Report on Airdri's Strategy for New and International Market Expansion

This report examines Airdri's strategy for expanding into new and international markets, focusing on the United Kingdom as a key market for small and medium enterprises (SMEs). The analysis includes a PESTEL framework to assess the political, economic, social, technological, environmental, and legal factors influencing Airdri's expansion. It highlights the opportunities and threats in the global business environment, emphasizing the benefits of sales expansion, cost savings, and market diversity for SMEs. The report also discusses the impact of trading blocs, tariff and non-tariff barriers, and provides an overview of Airdri's background and introduction. Furthermore, the report includes relevant trading blocs and agreements, particularly the CARIFORUM-UK economic partnership agreement, and concludes with an overview of the company's history and objectives. The report provides a comprehensive overview of market analysis and expansion strategies for businesses like Airdri.

Tapping into New and
International Markets

Introduction
• In the globalised era, companies are continually looking forward to new ways of
expanding at international scale.
• Gaining access into new and international markets is important for organisations
to facilitate expansion.
• It results into increment in scale of operations.

Global Environment
• United Kingdom has been chosen as the country as there are a large number of SMEs that are
operating within the confines of this nation.
• UK pertains to Europe which is acknowledged to be a lucrative continent for commercial purposes.
• It is recognized as the 6th biggest economy of the world which promotes the growth and
development of small and medium enterprises.
• This facilitates people to build high standard of living.

PESTEL analysis
• Political- UK is fair country which have huge influence on the inner
working, they also have proactive government and political stability, which
show advantage for the Airdri company.
• Economical- UK is listed in 5th highest GDP around the world as well as
they have free market having diversified economy along with both large
private and public sector.

Cont.…
• Social- Respective nation have high standard of living as well as they have
densely population which is advantage of Airdri to operate their business at
United Kingdom.
• Technological- UK people are attracted toward new as well as innovative
technology which help Airdri to adopt new technology and attract more
and more customers.

Cont.…
• Environmental- There are various rules and regulation developed by UK
government in order to protect their environment which help Airdri to
conduct their business accordingly.
• Legal- At UK government bodies develop numbers of guidelines and
rules for every industry which help or develop opportunity for Airdri to
conduct their business properly.

Global Business Environment
• Global business environment is referred to as the environment in a number of
sovereign nations, with elements exogenous to domestic market of organization
that place an influence over decisions related to leveraging resources and
capabilities.
• This includes a number of extrinsic factors or conditions which largely impact
upon the operations exhibited by business.

Threat and opportunity for Airdri
Opportunities:
• Competitive global environment help respective company to hire more
skills, experienced and knowledgeable candidates from other nations.
Threat:
• This develop unemployment in the core country at which Airdri is
operating.

Rationale for SMEs to expand their business
• These are discussed in a brief manner as follows:-
• Sales Expansion:
• Cost Savings:
• Market Diversity:

Sales Expansion
• The first and most primary explanation behind undertaking an association to
another nation is to open doors for increment in volume of sales.
• There are billions of shoppers in international markets and doubtlessly not every
person who needs organisational offerings has access to them.

Cost Savings
• The subsequent motivation to get drawn towards gaining entry into international
markets is the opportunity for doing savings of cost.
• In an event that the business is vigorously production based, it is likely that such
entity possesses the potential to exhibit cost savings by executing manufacturing
operations in nations whereby land and workforce are available at moderate
rates, for example, China.

Market Diversity
• Identical to the manner in which people intend to diversify their investment
portfolio, small and medium sized businesses gain access into new and
international markets with a view to expand their existing base of customers.