BTEC Unit 40: International Marketing Report - Eagle Tech Solutions

This report provides a comprehensive analysis of international marketing strategies, focusing on the expansion of Eagle Tech Solutions, a UK-based SME, into the Indian market. The report begins with an introduction to international marketing, emphasizing its importance for business growth and profitability. It then delves into the specific context of Eagle Tech Solutions, detailing the company's background and its decision to enter the Indian market, citing high growth potential in the IT sector. The report explores various market entry routes, including exporting, joint ventures, foreign direct investment, and wholly-owned subsidiaries, ultimately recommending exporting as the most suitable initial strategy. It then outlines the key criteria for market selection, including environmental, competitive, demand, and distribution channel analyses, all supporting the choice of India. The report further examines different market entry strategies such as exporting, licensing, franchising, partnering, acquisitions, and greenfield ventures, evaluating their advantages and disadvantages. Finally, the report critically evaluates marketing strategies for the international market and considers the impact of market entry on the local country's economy.

International Marketing.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Expanding the businesses to the international market is the way through which company can
increase the customer base and profitability of the business. Most of the businesses are adopting
global market to take international competitive advantages and increase the revenue of the
businesses. So, the report will discuss the importance of global market for the domestic company
and the different routes they can adopt in order to enter the international markets. The report will
also state how trading the goods and services among different countries helps the Eagle tech
solution service Ltd. a SME Business of UK to know about the international market policies and
strategies. The report will also discuss the selection process and the key criteria on the basis of
which Eagle tech company can select a particular international market. This report will also
define the advantages and disadvantages of the market entry strategies. The report will also
involve the analyses of the demand and customer taste and preferences of the chosen
international market before entering the IM. At last the report will consider how entry into the
foreign market helps in the growth of the economy of the local country.
MAIN BODY
Task 1
Introduction of the Eagle tech solutions company
Eagle tech solution is the small and medium enterprise of the UK which provide IT services to
the customers and clients. The company provide the service related to the web development,
mobile app development, digital marketing and web hosting services to the small or big local
businesses of the UK (Cateora, and et.al., 2020. ). They maintain the strong client relationship
with their business customers. The company recently operates its business domestically and want
to enter into the international market of India.
Meaning of International Marketing
International marketing also known as global marketing on the worldwide scale where the goods
and services are traded among the different countries in order to gain the global objectives.
The key differences between the local and international marketing
Basis Local Marketing International Marketing.
Meaning It is the small area where the
businesses serve the product and
It is the large area where
businesses can serve their

services within the geographical
boundaries.
product and services outside the
geographical boundaries.
Government
Interference
In LM there is a less chance of
government interference (Gomes,
Sousa and Vendrell-Herrero,
2020).
While in the case of IM, the
government interference is
comparatively high.
Capital Requirements In LM, the requirement of the
capital is low.
And the requirement of the
capital in IM is high.
Business operations In this, businesses operates in
only one country.
While on the other hand, in IM
the businesses operates in more
than one country.
Risk factors Here the risk is quiet low
because company need to deal
with only local customers.
While here the risk is high
because company deals with the
different country policies and
regulations.
Market Research It is required but not on high
level.
It is required at a very high level.
Scope of International Marketing
The scope of the IM are:
 Export: Export is the scope in which products and services are actually produced in the
local market and export to other countries for the use or sale.
 Import: Import is scope in which products and services are brought from the foreign
countries for the use and sale in LM.
 Re-export: Re-export is a scope in which raw material are get purchased from IM,
process in the LM and further sale in the IM (Farrell, 2020).
 International operations: International operation is a scope which involve establishment
of production in the foreign countries.
Key concept of International Marketing
The five concept of international marketing are:

 Production concept: It is a concept in which businesses are more focused towards the
producing inexpensive and easily available products rather than marketing.
 Product concept: It is a concept in which companies put focus on producing products as
per the needs and preferences of the customer.
 Selling Concept: In this concept the company uses the bread and butter techniques to
influence the international people towards their products and services.
 Marketing Concept: In this, businesses mainly focus towards marketing effort of the
product and take competitive advantages (Watson IV and et.al., 2018).
 Societal Marketing concept: In this company focus on the product which increases
social awareness and help the society.
Reason behind entrance of Eagle tech to Indian market
The Eagle tech solutions company select the India market for the expansion of the IT business
because there is a high scope of IT in the India. In India Information technology sector expected
growth rate is 12% to 14% during 2016-2017. IT sector of India contributed to the GDP by
around 7.7% in the year 2016 (Morgan, Feng and Whitler, 2018). As the unemployment rate is
high in India, along with the knowledge of the technology in the people of India is also high. The
IT market of India is highly competitive because of the top 5 IT firm contribute 25% of the total
revenue. So, it is the reason behind the Eagle business in entrance into the Indian market because
there is a number of business which required the web development services and there are high
job opportunities in the IT industry.
The various routes available to enter international market
There are different routes that the Eagle company adopt in order to enter into the
international market and expand it businesses to the world level. It includes the following route:
 Exporting: In this the company can direct sale its different technological services such as
web development services to the other foreign countries.
 Joint Venture: In this, the Eagle company can establish the jointly-owned business with
the owner of any local foreign IT business. For example; MASTEK and Eagle can
establish jointly-owned business in India (Othman and et.al., 2019).
 Foreign Direct Investment: In this, the company can either establish new venture and
also acquire new company in order to cover its cost of premises, technology etc.

 Wholly owned Subsidiary: In this, Eagle company can establish its new wholly owned
subsidiary in the foreign markets. This mode of entry is expensive for the Eagle
company.
Best route for Eagle tech Solutions company
Eagle tech solutions company can enter into the international market by the adoption of the
export mode of entry because it is the most the easiest and best way for the company. It is
because when any company start entering IM at the first time, they have to visualize and analyse
the whole new market (Thabit and Raewf, 2018). And investing lots of fund in acquiring existing
business and establishing new operations is not good option and involve high risk. As
exportation route is less costly, less risky and require less procedure as compare to all other
mode, so it is beneficial for the Eagle company to adopt exportation at its initial stage of
expansion.
Key criteria and selection process of Eagle company to enter Indian Market
The Eagle company select its initial global market with the use of following selection criteria.
For this the company have to conduct the environment and market analysis, competitive analysis,
demand analysis and analysis of distribution channels.
 Environment and Market Analysis: In this the company have to analyse that the GDP
growth rate of the India which shows 4.2% of annual change. The company also have to
consider the political intervention and social stability which is quite clear in the case of
India. Despite, company also have to consider the risk factor which indicate that the risk
is high in India because of insecurity and currency devaluation.
 Competitive Analysis: Company have to analyse their competitors and their sales
growth which indicate that there are five top IT firms in India which is highly
competitive such as TATA consultancy service with the sales of 1.57 trillion in the year
2020. So entering the Indian market is become competitive for Eagle company.
 Demand analysis: This analysis helps the company to understand the potential demand
of their services in the India. As the demand of the web development and digital
marketing services are high in India because of technological innovation and it also open
the other Asian market as well for the Eagle company.

 Distribution Channel: As in India all online and offline channel are available for the
company to distribute the services and make it available to the ultimate consumer such as
Internet, local distributor, commercial agent etc.
So, this analysis indicate that the Indian Market is beneficial for the Eagle company to expand its
business.
Market Entry Strategy
The market entry strategy is the different mode through which company can deliver its product
and services to the new target market. These are:
Exporting: This is the easiest mode to enter the IM as this require only exportation of product
and services to the foreign countries which is produced in the home country (Sinha and Sheth
2018). For example; Petroleum exportation from UAE to India.
Advantages:
 Here the entry process is fast. The risk factor and the cost of entering new market is low.
Disadvantages:
 Here there is a chance of negative environmental impact of transportation.
 Low control over business because of low local knowledge.
Licensing and Franchising: Licensing and franchising is the mode of entry in which parent
company gives right to the foreign country franchisee to use their brand name to provide product
and services to the customer. But they have to maintain the brand standards, model and systems.
For example; Licencing of technological product and services, franchising of food products such
as McDonald.
Advantages: The entry is fast because of the low risk and low cost.
Disadvantages:
 Less control over business and franchisee may become the competitor of the franchisor.
 Various legal and regulatory compliance need to be followed.
Partnering and Strategic Alliance: This is the way in which domestic company can enter into
the contractual agreement with the other international companies to work together to achieve the
common goals (Sinha and Sheth, 2018). For example; Starbucks and Barnes & Nobel.
Advantages:

 Here the company is seem as local because of the partnership. Less investment is needed because of the shared cost.
Disadvantages:
 Higher cost is required to adopt this entry mode.
 There is an integration problem between the two companies culture.
Acquisition: It is the way to enter IM in which local company can purchase more than 50%
shares in foreign company and gains control on it. Aviva takeover Friends Life.
Advantages:
 It is a fast entry mode because of the acquisition of known and established operations. Full control over the business because of high share in the business.
Disadvantages:
 The cost of acquiring the business is high.
 There is a chance of integration issues.
Greenfield Venture: In this company can establish its new wholly owned subsidiary in the
foreign markets. This mode of entry is expensive for the local company. Lamborghini wholly
owned by Audi AG.
Advantages: Here chances to gain local market knowledge and can hire local people.
Disadvantages:
 Because of slow entry, there is a high risk factor and high cost is involved.
Critical Evaluation of Eagle marketing strategies for International Markets
In order to expand the business, Eagle company have to adopt the marketing strategy
which help in sales improvement. Blogs are one of the marketing strategy which helps the
company to generate more traffic on the websites but in the same case organic traffic takes long
time and also require original content all the time. Company can also make high public relation
by conducting campaigns (Paul and Mas, 2020). Company also use email marketing in the Indian
markets and invite the public in webinar. But all this take long time and does not give guarantee
of success. Because of lots of emails public receive in a day, there is a less chance of attracting
the public. So company have to write an email in a proper structured way to attract more public.
Company also use Facebook, twitter etc. as marketing strategies.

Recommendations
To generate more revenue and increases the client base, it is recommended to the Eagle
company to expand the business in the IM such as Indian Market. Because of the high population
and high demand of the technological services in India, Eagle company can generate more
revenue and increase their profit margin. Expansion also increases the economic growth of the
domestic country, so to contribute into the UK economic growth it is recommended to the Eagle
to expand its business (Yang, 2018). It also helps the business in reducing the external risks that
is come from technology change, competition etc.
Task 2
Covered in ppt.
CONCLUSION
The report concludes the different approaches and the strategies of the international
market which helps the Eagle company to enter the Indian market. The report also concludes the
implications of the local and global market approaches in the Eagle business. The report also
concludes the marketing mix in the range of the international market along with the different
policies that the Eagle company need to adopt. In the same context, the report also states the
difference between the local and global marketing including the argument between the global
and local markets.

REFERENCES
Books and journals
Cateora, P. R. and et.al., 2020. International marketing. McGraw-Hill Education.
Gomes, E., Sousa, C. M. and Vendrell-Herrero, F., 2020. International marketing agility:
conceptualization and research agenda. International Marketing Review.
Farrell, C., 2020. Do international marketing simulations provide an authentic assessment of
learning? A student perspective. The International Journal of Management Education, 18(1),
p.100362.
Watson IV, G. F. and et.al., 2018. International market entry strategies: Relational, digital, and
hybrid approaches. Journal of International Marketing, 26(1), pp.30-60.
Morgan, N. A., Feng, H. and Whitler, K. A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing, 26(1), pp.61-95.
Yang, M., 2018. International entrepreneurial marketing strategies of MNCs: Bricolage as
practiced by marketing managers. International Business Review, 27(5), pp.1045-1056.
Paul, J. and Mas, E., 2020. Toward a 7-P framework for international marketing. Journal of
Strategic Marketing, 28(8), pp.681-701.
Sinha, M. and Sheth, J., 2018. Growing the pie in emerging markets: Marketing strategies for
increasing the ratio of non-users to users. Journal of Business Research, 86, pp.217-224.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies, 4(4).
Othman, B. and et.al., 2019. The influences of service marketing mix on customer loyalty
towards Umrah travel agents: Evidence from Malaysia. Management Science Letters, 9(6),
pp.865-876.
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