Cyberware: Strategies for Entering the Indian Market - Report

This report examines Cyberware, a UK-based company specializing in high-performance gaming PCs, and its strategy for entering the Indian market. The report begins with an introduction to international business and the importance of market entry modes. Task 1 focuses on explaining the joint venture market entry mode as the most suitable option for Cyberware to launch a new computer scanner product in India, comparing it to alternatives like exporting, licensing, and franchising. Task 2 delves into the socio-economic issues affecting Cyberware's entry, including political, economic, social, cultural, technological, and legal factors within the Indian business environment. The analysis considers India's strong political system, economic growth, cultural diversity, technological advancements, and legal framework, highlighting both opportunities and challenges. The report concludes by emphasizing the importance of effective market research and strategic adaptation for Cyberware to achieve success and long-term stability in the Indian market. The report provides an overview of the international business environment and strategic considerations for market entry.

International
business
management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Explanation about the mode of entry in the India market...........................................................3
TASK 2............................................................................................................................................6
Socio economic issues affecting company's entry into the new market.....................................6
CONCLUSION..............................................................................................................................10
References......................................................................................................................................11

INTRODUCTION
In the present era, every business enterprise wants to earn the maximum profitability and
revenue in the competitive market. For this objective, many domestic companies expands its
business at international level. While any firm operates its business in multiple countries then it
is known as the international business (Demangeot, Broderick and Craig, 2015). The
management of the business operation for company that conduct their business in more than one
country is known as the international business. While any firm operate its business at global level
then it international management requires effective knowledge and skills about the international
market as well as environment. In the following report, the depth understanding and knowledge
about the international business and its required practices and function has systematically
addressed with respect of Cyberware company based in the UK. Its main function is to produce
high performance gaming PC's. Its main objective is to deliver the high quality and perfect build
quality PC's and maintain its string position in the UK market.
MAIN BODY
TASK 1
Explanation about the mode of entry in the India market
International business is a process under which company sale its product and services in
the more than one country. While any firm consider on the international business activities then
it has to focus on the various international business environment as well as practices. Cyberware
company UK have elite gaming experience. Its main work is to deliver the high performance
gaming PC and maintain the best support system currently available. Company have main
passion and mission is to produce the high quality of gaming PC's, gaming laptop, gaming
peripherals etc and deliver the best solution to its customer. Its aim is to earn the maximum
profitability and market share in the UK market as it currently operate in the UK market.
Cyberware customers are very confident and assured by the use of most advanced cutting edge
technology. Thus, it can be said that cited venture have very effective position in the market in
the industry of computer and customer loyalty is also high (Cavusgil and Knight, 2015). Now
cited firm thinks to expand its business at global level therefore it selected the Indian market for
international expansion. In the India there are hue opportunities for business expansion that's
why Cyberware desired to seek the growth and stability in the Indian market. In addition to this,

cited firm is also going to launch the new computer product that is high quality computer scanner
in the Indian market. A computer scanner is a device that captures images from the photographic
prints, posters, magazines pages and similar sources for computer editing and display. For this
purpose of launching new product and enter into the Indian market, market entry mode is one of
the major concern which firm have to consider in the international expansion. Market entry is
planned method of delivery goods or service to a new target market and distributing them there.
There are various kinds of market entry strategy which can use to enter in the new market. These
market entry strategy are as follows-
 Joint Venture- It is a unique kind of partnership in which two or more companies work
together in order to form the third new organisation. In this manner, One company joint
or together with another same company which produce the same product.
Illustration 1: International market entry modes
Sources: Demangeot, Broderick and Craig, 2015.

 Franchising- This entry mode is most common among the food chain business under
which company coping and pasting a concept in the new market. It is a optimal when
one company brand is already well known.
 Exporting-In this market entry strategy, company send the goods and services in an
international market. There are two kinds of exporting that is direct and indirect. In direct
exporting, company takes charges of shipping goods to international market and in the
indirect exportation corporation uses a middleman to integrate the product into the
international market.
 Licensing- Licensing is a process under which one company gives their rights to produce
or sell the company's product and services.
As per the above discussion it has been ascertained that there are various modes of entry in the
international market. For the cyberware company, joint venture is one of the best market entry
mode by which it can join together with another similar cyberware company in the Indian market
and produce the new computer scanner product (Ehrlich, Shoham and Asseraf, 2016). Under
this market entry mode, two or more corporations work together for form a third corporation.
Cyberware can use this option because it requires launching the new product that is computer
scanner. In this manner, cited firm can pair with another similar company of cyberware and can
launch the new product in the Indian market. Other market entry strategy like licensing,
exporting and franchising is not suitable because of the several reasons which are as follows-

 In the exporting, company require to sales its product and services in the international
market either by won or by sue of middlemen. Cyberware company desires to launch the
new product in the India market that is why it does not suit this exporting market entry
strategy.
 In the context of licensing and franchising, business gives the licensee of franchisee
permission to use the rights of trademarks, brand and produce a patented product. Cited
firm is going to launch the new product in the Indian market that is why these mentioned
strategy will not be suitable for international business expansion.
TASK 2
Socio economic issues affecting company's entry into the new market
Business environment consist with internal and external components which affect the
firm in the large context. While any firm enter into the international market then international
business environment component may largely affect to business activities and functions. In this
manner company requires analysing the business environment in an effective manner and set
business practices and functions accordingly. Cyberware company going to launch the new
computer scanner product in the Indian market and its will use the joint venture market entry
strategy to enter in the Indian market. While it enters in the international market, cited venture
requires analysing each external component which affect company's activities and functions.
Following are some component that affect the Cyberware entry and its business activities in the
Indian market-
 Political- In the India, political system is very strong and various political parties have
very strong politics. The taxation system is also very effective and well established and
persons and organisation have to pay income tax, services tax, sales tax etc. Indian
government has adopted the privatisation policies to enhance the effectiveness and
efficiency of the political system (Ehrlich, Shoham and Asseraf, 2016). Thus, it can be
said that Cyberware company will beneficial to operate the business in the Indian market
as political system is well established and strong. However it has strict rules, regulation
so somewhere there are some negative points also to decrease the chances of being
established of this company in india. In political terms company can have so many issues
in India because there are so many rules which is made by the government of India can

make so many impacts on the system of Cyberware company. The tax and various duties
will decrease its profitability. The political system is quite orthodox so its effect can
strike the infrastructure of the Cyberware. In other countries the political system is
handled by few people but in India the whole system is based on the ordinary people. The
Cyberware have to face so many negative factors in India and it can be a challenge.
 Economical- This factor includes the recession, interest rate, inflation rate etc.
Economical condition of the India is strong and government introduced the industrial
reform in 1991. The country has enough foreign exchange reserve and it is paying
attention on various sectors like health care, education, banking, finance sector. India has
earned the GDP of $5.07 trillion in 2013 which is developed in the growth of 5% in 2015
while in 4.35% in 2013.Cyberware company required to analyse the economic condition
of the Indian market and set the prices of product and services according to the economic
condition of India. However the india economy depends on the small businesses like
farming and domestic industries, but now there are already so many multinational
companies have made their brand image in india but because of some companies the
economy has got down, so Cyberware will have problems while they will not able to
match the economic standards. Because being in the competitive market of India is not
that easy. Launching a new product can decrease the share of company in market and this
is how economic figure will have the fluctuation. .

 Social and cultural-This is one of the major factor which affect the Cyberware company
in the Indian market. In this component includes customer choice, taste, preferences,
culture, education level, income level etc. Company have to assess the actual needs and
wants of the customers related to the computers products for attain the effective growth
and success in the Indian market. However Indian people are divided by so many
different culture which can make differ in the image of organization.
Illustration 2: Economic condition of India
Source:Kaynak and Kucukemiroglu, 2015.

Illustration 3: Indian growth performance
Source:Clark and et.al., 2016.

 Technological- Technological component is major factor in the international business
environment which affect company's technological operation. India has served with both
3G and 4G technology which facilitate the technological product of the company.
Cyberware have to set its technological infrastructure according to the Indian
technological environment. India is one of the strongest IT sectors in the world, which
promote IT development, software upgrades and other technological advancement that
thing will support to the Cyberware company in developing the new computer printer and
gain customer attraction. Technically India already have so much of potential so it can
also make difference in the Cyberware's image negatively.
 Legal- Legal component includes various norms and legislation about the busines,
employees and customer. Indian government has made various legal rules and regulations
ion order to protect the customer rights, employees precise and business unit from
unethical and illegal activities (Demangeot, Broderick and Craig, 2015). The latest legal
changes can affect the costs and demand of the company's and it will boost the
production of these organisations. Indian government has developed various acts like
Trade mark act 1969, essential commodities act 1955 and customer protection cat
196.These all laws will protect the Cyberware company's business its employees as well
as its customer from the unethical and illegal actions. Thus, it can be said that legal
environment of the India will support and assist to the Cyberware organisation in the
Indian market. Legally there are so many strict laws and order for the business in india so
Cyberware have to face issue regarding those issues.
From the above discussion it has been ascertained that there are various complexities as well as
benefits in the Indian market. Thus, Cyberware company can gain the effective success in the
market by its effective political, economic, technological system. However, various complexities
are also available in the Indian market which can resolve by effective market research and
business environment analysis. Cuyberware company should need to consider various effective
strategies to cope with changes in the Indian market. So that it can definatly gain an effective
success and long term stability in this Indian market.

CONCLUSION
Business environment is very important aspect for every business unit which affect the
each and every activities and function of the organisation. From this report it has been concluded
that Cyberware company UK have elite gaming experience. Its main work is to deliver the high
performance gaming PC and maintain the best support system currently available. Cited firm is
going to launch the new computer scanner in the Indian market that is why it will follow the joint
venture mode of entry strategy in the Indian market. It has been also concluded that social and
economical factor can largely affect the business organisation in positive as well as negative
manner. By effective business environment analysis and research, cited firm can sustain and get
growth in the Indian market.

References
Books and journals