Factors Influencing Hedonism Wine's Entry Mode Choice for UK Expansion

This report examines the factors influencing Hedonism Wine's decision to expand into the UK market using a franchising entry mode. The introduction provides a basic overview of franchising as a marketing strategy for product and service distribution. The main body delves into key factors affecting the entry mode decision, including product differentiation, risk aversion, internal and external factors such as sociocultural aspects, and market size and growth. The report references several academic sources to support its arguments. The conclusion summarizes the benefits of the franchising model, emphasizing its potential to achieve a larger market share. The report provides insights into how companies like Hedonism Wine can leverage franchising to achieve sustainable growth and success in the UK market, considering both internal and external influences.

Factors
Influencing choice
of
entry mode

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Factors affecting foreign market entry mode decision................................................................1
CONCLUSION................................................................................................................................2
REFRENCES...................................................................................................................................3

INTRODUCTION
In today's era, an organisation are expanding their business with different entry mode.
Such as Franchising is basically a form of marketing which help in distribution of product and
services in which owner of business system grants an individual or group of individual to run a
business(Keup and Keup, 2012 ). It is also consist of power by giving out authorities to
franchisor in branding, trademarks as well as specified under certain guidelines. In this report, an
organisation chosen is Hedonism Wine which is planning to expand their business at United
Kingdom with help of Franchising in different country.
MAIN BODY
Factors affecting foreign market entry mode decision
In today's context there are various factors that affect an organisation in developing or
expanding their business at other country. Their are various entry mode in enter to different
countries that help an organisation to sell its product in an effective manner. Herein, Hedonism
Wine are planing to expand their business at United Kingdom, with the help of Franchise entry
mode. Moreover, there are certain factors that are effecting foreign market entry mode decision
are as follows:
Product: While expanding business at different country Hedonism Wine have to face many
problems such as product differentiation(Hockett and Omarova, 2016).As they have to develop
variety of product as per the need and demand of customers so that they can have a profitable
advantage over it.
Risk averse: Risk is one of the essential factors that affected a business function
adversely. Moreover, risk is associated with every business. Herein, are expanding their
business at United kingdom with the help of Franchise entry method which is associated with
risk factor.
Internal factors: The internal factors will have positive impact while expanding business
at other country such as it will able have large number of market share by offering their product
and services. Moreover attaining international experience in operating their business function
and activities.
External factors: In expansion of business their various factors that have been affected
both positively and negatively such as:
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 Sociocultural: While expanding business at United Kingdom have to faced sociocultural
factors. For such instance they need to adopt culture if their customers so that they can
offer their product and services accordingly.
 Market size and growth: If a respective organisation is successful in expanding business
at another country then an organisation will able to attain market size in competitive
marketplace(Hoy, Stanworth and Purdy, 2017). Moreover, they will able to attain growth
in their business operation as well as attain its goals and objectives in competitive market
over longer period of time.
Thus, the above mention are some of the factors that are influencing Hedonism Wine in adopting
franchise in foreign market as there are many influences over it.
CONCLUSION
From the above discussion it has been concluded that there are various mode of entry in
competitive marketplace. Herein, an organisation are able to attain franchise in order to
expanding their business operation at another country in order to attain sustainability for longer
period of time. Thus, it will have beneficial for an organisation to attain large market size in
competitive marketplace of same product line.
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REFRENCES
Books & Journals
Keup, E.J. and Keup, P.E., 2012. Franchise bible: How to buy a franchise or franchise your own
business. Entrepreneur Media.
Hockett, R.C. and Omarova, S.T., 2016. The finance franchise. Cornell L. Rev., 102, p.1143.
Hoy, F., Stanworth, J. and Purdy, D., 2017. An entrepreneurial slant to franchise research. The
Blackwell handbook of entrepreneurship, pp.408-432.
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