ASOS: International Business Strategy and Market Entry in Vatican City

This report analyzes ASOS's potential entry into the Vatican City market, focusing on the introduction of herbal cosmetic products. It examines various business strategy developments, including entry strategies like acquisition and partnership, marketing strategies utilizing the marketing mix framework (7 P's), operational strategies based on the Ansoff matrix, and financial strategies incorporating balance sheets and income statements. The report also discusses international business theory, specifically the product life cycle theory, and includes a budget plan for managing finances. The selection of acquisition and partnership entry strategies is justified by their lower risk compared to other options. Finally, the report includes a reflection on the overall analysis and proposed strategies.

THE INDIVIDUAL
PROJECT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................5
Business strategy developments................................................................................................5
Reflection..................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1
APENDIX........................................................................................................................................2
PESTLE analysis.......................................................................................................................2
Hofstede's cultural dimensions.................................................................................................3

EXECUTIVE SUMMARY
The report has been based on the international market where the company conducts the
business outside the boundaries of home country. The chosen country is Vatican City for the
international market and the chosen company is ASOS which deal in fashion retail industry and
British cosmetics and online fashion retailer at London, United Kingdom. There have been
business ideas for ASOS company to come up with the herbal cosmetic products for international
market in Vatican City because ASOS company not deal in Vatican City. Company has been use
the diversification strategies within the operational strategies because of the company produce
new products in new market. There are various types of entry strategies which includes such as
licensing, exporting and partnership.
This report has been including the marketing mix framework in the marketing strategies
for business plan and it involves the 7 P's such as price, place, promotion, product, process,
people and physical evidence. In the context of financial strategies, it has been consisted the
balance sheet and income statement of company. In this report, international business theory also
has been discussed as product life cycle theory for export product in international market. It also
includes the budget plan for business because it helps in manage the financial situation of
business. Company also has been chosen the acquisition and partnership entry strategies for
international market because these strategies are less risky rather than another strategy. This
report also has been discussed the reflection on the report which has to be done in this report.

INTRODUCTION
In this report will show about International market, it is the request of marketing principles by
companies in more than a country. It is possible to do the business in the country around the
world for an organization. Furthermore, in the various countries the market is trading product
and services, the process of executing the promotion and rates of goods and services among the
world. It forms cultural and social exchange possible between various country in the world, it is
highly irritable and flexible and by the political and economic factor can increases and decreases
the demand of product. As well as it will directly flow the goods and services of the company,
the needs of international market of consumers is to produce the product for satisfying their
needs and choosing the proper way to promote, distribute and cost.
Moreover, ASOS is a retailing e-commerce company among the world and ASOS stands
for as Seen On Screen. The company sells the product from its online website and from its
stores, it offers the branded and own labelled, clothes and beauty products (Lee, 2019). It is an
online fashion and beauty retailer in global, the headquarter of the company is situated in
London, UK. As well as its stores are available in many countries such as Germany, united
states, china and many more. Furthermore, the company was founded by Nicholas Jon Robertson
in June 2000. A part from this will launch the new products known as herbal cosmetic. After
knowing that women prefer natural product than the chemical products the company decided to
launch Herbal products. It will provide customers satisfaction because Herbal cosmetic contains
natural nutrients due to relatively less side effects in comparison of synthetic cosmetics.
Furthermore, the company will launch Herbal products such as herbal moisturizer, hair growth
oil, shampoo, gel crème, face wash and many more products. The company is expanding the
business in Vatican City for more sales and to provide more products to more consumers. As
well ASOS don't have any stores in Vatican City so it will increase the sales of the company
(Tien and Ngoc, 2019).
In this present study, it will highlight about the current local and international practices.
Also, its resources and the constraints, it needs resources to implement the international
strategies and social background in the country. Furthermore, it will show the business strategy
development such as entry strategies, marketing strategies, operations strategies, human
resources and finance strategies. A part from this entry strategy are uses in exporting affect
marketing the products for the company and produce in the various countries to sell them. Also,

the marketing strategies advert the business plan to reach all costumers and bend them into their
products and services. Moreover, operations strategies are processing and stipulating the
organization and its business strategy and developing strategic initiatory and operational plan.
Although, Human resource strategy is finding the company from large challenges with
customer's centric methods, the finance strategy is approaching for designed development of
finance purpose based on clearly characterized strategy.
MAIN BODY
Business strategy developments
Business strategy is the combination if actions and decision-making performed by the company
to accomplish the business objectives and enhance competitive position in marketplace. Business
strategies helps in lead the desire goals and objectives of business.
Entry strategies:
The international market expansion is achieved through the licensing agreements,
strategic alliances, exporting and acquisitive. This is the types of entering the international
markets. There are various entering strategies which depends on the financial strength,
economic, regulatory and business size as well as regulatory condition of target country. ASOS
is the large company which can use the better strategies to enter in new market to gain quick
assess and achieve economies of scale. ASOS company will produce herbal cosmetic products
which will establish in Vatican City with the help of entry strategies.
 Acquisition strategy: In this strategy, in this company can gain the control the of other
business by purchase price so, it helps business to expand their business in the world. The
cross border acquisition is all about the completed worldwide (Gouel and Laborde,
2021). The acquisition helps business to establish access to new market. Acquisition
method is cheaper than other and there is low risk because of the regulatory
environments.
 Partnership and strategic alliances: It is the mode of entry in new market through
strategic alliances with local partner. It involves the contractual agreements between the
two parties that involves the parties with cooperation that helps in achieve the goals of
business.

 Green venture subsidiary: This is complex and costly and its affords the firms
maximum control to provide the average returns. This given the risk and cost are high to
establish the new business operation in new country.
 Exporting: The exporting is the easiest ways to export the product in international
market. Form begin with the international expansion with the mode of entry. This helps
in avoid the expenses which done by business in its operations in new country. It is the
best ways company can market their products in new market. The company can give
thought to packaging, labelling, pricing to offer the appropriate for market.
The ASOS company will use the two best strategies for entry in target country to gain
competitive advantages and profitability within the organization. The acquisition strategy and
partnership strategy will help business to gain competitive marketplace and profitability within
the country (Martín, Chetty and Bai, 2022).
In the context of acquisition strategy, ASOS company will use the cross border
acquisition strategy. This helps in give company quick and strength with the different company
currencies with establish in new market. It is the good strategy for business because scale is
needed in this strategy. The main advantages of acquisition is increase in new market, capital
gain and increase he growth in revenues. But there are some advantages of acquisition such as
increase in unemployment, low productivity, production problems, decrease in employee morale,
cultural conflicts can also occur between two countries and brands values of business can also be
damages. Meanwhile, ASOS company can use the partnership and strategic alliance's strategy
which helps company to enter in new market and also reduce risk of object company. This also
consider the higher cost than the exporting licensing so, it is the best strategy for enter in new
international market.
Marketing strategies:
marketing strategies is referred as the business for reaching prospective of consumers.
marketing strategies consist the value proposition of business, target customer demographically
and brand messaging, etc. there are various strategies which helps business to marketing the new
products in target country.
Marketing mix strategy
This strategy helps in create the market plan for business to effectively target country to
target market to their target audience.

 Product strategy: ASOS company leading the fashion industry and it offers the women,
men cloths and cosmetic products to customer. The company will offer the herbal
cosmetic products such as face pack, body lotion, massage cream, dry skin products, etc.
 Pricing strategy: ASOS company will use the competitive pricing strategy for promote
its products in marketplace. The company price will be value based because of the
ingredients go into the product manufacturing and it helps in deliver the customer
satisfaction and brand promises (Watson IV, 2018).
 Place strategy: In the context of distribution strategy, ASOS company will produce its
product into the Vatican City and gain revenue from the international market. This
strategy helps company to distribute their produce in target country.
 Promotion strategy: In this strategy, ASOS will reach to customer with the helps f
advertisements and direct marketing. ASOS will use the online ads and advertisements
channels at Vatican because it includes the information about herbal product with
enhance the sales of products. Company will also use conduct media interview to
enhance business brands image and its competitive advantages within the marketplace.
 People strategy: Company will target adult women at Vatican City. The company will
focus on women beauty to provide the chemical free products which manufacture with
herbal ingredients. It will help in improve the women skins and solve skin problems of
customers.
 Process strategy: ASOS company will focus on process of delivering products and
services to customer with maximum reliability and efficiency with sustainable focus and
environmentally focused. Digital partnership and online shopping is the main important
part of marketing mix (Wang, 2022).
 Physical evidence strategy: This strategy includes the branding and packaging of
products which displayed in store and also operate solely online with includes the social
media and websites.
Operational strategies
The operation strategies are strategy which helps in make decisions which shape the long
term abilities and capabilities for business with operations. It helps in contribute the overall
strategies. The operation strategies help in guiding plan, analyse and execute the business
operations and core activities that helps in produce and deliver goods and services. The

operations strategies include the market penetration, product developments, customer
engagements and supply chain, etc. this strategy are important because it helps in provide the
effectiveness to business, identify problems and improvements and also measures the result
against the predefine objectives.
Ansoff matrix
This is also known as the market expansion grid (Waithera, 2019). It consists 4 strategies which
helps in expand the product in market and grow new market products.
 Market penetration strategy: The operation's strategy helps in cover the larger
segments of target market. This strategy focuses on the boost company sales. This
strategy includes the existing product launch in existing market. The main objectives of
market penetration are maintained and increase the market share with the new products. It
can be achieved by the competitive strategies, advertising and sales promotion that
dedicate to personal selling. This strategy helps in secure the business market.
 Product developments strategy: It is riskier strategy because it introduces the new
products in the new marketplace. This strategy is suitable for the business where the
products need to differentiate to remain in competitive marketplace with innovation and
research & developments. this strategy also helps to being first into market.
 Market developments: In this strategy, existing products is launch in new market with
adding some new benefits and features. This strategy is including the various approaches
such as new geographical markets for exporting the products into the new country. It
includes the new distribution channels into the use of e-commerce and mail order. It also
consists the various pricing policies to attract the more customers for create new market
segments. this strategy is riskier that the penetration strategy because of target new
market.
 Diversification strategy: This is the riskier strategy; this strategy introduces the new
products into new market. This strategy helps in develop and growth in the new market
with new products. this strategy is moving to new market so ASOS company need to
have ideas about the Vatican market. Company need to maintain the reward and risk. It is
the risk of high rewarding.
ASOS company will use the diversification strategy because company will launch new product
into entire new market. Herbal products are new products which manufacture by company and

launch into Vatican entire new market. There are three types of strategies in diversification such
as horizontal strategies, conglomerate diversification and concentric diversification (Guha,
2022).
In concentric diversification, this strategy defines that the company produce new product's which
similar to the other business already sell in market such as herbal cosmetics products can also be
sold by other company in Vatican market.
In the context of horizontal diversification, it refers to the developments of new products
and services in new international market that related to the original lines. In conglomerate
diversification, it refers to the developments of new products which are unrelated to the original
lines. The conglomerate strategy is much risky strategy for business rather than both horizontal
and concentric strategy. Diversifications strategy helps in protect business form the competition,
helps in mitigate the business risk and increase the variety of products and increase business
profits and its revenues. ASOS company already deal in clothes and cosmetic products but
company will offer new products in market with herbal cosmetic ingredients for customers to
keep safe from chemical products.
Human resources strategies:
HR strategy is the business strategies which helps in manage the business plan with the
organizational activities. HR practices includes the compensations, hiring and developments and
performance appraisal, etc. HR require to manage the business activities and its promotional
activities for encourage more employees and retain employees within the organization.
 Recruitment strategies: This approach helps in encourage the creativity on target
market. The human resources management support the business strategic goals and also
follow the define goal of ASOS company through differentiate the business from other
competitors (Sinha and Fung, 2021). Recruitments strategies are most important for
business to encourage more talent employees and hire talented candidates with the human
resources recruitments process because talented employees within the organization are
most important for company. This strategy helps business to get talented employees
 Training and developments strategies: The learning and developments strategy are
important for human resources management so, this strategy helps in manage the
business with fulfil the skill gap of employees and provide the on the job and off the job
training to employees for fulfil movements of business. Training and development

strategy helps business to gain the better performance with in the organization in
effective and efficient ways which are most important for ASOS company (Qadri, 2022).
This helps in motivate and inspire staff of company to become a part of international
market, and they also get interest to achieve their personal goals as well as towards the
accomplish the business organization goal.
 Outsourcing strategies: Company look outside the business to pool their staff and
individual for skills and developments. It is a helpful for accomplish the organization
goals which is not needed for full time. In this strategy, company can take helps from
outsider of business for financial situation for company. This strategy helps business to
consider the effectively for information analysis which helps in point to helps business
and it can also don through the outside of business. The specific consideration and legal
advices are also consideration.
 Compensations strategy: This strategy outlines the business approach towards the
employee benefits and pay. It influences the business budget and owner of compensation
strategic is business executive management. This strategy is also important to success
business organization. Compensation strategy with the rewards and promotion for
company helps business to retain employees. HR is the activities of business to maintain
the company with talented employees and retain more employees. It is the HR strategies
with increase the employee’s turnover and rewards them with the better increments and it
will help business to gain staff.
Financial strategies
Financial strategies combines the finance planning with the strategic planning for new
products of business to export in international market so, there are some expenses and
investment for produce new products and trade one country to another country so, company need
to maintain the financial statements and balance sheet for business to get the accurate
information regarding the financial position of business because it helps business to enhance the
company profitability and manage outgoing and income condition of finance (Al-Surmi, Bashiri
and Koliousis, 2022).

BALANCE SHEET
Particular Amount Year 1 Year 2 Year 3
Assets:
Non current assets:
Furnitures 50000 49700 49400 49100
Office equipements 11000 10900 10800 10700
Machinery 70000 69500 69000 68500
Total non current assets 131000 130100 129200 128300
Current assets:
Cash & cash equivalent 37850 275970 571625 946797
Other current assets 25000 26250 27563 28941
Total current assets 62850 302220 599188 975737
Total assets 193850 432320 728388 1104037
Equity and liability
Capital 20000 22200 20000 21000
Retained earning 0 230600 528430 905803
Total equity 20000 252800 548430 926803
Liabilities
Non current liability
Bank loan 120000 117450 114900 112350
Current liabilities 15000 15750 16538 17364
Total liabilities 135000 133200 131438 129714
Total equity & liabilities 155000 386000 679868 1056517
BUDGET INCOME STATEMENT
Particular Amount
Revenue 800000
Less: Cost of goods sold 500000
Gross profit 300000
Less:
General expenses 5000
Salary 31800
Advertisement expenses 10000
Interest on bank loan 11100
Depreciation 1000
Lease rent 10500
Net profit 230600

Ratios Formula Value Year 3
Gross profit margin (Revenue – Cost of Goods Sold) / Revenue
x 100
37.50 41.78
Net profit margin Net Profit ⁄ Total revenue x 100 28.83 35.67
Asset turnover Net Sales / Average Total Assets 4.13 0.96
Current ratio Current Assets / Current Liabilities 4.19 56.19
Gearing Total Debt/ Total Equity 6.00 0.12
Interest cover EBIT/Interest Expense 20.77 247.65
Product life cycle theory
The product life cycle theory is the international business theory to explain the global
trade pattern in marketing fields. In this theory, the nation’s expand their products to another
nation it exports their products where the herbal products demand grows. This theory helps in
make products a standardization. The herbal cosmetic product's trough the stages of maturity
where the ASOS production spreads to other nations.
This models helps in identify the various stages of developments such as investments,
innovation, factors and prosperity. the organization need to differentiate their products from
other products with lower cost because its will helps in attract more customers towards products
and helps in more profitability for business so, company need to differentiate their products from
other to achieve the competitive advantages. Some factors, market position and resources helps
in differentiae the business from another business and it helps business to obtain the competitive
advantages with respect as well as it continued with the strategic management of business
(Onyusheva, 2020). This strategy helps in differentiate products, specified products and increase
the dead curve of business which are more beneficial for business. Company need to focus on
product life cycle theory because it important for products to enhance the business profitability
and its productivity for business.
Reflection
I learned that how to plan about business and as per the brief, firstly I chose industry
which bets for the projects because I have to choose the company which not deal in the Vatican