A Study on Strategies Employed by Businesses to Enter Emerging Markets

This research project delves into the strategies employed by businesses to penetrate emerging markets, with a specific focus on the case of Tesco's expansion. The report begins with an introduction and literature review, examining the concept of emerging markets, different foreign market entry modes, and the factors influencing these choices. The research methodology, including research philosophy and approach, is outlined. The project analyzes the contribution of globalization, the rationale behind the study, and the aims and objectives. The literature review identifies key themes, such as market entry modes like exporting and licensing, and the factors affecting the selection of these modes, including external, internal, and transaction-specific considerations. It also discusses the importance of market entry strategies for business success, including market selection and expansion. The report also includes a reflection and references.

Research Project

Table of Contents
PART 1-RESEARH PROPOSAL...................................................................................................1
INTRODUCTION...........................................................................................................................1
Contribution of the research........................................................................................................2
LITERATURE REVIEW................................................................................................................3
Theme 1: To identify the concept of emerging markets and different foreign market entry
modes..........................................................................................................................................3
Theme 2: To determine the factors affecting the choice of an entry mode.................................3
Theme 3: To identity the significant importance of market entry strategies for the business
success.........................................................................................................................................5
RESEARCH METHODOLOGY.....................................................................................................6
TIMELINE.......................................................................................................................................7
PART 2- RESEARCH PROJECT ..................................................................................................9
EXECUTIVE SUMMARY ............................................................................................................9
METHODOLOGY..........................................................................................................................9
RESULTS/ FINDINGS.................................................................................................................11
DISCUSSION................................................................................................................................15
CONCLUSION .............................................................................................................................24
RECOMMENDATIONS ..............................................................................................................25
REFLECTION...............................................................................................................................26
REFERENCES .............................................................................................................................28

PART 1-RESEARH PROPOSAL
INTRODUCTION
In order to promote the new product or services in the market the most important thing
that businesses do is to identify their potential market area to gain profit maximization. Global
business is the opportunity for any businesses who wants to expand its operation activities to
generate significant profit outcomes (Ward, 2016). Meanwhile, companies also facing many
challenges and failures to get to the final stage due to wrong selection of market entry modes.
Present research project has been based on the different strategies employed by the business to
enter emerging markets. In order to take into the deep knowledge, researcher also taken help
from different resources, methodologies to collect the information on globalisation and it's
emerging market strategies. Globalisation defines the new change within the organisation with
innovation and creativeness. Globalization of business is the change in a business from a
company associated with a single country to one that operates in multiple countries. Present
research based on globalisation where it will be taking topic the different strategies employed by
businesses to enter emerging market. Moreover, this research project will also be covering the
primary and secondary research with the help of using different methodologies. h
Background
In present situation of market, whether it is medium scale business or small scale
business are wants to sell their product or services at global market. Internationalisation is the
process of adapting exchange transaction modality to international markets. In other words,
globalisation is now become the mainstream phenomenon in the market. That helps businesses to
get more profit and customer attention towards the company profitability. Such as TESCO wants
to open up their new expansion in China Emerging market that helps company to explore the
range of services to new buyers as well. China is a huge market where the company can easily
get the higher opportunity to explore the market operations for getting higher business growth.
The focus of the study is to identify the different strategies that company could adopt enter into
the new emerging market. It also helps to redefine the business with new people, customer needs,
technologies and many more.
Limitations of the research
Limitations of the present research are the factors that sometimes affect the whole
research process and make difficulties to collects data or information. In present research there
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will be a statistical or data limitations due to which it can suffer from limited impact from factors
such as strong regional focus. Statistical limitations can also stem from study design, producing
more serious limitations in terms of interpreting the findings. Another limitation of the study can
be wrong research design which can also be the threat for the researcher.
Contribution of the research
Globalisation has contributed to the process of business growth in each areas. Present
study will contribute in terms of development in technologies change, economies of scale, helps
in identifying the differences in tax systems, less protectionism, growth strategies of
transactional and multinational companies. However, the researcher conduct the study on
globalisation and identifying the business opportunities.
Rationale
The reason behind this study is to explore the best emerging market entry mode to the
company in order to expand the business activities. Besides that, study finds the most efficient
international market entry strategy for companies moving from developed/transition economy to
an emerging market growth. Internationalization is the broad concept that makes the industry
most innovative and challenging in order to meet out the goals and objectives. So that, the main
purpose of this research is to know the deep understanding of the importance of globalisation in
order to promote the business and profit earning capacity.
Aims : “To investigate the different strategies employed by businesses to enter emerging
markets”. A study based on TESCO.
Objectives
 To identify the concept of emerging markets and different foreign market entry modes.
 To determine the factors affecting the choice of an entry mode.
 To identity the significant importance of market entry strategies for the business success.
Research Questions
Q. What are the concept of emerging market and different foreign market entry modes ?
Q. What are the factors affecting the choice of an entry mode ?
Q. What are the significant importance of market entry strategies for the business success ?
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LITERATURE REVIEW
Theme 1: To identify the concept of emerging markets and different foreign market entry
modes.
According to Marquis and Raynard, (2015), In order to expand the business activity and
their market on international they need to decide on a market entry strategy, Which comprise an
entry mode and a marketing plan. In order to expand this market there are several market entry
mode strategies. In other words, emerging market economy is one in which the country is
becoming a developed nation and is determined through many socio economic factors. All
emerging countries progressing towards the growth or development. According to Leonidou and
et.al., (2017) there are number of market entry modes that helps to get the best idea and effective
learning opportunity. such as Exporting is one of the first market entry strategy which is the
marketing and direct sale of domestically produced goods in another country. Commerce is a
traditional and well established method of reaching foreign markets. Commercialism is a
conventional and well established methods that helps Tesco to the reaching China Market.
Exporting is the marketing and direct sale system that helps company to begin the new journey in
the business goals. Another strategy for supporting roles are Licensing which is again very
essential permits a company in the target country to use the property of the licensor (Five Modes
of Entry Into Foreign Markets, 2019). This strategy is intangible, such as trademark, patents and
production and techniques. As per Marquis, and Raynard, (2015) Licensee pays a fee in
exchange for the rights to use the intangible property and possibly for technical assistance. The
advantage of licensing is they providing high rate of return to the company in order to meet out
the best advantage goals and results. The benefits of licensing are political connections and
distribution channel access that may depend on relationship.
Theme 2: To determine the factors affecting the choice of an entry mode.
According to Rauter, Jonker and Baumgartner, (2017) There are different factors that
affect the business entry modes in different manner. Such as external factors, internal factors,
transaction specific behaviour and desired mode characteristics etc. Such as external factors that
affect the choices of an entry mode by managers are those factors that controlled or influenced
by the firm. All these factors includes production factors, sociocultural factors, political factors
etc. in order to have knowledge of market factors are very significant for the company to explore
the different more market opportunities. Apart from that, there are all other factors that affect the
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business such as different environment and culture between company home country and the host
country. According to per Hohenthal, J., Johanson, J. and Johanson, (2015) another factor
affecting is internal factors that might get affect the decision making power of market entry
mode. It would directly affect the long term decision making power that affect the overall
business activities. These factors includes firm size, amount of international experience and
product or services characteristics. Other factors are transaction specific factors as the name
already indicates, transaction specific factors refers to the factors related to the transaction made
by the company. These factors get affected by the transaction costs and the tacit nature of know
and how. This affect the business opportunity and gain the long lasting effects and challenging
target opportunity and goals. All these factors directly or indirectly affect the business
opportunity and goals in different context and manner. Generally, transaction costs occur when
there is no fair competition in the markets. That also make involves and affect the business goals
and opportunity in order to meet out the best developing results. According to Rauter, Jonker and
Baumgartner, (2017) there are some barriers who restrict companies to open up the new
operation market into the new market position. This would affect the ineffectiveness and
inappropriateness to get the challenge. Companies entering into the new market face problems or
increased costs because of the business environment and they way which companies operates.
For example: marketing services might be prohibitively expensive. One of the challenging
barrier that might be affect Tesco is Monopolies situation represents a very serious barrier. This
situation arise when the company is the only seller of that particular goods or services in the
market. Monopolies might be the state owned or can be created through takeover of competing
companies. In other words, it would also impact the business in different so many manners and
target opportunity. Monopoly is the situation which represents a very serious barrier that affect
the business in very effective manner. Monopolies might be state owned or can be created
through takeovers of competing companies. If entering companies cannot access an efficient or
cost effective and distribution networks that makes the good or services are unlikely to be
successful. As per Leonidou and et.al., (2017) Another barrier is legal protection that might be
creating uncertainty for the businesses. For organisation new environment is not friendly and
their legal requirement that direct affect the business growth.
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Theme 3: To identity the significant importance of market entry strategies for the business
success.
According to Hohenthal, Johanson and Johanson, (2015) Market selection is the first and
most important step to understand launch a product or service overseas. Apart from that, it also
discovers the new learning growth that helps company to develop in a more motivating manner.
The main importance of market entry strategies that are most significant challenging market
opportunity and task that makes the best developing opportunity through company can make new
developing opportunity to gain market attraction. Globalisation is very important and challenging
business activity that makes company more popular and effective task. Market entry mode
strategies are very much effective and required ways that helps company to get the global reach.
All these entry modes also helps to local company to get interact at international level that
directly increases their high market share and growth for future.
Apart from that, it develops the new market with new product development is the big
opportunity to enter into the new state that makes the process more clear and challenging.
Expansion of business is good for the future development which is very important and good for
the good opportunity task. According to Hohenthal, Johanson and Johanson, (2015) Exporting is
the easiest and most effective and most commonly used method of entering a new international
market. This is helpful to promote the business opportunity and long lasting way of challenging.
Market entry strategies also very helpful and challenging getting market position.
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RESEARCH METHODOLOGY
Research Philosophy : This is the vast element of research methodology that helps
researcher to conduct detailed research (Kumar, 2019). In other words, for a businesses'
dissertation devoted to research philosophy in detailed manner to gain the best advantage growth
results. There are two types of research philosophy; Interpretivism and Positivism. Positivism
research philosophy is very difficult to be explained in a precise and succinct manner. In other
words, Positivism approach is based on facts which is authenticated at some level of time.
Present study will be uses Interpretivism method to take the study further.
Research Approach : Research approach is the another effective research method that
helps to accomplish aims and objectives. Research approach is of two types- deductive and
inductive research approach (Mackey and Gass, 2015). Deductive approach conduct the study
on the basis of hypothesis and inductive research conduct study on the basis of reasoning which
starts from taking new initiatives. Present research will be using Inductive approach to
understand the concept of emerging market and identify the different ways of market entry
modes.
Research design : Research design is the layout of study under which it conducts, it has
two types exploratory and conclusive. Exploratory research design generate the specific aim of
the research. In contrast, conclusive aim is to give the all answers of research question. Study
will be uses Exploratory research design.
Sampling : Sampling is the method of research that define the specific group of
individuals that helps to accomplish the research. It is of two types probability and non-
probability sampling. Present study will be uses simple random sampling by taking 25
employees of Tesco.
Data Collection : Data collection is the process of collecting data through different
manner into the best effective manner into the best practices and challenging manner. There are
two types of data collection method - primary and secondary method. Present study will be uses
both primary and secondary data method by the help of questionnaire and literature review
respectively (Flick, 2015).
Data Analysis : Data analysis is the secondary process after data collection where
researcher analysis and evaluate the data on the basis of two method quantitative and qualitative
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method. Present research will be using qualitative method by taking questionnaire survey with 25
employees.
Ethical Consideration : Ethical consideration is the leading and specific required
element in the research that makes study more authenticated and relevant to the fact. In between
researcher should have required to full fill the all legal consideration as per the law. Such as for
present study (Ledford and Gast, 2018). Researcher adopts the data protection act to make sure
that all data are secured and safe.
TIMELINE
Activities Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7
Selection
of topic
for
investigati
on
aim and
objectives
Writing
Literature
review
informati
on
Gathering
Analysis
of
informatio
n
Drawing
conclusion
Change
according
to
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feedback
received
Submissio
n the
research
report
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PART 2- RESEARCH PROJECT
EXECUTIVE SUMMARY
Present study has been outlined the emerging trend and different market entry mode to
international market. In other words, foreign direct investment that believed to make major
contributions to the economic development of emerging markets. However, the research project
has been described the different strategies and targets that makes the different opportunity for the
local businesses. The study investigate the foreign investment strategies in four emerging
markets and contribute the local economy. However, The present research project also has been
conduct survey from different targets. That helpful to make the best development areas and
goals. This study investigates the foreign investment strategies in the four emerging market
goals. Further in this report, researcher also investigated the survey conducted with respondents.
It has been found out that, as per the respondents majorly data suggested that Franchising is the
best strategy to entering into the other country (Goyat and Nain, 2016). However, the research
project also conducted methodologies and techniques that has been used throughout the whole
study. In order to support findings, research also justifying strategies by recommendation and
reflection.
METHODOLOGY
Research Philosophy : Research philosophy itself is a vast topic that helps to conduct
the research topic in detailed manner. There are two types of research philosophy Positivism and
interpretivsm (Bresler and Stake, 2017). interpretivsm involves researchers to interpret the study
by the integration of human interest. The main focus of this method is to identify the meaning by
implying the different aspects of the issue. Positivism is the complex than interpretivsm to
explained in a precise and sufficient manner. This method of approach is work on the basis of
ideas and that science is the only way to learn about the truth. However, the present study has
been taken interpretivsm philosophical method to identifying the most appropriate technique for
entering into the emerging market.
Research Approach : Research approach is divided into two techniques deductive and
inductive research technique. Deductive approach develops the hypothesis which has been based
on existing theory and then develop the research design to analyse the hypothesis. On the same
side, Inductive approach starts with observation or the theories and that discuss the findings. The
main objective of Inductive approach is to explore the whole research findings and identifying
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the formulating research questions and objectives (Fletcher, 2017). For present research, it has
been taken Inductive research approach to gathered the study and identifying into the best
possible manner.
Research Design : Research Design is considered the most influencing and different
context of the business to make the business opportunity and gain. Different Context can be
divided into two groups which is exploratory and conclusive. Exploratory research design is the
method or process to explore the research is not determine the nature of the problem, exploratory
research is not intended to provide conclusive evidence. Apart from that, conclusive method
which is implies to generate the findings that are practically useful in reaching conclusive or
decision making. Conclusive research design usually involves the application of quantitative
methods of data collection. So in other words, present research will be taking Exploratory
research design which is more useful and effective to explore the data into more deeper manner.
Sampling : Sampling is the systematic approach or method to describe to explore the
research into more effective manner (Flick, 2015). Sampling is the approach which explained as
a specific principle used to select members of population to be included in the study. Due to
large number of population growth sampling methodology has been divided into two parts
probability and non probability sampling. Probability sampling is the method of population has a
chance of participating in the study. Probability is the technique that allows audience to
participate in the research process. Under this technique number of other method is includes is
simple, stratified, Systematic, multistage and cluster sampling methods. On the other hand, non
probability sampling method is the non random manner. That define the better effective learning
opportunity gain. Non probability sampling is the method that selects specific and limited
number of respondents for the study with the helps of some methods such as purposive, non
random, convenience etc. in order to conduct this present research, researcher has been taken
simple random sampling with the help of 25 employees of TESCO.
Data collection : Data collection is the most essential and significant fact that contributes
the major part in the research. Data collection or information is the source through researcher
analyse the findings and evaluate the final outcomes. However, this is the essential process of the
research process (Goyat and Nain, 2016). There are two types of method of data collection
primary and secondary. Secondary data is a method that collects information from journals,
books, internet, etc. secondary information is helpful to collect unlimited knowledge that might
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