Global Market and Sales Development Report for Checkout.com

This report provides a comprehensive analysis of Checkout.com's global market and sales development strategy, with a specific focus on the Philippines. It begins with an introduction to Checkout.com, an e-commerce payment processing service, and its operational overview. The report then delves into a macro-environmental analysis of the Philippines using the PESTLE framework, assessing political, economic, social, technological, legal, and environmental factors relevant to business operations. An internal analysis employing McKinsey's 7-S model examines the company's strategy, structure, systems, shared values, style, staff, and skills. Furthermore, an operational environment assessment using Porter's Five Forces analyzes competitive rivalry, supplier power, buyer power, threat of substitution, and threat of new entry within the payment processing industry. The report outlines marketing objectives, entry strategies, and tactics, including a promotional plan and marketing action plan. The conclusion summarizes key findings, and references are provided. The report aims to evaluate Checkout.com's potential in the Philippine market, considering both internal capabilities and external market conditions.

GLOBAL MARKET AND
SALES DEVELOPMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
ORGANISATIONAL OVERVIEW/PROFILE..............................................................................3
MACRO ENVIRONMENTAL ANALYSIS..................................................................................3
THE INTERNAL ANALYSIS BY MCKINEY'S 7th MODEL.....................................................5
OPERATIONAL ENVIRONMNET BY PORTER'S 5 FORCES..................................................6
MARKETING OBJECTIVES.........................................................................................................8
MARKETING STRATEGY............................................................................................................8
ENTRY STRATEGY......................................................................................................................9
MARKETING TACTICS................................................................................................................9
PROMOTIONAL..........................................................................................................................10
MARKETING ACTION PLAN....................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Checkout.com is a service industry. The service sector produce intangible outputs which
base of labour, skills, and technology that change the situation of product and persons, or that
transfer of knowledge or ownership between others. Company founded in 2012, basically it is
involved in e- commerce businesses. Where they processing international payments. According
to the pricing section of website, the service firm offers merchants interchange-plus or flat rate
pricing decision. This company have high rate of customer in UK. The company is similar to
stripe and 2checkout company. The enterprise works is that it bundle of payment gateway with a
mechanist account as a parts of an all in one software. Moreover original name of checkout.com
was opus payments in April 2012. the company supports payments in 159 countries with 18
different pay methods. The technique are generally used apple pay and google pay (Ivanova
2016).
ORGANISATIONAL OVERVIEW/PROFILE
Basically firm deal with many of user who don't have merchants account. Company
create a global account which state a clear accessibility to user to exchange the money. In any of
the countries without any cost of session. checkout.com gives promotional and specific gift to the
user at big amount of exchange. Philippines is right place where checkout must be in form of
market. In Philippines there are only payments gateway which provide access to online
payments. Their is no nay change in the form of currencies in quick method. The checkout.com
deal with the exchange of money.
MACRO ENVIRONMENTAL ANALYSIS
PESTLE ANALYSIS OF PHILIPPINE FOR THE BUSINESS
There are many competitors available in the market. For introduction of the product in
the existing market can be very touch to evolve. There are so many hurdles are there which are
going to face by the company. To introduce their product in the market company need to use the
most effective strategy to mark up and aware the product to the customers. There is a business
strategy which is going to use with the PESTLE (Cechinel 2016).
PESTLE is here the analysis which is going to get the information for making a good
strategy for the international business. It includes Political, Economic, Social, Technological,
Legal and Environmental factors.

Political factor
By the PWC reports Philippines government's attitude towards businesses are very
positive. Philippine Development Plan 2017 – 2022 were introduced by the government. Their
country has adopted the growth strategy for their people, to get rid of the poverty and to grow as
major power player. This create the opportunity for other business unit to get introduce in that
country. By completing the compulsory formality they are able to get authorised for the business.
As the country is committed for promotion of economic growth through market force that can
helpful in bringing the wealth into this developing world. Several Special Economic Zones has
be established by the government of that country (Zhan 2016). As long as they are inside the
zone they don't need to pay the duty and taxes on the imported goods. Such political help can
help the business to grow.
Economic factor
Philippines is now the 38th largest economy in this world. It's GDP was worth $330.91
billion in the financial year 2018. The main economy boosting industries are tourism, agriculture,
pharmaceuticals,electronics, mining mineral processing, and manufacturing. As the UK is one of
the top trading partner the company can easily be established in that country. This country is
very good to invest due to low cost of business set-up, easy location for resources. In DEC 2019,
corporate tax rate was 30% for the resident and non resident both corporations.
Social factor
People of Philippine are called Filipinos. They are so friendly and helpful in nature. They
are well known for sense of humour and positive attitude. Most of them try to give their best to
their visitors and to make them feel like VIPs. This is one of the great cause for having many
number of visitors in this country. English and Filipino both are the official languages in that
country and 87 regional languages are spoken in whole country. Major religion is Christianity
and Islam comes on second position (Sottilare and et. al., 2018). Population of the country is 108
million in 2020. Life expectancy of women are 73 years and men having 66 years. English as a
official language makes easy to communicate the foreign companies to running the business
operations in the country. Country also having some social challenges like poverty, drug abuse,
killing, lack of job opportunities etc. All these can be used for the business development in the
country.
Technological factor

The Philippines has shown a rapid progression the technology and innovations in over a
year. Their IT spending is more high to reach for US $8.1 billion by 2023. There can be seen the
rise in the demand of technological products and services which created the demand more and
more. This time phase can be a good opportunities for introduce the company to show their
performance with the great level of satisfaction (Rossi 2016). This satisfaction will help the
company to get the a good position in the market of the country (Yu, H. and Chen, D., 2019).
Demand is generated due to growing middle class, young population and their love and interest
are the key drivers of this demand. Company need to get this opportunity and can easily able to
pHabtom and et. al., 2017rovide its services which having a greater chances to get by country
people due to their tech love. However, there are many analysts who think that government need
to invest more on the advanced science, technology, engineering & maths (STEM). C\OVID has
changed many things and now people are more friendly with the tech and gadgets due to lock-
down in the country or say, world.
Legal factor
Every country have their legal law. Like this Philippines also having some law which
includes the consumer law, discrimination law, copyright law, health and safety law,
employment law, fraud law, import ans export low etc. which every business have to follow
them. Main source of the low is constitution of 1987 (Nafei 2016).
Environmental factor
It is one of the main factor in the business development in other countries because it may
have totally different environment than the UK. Here it is needed to know the connectivity of the
internet because the service can only be delivered when customer and service provider both have
the access and connected to the internet. The company is providing the payment service to their
customer so privacy is essential
THE INTERNAL ANALYSIS BY MCKINEY'S 7th MODEL
It is a internal analysis model that is used to analyses the different aspects of
checkout.com and the way strategies are formulated by this organization:
Strategy: It the depicting the overall; plan for maintaining and building up of
Competitive advantage over other competitors. Checkout.com is focusing on strategy to
establish themselves in international borders in Philippines as their target segment of market
(Esfahani and et. al., 2017).

Structure: It depicts the overall organizational structure of a organization. There is use
of transformation way of managing the structure where reporting relationship are arsing out of
job positions in Checkout.com.
System: It consist of the basic daily procedures and activities that are used for the
purpose of getting the work done in a organization.
Shared values: These are regarded as the set of core values that is part of a organization
and is showing the corporate culture and part of general work ethics. It was used when the
subordinate galas were developed. The overall shared values of Checkout.com is to invest in
development of own products.
Style: It is depicting the overall style of leadership that is sued by leaders in the process
of managing the organization. There is use of transformation leadership style as checkout.com
will be focusing on designing of perfect solutions for problems faced by their target market of
customers (Høgevold 2017).
Staff: it is part of the overall capabilities of employees in a organization that is assisting
in performing the specif job roles and assigned responsibilities. The workforce is planning to
focus on the drive of higher conversion rate of trading depot.
Skills: It the competencies and the actual skill level that is assisting employees of a
organization. There is focus on use of software skills of their existing staff managers of
checkout.com.
OPERATIONAL ENVIRONMNET BY PORTER'S 5 FORCES
The three main sector model in economy into three model of activity extraction,
manufacturing, and services. In Philippine the service sector in the term of money services are
less. The service sector posses very high set of goodness, evaluation of services are done on the
base of transfer of client satisfaction. In the field of service the checkout.com refer a big user.
User reviewed website four star rating (Albertyn-Burton 2017). Customer who used the payment
processing service by selected firm they reviewed and commented very satisfied response. While
introducing on Philippines there are few of same organisation working same as selected
enterprise but response and service are not in well mannered. The porter five forces provides
strategies and market knowledge of place. The porter five forces with selected company are
discussed below-

 Competition rivalry- in the checkout.com the process of exchanging money is
automated and software based. Customers are generally facing problem when the process
is manual. Moreover money is very essential part of shaping the life by accomplish the
need. So safety and privacy required. The organisation go with the safety by using
encrypted software. The local Philippine e gateway payments competitor are Gcash,
DragonPay, JuanPay, PesoPay, PayEasy, MOLPay, WeePay and more (Weerasinghe
2019).
 Supplier powers- This is determined by how easy for suppliers to increase their prices.
How many potential suppliers do organisation have? How unique is the product or
service that supplier provide, and how costly would it be to switch from one supplier to
another supplier. The more you have to choose from, the easier it will be to switch to a
low cost alternative. But the fewer suppliers there are, and the more need their help, the
stronger their position and their ability to charge more for the product/supplier. That can
harm the enterprise profit. Checkout.com rates as a merchant services provider for
international e-commerce merchants.
 Bargain power/buyers power- Here, How easy it is for buyers to reduce prices of
product/service. How many buyers are there, and how big are their orders? How much
would it cost them to switch from your products and services in context with competitor?
checkout.com have listed their policies and pricing decision in websites, user who really
want to take the services they must go through the site. They compared the selected firm
with running competitors firm and they shortlist checkout.com as a service provider.
Policies of company is very clear in every aspect. In this company provide fast, safe ,
and reliable pattern with best technology. Which they dealing in transaction of money
that create trust and loyalty (Govindan and et. al., 2019).
 Threat of substitution- This refers of your customers finding a different way of doing
what you do. For example, if you supply a unique automated software product that
automates an process, competitors try to substitute it by doing the process manually or by
outsourcing it. A substitution cheap to make can weaken your product by developing
similar product and threaten your profitability.
 Threat of new entry- Organisation position can be affected by people's ability to enter
in market. Its not easy sometime but a time while after researching about the market

knowledge with new strategies the competitor enter in market. How easy is it to get a
loophole in your industry or market? How much would it cost, and how tightly is your
sector regulated its all are measurable (Katsikeas 2016).
MARKETING OBJECTIVES
Rational for objectives
The present marketing objectives for checkout.com is to:
 Enhance the marketing share in Philippines. To increase the promotional efforts in order to expand the market share by 2 percent
Justification
In the present context it is crucial to focus on the use of some new promotional strategies
that can lead towards expansion of the market share according to specified objectives. For this
there is need to focus on the different aspects of marketing mix which will assist checkout.com
to form their future marketing strategies. In order to promote their services for the new market
and availability of limited amount of investment there has to be effective utilisation of such
resources.
MARKETING STRATEGY
Porto folio Analysis
The attractiveness of allocated country
The economy of Philippines grew with a mediocre raise up to 21st century but since last
time period of 20 years economy of this country has seen a significant growth. The average
annual growth rate has been between 4.6 percent. And especially in the year 219 there has been a
high end growth that has rise to 6.4 percent. It has lead to moving of the country towards a lower
middle income nation with a gross national income of per capital 3,830 in the year 2018 as the
image rose to upper middle income country (Burton, N. and Chadwick, S., 2018).
Competitive strength of selected company
Checkout.com has been able to successfully be a low profile for some years they have
raised a 380 dollars million in a year and has been able to reach a impressive valuation of 5.5
billion dollars. They are part of building one stop for all the payments. Accepting of transactions,
processing and then detection of frauds. The organization is investing in their own products of
engineering and IT that is leading to higher sales for this company as compared to other

competitors brand. They have licenses in already establish countries such as UK, Brazil and
France, that is a never ending process for this company and has lead to creation of a establish
global brand image. All these associated element of this brand is leading to creation of a positive
brand linage for checkout.com and they are able to expand and rennet into Philippines
(Matricano 2018).
Mode of entry
ENTRY STRATEGY
As per analysing the different factors of the PESTLE, the decision for expending the
business of the company can be a good decision. There are many advantage which can be
achieved in this country on the basis of analysis and collected data regarding the company. On
the basis of political factor it is quite easy to get introduced in the market. The government need
such type of business for their own development. Due to corona economy of this country is little
contracted and they need to evolve their economy and for this new business establishment can
help them. Which also beneficial for the company.
MARKETING TACTICS
Product
Checkout.com is a organization that is a API based platform. This brand is dealing into
providing of some of the effective payment solutions that are offered to users so that the overall
checkout experience system of users can be effectively managed.
Pricing decision
Price is the value for a product/services in the market which is consumed by consumer. It
is also a part of marketing mix and that depend on the condition too that change in the market as
per the market change with respect of competitor action and demand variation. The pricing
decision are -
 premium pricing- high price is used to set a standard by product and services. Where a
strong competitor advantage exist for the company.
 Penetration pricing- price is set manually to gain market quickly. The prices is raised
when the promotional periods are over (Kumar 2017).
 Economy pricing – The market is targeted on the basis of mass market. The market share
were high in the economy pricing.

 Skimming pricing- high price is charged initially to recover the money, before new
competitor are arrives in market. Example – mobile phones and electronic items.
As per the above discussion, the checkout.com have fix their pricing on base of service
adaptability.
Place
Checkout.com is dealing in offering services of e commerce and the digital payment that
is leading to major growth in 2021 in the MENAP region. They are offering services only
through online available platform and the software technologies that are used by their target
segment of customers.
Promotion
For the purpose of promotion below mentioned promotional strategies will be used by
Checkout.com in order to successfully promote the brand for their target segment of market:
PROMOTIONAL
In the section of promotion, the service industry deal with many of activities likely low
cost start, discount, and paid advertisement. Which helps to create a awareness and a reminder
for the organisation. The selected firm must follow the concept of promotion to fix the place in
the customer heart and brain, they go through off price, low price concept for user to purchase
the service. The organisation have potential to show his company name as a brand value, and a
success company which helps to explore the firm in all aspect.
MARKETING ACTION PLAN
The present COVID Impact has affected each and every market segment is chekcout.com
has been also affected and this has lead to reduction of their revenue in the quarters ending June
2020. for the purpose of recovering from all the losses surfed by this brand there is requirement
to expand the market share and for this they have to enter intro a completely new market area.
For this there are some of the specific objective that have been developed by Checkout.com in
the present scenario:
 To successfully establish the brand in New market areas of Philippines
 To enhance the revenue by 2 percent by the end of financial year 21-22.
Monitoring and evaluation:

From the above mentioned marketing plan will be implemented in the organization then
there will be a emphasis on the way the overall progress will be checked according to the
available time period.

CONCLUSION
As per the above discussion, the decision of introduction their serivces of payment
gateway to the Philippines can be a big opportunities due to above described reasons. The
company may use their own strategy also to developing its business in that country. Expansion of
the business can go to be a better decision for that country.

REFERENCES
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