Kind Kones: International Market Entry Strategy Report Analysis

This report details Kind Kones' internationalization strategy, focusing on expanding into a new market. It analyzes six countries (Colombia, Indonesia, Mauritius, New Zealand, Qatar, and Taiwan) based on economic and political environments and resource availability, recommending New Zealand as the optimal expansion location. The report suggests a normative isomorphic entry strategy and digital marketing for promotion. It includes SWOT analysis, location selection factors, institutional assessments, entry strategy comparisons, organizational design, corporate citizenship, and strategic positioning. The report concludes with recommendations for Kind Kones' international market entry strategy, providing a comprehensive plan for expansion, designed for the CEO to present to the Board of Directors and/or Top Management Team (TMT).

Running head: INTERNATIONAL BUSINESS STRATEGY
INTERNATIONAL BUSINESS STRATEGY
Name of the Student
Name of the University
Author Note

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Executive Summary
This research report is based on international market entry strategies for the organization
Kind Kones which is determined to expand in a new market. The major purpose of the report
is to derive a proper understanding about how a business can enter a new market dealing with
all external and internal business factors. Before selecting a particular market for the
expansion six nations have been analysed with respect to their economic, political
environment and resource availability. The findings of the analysis select concludes New
Zealand as the most suitable country for the expansion of Kind Kones. In addition to this, the
business is suggested to select normative isomorphic entry strategy. For promoting the
business a new market, organization has been advised to select digital marketing approach.

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Table of Content
Introduction................................................................................................................................3
Organizational capability to expand to a new nation.................................................................4
Location Selection......................................................................................................................5
Institutional Assessment...........................................................................................................11
Entry Strategies........................................................................................................................12
Organizational Design..............................................................................................................14
Corporate Citizenship...............................................................................................................15
Strategic Position.....................................................................................................................16
Recommendation......................................................................................................................17
Conclusions -............................................................................................................................18
References................................................................................................................................19
Bibliography.............................................................................................................................21

3INTERNATIONAL BUSINESS STRATEGY
Executive Summary
Introduction
This report is based on the development of internationalization strategy of the
organization Kind Kones. The report discusses how the organization applies
internationalization strategy by expanding the operation to a new and selected nation amongst
the six nations. A business can expand its operation to a new market on the basis of certain
factors such as internal capability and market demands. The major purpose of this report is to
develop a suitable internationalization strategy for Kind Kones along with a detailed
description of the implementation. The report is prepared considering different sections
ranging from the market selection to strategic positions. The selection of the locations
demonstrates a comprehensive as well as a logical elimination of short-listed nations such as
Colombia, Indonesia, Mauritius, New Zealand, Qatar, and Taiwan. On the basis of the
assessment, two probable international expansion locations have been determined. The
assessment has been further supported as well as interpreted with a broader range of sources.
In addition to this, an institutional assessment has been performed which includes an
inclusive institutional evaluation of two discussed locations’ formal and informal context.
This section of the report also provides a comprehensive implication to lead the international
expansion location selection. The major objective of this section is to derive a proper
understanding about how selection of markets are determined considering the facts and
finding of existing literature. Likewise, market entry strategies have also been discussed in
the report by assessing a logical and critical comparison of significant entry approaches. This
section of the report also determines the appropriate market entry strategy for Kind Kones.
Similarly, there are two more sections such as organizational design and strategic position in
which organizational design has been determined on the basis of the selection of the market

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or the country. Eventually, the report presents a justified selection of corporate citizenship
approach, which is interpreted with a greater range of sources.
Organizational capability to expand to a new nation
The ice cream manufacturer Kind Kones in Malaysia has a strong market presence
due to its high quality and broad range of ice cream products. However, it is essential to learn
whether the organization holds the capability to expand its operation to a new market; rather
to a new nation. The following SWOT analysis framework determines Kind Kones’
capability to expand to a new market.
Strength
 Kind Kones has a growing market
presence its Malaysia
 The organization has unique
categories of products such as
Vegan, No-Nasty, Allergen
Sensitive, Fake Free and
Unprocessed (kindkones.com 2018).
 An established social media
presence has now become an eye-
catching approach attracting the
global attention
Weaknesses
 Product categories such as Burgers
and wrap sandwich are failed to gain
customers’ attention due to falling
under a known product category,
which is already produced by others
in the market
 Strategic issues: the firm does not
have any solid strategy for
customers management
 Pricing strategy of Kind Kones is
not aligned to market economy
structure and purchasing habits of
consumers (Bronzi & Rosenthal,
2014)
Opportunities
 Global ice cream market is valued at
Threats
 Advancement of internet technology,

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$68,072 million in 201 and it is
projected to reach $97,301 million
by 2024 (De Mooij, 2018)
 Increasing population, increasing
urbanization rate and developing
economy is expected to remain the
fundamental factor which could
drives the growth of the organization
especially, the digital marketing
approaches have made it easy for
many small and medium size firms
to target the wide market and
promote their products, which could
appear as challenge to Kind Kones.
This means that intensity of
competition is high
 Health Conscious people are
refraining from sweets and global
prevalence of diabetes among adults
over 18 years of age has increased
from 4.7% to 8.5% in 2015 and this
may further increases
Table 1: SWOT analysis of Kind Kones
(Source: Self-Made)
Location Selection
Operation
s Location
Kind Kones Country Selection
Global
Clusters
South
Ameri
ca
Ne
ar
Eas
t
South
Asian
East
Euro
pe
Lati
n
Euro
pe
Nor
dic
Africa
n
Ocea
nia
Fa
r
Ea
st
Confuc
ian

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High
Quality of
Life
(GDP)
Colom
bia
Qat
ar
Indone
sia
Maurit
ius
New
Zeala
nd
Taiwa
n
Low level
of
difficulty
to enter
the market
Qat
ar
Maurit
ius
New
Zeala
nd
Criminal
Rate
Qat
ar
Indone
sia
Low
Aging
Populatio
n
Indone
sia
Maurit
ius
Taiwa
n
Environm
ental
Condition
Maurit
ius
New
Zeala
nd
Availabili
ty of
Resources
Qat
ar
Indone
sia
New
Zeala
nd
Ice Cream
Consumpt
ion
New
Zeala
nd
Table 1: Factors of Global Cluster

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Compari
son
Tools
countrie
s
https://www.heritage.org/
index/ranking/
Economic Freedom
http://
rcii.gsu.edu/
Robinson
Country
Risk Index
http://
www.doingbusiness.org/en/
rankings
Ease of Doing Business
Colombi
a
68.9% (#42) 486 (#73) #59
Indonesia 64.2% (#69) 505 (#65) #72
Mauritius 75.1% (#21) 651 (#40) #64
New
Zealand
84.2% (#3) 935 (#11) #1
Qatar 72.6% (#29) 763 (#30) #83
Taiwan 76.6% (#13) 563 (#51) #15
Table 2: Factors for business sustainability
Distance Mauritius New Zealand Qatar Taiwan
Cultural
Administrative
Geographic
Economic
Total
Table 3: Cultural, administrative, geographic and Economical norms
(Source: Self-Made)

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According to Zhu and Chung (2014), people in Taiwan have traditional values based on
Confucian ethics; nonetheless, pressure particularly from industrialization are now
challenging these values but some traditional values still remain the same with the inclusion
of piety towards the parents. On the other side, New Zealand have unique as well as dynamic
culture and the culture is of its indigenous Maori people affect language, arts and accents of
all New Zealanders (Paton et al., 2014). Conversely, when it comes to geography, it has been
identified that Mauritius remains as the second largest island that belongs to a groups of
islands Mascarenes as called in French and this island is natural enough to attract the
attention of tourists and visitors (Sawmy & Damar-Ladkoo 2015).
On the contrary, Qatar is occupying a small desert peninsula which extends northward
from larger Arabian Peninsula. Notwithstanding, when it comes to geographic facts, it is
identified the climate of Qatar is a significant barrier as the climate is hot and human from
June to September with daytime temperature around 50 degree Celsius (Benmamoun et al.
2016). In addition, Qatar’s economic freedom scores 72.5, which makes the economy 29th
freest in 2018 but the overall score has decreased by 0.5%. Similarly, when it comes to
economic condition, Mauritius economic freedom scores 75.1, which makes economy 21st
freest in 2018. Svirydzenka and Petri (2017) mentioned that solid economic policies as well
as prudent banking practices in Mauritius helped business to deal with global business crisis.
Hence, table 3 indicates that when it comes to culture, both Mauritius and Taiwan are quite
similar in nature as both the nations are favourable towards of small size and scarcity of
natural resources. People in both Mauritius and Taiwan are quite social, friendly and this
could eventually prevails with visitors as well as locals. Nonetheless, table 3 also indicates
that Mauritius and Qatar are totally different than other four nations in terms of culture,
administrative, geographic and economic. This means Mauritius’s, for example, economic
state is different from New Zealand, Qatar and Taiwan.

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Resources Availability
Resources Taiwan Mauritius New Zealand Qatar
Economic
Resources
Skilled Human
Resources
Technical
Resources
Raw materials
such as milk,
vegetables,
coffee beans,
sugar, fruits, etc
Ranking
Table 4A: Resources Availability [Green= Attractive, Yellow= Neutral, Red=
Unattractive]
(Source: Self-Made)
Competitiveness of the resources
Resources Taiwan Mauritius New
Zealand
Qatar Competitiveness
[Green=Offensive,
Yellow=Equal
and
Red=Defensive]

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Economic
Resources
Skilled
Human
Resources
Technical
Resources
Raw
materials
such as milk,
vegetables,
coffee beans,
sugar, fruits,
etc
Table 4: Competitiveness of the resources
(Source: Self-Made)
The above presented tables help to observe that Mauritius and New Zealand are
eligible for the expansion of Kind Kones. It has been identified that New Zealand in the
recent time have made a significant development in technology. For example, the
advancement in wave technology such as omnipresent mobile access, which is giving
business both new opportunities as well as disruptive challenges. The government of NZ
welcomes the advancement of AI and internet technology. Such developed platforms create
vast potential for the businesses to understand as well as observe their performance along
with the environments in which they operate. On the other side, Mauritius, when it comes to
resources, is always leading ahead, as the nation has paid a significant attention to its

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freshwater, resources, natural resources, land resources and technology. For example, Bah
and Fang (2015) mentioned about a significant plan for “Development of the Water
Resources in Mauritius” which was developed in the nation in 2012 with the eventual
objectives to satisfy water demand in several ways. Therefore, on the basis of the resource
availability, it is worth mentioning that both New Zealand and Mauritius are well researched
options for the business expansion of Kind Kones.
Institutional Assessment
New Zealand’s political as well as economic stability delivers a safe environment for
investors and businesses. As put forward by Hong, Oxley, McCann and Le (2016), the nation
consistently remains in the top for its governmental transparency, democratic insinuation as
well as limited range of corruption. NZ is a parliamentary democracy as well as constitutional
monarchy with Queen Elizabeth. However, Paton et al., (2014) argued that New Zealand tend
to share legal, political as well as cultural heritages with Britain. So the judicial system is
particularly established on English law principles and particularly independent of the
legislature. Nonetheless, when it comes to benefits from the political perspectives, it is worth
stating that Mauritius benefit from the political vision as well as economic development
strategy which is skilfully implemented by its founder and first Prime Minister. Musara and
Gwaindepi (2014) particularly mentioned that Mauritius is recognizing its development
approach with the new challenge of trading without the safety of bilateral commercial
preferential agreements.
It is identified that Mauritius has variously been described to the world as the pearl of
Indian Ocean and African Tiger because of its uniqueness as an island economy
(Svirydzenka, & Petri, 2017). Mauritius remains as the oldest democracies in Africa and it is
a multi-cultural society widely observed for its socio-political stability as well as for peaceful
co-existence of its several religious as well as ethnic groups. Nonetheless, even though the