for purpose of exchanging of intangible products. Service export
can be described as receiving payment for exchanging of service. Service import can be
including activities for which a company needs to pay for purpose of accruing services.
M4. Application of appropriate import and export process to an organisation along with
recommendation about how they could be applied in context of international
Import and export play important role in growth of economy which consist different steps
and in order to expand business at international level, business managers need to follow all
step carefully.

In order adopt import process, a company needs to consist trade enquiry, placing order,
license and quotas, letter of credit, completing different document, clearing of goods and
other formalities of customers, making payment as well as completing transaction.
Exporting on the other hand consist different steps like order to export, confirmation,
manufacturing of products, excise clearance, in last shipment of products. All these steps
need to be followed by an organisation for purpose of expansion.
P7. Evaluation of values method in which SME can tap into international market
There are different methods through which an organisation can be expand their operation
in international market which provide them opportunity for purpose of increasing profit.
Some of these methods that can be chosen by Airdri for purpose of expanding of their
business are mentioned below:
Franchising: Franchising is a method that can be used by Airdri for purpose of
expansion of their organisation in which franchisor provide license for using their
procedure, business model, intellectual property, brand of franchisee and in return they
will get certain feeds and allow companies for purpose of complying with obligation
(Najmaei, Mansori and Raueiser, 2017). It allows managers of Airdri to expand their
operation without investing it.
Joint venture: Joint venture refers to a strategy which is combination of two or more
parties that are taking development of single enterprise or a project for purpose of profit,
sharing risk associated with its development. These parties are free to contribute their
resources, capital, assets skills, knowledge, labour, and other resources for completion of
a project. Managers of Airdri can adopt this technique for purpose of sharing cost and
risk associated in market.
Outlet and Branches in abroad: It is another method for expansion of products
and service in market in which business can open their branches in market. It is market
which helps companies for purpose of increasing profit and allow company to attain their
goals. Airdri can use these methods which helps them to increase their numbers of stores in
market of USA. It also allow company to increase their market reach that assist them to
increase numbers of customers of company.
Partnership with large organisation: It is a method for expansion of business
for Airdri in market of USA in which they can be partner with another large organisation
and can take share in business (Ray, Ray and Kumar, 2017). In this company will get profit
for the amount they have invested in business and can also develop strategies for success
of business. It assists managers of Airdri to make profit for their organisation and also
helps them for purpose of understanding needs of customers. This method provide various
advantage to Airdri as they can support from large organisation that allow them to use their
resources and also to share debt of company.
P8. Compare and contrast different ways in SME can tap into international market
assessing their pros and cons of each method
Airdri is an organisation who has its business in market and planning to expand its
business operation in market of USA. It is a company which is developing air purifies and
hard dryers to their customers (Taylor, 2019). In order to expand their business, they can
adopt different strategies which provide different advantage and advantage in market.
Some of these strategies of company in market
Joint Venture: It can be described a method if internationalisation in which business
invest or acquire in a particular business.

• Pros: It provide benefits to business of Airdri as it allows them to access
different resources and allow business to expand their operation without investing in
training and development opportunity to employees or hiring new employees.
• Cons: This strategy create problems for Airdri as there are different policies
related to taxation in US which create burden of cost on company.
Franchising: Franchising is another strategy in which franchisor provide right to
franchisee to share their business model and process and for which franchisee needs to
pay some fees to franchisor.
• Pros: This strategy helps business of Airdri to protect them from market risk and
also allow them to increase their customer base.
• Cons: It create problems for managers of Airdri as sometimes franchisee will
not carry out business according to business strategy of franchisor. Managers of
company also needs to monitor activities of franchisee which increase cost of company.
Partnership with large organisation: It is a strategy in which company needs to made
contract with another company where they can share profit in a ratio in which they
invest capital (Thrassou, Giacomarra and Galati, 2020).
• Pros: Airdri is an organisation which will get benefit of this strategy as it allows
them to share risk in market and also it is easy to form.
• Cons: Adoption of this strategy in market create negative impact on decision
making process of Airdri and create results in less focus on organisation as there can be
situation arise of conflict among partners.
Outlet and branches in abroad: it is a method that allow company to expand their operation
by opening their branches in market.
• Pros: This method provide advantage to Airdri by allowing them for purpose of
increasing numbers of stores in USA.
• Cons: it is another method that increase burden of cost of company and also
increase marketing risk.
M5. Evaluation of different methods of SME that can be used by companies in market for
purpose of application to small business along with masking recommendation
There are different methods to be adopted by managers of companies for purpose of
expansion of products these methods include franchising, opening new branches,
partnership with other organisation, joint ventures. It is recommended to managers of
Airdri to select methods that best suits to their resources. It is also recommended to
mangers to adopt ethical and sustainable practices while expanding business at international
level as it provides them opportunity in market.
CONCLUSION
From above mentioned project report, it can be concluded that international market provide
opportunity for small medium enterprise to expand their business operation. It allows them
to access to different resources, technology in market and earn more profit with expansion
of marketing share. There is various disadvantage to this international market as it creates
various threat and risk in market. There are different types of strategies to be adopted by
managers of company in order to expand their operation including franchising, branches,
partnership, joint venture and many more. There are different types of tools to be used by
companies in market to identify risk and opportunity like SWOT analysis and PETEL
analysis.

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