Research Report: Strategies for Entering Emerging Markets - China

This report analyzes different strategies employed by businesses to enter emerging markets, using Matches Fashion as a case study. The research identifies various entry modes, factors affecting their selection, and challenges faced, such as government regulations and legal protection. Data analysis reveals that most fashion retailers are expanding in China and prefer direct exporting or partnerships. The report recommends partnership and direct exporting as the best strategies for small to medium-sized enterprises, emphasizing their lower risk and cost-effectiveness. The research concludes that direct exporting and partnerships are suitable entry modes, especially in the context of globalization and the opportunities available in emerging markets. The study also highlights the importance of considering factors like legal protection and government regulations when selecting entry modes for business expansion. The report also includes a reflection on the learning process and the structure of the research.

RESEARCH PROJECT
TOPIC:
The different strategies employed by businesses to enter
emerging markets

AIM & OBJEC TIVES
Aim:
 “To determine the different strategies employed by companies to enter into
emerging market (China). A study on Matches Fashion”.
Objectives:
 To identify different entry modes that business used by businesses to enter into
emerging market.
 To determine the factors affecting the selection of entry modes for business
expansion.
 To extract the challenges faced by Matches Fashion entering in emerging market.
 To provide ways to select suitable entry modes to Matches Fashion to enter into
emerging market.

DATA ANALAYIS AND INTEPRETATION
.
Theme 1: Maximum fashion retailers were operating
in fashion industry for last 5 to 7 years
PARTICULARS FREQUENCY
2 to 5 years 5
5 to 7 years 4
7 to 10 years 10
10 years and above 3
Theme 2: Maximum fashion retailers are looking for
business expansion in China.
PARTICULARS FREQUENCY
Yes 13
No 4
Not Sure 8

CONT…
Theme 3: Fashion Retailers are looking for medium
size of market in emerging market.
PARTICULARS FREQUENCY
Small 7
Medium 12
Large 6
Theme 4: Maximum retailers are preferring Direct
Exporting as entry mode.
PARTICULARS FREQUENCY
Direct Exporting 8
Licensing and Franchising 6
Partnership 7
Merger and Acquisition 4

CONT…
Theme 5: Partnership and Direct Exporting is the best
option for Matches Fashion outlet for global
expansion in emerging market.
PARTICULARS FREQUENCY
Highly Agree 8
Agree 6
Neutral 2
Highly Disagree 5
Disagree 4
Theme 6: Low Risk is the biggest advantage of Direct
Exporting.
PARTICULARS FREQUENCY
Fast Entry 5
Low Risk 13
The Least Costly 7

CONT…
Theme 7: Government Regulations are the main
factors affecting the selection of entry modes for
business expansion.
PARTICULARS FREQUENCY
Market Size and Growth 7
Government Regulations 9
Political Risk 5
Others 4
Theme 8: Legal Protection is the biggest challenge
faced by firm entering in emerging market.
PARTICULARS FREQUENCY
Monopolies 6
Legal Protection 10
Bribery and Corruption 5
Others 4

REFLECTION,
 In the research paper, I cam feel my biggest change is in dealing with the structure of
whole article. I have learned how the dissertation structure is prepared and on the
basis of this entire research study is conducted. The entire research is very fruitful
and knowledgeable for my carrier growth and development.
 I have learned how to prepared the aims and objectives of the study as it is one of the
critical part of the research. It is very important that the research aim and objectives
reflect the entire issues of the study and I have made my efforts to do so.
 I have also provided the justifications of alternative research methodologies which
could be used in this research. After that, I have collected some information to
complete my literature review section of the research and I have review various
articles to gather the information.

Recommendations
 From the above analysis, it has been recommended by the researcher that the best
suitable strategy to enter in emerging market is Partnership and Direct exporting.
 This is because for small and medium scale firm, it is not possible to set infrastructure,
human resources and other things, so through direct exporting, firms does not need
huge amount of infrastructure and it is less risky and one of the fast entry modes.
 On the other hand, partnership is another most suitable and best strategy as shared cost
reduce the investment needed and also reduced several risks.
 In addition to this, researcher also suggested that, firm could consult expert
and evaluate all the factors which are important to consider in selection of suitable
entry modes as well as it also affect the the selection of entry modes for business
expansion.

CONCLUSION
 From the above research it has been concluded that direct exporting and partnership is
one of the best entry mode for small and medium scale enterprises to enter in emerging
market. Direct exporting is one of the way to directly sell into market for choosing the
first instance of own resources.
 Furthermore, research also concluded that entry modes are open only after
globalisation. There are variety if ways in which an organisation can enter a foreign
market or emerging market. Organisations are moving to emerging market like India,
China and others because there are ample of opportunities available for growth and
development of the business.
 Moreover, there are various factors which affect like legal protection in the emerging
market also acts as the biggest challenge as they could not assume protection such as
trade mark, copy rights, patents.