Market Entry Strategies of JCB in Thailand: A Case Study

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The different strategies employed by businesses to enter emerging markets: Case Study
of JCB entering into market of Thailand
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Table of Contents
Introduction..................................................................................................................................2
Background of the study..............................................................................................................2
Research objectives:....................................................................................................................2
Aim of the study..........................................................................................................................3
Research hypothesis:...................................................................................................................3
Rationale of the research.............................................................................................................3
Data analysis....................................................................................................................................9
Quantitative Analysis...................................................................................................................9
Qualitative Analysis...................................................................................................................17
Results............................................................................................................................................19
Conclusion.....................................................................................................................................20
Linking with the objectives.......................................................................................................20
Reflection.......................................................................................................................................21
References......................................................................................................................................22

Task 1:
Introduction
Background of the study:
JCB is one of the famous British multinational companies that manufacture equipments for the
construction industry. The organisation has their head quarter in London and they have their
businesses in to the developing and the developed countries like Germany, China, Australia,
South and North America and India (Murphy, 2018). The company needs to adapt a specific
strategy that can help the company to ensure that the market penetration would be successful.
Thailand is one of the emerging market economies of the world and it is seen that the market of
the country is beneficial for developing new business for JCB as new constructions are
developing in the country (Luo and Zhang, 2016).
The study has been focused on the market entry strategy that can be used by the organisation to
enter into a new market. The problems and risks of entering into a new market and developing
business have been discussed in the study as well.
Research objectives:
 To examine different market entry strategy that can be adapted by JCB
 To identify the right strategy for JCB to enter the market of Thailand
 To ensure that JCB would be beneficial by using suggested market entry strategy

Aim of the study
The study aims to develop the research over the different market entry strategy. The aim of the
study also focused over finding the right strategy for JCB for entering in to the market of
Thailand so that the company can be beneficial.
Research hypothesis:
H0: Right market entry strategy would help JCB to expand their business in the market of
Thailand
H1: Right market entry strategy would not help JCB to expand their business in the market of
Thailand
Rationale of the research
The research needs to identify the right strategy for market entry for the mentioned company
JCB in order to enter a new market. Thailand is one of the new emerging and developing
economies of the world and it has been seen that the construction business is being developed in
the emerging market of the country largely (Ang et al. 2016). Thus, it is acceptable that in order
to enter the market of Thailand, the organisation needs their market entry strategy. This strategy
would help them to ensure that they would be able to develop their business in the foreign
country successfully. Moreover, appropriate market entry strategy would also ensure that the
company would be able to gain competitive advantage from the market. In order to define the
target market and their potential possibilities in context to the emerging market economy of
Thailand, the research would be helpful (Anderson and Sutherland, 2015). Moreover, assessment
of the different market entry strategy is required to be developed in the research, so that the
adaptation of the right strategy can be ensured from the study.

Literature review:
Introduction: Entering into new markets for the business is essential for the companies that are
trying to develop their business in the international standard. It has been seen that the
development of the target market has been identified by the help of the organisation and the
appropriate market entry strategy would help the company in this regard. At the same time, it is
also evident that the development of the proper market would help in the expansion of the
company in future. Thus, at the initial stage, the different market entry strategies has been
analysed here along with their benefits in reference to develop the business in the foreign market
in the developing countries.
Licensing: In case of the companies that are developing their business in the foreign market, the
licensing can be beneficial. According to the opinion of Meyer and Peng, (2016), the country can
provide permit to them for using the manufacturing method, processing, marketing tactics and
logo and trademark of another company which is already there and developed business as a
native company. One of the great example of licensing can be cited from the evidence of Coca
Cola as the brand have provided license to other companies in the courtiers like Zimbabwe and
South Africa to manufacture the same product and market them.
One of the major benefits of using the licensing is that it is one of good ways to start the
operation the foreign market. Moreover, as argued by De Villa et al. (2016), the connection of
receiving and the parent company would help in the development of their common marketing
efforts and it would help in the expansion of the company at the same time. The risk of the tying
up the capital in the business can also be reduced in this process.

Franchising: It has been seen that franchising can be used one of the important factors that can
be used as one of the important strategy for a company to enter a new market. Here, the supplier
can provide permission another company to use their trademark so that the other company can
manufacture their products with using that the trademark and market them. Instead of the
permission, a specific amount of fee must be paid to the supplier by the other organisation. It is
also seen in order to use the successful business model for expanding business into other
countries, this process helps, as argued by Bertrand et al. (2016). Major international business
chains use this model for developing and expanding their business in the countries. Notable
companies like McDonalds and Starbucks use these models.
Benefits of using this process are that it helps the companies to hire their employees according to
their needs. No such process of hiring local employees is evident here. Proven trademark and the
products and services as well, can be ensured by this process. Moreover, the risk of the failure in
the business can be ensured n the business, as stated by Rahman et al. (2017).
Joint ventures: Another common strategy to enter the foreign market is to develop the business
through the joint ventures. Two or more investors can share the control and the ownership of the
business and the operation. According to the opinion of Bang et al. (2015), they also share the
rights of properties included in the business. One local and another foreign company can develop
such joint venture in order to develop the business of the foreign company into the new market.
Some benefits of using the joint venture policy to enter the new market are included of the
following. In case of the joint venture companies, the risk as well as the profits is shared among
the companies included into the venture. Thus, Adeola et al. (2016) contradicted that the burden
of risk and failure does not have to be maintained by the single company. At the same time, the
joint financial strength is there in the joint venture companies and thus, the companies can be

able to overcome the risks regarding the funds. However, this strategy is only important for
penetrating the market of the foreign country only. In case of expansion of the company, it may
not be fruitful, as argued by Pattnaik et al. (2016). Examples of the successful joint ventures can
be cited from Sony Ericsson where these two companies have developed a joint venture for
penetrating the foreign market.
Turnkey projects: For the international business scenario, it is needed that the use of the
turnkey projects. Business such as oil refineries, cement and fertilizer plants, and steel plants,
turnkey projects are mostly used. In case of the turnkey projects, the agreement of the buyer and
seller can be generated where equipped and ready to be used facility can be provided to the seller
from the buyer. Turnkey projects are involved in the government or public sectors. For training
and equipping the franchise and the employees, the turnkey projects are better than the other
market entry strategies, as stated by Surdu and Mellahi, (2016). The advantage of using the
turnkey projects is that here a contractor can provide subcontract to the different contractors in
order to dissolve the different parts or phases of the project. As a result, the chances of failure of
the projects can be reduced and the ability of completing the project within the scheduled time
can be ensured. However, the cost of operation can be increased due to this turnkey projects.
Benefits of using certain market entry strategy: It has been seen that using the market entry
strategy would be beneficial for the companies that want to develop their business to a greater
level and want to expand their business to the international market. Specific market entry
strategy is needed for ensuring the fact that the business can be able to penetrate the target
market. The market entry strategy needs to be identified according to the purpose of the business,
financial ability of the business and the business market that they want to penetrate into, as
argued by Luo and Zhang, (2016). It has been seen that the successful business market strategy

can be initially developed through the market entry strategies. At the same time in case of a
successful or wrong market entry strategy, the organisation can face failure in the business and
the liability of risks in the business can be evident.
Research Methodology:
Introduction: Research methodology will ensure the process or the framework that the research
should follow in order to obtain the outcome. In case of this particular research, the researcher
must follow the below mentioned specific factors for obtaining the successful outcome from the
research.
Research Philosophy: In order to obtain the right process for developing the research, the
research philosophy helps. In case of this particular research, positivism has been used as the
research philosophy. However, interpretivism and realism are also there, the positivism has been
chosen for a number of reasons (Kumar, 2019). The information and facts related to the research
can be taken into consideration in this process. Moreover, the scientific and logical coherence of
the research topic can be obtained through it.
Research approach: In order to ensure the format of a study, research approach helps. The
classifications of resource approach are inductive and deductive. The Deductive approach has
been used here as it helps to provide better conception and specifications of data analysis. The
inductive approach has been discarded, as the research is not aimed to build up any theory or
path from this data analysis.
Research Design: For understanding the format of the research, and to ensure that the research
must follow a single path for obtaining the right outcome, the Research Design helps (Silverman,
2016). It is seen that mostly three research designs such as exploratory, explanatory and

descriptive has been used for research. In case of this particular study, the descriptive design has
been used. Descriptive design has been adapted, as it would help the research to gain the minute
details of the research process. Therefore, it would be easier to identify any loopholes or
shortcoming in the research with the help of this design.
Data sources: For developing this research, the use of secondary data along with the primary
data has been taken into consideration. The secondary data and information has been used and
taken from the sources like reports, journals, and books (Bresler and Stake, 2017). Moreover, in
case of the primary data, the use of human interaction such as interview and survey has been
taken.
Sampling: As the research is involved with the human interactions like interview and survey,
sample sizes are must to be defined. For the survey, 20 people have been selected. These people
will be selected from the employees of the mentioned company JCB. On the contrary, for
conducting the interview, two managers of the mentioned company JCB, has been selected.
Data collection process: For selecting the survey respondents, simple random sampling method
has been used whereas for selecting the respondents for interview process, non-probability
sampling method has been used. The survey would be conducted by using questionnaire, which
will be supplied to the respondents through offline and online. The interview would be
conducted face to face according to the provided schedule by the managers.

Task 2:
Introduction
Background of the study
JCB is the most well known name in the field of construction. It is a multinational company set
up in Britain, which deals with producing and developing equipments and tools for the
construction companies and industries of the world. They have spread their companies in both
the emerging and developed nations like China, Germany, North and South America, India and
Australia (Jcb.com, 2016) .The business is planning to penetrate into the marketplace of
Thailand. The nature of the market is Thailand is still in the process of developing and it is
analysed that such market is easy to enter into. The nature of environment prevailing in the
market of Thailand will help JCB to prosper as a construction company. Many new constructions
and projects are growing in the country, which will assist the company to easily grasp and
perform in the marketplace. This research project will analyse that different strategies that can be
adopted by the company to enter into the market of Thailand and will examine which strategy
fits the company best. The risks and hindrances that can arise in the path of such expansion of
the business in the foreign land will also be analysed by means of this research.
Research objectives:
 To examine the different market entry strategy that JCB can adopt to penetrate the market
of Thailand
 To identify the right strategy for JCB to enter the market of Thailand
 To ensure that JCB would be beneficial by using suggested market entry strategy

Aim of the study
The study aims to develop the research over the different market entry strategy that a company
can undertake to enter into a new market. The aim of the study also focuses over finding the right
strategy for JCB for entering in to the market of Thailand so that the company can be beneficial.
Research hypothesis:
H0: Accurate market entry strategy can help JCB to expand their production in the market of
Thailand
H1: Accurate market entry strategy cannot help JCB to expand their production in the market of
Thailand
Rationale of the research
By means of this research project, the appropriate strategy needed to penetrate into the market of
Thailand by the company called JCB will be examined. To enter into any new market, the
company must analyse the nature and behaviour of the environment as well as the consumers in
such market. Thailand has a market that is still in the stage of developing and many new
constructions and projects are being undertaken by the government of the country to convert it
into a developed economy. JCB is Construction Company, therefore as such new ventures are
being undertaken in the country; the company can easily enter the market of the country and
function accordingly (Cws.cengage.co.uk, 2017). It is to be seen that which strategy will be
appropriate for the company to enter into such market. A strategy should be selected in such a
way that the business can function and operate in a successful manner in the foreign land.
Without selecting any accurate marker entry strategy, the company cannot outperform its
competitors and overcome stiff competition in the market. This research will help to understand

the target market and the impending possibilities in respect to the developing market of the
country. Moreover, the analysis and discussion of various strategies that can be used for market
penetration is needed so that the correct strategy can be identified from this research.
Literature Review
Analysis of different market entry strategies that JCB can adopt
As opined by Konyk, (2016), there are various market entry strategies, which a business can take
up, to penetrate into the developed as well as developing markets. By means of franchising, the
company can create a successful brand name in the marketplace by encouraging the owners to
spread their respective branches all through the world. This is one of the simplest strategies to
enter into any new market and many businesses turn out successful by adopting this practice. On
the contrary, as stated by Lee et al., (2015), the company cannot succeed by means of this
strategy if it does not have any pre-established brand name in the market and there is ample
amount of risk in the market.
From the research works of Chetty et al., (2015), it is evident that by using direct exporting,
direct selling can be done in the new market any company is interested to enter into. They give
responsibility to agents and channel supervisors to aid them in distributing their products to the
appropriate consumers. As stated by Grant, (2016), a company can enter into a new market by
means of partnership with any other company. If the company is weaker in nature, it can make
partnership with a stronger one and make its place tougher in the market. On the contrary,
Thompson et al., (2015), has stated that it is difficult to bond with a domestic company if it is
itself a foreign company. Sometimes one company may not get a competent partner as compared
to others and hence it may not be able to conduct successfully business in the new market.