International Business Report: Whitewater West's Market Entry Strategy

This report provides a comprehensive analysis of international business strategies for a hypothetical company, Whitewater West, seeking to enter foreign markets. It begins by outlining the reasons for entering foreign markets, such as increasing market share, enhancing brand value, reducing dependence on the domestic market, and optimizing resource utilization. The report recommends India as the optimal host country due to its economic growth and large population, making it a favorable market for water park products. The potential product offerings are identified as water slides and fun showers. The report suggests a direct exporting market entry strategy, considering the sales volume and the ability to maintain product customization. The CFR (Cost and Freight) incoterm is recommended to manage risk and costs associated with shipping. The report also recommends accepting cash in advance through wire transfers and credit cards to mitigate financial risks. The report concludes by referencing relevant academic sources to support its recommendations.

Running head: INTERNATIONAL BUSINESS
International business
Name of the student
Name of the university
Author note

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Reasons for entering in foreign markets
 One of the major reasons in entering in the foreign markets is increasing the market
share. This is due to the reason that operating in the domestic market will restrict the
market share and revenue to a certain extent. On the other hand, the more foreign
countries will be targeted, the more will be the enhancements of potential market size
(Gnizy, Baker & Grinstein, 2014).
 Another reason of going abroad is enhancing the brand value. Business organizations will
not become a truly global brand if they continue to operate within the national boundary.
This is due to the reason that having more market presence in the foreign markets will
increase the brand identity and will help the organizations in becoming a global brand
(Laufs & Schwns, 2014).
 Another reason in going abroad is reducing the dependability from the domestic market.
This is due to the reason that, the more will the foreign presence of the organization, the
less they will depend on their home market. Thus, the associated risks will also be lower
for them because loss incurred from domestic market can be adjusted with the profit from
foreign markets.
 The last reason to go abroad is to optimally utilize the resources. This is due to the reason
that with having the presence in foreign markets, the intensity of the business operation
will be more and thus production process will get enhanced. This will require added
resources and will help in optimally utilize the available resources.

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Selection of the host country
It is recommended that Whitewater West should select India as the potential country for
their host country operation. This is due to the reason that India is currently the top most country
in terms of economic growth. Thus, the more will be the growth of the economy of the country,
the more will be the market and business opportunities for the business organizations (Lu et al.,
2014). In addition it should also be noted that Whitewater West deals with products of Water
Park. Thus it will require huge investments for the buyers of these products. In this case, country
with having the favorable growth rate will be the most eligible one for the operating. India with
having the annual growth rate of more than 7 percent as of 2018 will be the most potential
market for Whitewater West (Agarwal & Whalley, 2015). On the other hand, another reason of
selecting India as the chosen host country is the huge population. India is currently the second
largest country in the world in terms of population. Thus, the more population will help
Whitewater West to have more potentiality of having Water parks. This will also have favorable
impact on the business operation of them. India is also having a few names in Water park
industry and thus Whitewater West will find existing operators also along with the new ones.
Thus, from the social and economical perspective, India is selected as the chosen country for
operation of Whitewater West.
Potential product offerings
The most potential product offerings will be the water slide and fun showers. Water
slides are the most common types of rides available in any Water parks with having number of
varieties. It provides thrilling experiences to the customers. This product is recommended due to
the reason that as water slide is the moist common equipment in any Water park, the demand for

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it will also be higher. On the other hand, fun shower is also commonly used in the Water parks. It
offers the playful as well as soothing experiences and can serve as an effective time killing and
leisure activities in the Water Park. Hence, offering different products will help Whitewater West
to cover the diverse requirements of the buyers.
Market entry strategy
It is recommended that Whitewater West should use the direct exporting mode of market
entry. This is due to the reason that sales volume of Water park products will be less and limited
and thus investing in the host county by setting up manufacturing facilities will not be viable. On
the other hand, investment in the Water Park is huge and thus buyers will not mind paying a little
premium for having quality equipments (Kang & Montoya, 2014). Initiation of the direct
exporting marketing strategy will also ensure that Whitewater West will have to face less risk in
operating in the Indian market. It will also enable them to offer more customized products to the
buyers by designing according to the orders. Direct exporting is recommended due to the reason
that it will also offer Whitewater West the flexibility of managing their production process in
their home country. The brand value of Whitewater West will be maintained and their products
will be perceived as international and global product in the Indian market.
Incoterm
It is recommended that Whitewater West should follow CFR (Cost and Freight) incoterm.
This will enable them to bear the risk up to the loading of the goods in the vessel. Thus, after the
loading process done, they do not have to take any responsibility and it will be borne by the
buyer (Bergami, 2013). In addition this incoterm will also enable Whitewater West to pay the
cost of shipping and export clearance up to the destination port. However, this cost can be

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recovered or charged from the buyer as the shipping cost. This incoterm is recommended mainly
due to the reason that Whitewater West will have to take limited risk and cost in exporting the
goods. They will not be responsible for any incidents after the goods are being loaded in vessel.
Payment mode
Cash in advance in forms of wire transfers and credit cards will only be accepted. This is
due to the reason that initiating the cash in advance will ensure that Whitewater West will not
have to face the credit and nonpayment of dues issue (Antras & Foley, 2015). Thus, the
associated risk in the international trade will get significantly lowered for them. In addition, this
payment option will enable Whitewater West to have the capital source before meeting the order
of the customers.

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Reference
Agarwal, M., & Whalley, J. (2015). The 1991 reforms, Indian economic growth, and social
progress. In WORLD SCIENTIFIC REFERENCE ON ASIA AND THE WORLD
ECONOMY (pp. 3-22).
Antras, P., & Foley, C. F. (2015). Poultry in motion: a study of international trade finance
practices. Journal of Political Economy, 123(4), 853-901.
Bergami, R. (2013). Managing Incoterms 2010 risks: tension with trade and banking
practices. International Journal of Economics and Business Research, 6(3), 324-338.
Gnizy, I., E. Baker, W., & Grinstein, A. (2014). Proactive learning culture: A dynamic capability
and key success factor for SMEs entering foreign markets. International Marketing
Review, 31(5), 477-505.
Kang, W., & Montoya, M. (2014). The impact of product portfolio strategy on financial
performance: The roles of product development and market entry decisions. Journal of
Product Innovation Management, 31(3), 516-534.
Laufs, K., & Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized
enterprises: A systematic review and future research agenda. International Business
Review, 23(6), 1109-1126.
Lu, J., Liu, X., Wright, M., & Filatotchev, I. (2014). International experience and FDI location
choices of Chinese firms: The moderating effects of home country government support
and host country institutions. Journal of International Business Studies, 45(4), 428-449.