Airdri Ltd: Strategies for Tapping into New and International Markets

This report examines Airdri Ltd's strategy for entering the Swiss market, analyzing the global business environment and the implications of threats and opportunities for SMEs. It discusses how SMEs can leverage international marketplace opportunities and the benefits of international trading agreements and blocs. The report also analyzes various types of tariffs and non-tariff barriers, the benefits and limitations of importing and exporting, and different methods SMEs can use to tap into international markets. The PEST analysis is used to assess the political, economic, social, and technological factors influencing Airdri Ltd's expansion into Switzerland, highlighting the importance of understanding the economic relations between the UK and Switzerland, political and historical situations, and potential threats such as organized crime and terrorism.

Unit 43- Tapping into New and
International Market

Contents
INTRODUCTION.......................................................................................................................................................................................4
TASK 1........................................................................................................................................................................................................4
Analysing global business organization surroundings small and entrepreneurial businesses operate....................................................4
Analysing the implication on threats and opportunities that face SMEs in an increasingly competitive global environment...............5
How the SMEs will take advantage of opportunities available in international marketplace.................................................................6
Analysing opportunities and threats that faced by SMEs in an progressively competitive global environment....................................7
Analysing the benefits of international trading agreements and blocs....................................................................................................8
Analysing various type of tariff and non-tariff that present in the international ..................................................................................11
....................................................................................................................................................................................................................13
Analysing benefits and limitation of importing and exporting and how to secure a deal.........................................................................13
Companies choose importing and exporting in order to trade goods in between other countries in effective manner. In context of
Airdri Ltd, benefits and limitation of importing and exporting goods are discuss below: ...................................................................13
Importing - Importing is process in which any goods and services are produced or manufacture in another country and it purchase
by the buyer of home country. In respect of Airdri Ltd, its advantages are discussing below:............................................................13
Advantages-...........................................................................................................................................................................................13
Introducing new products to the market- Importing allows companies in order to introduce new products in their home country
market in effective manner (Lo and Campos, 2018). In regards of Airdri Ltd, it will help them to increase their sales by providing
new products to their potential customers. It will need to develop marketing strategy for promoting new products in market. .........13
Reducing costs- Importing help companies in order to reduce their costs and provide their products in low price to the customer. In
case of Airdri Ltd, importing reduce their manufacturing costs which helps them in order to gain profit from it...............................13
...............................................................................................................................................................................................................13

Disadvantages-.......................................................................................................................................................................................14
Foreign exchange risk- Importing can cause problems for the company if currency exchange rate change in country. In accordance
with Airdri Ltd, importing may cause loss for them due currency fluctuations in the country.............................................................14
Legal risk- Importing can be risky if any criminal or civil offence of foreign country does not accept by the home country. In
account of Airdri Ltd, importing create various problem if legal laws are not acceptable by UK government....................................14
Analysing various method in which SMEs can tap into international markets.....................................................................................15
CONCLUSION..........................................................................................................................................................................................17
REFERENCES..........................................................................................................................................................................................18

INTRODUCTION
Tapping into new and international market refers to a method which helps companies in order to gain advantage of increased
sales and customers by selling their product and services into another country market in effective manner (Ashraf, 2018). It help
companies in order to increased their business growth and become more competitive for their competitors in effective manner. It will
also help them in order to lower their operational cost and save their money while entering into new country market. For this business
report, selected company is Airdri Ltd which is a small enterprise of UK and type of converted paper product manufacturing industry.
It incorporated in 1974 in Witney, United kingdom and provide its services with the help of its 32 employees. It want to expand their
business in new country market that is Switzerland
The business report covers threats and opportunities for firms open to an increasingly globalised surroundings and benefits of
trading blocs for firms. It further describe importing and exporting practicalities and process involved and different type of ways
SMEs can tap into international market.
TASK 1
Analysing global business organization surroundings small and entrepreneurial businesses operate
Global business organization environment refers to a environment in which company operate their business in own country
and in other country also in order to gain various advantages from it. In context of Airdri Ltd, business advisor on international trade
advise them to expand their business in Switzerland, which is a small country of Central Europe (Boyles, 2018). In Switzerland
unemployment level is low, highest GDP and skilled workforce which will be profitable for them in order to enter in new market
effectively. In this country corporate tax rate is low, high technological industries and highly developed financial service sector which
helps them in order to sell their products and earn maximum profit in effective manner.
Various factors are present in international market which provide problems or benefits for the company in order to enter in a new
market in relevant manner. In respect of Airdri Ltd,factors of international market that may provide problems or benefits for them in

order to expand their business in Switzerland are described with the help of PEST analysis(Information about Airdri Ltd, 2021). These
factors are discuss below :
Political factors- Political factors are determine those factors which are influenced by government in company. It includes
such as tax policy, trade restrictions and reform, tariffs, environmental regulations and political stability. In case of Airdri Ltd,
political factors that are present in Switzerland that influenced them in order to expand are their political environment is stable, direct
democracy and its a member of World Bank and International Monetary Fund.
Economic factors- Economic factors are directly affected company in order to survive long term in the market (Casini,
2018). In accordance with Airdri Ltd, economic factors that influenced them in order to expand their business in Switzerland market
are low unemployment rate, highest GDP along with highly skilled labour force, low tax rates, highly developed infrastructure and
strong purchasing power.
Social factors- Social factors are helpful for the company in order to analyse or plan their marketing strategy for their
offerings (Coker, 2019). In account of Airdri Ltd, factors that influenced them for entering in Switzerland market are rapid
modernization, changing habits and cuisine of people. Factors like discrimination, an ageing population, and poverty may affected
their decision.
Technological factors- These are those factors which affected companies due to development and innovation in technologies.
In context of Airdri Ltd, Switzerland is a most advanced countries and their government always focus on developing new technology
in the country along with highly developed infrastructure which influenced them in order to expand their business there.
Analysing the implication on threats and opportunities that face SMEs in an increasingly competitive global environment
In order to expand business in international market companies can get various benefits but they face many threats and
opportunities as well (Hennart, Majocchi and Forlani, 2019). In aspect of Airdri Ltd., the implication on threats and opportunities that
face by them in an increasingly competitive global environment are described below:

Risks in supply chain- It describes that operating a supply chain in international market is will be more challenges for the
companies. In respect of Airdri Ltd., it makes its management to use effective supply chain in order to faced various challenges in
international market in effective manner.
Compliance issues- It is most effective threats that face by the company because tax rates and other compliances are
different and different country which makes them to operate their business in international market in effective manner. In case of
Airdri Ltd., it makes difficult to its management to operate their business in international market because they have to face taxes and
compliances issues effectively.
How the SMEs will take advantage of opportunities available in international marketplace
In the development of a SME, the global business environment plays a crucial role by developing various opportunities. In the
recent times, with an increase in globalisation, there are good number of opportunities available at the marketplace (Hunsaker and
Hargittai, 2018). Expansion and growth are two major opportunities which are available for SMEs in global business environment.
The ways in which SMEs can take advantage of opportunities at the marketplace are mentioned below:
 Business strategy- The business strategy and its development is one of the key opportunity available to SMEs. Various
strategies are developed with the help of management approaches which include development of different functions. In the
recent times, many companies in the national marketplace design and formulate major strategies which are fruitful for the
business.
 Optimum utilisation of resources- It is important for the business to focus on optimum utilisation of resources in order to
compete at the marketplace. Also the business organisation should focus on operations and productions management in order
to develop key competency edge. In order to increase the effectiveness and efficiency of a business in the international
marketplace it is compulsory for a company to develop a focused strategy with the help of operations management.

 Focus on management and its functions- The focus and eye on management and its various functions is also a major way to
develop advantage of international opportunities that are available at the marketplace. In the recent times, it is also important
for the business to develop various leadership and management based aspects for overall welfare of the company.
Analysing opportunities and threats that faced by SMEs in an progressively competitive global environment
If a company expand their business in other country market they would face some threats as well as gain various opportunities
that helps them in order to become highly competitive for their competitors in effective manner(Maduro, Fernandes and Alves, 2018).
In respect of Airdri Ltd., factors that provide various type of opportunities and threats in order to expand their business in Switzerland
are as follows:
Economic Relation between UK and Switzerland- UK and Switzerland has good economic relations in which they sign
five agreements in order to make continuity in their relationship. These agreements include trade agreements which includes tariffs,
non-tariff measures and tariff rate quotas along with Services Mobility Agreements. In regards of Airdri Ltd, this economic relations
provide an opportunity in order to expand their business in Switzerland. It make strong demand and highly competitive for their
products in order to sell in Switzerland market in effective manner.
Political and historical situation- Political environment in Switzerland is stable and consensus which also help foreign
companies in order extend their in their country in effective manner. It have a strong commitment to neutrality and its signed an
agreements with European Union which provide various benefits to other country in order to sell their product and service in country
in easy manner (Liu, and Yuan, 2018). In case of Airdri Ltd, it provide opportunity for them in order to expand their business in
Switzerland.
Organised crime- Many foreign visitors and investors are targeted by scam creation which create great financial loss for them
in effective manner. Many type of international organised criminal activities are take place in Switzerland which create problems for
the foreign countries in order to expand their business in effective manner. In accordance with Airdri Ltd, organised crime in

Switzerland would be a an effective for them in order to expand their business there. By ensuring that about receive message an emails
in order to get safe from any fraudulent activities in effective manner.
Terrorism threats- Terrorists are always try to attack on Switzerland which create various losses in the country. It also
create problems for the foreign company in order to enter their business in this country. In account of Airdri Ltd, Terrorism is a most
affected threats for them which affected their decision in order to extend their business in Switzerland.
Human rights- In Switzerland, human rights are comprehensively secured and they are in top in political rights and
international civil liberties rankings. Their rules of law of democracy are strong as well as respect human rights of the country
(Johnson, 2018). In context of Airdri Ltd, it will an opportunities for them in order to expand their business with the help of their
highly valued products and maintain human rights in Switzerland in effective manner.
Analysing the benefits of international trading agreements and blocs
Trading Blocs refers to a method in which different countries are joined in a group with the help of trade agreements. These
trade agreements are signed mutually by these countries. In this agreements, it allows countries in a group in order to free trade
capital, labour, good and services between in these countries. In respect of Airdri Ltd, different type of international trading blocs and
agreements and its advantages of international are discuss below:
Preferential Trade Areas- It is an important type of international trading blocs and agreements in which members of trading
blocs countries are agree to eliminate and reduce their tariff barriers in order to import their goods easily in between each other
country. In regards of Airdri Ltd, its advantages are discuss below:
 Lower prices and more varied products- Preferential trade area reduce and tariff between in between these trading blocs
countries which is beneficial for these countries company to sell their products in low price and also provide more variety
products to them. Preferential trade areas between UK and Switzerland provide advantages to Airdri Ltd in order to sell their
products in lower price as well as provide more variety of products to their potential customers.

 Larger market- Preferential trade area provide larger market to member countries companies in order to sell their products
and maximise their profit (Mazumdar, 2020). In case of Airdri Ltd, it provide largest market to them in order to increase their
sales and customers in other country.
Free trade area- It refers to an agreement in which two or more countries are agree in order to eliminate and reduce their all
barriers in order to trade all goods of these members country in effective manner. In accordance with Airdri Ltd, its advantages are
discuss below:
 Free trade within the bloc- Free trade area makes free trade environment between international trading blocs which help
companies in order trade their goods and services in free manner. In account of Airdri Ltd, free trade area allows them in order
to trade their products in Switzerland freely.
 Offer new opportunities for trade and investments- Free trade area provide advantages of inward investments as well as it
increase opportunity in order to increase trade within member countries (Moss, 2018). In context with Airdri Ltd, it influence
their management to invest in Switzerland in order to gain various benefits from it such as increase their sales, customers and
become more competitive for their competitors in effective manner.
Product life cycle theory- The international product life cycle was given by Raymond Vernon in 1960 that explain the cycle of
product when it is exposed to an international market. It also describes that how a product matures and declines in internationalization.
In point of Airdri Ltd., it contains three stages that helps its management to expand their business in international market in effective
manner are described below:
New Product introduction- It describes that the cycle is start when the new product is introduced in the market. In context of
Airdri Ltd, it makes its management to introduced a new product that helps to increase their sales as well as expand their business in
international market in effective manner.
The maturity stage- In this stage, the product is established its demand in developed countries, it makes its manufacturer to
open its production plant in developed country that helps to meet its demand in effective manner. In respect of Airdri Ltd, it makes its

management after introduction of its new product in the market, they have to open its production plant in international market in order
to fulfil its demand in effective manner.
Product Standardization and streamlining of manufacturing- It makes companies to move its production in those nation
where average income is low and streamlining and standardization in manufacturing methods needed in order to produce product in
effective manner (Shafir and Peled, 2018). In regards of Airdri Ltd, it makes its management to expand their business in international
market in effective manner as well as make their manufacturing method more standardize and streamline in effective manner.
Porter's national competitive advantage theory- This theory is popularly known as diamond theory of national advantage that
states important features of home country that helps organisation to achieve success in international markets in effective manner. It
describes determinates of the national advantage that contribute to the success of organisation in global industries in effective manner.
In case of Airdri Ltd, its important determinants that helps in achieving success in the international market are described below:
Factors of production- It includes the various inputs that are needed to produce products of Airdri Ltd. It makes them to
analyse its important resources, labour and advanced factors in order to make them effective that helps them to get success in
international market in effective manner.
Demand conditions- It describes the size and nature of customers for its product in home market. It states that, if its demand
is high in home country market than its demand is also high in international market that helps in achieving the success in international
market in effective manner.
Related and supporting industries- It describes those industries in the country that are important leader in context of its
product. These industries helps them to increase their growth in international market in effective manner (Wallace, 2020).
Organisational strategy, structure and Rivalry- These are different in different country but they are very important in order
to get success in international market . Strategies help them in order to set new goals, structure helps them to manage operations and
rivalry helps in making innovative ideas for the organisation.

Analysing various type of tariff and non-tariff that present in the international
International trade is process of exchanging goods and services across world beyond national boundaries. In aspect of Airdri
Ltd there are various tariff and non-tariff barriers that is faced by this company while trading its processes in Switzerland and they are
evaluated as below-
Tariff barriers-
Tariff are taxes levied on traded products while crossing a national boundary (Nurkse, 2019). A tariff are taxes which are
imposed on import and export of commodities by government of a country. Various tariff barriers that exists in international trade are
as below-
 Import duties- Import are tax charged by government of a country on commodities imported from abroad. Switzerland
government charges a high rate of taxes on imported goods in order to increase its price so that they are hard to
consume by customers within the nation. Airdri Ltd struggles in the country as its import duties increases rates of its
products in country which impacts in increasing challenges to attract target audience.
 Specific tariff- A fixed fee charged by government of a nation on a particular unit of imported goods is known as
specific tariff. This tariff can varies depending on nature of goods being imported. In aspect of Airdri Ltd, company
has to pay a fixed rate on one unit of its products that is being charged by government of Switzerland. This tariff rate
also effects rates of its products in this country.
 Ad Valorem Tariff- Duties or tax charged as per value of goods traded between countries is referred as Ad Valorem
tariff (Roslan, and Chen, 2018). This tariff rates consists of a fixed percentage of value of invoice of commodities
traded. This tariff rate affects rate and quantities of commodities to be traded in Switzerland at initial stage.
Non-tariff Barriers-

Non-tariff barriers are barriers of trade imposed by government of a country other than custom or tariff duties in order to
restrict import and export of commodities within countries. Various non-tariff barriers faced by Airdri Ltd on establishing its business
in Switzerland are being evaluated as below-
 Protectionist barriers- This are barriers created by government of a country in order to provide protection to its
domestic countries from engagement of industries of other countries (Schimmelfennig, 2018). This barriers are in form
of licensing requirements, anti-dumping duties, allocation of quotas, import deposits, etc. Airdri Ltd struggles in
starting its business in Switzerland under this non-tariff barriers as licensing process takes a long time which can delays
in operations of company.
 Assistive policies- This policies are designed by government of a country to protect domestic companies from foreign
companies without restricting their trade. This assistive barriers consists of custom process, labelling and packaging
requirements, norms, sanitary and technical standards etc. This barriers creates hazards for Airdri Ltd while
establishing its business in Switzerland.