Effective Entry Strategies for Aston Martin's Global Expansion

This case study examines Aston Martin's international market entry strategies, focusing on how the luxury car manufacturer navigates the complexities of global expansion. The research explores various entry modes, including exporting, joint ventures, licensing, and franchising, analyzing their benefits and challenges in maintaining a competitive position. The study identifies the effective entry strategies Aston Martin employs, considering market opportunities, internal capabilities, and external factors such as cultural differences, legal barriers, and local competition. It investigates the challenges faced in international markets, including tax and compliance issues, local competition, global pricing strategies, and currency rate fluctuations. Furthermore, the study recommends strategies to overcome these challenges, such as leveraging local market knowledge, navigating new legislation, supporting local currencies, and ensuring scalability and fairness in pricing. The research aims to provide valuable insights into how Aston Martin can sustain its competitive advantage in the global automotive market by effectively adapting its entry strategies to different international markets.

Global Economies and International Markets
( Identifying the effective entry strategies to sustain competitive
advantage : A Case Study Of Aston Martin)

Table of Contents
Introduction .....................................................................................................................................3
Overview of the topic ............................................................................................................3
Literature review .............................................................................................................................5
The Effective Entry Strategy of Aston Martin in its International Market............................5
Benefits of Entry Strategy for Aston Martin in maintaining the competitive position in the
International Market...............................................................................................................6
The Challenges present at International Market for Aston Martin.........................................8
The Strategy to overcome the challenges at international market for Aston Martin..............8
Methodology..................................................................................................................................10
Budget............................................................................................................................................13
REFERENCES..............................................................................................................................14
Appendices.....................................................................................................................................16
Questionnaires......................................................................................................................16

Introduction
Overview of the topic
In Today's Global Environment, businesses are looking forward to expand their
organisations internationally. When the product based business starts doing well, it is natural to
look new markets to increase expansion and growth. There are various factors which should be
considered while entering into international market they are culture, laws and legal barriers,
foreign government considerations, etc (Jin and Cho, 2018). The firm should understand the
market personality, market trends, financial cost pattern and other factors before entering into
market. There are several entry strategies which helps the organisation to expand their businesses
into the International Market. The Strategies which helps in expansion are licensing, exporting,
Franchising, joint venture and many other. Entering into the new International Market increases
the growth and sales of the company. The organisation should analyse the market and its
competitors, it will be easy to get access into the market (Bernard and et. al., 2018).
Background of the organisation
Aston Martin is a British company of luxury sports cars and grand tourers. It was founded
by Lionel Martin and Robert Bamford in 1913. They both were automobile mechanics who used
to service the vehicles in Callow street in London. The firm was known for selling Singer
cars. Lionel designed the first car from a Singer car to participate in a hill climbing race. The hill
name was Aston hill, later the brand name was formed as Aston Martin (Fazendeiro, 2020).
Research aim
Main aim of this research is “To identify the effective entry strategies for maintaining and
sustaining competitive advantage for Aston Martin
Research Objectives
 To determine the effective entry strategy for Aston Martin in its international market.
 To examine the benefits of entry strategy for Aston Martin in maintaining and sustaining
of its competitive position at international market.
 To investigate the challenges present at international market for Aston Martin.
 To recommend suitable strategy for overcoming challenges associated at international
market for Aston Martin.
Research questions
 What is the effective entry strategy for Aston Martin in its international market?

 What are the benefits of entry strategy for Aston Martin in maintaining and sustaining
the competitive position in international market ?
 How Aston Martin Face the challenges at International Market ?
 What are the strategies to overcome the challenges associated at international market for
Aston Martin ?

Literature review
Literature review refers to the process of gathering secondary information from
secondary sources i.e. books, journals, publication reserch, peer-reviews articles and many other.
These sources helps researcher in collecting of secondary information about the topic.
Literature review is a means of demonstrating an author’s knowledge about a particular field of
study, including vocabulary, theories, key variables and its methods and history. It is a critical
and in depth evaluation of the previous research report. It determines the summary and synopsis
of a particular research.
The Effective Entry Strategy of Aston Martin in its International Market
According to the Ahi et. al., (2017), there are different ways through which the company
can enter into international market. A single market strategy will not work for all international
market. The firm must analyse the market opportunities as well as their internal capabilities to
ascertain which approach will be best to use. While entering into the market Aston Martin have
to analyse the market opportunities and plan the strategy to enter into it. The most common
entry strategy to enter into International Market are outlined below.
 Exporting-
Exporting is the marketing of goods produced in one country to sell them in another country.
Aston Martin can enter into new International Market by exporting their luxury cars on demand
of customers. This is one of the low risk strategy which mostly businesses find attractive to enter
into International Market. It may also be cost effective for Aston Martin as they don't need to
invest in production facilities of exporting country. Exporting finds a new growth opportunities
for Aston Martin, instead of developing new ones, it is more profitable to export the existing
product (Lin and Liu, 2018).
 Joint Venture-
A joint venture is a partnership between the two companies establishing a jointly owned
business. The partnership is between a Domestic company and International Company. Aston
Martin can form a partnership with domestic firm of the country in which they want to expand
their market. The risk and returns are shared by the companies. Through Joint venture the
company can facilitate market entry and also share the technologies. Aston Martin must analyse
the best organisation with whom they can form a partnership (Westjohn and Magnusson., 2017).
 Licensing-

Licensing is an another way to enter into the international market. License grants permission to
company for manufacturing of goods and services in other country with their own name. Aston
Martin can take permit from the target country to use the property of the licensor. They have to
pay the fees in exchange for the rights to use the intellectual property. These property are usually
intangible such as patents, trademarks and production techniques. Licensing reduces the cost and
involves limited risk (Parr, 2018).
 Franchising-
It is one of the most popular market strategies that is gaining demand across the world is
franchising. It works best for the organisations that have brand value and trustworthy business
model. Aston Martin if takes up franchising they should make sure it earn a good brand name
build on it and also promote it. This entry strategy doesn't need huge investment, it also creates a
reputable brand name (Buckley and et. al., 2018).
The Aston Martin use the exporting strategy to enter into the International Market. This method
has low risk and low investment. The company have to invest less as compare to other modes of
entry into international market
Benefits of Entry Strategy for Aston Martin in maintaining the competitive position in the
International Market
The benefits for Entry Strategy for Aston Martin in maintaining the competitive position
in the market are as follows-
 Benefits of Exporting Entry Strategy-
The advantages of exporting entry strategy are outlined below-
 Increases sales and profit-
The sales and profit of the company increases if they export their products into other countries.
Sales is generated when customers demand for the product. The foreign sales increases the
overall profitability, once the export development costs have been met.
 Diversification-
If Aston Martin, sells their product to multiple market it allows company to diversify their
business and spread the risk (Poon. and Ng, 2017). Diversification increase the profit margin and
growth of the organisation.
 Protect Goodwill-

Exporting strategy helps to protect the patents, trademarks and other intangible assets. The
company can export their products to other country with the protection of intellectual property.
 Benefits of Joint Venture Entry Strategy-
The Company can enter into international market through joint venture. It contains various
benefits they are as follows-
 Both Company shares the risk-
The Company which is forming a partnership with Aston Martin, is liable to share the risk and
the cost which occurred. If in case the joint venture project fails, the company alone is not
responsible to bear the costs of its failure.
 Low political risk-
The political risk in joint venture is low due to the presence of the local business. The local
business have the knowledge of the local market and its business environment (Kilian and Zhou.,
2018). So the company have to face the low political risk.
 Better Resources-
Forming a joint venture will give the Aston Martin to access the better resources such as
technology, specialised staff and various other resources. It is an great opportunity for the
company to form a partnership with local company.
 Benefits of Licensing and Franchising-
The licensing and Franchising have several benefits they are-
 Expansion-
The license helps to expand the organisations quickly without any hazards. It also create a path
for future investment in the market.
 Creates an opportunity for passive incomes-
It creates an opportunity of an ongoing stream of passive revenues. As long as the license are
making money than the company will also make money too. These payments could last for many
years without any interruption.
 Develop Unique Marketing approach-
Licensing and franchising partners have better knowledge about the local markets. That
knowledge helps the intellectual property to be marketed in such a way that attracts the average

customers. It gives a chance to expand the reach of the product, message or concept without
needing to invest into it (Rugmanand Verbeke., 2017).
The Challenges present at International Market for Aston Martin
There are various obstacles which Aston Martin have to faced into International Market
(Chow and et. al., 2017). Here are some challenges which the company have to prepare for it.
 Tax and Compliance issues-
It will be challenging for Aston Martin to learn the different tax codes and business regulations
of operating country. Dealing with taxes, tariffs and fees for international trade can be major
hurdle for the company. The firm should be aware of trading standards and regulations, if they
fail to meet compliance regulations of the operating nation the expansion plans will be put a halt.
 Local competition-
It is not easy to gain the trust of the customers when a similar product is made in the local
country. Aston Martin have to convince the International market that their brands are trustworthy
and better than the competitors. The company should be aware of its competitors pros and cons
and their strategies.
 Global pricing Strategy-
Setting the prices of the cars will be challenging for Aston Martin when doing business in other
Country. The company have to research the prices of its local market competitors and must
consider the cost to remain competitive.
 Currency rates-
Currency rate fluctuations is also one of the most challenging international business issues which
Aston Martin have to face. The fluctuations can seriously impact the balance of business profit
and expenses. The one of the way to protect against large fluctuations of currency is to pay the
suppliers in the same currency (Cohn and Hira, 2020).
The Strategy to overcome the challenges at international market for Aston Martin
There are various strategies which Aston Martin can use to overcome the challenges at
International Market are given below-
 Local Market Knowledge-
Aston Martin requires a great knowledge of the local market in which they are expanding its
business operation. If they are expanding their business in China, they need to have a specialist
who guides, the Chinese market. It helps to provide the valuable insights of the market. The

company should have enough knowledge of the local nation so that they may not face any
hindrances while expanding their business (Jeong, Chae and Park 2017).
 Navigating New legislation-
The different countries have different legislations and jurisdictions, the company have to
understand these laws and regulations (Min and et. al., 2017). They can take help of the local
lawyers to understand the nation legislations .
 Support Local Currencies-
The Company should support the local currencies so that they may not face any difficulty in
dealing with customers. The firm must not only support local currency but also support the
payment providers that they are familiar with. If the business is not offering their product in local
currency it can completely crash the plans of internationalization.
 Scalability and Fairness in pricing-
The Price of the product should match the size of the customers budget. The company should
launch their product keeping in mind the customers pocket (Deng and et. al., 2020).

Methodology
A Methodology is a system of methods and principles which are used in particular area
whereas Research refers to creation of new knowledge and the use of existing knowledge in a
creative way to generate new concepts, understandings and methodologies. Research
Methodology is a procedure or technique which is used to identify, select and analyse
information about the given topic. A good research methodology contains a secret recipe to
convince the reader that the research in consideration is going to be useful and feasible
(Rittberger and et. al., 2019). The research onion contains several elements they are described as-
 Philosophy-
Research Philosophy refers to set of principles and beliefs concerning the nature of the real
world being investigated. It is usually examines in terms of ontology and epistemology. There
are two positions used in academic studies they are positivism and interpretivism. Positivism
assumes that the Scientific knowledge is true and acceptable knowledge of the world where
interpretivism claims that the individual observer have their own understanding and perception
(Hürlimann, 2019).
 Approach-
It demonstrates the approaches that the researcher could pick when conducting research of any
kind. A research approach can be deductive or inductive, its selection would be based on the
previously made choices, limitations, opinions and research aims. Deductive approach flows
from generic to specific. Researcher using deductive approach starts with the theory and moves
to research questions which is tested through data collection. Inductive approach is often used
when there is little research topic is available. Generally, deductive approach is associated with
quantitative research whereas inductive approach is linked to qualitative research (Hall and
Roussel, 2020).
 Choices-
The possible Choices includes the mono method, the multi method and the mixed method for
conducting the research. The mono method involves only one method for study (Burton and et.
al., 2020). The mixed method requires the use of two and more methods of research and usually
refers to use qualitative and quantitative methodology. Finally the Multi method use a wider
selection of methods. In this study, mono method is the chosen one's.
 Time Horizon-

The Time Horizon refers to the time frame of the research within which the project is intended
for completion. There are two types of time horizon they are cross sectional and the longitudinal.
Cross sectional is used when the observation are for a single point of time, this is used when the
research is concerned with the study of particular phenomena whereas longitudinal data implies
the observations for a variables that are available for several days, months or years (Mohammad
and Drolet, 2019).
 Data Collection and Analysis-
Data Collection and Analysis consist of the procedures and techniques used while conducting the
research. It is used to clearly explains the different ways and purpose of conducting the research.
It also explains the source of data, sample size, sample ethics, sample limitations, etc. The
researcher have to choose between the primary and secondary data and between quantitative and
qualitative data collected from the different sources. Primary data is collected directly from the
sources such as, oral or written instruments, questionnaires, interview etc. These are main
sources but according to the current project questionnaire is a chosen source of primary data
collection. Secondary data is another type of data that will be collected from books, articles and
many other sources. In this report both the data is selected for the accomplishment of the project.
 Research Instrument-
Research Instrument is a tool that may use to obtain or collect the data, measure and analyse the
data that is relevant in research. The research Instruments consist of surveys, interviews, simple
texts and questionnaires. The choice of research instrument tool to be use is decided by the
researcher (Morgan and et. al., 2018). A good research instruments is one that is reliable and
validate. It should be the one that collects the data in such a way that is appropriate for the
question asked in research. In this Research, questionnaires have used to obtain the data. A
Questionnaires consist of set of questions or other type of prompts that aims to gather the
information from the respondent.
 Sampling -
Sampling is defined as a set of data that the researcher selects from a large populations by using
pre defined selection method. There are two types of sampling method they are Probability
sampling and Non probability sampling. Probability sampling involves the random selection of
data, it is mainly used in quantitative research. Non probability sampling involves the non
random selection which is based on the convenience, it is used in qualitative research. In this

research, the sample of 15 employees of Aston Martin is considering. In order to access the
sample for current investigation, researcher must take permission from the employees of Aston
Martin.
 Research Ethics-
Research Ethics are the moral principles, rules or professional code of conduct which the
researcher have to follow while collecting, reporting and analysing the research subjects. The
researcher should follow the regulations that apply to their work (Broocks and Van Biesebroeck.,
2017). It educates and monitors the researcher while conducting the research they should
maintain the high ethical standard. The data of the research should not be fabricate or
misrepresent, the researcher should avoid the errors and negligence in their work. The records of
research activities should be properly maintained.