International Marketing Report: Eggfree Cake Box in India
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AI Summary
This report analyzes the potential of Eggfree Cake Box expanding into the Indian market, focusing on the high vegetarian population. It evaluates the political, economic, and social environments in India, identifying opportunities and threats. The report explores market entry strategies, including Foreign Direct Investment (FDI) and Joint Ventures, considering factors like competition and market size. It recommends FDI as the preferred strategy, especially given the low competition in the eggless cake market. Finally, it addresses the impact of the COVID-19 pandemic on the chosen market entry strategy, suggesting that FDI remains a viable option due to the company's size and the opportunities present in the Indian market. This analysis is designed to provide a comprehensive understanding of the challenges and opportunities involved in international market expansion for businesses like Eggfree Cake Box.
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part 1 Evaluation of target market along with its opportunities and threats..........................3
Part 2 Identification and evaluation of market entry strategies..............................................5
Part 3 Recommendations regarding impact of COVID 19 pandemic on chosen market entry
strategy...................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part 1 Evaluation of target market along with its opportunities and threats..........................3
Part 2 Identification and evaluation of market entry strategies..............................................5
Part 3 Recommendations regarding impact of COVID 19 pandemic on chosen market entry
strategy...................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
2

INTRODUCTION
The ultimate objective and goal of any organisation is to earn maximum profits. There
are various ways through which this objective can be achieved, one of the main technique is to
expand the business in other countries with same concept (Cateora, c Gilly and Graham, 2015).
This process of expansion is not at all a easy task as before expansion there are various
considerable factors. This report is divided in three parts which discuss the elements those needs
to be considered before taking the step of expansion. This report focuses on planning of
expansion of Eggfree Cake Box in a totally new market i.e., India. First part of the report analyse
the potential of this new market, second part throes light on different strategies those can be used
to enter into a new market and in last, there is a discussion regarding impact of ongoing global
pandemic on chosen strategy of entering into a new market.
MAIN BODY
Part 1 Evaluation of target market along with its opportunities and threats
According to statistics, it is clearly visible that India has highest vegetarian population
(38%) (Countries with highest rates of vegetarian, 2020). Bringing an idea of egg less cake can
prove to be a very good strategy for increasing profits. Chosen organisation for this report is
Eggfree Cake Box. It was opened as a small store in east London in 2008. the main objective of
this business was to introduce people of London with the concept of celebration cakes without
using Eggs. They stressed on the point of no alteration with quality or taste even without eggs.
India is chosen as the new market due to the main reason that it has highest vegetarian
population in world. Population of this country strongly believes in this type of food and they
also have there religious beliefs associated with this concept (Cateora and et.al., 2020).
In India, there is a large untapped market which is interested in baked items, such as
cakes and pastries, but cannot have it. This is due to use of eggs in these items. In accordance of
this analysis, it can be stated that a big brand entering into this huge untapped market holds large
potential. Before entering into this market, it is necessary to analyse some of the factors those
can impact the entry:
Political Environment: India is considered to be the largest democracy in the world
(PESTEL analysis of India, 2017). It is having a stable political environment
(Opportunity) and the regulations have stability. Due to these factors, introduction and
3
The ultimate objective and goal of any organisation is to earn maximum profits. There
are various ways through which this objective can be achieved, one of the main technique is to
expand the business in other countries with same concept (Cateora, c Gilly and Graham, 2015).
This process of expansion is not at all a easy task as before expansion there are various
considerable factors. This report is divided in three parts which discuss the elements those needs
to be considered before taking the step of expansion. This report focuses on planning of
expansion of Eggfree Cake Box in a totally new market i.e., India. First part of the report analyse
the potential of this new market, second part throes light on different strategies those can be used
to enter into a new market and in last, there is a discussion regarding impact of ongoing global
pandemic on chosen strategy of entering into a new market.
MAIN BODY
Part 1 Evaluation of target market along with its opportunities and threats
According to statistics, it is clearly visible that India has highest vegetarian population
(38%) (Countries with highest rates of vegetarian, 2020). Bringing an idea of egg less cake can
prove to be a very good strategy for increasing profits. Chosen organisation for this report is
Eggfree Cake Box. It was opened as a small store in east London in 2008. the main objective of
this business was to introduce people of London with the concept of celebration cakes without
using Eggs. They stressed on the point of no alteration with quality or taste even without eggs.
India is chosen as the new market due to the main reason that it has highest vegetarian
population in world. Population of this country strongly believes in this type of food and they
also have there religious beliefs associated with this concept (Cateora and et.al., 2020).
In India, there is a large untapped market which is interested in baked items, such as
cakes and pastries, but cannot have it. This is due to use of eggs in these items. In accordance of
this analysis, it can be stated that a big brand entering into this huge untapped market holds large
potential. Before entering into this market, it is necessary to analyse some of the factors those
can impact the entry:
Political Environment: India is considered to be the largest democracy in the world
(PESTEL analysis of India, 2017). It is having a stable political environment
(Opportunity) and the regulations have stability. Due to these factors, introduction and
3

survival of a business becomes easy (Eteokleous, Leonidou and Katsikeas, 2016). This
component of external environment also poses some threats such as, in India, there is
never ending dispute going on with the neighbouring country, Pakistan over Kashmir
(threat). This has created political uncertainty in country, which in turn, effects the
survival of business. Democratic will of the people reflected in the local and national
elections is mostly respected and accepted by the political parties and people in general.
This political culture of tolerance contributes immensely to maintain a stable political
climate (opportunity) which is in fact a very important factor to attract foreign direct
investment. Another key concern for the new arrivals in India is corruption (threat). This
issue has not only affected the growth rate of country but also increasing the cost of
business operations. Through this analysis, it can be concluded that, company will face
both opportunities and threats in India.
Economic Environment: In terms of GDP, India is considered as one of the largest
economies (opportunity) with a GDP of around $2.72 trillion (Economic environment,
2017). There is a sudden decrease in customer demand in recent times, which has resulted
in slow down of economy. This is a cause of concern for many people in country. The
main advantage of this economy is that it offers a great advantage in face of low
corporate tax rates (opportunity) comparatively to other countries around the globe.
Country is considered as one of the top agriculture producing countries (opportunity)
around the globe. This opportunity will support the business idea of company by
providing vegetarian inputs. Mentioning about threats those can be confronted by the
company on entrance in India relates to weak infrastructure (threat) and also weak value
of Rupee in comparison to Dollar (threat), this can effect the profitability of business.
Social environment: India is a huge consumer market having a gigantic population
(opportunity) of approximately 1.2 billion. This huge population size poses a great
potential of revenues for multinational companies. Main social characteristic of India is
that it has a huge potential for the company in face of vegetarian people (opportunity).
They provide a huge support for the business idea of Eggfree Cake Box company. A big
part of this country is untapped due to the reason of their vegetarian choice. Another big
opportunity for company is that country has a heavy amount of cheap labour
(opportunity) and it can result in cost efficient operations for company in introductory
4
component of external environment also poses some threats such as, in India, there is
never ending dispute going on with the neighbouring country, Pakistan over Kashmir
(threat). This has created political uncertainty in country, which in turn, effects the
survival of business. Democratic will of the people reflected in the local and national
elections is mostly respected and accepted by the political parties and people in general.
This political culture of tolerance contributes immensely to maintain a stable political
climate (opportunity) which is in fact a very important factor to attract foreign direct
investment. Another key concern for the new arrivals in India is corruption (threat). This
issue has not only affected the growth rate of country but also increasing the cost of
business operations. Through this analysis, it can be concluded that, company will face
both opportunities and threats in India.
Economic Environment: In terms of GDP, India is considered as one of the largest
economies (opportunity) with a GDP of around $2.72 trillion (Economic environment,
2017). There is a sudden decrease in customer demand in recent times, which has resulted
in slow down of economy. This is a cause of concern for many people in country. The
main advantage of this economy is that it offers a great advantage in face of low
corporate tax rates (opportunity) comparatively to other countries around the globe.
Country is considered as one of the top agriculture producing countries (opportunity)
around the globe. This opportunity will support the business idea of company by
providing vegetarian inputs. Mentioning about threats those can be confronted by the
company on entrance in India relates to weak infrastructure (threat) and also weak value
of Rupee in comparison to Dollar (threat), this can effect the profitability of business.
Social environment: India is a huge consumer market having a gigantic population
(opportunity) of approximately 1.2 billion. This huge population size poses a great
potential of revenues for multinational companies. Main social characteristic of India is
that it has a huge potential for the company in face of vegetarian people (opportunity).
They provide a huge support for the business idea of Eggfree Cake Box company. A big
part of this country is untapped due to the reason of their vegetarian choice. Another big
opportunity for company is that country has a heavy amount of cheap labour
(opportunity) and it can result in cost efficient operations for company in introductory
4
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phase (Katsikeas, Leonidou and Zeriti, 2019). Population of country may not accept a
modern business system (threat) as they strongly believe in traditional business structure.
Another threat posed to company is the difference between modern management system
followed by company and traditional workforce trends followed in India (threat).
Part 2 Identification and evaluation of market entry strategies
There are different market strategies that can be adopted by a company for entering into a
new market with their existing product. Two major methods in this relation are Foreign Direct
Investment and Joint venture.
Foreign Direct Investment: This is basically the process of investment made by a firm
or individual of a country made in another country of same business interests. This
process becomes successful in the case when investor establishes operations or it acquires
foreign business assets in a foreign company (Leonidou and et.al., 2018). However, there
is a difference between portfolio investments and and FDI as investor do not purchases
equities of foreign based companies. In simple words, it can be explained as a direct
investment made by a company or individual in other country in same business interests.
In context of chosen company, they can opt for this strategy. This will provide them with
several benefits like easy and favourable governmental laws for foreign direct
investment. Also it will gain a separate image in market as a foreign brand. It do not have
to share its resources and controlling authority with any one else. Other benefits relates to
tax benefits as a investor, increased goodwill in market, reduced labour cost, subsidies.
Subsidies plays a very important role in Foreign Direct Investment as along with
investment, it also bring several other benefits for hosting nation, such as, creation of
employment, economic development, etc.
Joint venture: A joint venture is basically a business agreement in which two or more
parties agree to come together and pool their resources. This whole process is carried out
just to accomplish a specified task. This task can relate to anew project or some other
business activity. The main feature of the arrangement done under Joint Venture is that
all the parties involved in this agreement are jointly and separately responsible for profits,
losses and cost associated with it. In context of chosen organisation, company can enter
into a contract of joint venture with already established brand in India. This will result in
5
modern business system (threat) as they strongly believe in traditional business structure.
Another threat posed to company is the difference between modern management system
followed by company and traditional workforce trends followed in India (threat).
Part 2 Identification and evaluation of market entry strategies
There are different market strategies that can be adopted by a company for entering into a
new market with their existing product. Two major methods in this relation are Foreign Direct
Investment and Joint venture.
Foreign Direct Investment: This is basically the process of investment made by a firm
or individual of a country made in another country of same business interests. This
process becomes successful in the case when investor establishes operations or it acquires
foreign business assets in a foreign company (Leonidou and et.al., 2018). However, there
is a difference between portfolio investments and and FDI as investor do not purchases
equities of foreign based companies. In simple words, it can be explained as a direct
investment made by a company or individual in other country in same business interests.
In context of chosen company, they can opt for this strategy. This will provide them with
several benefits like easy and favourable governmental laws for foreign direct
investment. Also it will gain a separate image in market as a foreign brand. It do not have
to share its resources and controlling authority with any one else. Other benefits relates to
tax benefits as a investor, increased goodwill in market, reduced labour cost, subsidies.
Subsidies plays a very important role in Foreign Direct Investment as along with
investment, it also bring several other benefits for hosting nation, such as, creation of
employment, economic development, etc.
Joint venture: A joint venture is basically a business agreement in which two or more
parties agree to come together and pool their resources. This whole process is carried out
just to accomplish a specified task. This task can relate to anew project or some other
business activity. The main feature of the arrangement done under Joint Venture is that
all the parties involved in this agreement are jointly and separately responsible for profits,
losses and cost associated with it. In context of chosen organisation, company can enter
into a contract of joint venture with already established brand in India. This will result in
5

easy entrance and also increased resources will help the company to expand their
business easily (Moon and Oh, 2017).
There are various external factors those needs to be considered before choosing any one strategy
and they relates to:
Intensity of competition: Competition plays an important role in entry of a business in
anew market. There are two possible situations in this case (Tsai, Mukherjee and Chen,
2016). If there is heavy competition in the market than the joint venture will be the
suitable option. As a established brand will help in establishing the organisation more
easily. Low intensity of competition will provide as ease in selecting the other method, as
it involves complete control on business. In case of the chosen country, there is low
intensity of competition in this industry, therefore, company should opt for foreign direct
investment.
Market size and growth: This is an important factor in choosing the strategy of
entering into a new market (Beneke and et.al., 2016). Market is the place which will
provide the revenues for the organisation. If there is huge potential in the market than, it
can opt for the FDI option as it will help in owing the complete authority and also
generate great revenues.
Part 3 Recommendations regarding impact of COVID 19 pandemic on chosen market entry
strategy
In situation of COVID-19, there is drastic economic fall down in worldwide where many
small, medium and big organisation is facing recession and high inflation rates that creates a
negative impact on business growth. Business are getting shattered and not able to sustain their
productive business for long term aspects (Paul and et.al., 2020). As Egg Free cake box company
is design their strategy to entering in international market through two ways Joint venture and
Foreign Direct Investment.:
Joint Venture: The Joint venture is traits of business arrangement practise in which two
or more company or parties agree with all terms and conditions to pool their optimal
resources with having purpose of accomplish a particular objective. To identifies task as
new project of business activity that company expects huge Return on Investment. In
Joint venture each party who align with each other, they are responsible of equal sharing
6
business easily (Moon and Oh, 2017).
There are various external factors those needs to be considered before choosing any one strategy
and they relates to:
Intensity of competition: Competition plays an important role in entry of a business in
anew market. There are two possible situations in this case (Tsai, Mukherjee and Chen,
2016). If there is heavy competition in the market than the joint venture will be the
suitable option. As a established brand will help in establishing the organisation more
easily. Low intensity of competition will provide as ease in selecting the other method, as
it involves complete control on business. In case of the chosen country, there is low
intensity of competition in this industry, therefore, company should opt for foreign direct
investment.
Market size and growth: This is an important factor in choosing the strategy of
entering into a new market (Beneke and et.al., 2016). Market is the place which will
provide the revenues for the organisation. If there is huge potential in the market than, it
can opt for the FDI option as it will help in owing the complete authority and also
generate great revenues.
Part 3 Recommendations regarding impact of COVID 19 pandemic on chosen market entry
strategy
In situation of COVID-19, there is drastic economic fall down in worldwide where many
small, medium and big organisation is facing recession and high inflation rates that creates a
negative impact on business growth. Business are getting shattered and not able to sustain their
productive business for long term aspects (Paul and et.al., 2020). As Egg Free cake box company
is design their strategy to entering in international market through two ways Joint venture and
Foreign Direct Investment.:
Joint Venture: The Joint venture is traits of business arrangement practise in which two
or more company or parties agree with all terms and conditions to pool their optimal
resources with having purpose of accomplish a particular objective. To identifies task as
new project of business activity that company expects huge Return on Investment. In
Joint venture each party who align with each other, they are responsible of equal sharing
6

of profit and losses along with the cost which included in it. As Egg Free Cake company
can approach the joint venture practise but they are having small business where other
companies can hardly approach to collaborate with them because they are not have large
size and scope of business (Bosancianu and et.al., 2020).
Foreign Direct Investment: The term FDI is an investment strategy as company made
an investment by a firm or individual in one country into business related intention that
locates in another country. Meanwhile, company approaches Foreign Direct Investment
when an individual business successfully establish their venture into foreign location or a
outside firms acquires foreign business assets through foreign company. It also have
further benefits in terms of open economic that having opportunities of hiring skilled and
potential workforce along with increase the scope of investors which promotes the
business in different level. The involvement of Foreign Direct Investment is more than
just capital investment as well as having more norms and provision related with
management and technological aspects (Jain, 2015). Major key features of Foreign Direct
Investment is to establish in having high controlled location or at least sustainable
influence over decision making towards foreign business related. To Egg Free Cake
company can entitled for Foreign Direct Investment, where it has scope to attain targets
which they have expected from other business market.
Evaluation
From above two approaches of International Marketing strategy, in situation of COVID-
19 Egg Free Cake company can entry as in international market through Foreign Direct
Investment strategy. As because the company is small venture type and they can easily target
outside country where is high scope of social and economic factor. The company can target India
through FDI, in India there is opportunity for small business and Egg Free cake venture can
provide their bakery product in economic range with quality aspect. Therefore, this market entry
strategy generates positive outcomes in terms of effective potential workforce, resources can
adapt in less expenses and easy to target customer on the basis through measure buying pattern
of individual customer (Sun, Paswan and Tieslau, 2016).
7
can approach the joint venture practise but they are having small business where other
companies can hardly approach to collaborate with them because they are not have large
size and scope of business (Bosancianu and et.al., 2020).
Foreign Direct Investment: The term FDI is an investment strategy as company made
an investment by a firm or individual in one country into business related intention that
locates in another country. Meanwhile, company approaches Foreign Direct Investment
when an individual business successfully establish their venture into foreign location or a
outside firms acquires foreign business assets through foreign company. It also have
further benefits in terms of open economic that having opportunities of hiring skilled and
potential workforce along with increase the scope of investors which promotes the
business in different level. The involvement of Foreign Direct Investment is more than
just capital investment as well as having more norms and provision related with
management and technological aspects (Jain, 2015). Major key features of Foreign Direct
Investment is to establish in having high controlled location or at least sustainable
influence over decision making towards foreign business related. To Egg Free Cake
company can entitled for Foreign Direct Investment, where it has scope to attain targets
which they have expected from other business market.
Evaluation
From above two approaches of International Marketing strategy, in situation of COVID-
19 Egg Free Cake company can entry as in international market through Foreign Direct
Investment strategy. As because the company is small venture type and they can easily target
outside country where is high scope of social and economic factor. The company can target India
through FDI, in India there is opportunity for small business and Egg Free cake venture can
provide their bakery product in economic range with quality aspect. Therefore, this market entry
strategy generates positive outcomes in terms of effective potential workforce, resources can
adapt in less expenses and easy to target customer on the basis through measure buying pattern
of individual customer (Sun, Paswan and Tieslau, 2016).
7
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CONCLUSION
From this report, it can be elucidated that to achieve the ultimate objective of maximised
profits, company will have to expand their business. One of the most prominent method that can
be used by different companies is entering into new countries. Before expanding their business
operations, there should be proper analysis of all the factors. These factors includes
considerations about the external environmental elements in that country, different market entry
strategies and also a proper analysis of these strategies, so that a suitable one can be chosen.
Furthermore, last part of the report also presents a discussions regarding the impact that ongoing
global pandemic may have on the chosen market entry strategy. This report is a complete
package to understand the plan for entering into a new market in current time.
8
From this report, it can be elucidated that to achieve the ultimate objective of maximised
profits, company will have to expand their business. One of the most prominent method that can
be used by different companies is entering into new countries. Before expanding their business
operations, there should be proper analysis of all the factors. These factors includes
considerations about the external environmental elements in that country, different market entry
strategies and also a proper analysis of these strategies, so that a suitable one can be chosen.
Furthermore, last part of the report also presents a discussions regarding the impact that ongoing
global pandemic may have on the chosen market entry strategy. This report is a complete
package to understand the plan for entering into a new market in current time.
8

REFERENCES
Books and Journals
Beneke, J. and et.al., 2016. The impact of market orientation and learning orientation on
organisational performance. Journal of Research in Marketing and Entrepreneurship.
Bosancianu, C.M. and et.al., 2020. Political and social correlates of covid-19 mortality.
Cateora, P., c Gilly, M. and Graham, J.L., 2015. International marketing. McGraw-Hill Higher
Education.
Cateora, P.R. and et.al., 2020. International marketing. McGraw-Hill Education.
Eteokleous, P.P., Leonidou, L.C. and Katsikeas, C.S., 2016. Corporate social responsibility in
international marketing: review, assessment, and future research. International Marketing
Review. 33(4). pp.580-624.
Jain, S., 2015. Trends of Foreign Direct Investment in India. International Journal of Reviews
and Research in Social Sciences. 3(4). pp.175-180.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a
digital era. International Marketing Review.
Paul, J. and Mas, E., 2019. Toward a 7-P framework for international marketing. Journal
of Strategic Marketing. pp.1-21.
Leonidou, L.C. and et.al., 2018. International marketing research: A state-of-the-art review and
the way forward. In Advances in global marketing (pp. 3-33). Springer, Cham.
Moon, B.J. and Oh, H.M., 2017. Country of origin effects in international marketing channels.
International Marketing Review.
Paul, J. and et.al., 2020. New and novel business paradigms in and from China and India.
European Business Review.
Sun, Q., Paswan, A.K. and Tieslau, M., 2016. Country resources, country image, and exports:
country branding and international marketing implications. Journal of Global Marketing.
29(4). pp.233-246.
Tsai, Y., Mukherjee, A. and Chen, J.R., 2016. Host market competition, foreign FDI and
domestic welfare. International Review of Economics & Finance. 42. pp.13-22.
Online
Countries with highest rates of vegetarian. 2020. [Online]. Available through.
<https://www.worldatlas.com/articles/countries-with-the-highest-rates-of-
vegetarianism.html>
PESTEL analysis of India. 2017. [Online]. Available through. <https://howandwhat.net/pestel-
analysis-india/>
Economic environment. 2017. [Online]. Available through. <https://howandwhat.net/pestel-
analysis-india/>
9
Books and Journals
Beneke, J. and et.al., 2016. The impact of market orientation and learning orientation on
organisational performance. Journal of Research in Marketing and Entrepreneurship.
Bosancianu, C.M. and et.al., 2020. Political and social correlates of covid-19 mortality.
Cateora, P., c Gilly, M. and Graham, J.L., 2015. International marketing. McGraw-Hill Higher
Education.
Cateora, P.R. and et.al., 2020. International marketing. McGraw-Hill Education.
Eteokleous, P.P., Leonidou, L.C. and Katsikeas, C.S., 2016. Corporate social responsibility in
international marketing: review, assessment, and future research. International Marketing
Review. 33(4). pp.580-624.
Jain, S., 2015. Trends of Foreign Direct Investment in India. International Journal of Reviews
and Research in Social Sciences. 3(4). pp.175-180.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a
digital era. International Marketing Review.
Paul, J. and Mas, E., 2019. Toward a 7-P framework for international marketing. Journal
of Strategic Marketing. pp.1-21.
Leonidou, L.C. and et.al., 2018. International marketing research: A state-of-the-art review and
the way forward. In Advances in global marketing (pp. 3-33). Springer, Cham.
Moon, B.J. and Oh, H.M., 2017. Country of origin effects in international marketing channels.
International Marketing Review.
Paul, J. and et.al., 2020. New and novel business paradigms in and from China and India.
European Business Review.
Sun, Q., Paswan, A.K. and Tieslau, M., 2016. Country resources, country image, and exports:
country branding and international marketing implications. Journal of Global Marketing.
29(4). pp.233-246.
Tsai, Y., Mukherjee, A. and Chen, J.R., 2016. Host market competition, foreign FDI and
domestic welfare. International Review of Economics & Finance. 42. pp.13-22.
Online
Countries with highest rates of vegetarian. 2020. [Online]. Available through.
<https://www.worldatlas.com/articles/countries-with-the-highest-rates-of-
vegetarianism.html>
PESTEL analysis of India. 2017. [Online]. Available through. <https://howandwhat.net/pestel-
analysis-india/>
Economic environment. 2017. [Online]. Available through. <https://howandwhat.net/pestel-
analysis-india/>
9
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