Livesey Shoe Company: Developing an Internationalisation Strategy

This report provides a comprehensive analysis of Livesey Shoe Company's potential international expansion. It begins with an overview of the company and its rationale for seeking international markets, focusing on opportunities for growth, cost reduction, and competitive advantage. The report critically evaluates China as a potential target market, employing PESTLE and Porter's Five Forces models to assess the political, economic, social, technological, legal, and environmental factors, as well as the competitive landscape. The recommended internationalisation strategy is licensing, discussed in detail with its benefits and potential drawbacks. Operational management considerations are also addressed, ensuring efficient and effective implementation of the chosen strategy. This report is contributed by a student and available on Desklib, where students can find past papers and solved assignments.

INTERNATIONALISATION
STRATEGY

Table of Contents
EXCUTIVE SUMMARY................................................................................................................4
INTRODUCTION...........................................................................................................................5
MAIN BODY...................................................................................................................................5
1- Brief Overview of Livesey shoe company and its rationale for international expansion........5
2- Critically discussing which nation would recommend Livesey to enter and rationale behind
the decision, which include country analysis...............................................................................6
3- Strategy of the company for the internationalisation process for the specific target market. .8
Recommendation.......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

EXCUTIVE SUMMARY
This report will include the information about the expansion of Livesey shoe in the
international market. It will provide a brief overview of the company and the reason for its
expansion, critically discuss the country analysis for the company to enter and evaluate a
relevant strategy discussing the major aspects of the operations management.

INTRODUCTION
Internationalization strategy is defined as the plan through which organizations sell its
services and the products in the global markets. It describes designing the products effectively so
that they can be consumed across multiple countries. Inexperience of operations in the foreign
markets is considered as one of the major problems to internalization of companies.
The current report will be based on Livesey shoe company, a retail company offering a
variety of shoe options to the UK population. The company deals in high quality fashion
footwear products for consumers of all categories. The report will provide a brief overview of the
chosen organization, critically discuss the country or international markets the company would
like to expand and prepare a relevant strategy for the process of internalization for the specific
target market. Areas like entry method marketing, managing human resources and operations
will also be covered in the following report.
MAIN BODY
1- Brief Overview of Livesey shoe company and its rationale for international expansion
Livesey is a family run business which is dealing in wholesaling and retailing of
footwear and fashion products for all categories of consumers including men, women and
children. The company may be operating from the past 40 years in the market and it may have
gained the trust of consumers by providing excellent services over the years (Achinas and et.al.,
2019). The company has attractive website and various stores around the country for the
customers to gain the best shopping experience. It may invest a huge amount of time and money
in the quality and design of the goods to give value for money products to the customers. The
organization consists of highly skilled workforce and an optimum management system to take
care of the business operations.
The purpose of the company to go international may be to explore new markets and
establish its services into new countries in order to acquire more customers and increase its
market share. By expanding in a new country the company may be able to save money by
lowering the operational costs. Livesey may be looking for expansion in China as it may be an
undiscoverable market and will be beneficial for the company to generate profits. The company
may gain advantage from the expansion due to cheaper labour costs and affordable resources in
the country (Aguilera and et.al., 2019). The company might enter into the international market to
increase its growth and satisfy more customers in different parts of the world. This will be a great

step for the organization to stay ahead of its competitors by getting more reach and building
regional centres in different countries. The expansion may happen in order to ensure a longer
product life span and a better risk management in the company. Livesey may also get access to
export financing which will be a major support in cash flow management.
2- Critically discussing which nation would recommend Livesey to enter and rationale behind
the decision, which include country analysis.
International expansion plays vital role in the context of business growth and success in
the corporate world. In case of Livesey, management will take strategic action in term of
expanding venture and entering into new market across EU boundaries, which in turn provide a
lot of benefit to company. As it will plan to enter into China, where varied success factor
accessible in the market, which it will consider and take action accordingly. In order to define
rationally behind global expansion decision, the specific way is to conduct chosen country
analysis, for which two types of strategic models may apply such as PESTLE and porter's five
forces. Each model may encompass detail and essential information about China a chosen nation,
where organization will plan to enter.
PESTLE analysis-
Political factor-
The main reason behind entering into Chinese market is political stability, as it will put
positive impact on Livesey in term of providing chance to grow rapidly and in productive
manner (What is PESTLE Analysis? An Important Business Analysis Tool, 2022). It may offer
organization chance to expand its venture successfully and take pleasure of increasing
profitability, for which most of the companies are still facing issues that put negative impact on
their productiveness and success. It can be said that political system in the China is authoritarian,
which means firm will take a lot of benefits.
Economic factor-
Another feature that will drive the attention of chosen company toward expanding its
venture into China is current one. As the nation may have impressive economic growth, which
means people are able to spend money to purchase any product and utilize appropriate service. It
may drive their attention toward purchasing shoes or footwear that Livesey plan to provide each
new customer. It will enable company to grow and succeed in the new market.
Social factor-

Another factor that will put positive impact on organization is current one, as it will allow
firm to take benefit of increasing customer base by considering the current market trends in the
China related to footwear (What is a PESTEL Analysis, 2022). As people prefer to wear those
shoes and other type of footwear that are fashionable and comfortable. It may permit
management to consider this need along with another such as utilization of technologies for
online shopping experience.
Technology factor-
Technology advancement will also put similar impact on company as in the China people
are able to utilize and work with advanced technologies that play important role in their daily
activities and tasks completion. It will provide Livesey chance to utilize the best digital
marketing and other operational management advance system that help to increase its
productivity, performance and profitability level, which is quite essential for management to do
that.
Legal factor-
Change related to regulatory frameworks such as employment laws, data protection, etc.
will put negative impact on Livesey, but for short term period as it may overcome the situation
after complying with each legislation that other companies may follow in the China. It may drive
the attention of management toward conducting each business practice in appropriate manner, by
following regulatory diversity that other firms may follow in the Chinese market, which is
important for them to do that.
Environmental factor-
It factor may also become the main characteristic of China as environmental
sustainability concept may provide chosen shoe firm chance to sustain for longer in term of using
recyclable raw materials that it may use to pack each pair of shoe. It will provide firm
opportunity to gain the attention of new customers, who want to retain with sustainable brand
and take pleasure of becoming its loyal consumers, which play significant role in growth of
venture.
Porter's five forces model-
Bargaining power of suppliers-
The extent of this force is low, because number of sustainable and trustworthy suppliers
are available in the China, among which Livesey will select when it will expand into chosen

nation, which is quite beneficial for its rapid growth and success, even better than last few years
or months, when the business sector has been faced the worst situation. Due to this factor,
organization will grab certain benefits in bulk, in term of generating revenue.
Bargaining power of customers-
The degree of this force low, because consumers may do not have many options to switch
to another company’s products, due to lack of substitution of footwear, especially those who will
design and offer according to trend. It will put positive impact on new beginning process of firm,
in case of global expansion for which its management will select Chinese market, where growth
chances are accessible more than the expectations of stakeholders.
Threat of new entrance-
The threat of new companies’ entry is low, because of regulatory framework compliances
and market competition for which each company may have to pay extra amount, time, effort and
require resources that is not possible for all the organizations to do that. Along with above forces,
this one also put positive impact on Livesey that recently establish is outlet in the UK and sustain
venture into British market, but now it will tend to enter into China.
Threat of substitute products and services-
The degree of this factor is low because of zero substitute products accessibility in the
market as in the chosen nation, there were no other switching product exist that allow customers
to switch, instead of purchasing foot wear (Porter's Five Forces - The Framework Explained,
2022). As everyone in the world prefer to footwear for varied reasons such as wedding, event,
parties, etc. It will provide organization opportunity to retain and acquire new customers.
Competition between existing companies-
In the China, the competition level between existing organizations is high because each
organization may give tough competition to their rival in term of conducting strategic practices,
developing key tactics and adopting new growth approaches. It will affect negatively upon
Livesey, in term of driving management attention and focus toward developing effective plans in
which advance technologies adoption and utilization will also include.
3- Strategy of the company for the internationalisation process for the specific target market
Strategy adopted by the company to do international expansion is licensing strategy. It is
a transfer related market strategy used by businesses to enter new markets (Shadman and et.al.,
2021). It may include a company which might be expanding its services in international markets

by granting permission to another company to use its intellectual property for a limited time
period. The intellectual property may include a manufacturing processes which is patented,
copyrights, technical assistance and trademarked products (Braga, Marques and Serrasqueiro,
2018). This strategy may be beneficial for the Livesey as it may enable the organization to enter
into the market like China which may have many restrictions for foreign companies. The
knowledge that the licensee will bring of the local markets may help the organization to
understand customer behaviour and address the potential target market.
The company will also have opportunity to explore more markets other than China due to
the structure of licensing strategy (Xu and et.al., 2021). Some problems may also arise for the
organization due to this strategy as the entry into the market will be limited for the company,
licensee company might use the intellectual property of the company to become a competitor in
the future. A definite amount of money may be spent in research and planning to identify the
perfect licensee for the organization. The licensing strategy may be applied by determining if the
licensing strategy is fit for the company's strategic decisions which may create a tactical
advantage for the business. The multiple options for licensing strategy might be evaluated by the
company to be able to choose the perfect strategy for the business. The company may determine
the size of the opportunity that arises and is important for the business to create an effective plan
to enter the international market (Costa e Silva, Meneses and Radomska, 2018). By
understanding the size of the market, resources may be properly allotted to the management for
production. The company may empathetically understand the nature of its potential licensee by
developing multiple internal sheets which may include the plan to mitigate any major abjections
or obstacles before they may occur.
Managing operations may be defined as the management of the administration to ensure
the highest level of efficiency for an organization. It may be the short term management which
may enable the organization to work efficiently and deliver the desired business outcomes
through technology, data, process and people. The organization may focus on the different
operations of the business in order to promote its products in the international market
(Schellenberg, Harker and Jafari, 2018). The operations may include marketing project planning
as the groups depend on the program, project and demand generation managers to form effective
marketing strategies and manage difficult projects to define success metrics. Operations
management is the process to transform inputs goods and services that may add some value to

the consumers. Product design may involve creating a product that may be sold to the end
consumer, it may involve generating new ideas or expanding on the existing ideas in a process
that may lead to producing new goods. Consumers may be interested on the quality of the
products more than the quantity and company may focus on the needs of the consumers. Supply
chain management may involve the management of the production process from raw materials to
the finished products. It may control everything from shipping, production, distribution to
delivery of products.
The management of the supply chain will be maintained by the operations manager by
controlling the inventory management, distribution the production process and sales. A proper
supply chain process may result in the effective production process with delivering products in
time and low overhead costs. The delivery management is a crucial part of the operations
management as it may ensure that the goods and services are delivered properly to the consumers
and the satisfaction levels of people with the delivered product. Customer feedbacks may be
taken by the consumers in order to ensure the accuracy of the management towards the
operations of the company (Dahms, 2019). Forecasting is another crucial part in the process
which may involve making assumptions based on the past data which may occur in the future.
The consumer demand is one of the events of the operations management which is required to
assume the demands of the consumer for the products of company.
Managing human resources may be defined as the functions performed by a manager in
relation to the employees of the organization. It may be the act of providing actions of
management to the employees in the department. The process may include planning and
allocating resources where the workload may be divided among different department assigning
the suitable tasks to them in order to get the desired outcome. All the resources are carefully
distributed among the work force to maintain a proper workflow. The other aspect of managing
human resource may be providing a proper vision to the employees of the organization. The
goals should be clearly conveyed by the organization to its employees in order to gain the
maximum output from the employees (Dinu, 2018). It is a key element in managing the human
resource to enhance the performance of the employees and increasing the productivity of the
business. Management must provide feedback to the employees on the basis of their performance
which may help them to improve and correct their mistakes top achieve the organizational goals

effectively. The job of the management may also be to provide the employees with opportunities
for their formal and informal development and helping the employees to succeed in life.
The organization might provide the employees with training or courses for their overall
development. The organization may focus on removing obstacles which comes between the
progress of employees and assisting them may be beneficial for the company to give them the
desired outcome. Livesey may create an environment with proper work ethics by empowering
the people to work with their full potential and treat every employee fairly by giving them the
independence (Holmes Jr and et.al., 2018). Discrimination may be the reason for the downfall of
any business and the company might focus on managing their human resource fairly.
Recommendation
Livesey Shoe company may conduct a proper market research and analyse the market
conditions properly in order to gain the idea of the environment of the market in China. A proper
analysis of resources, workforces, supply chain etc. may be analysed by the organization to
establish its business in the internal market effectively. The company might focus on the trends
that are going in the country and launch products according to the consumer needs in the target
market. The organization might adopt a clear product strategy on the basis of the market research
and the analysis of the trends and provide the best quality products according to the customers
needs in the target market (Lazaris and Freeman, 2018). The company may think proactively and
may focus upon flexibility in the operations of the management and may consider making the
required changes according to the needs of the target market in the country. The right partners in
the country must be chosen by the organization and a proper focus must be given on this factor to
maintain the brand name of the business.
A competitive analysis of the business environment in China must me conducted by the
company to evaluate the potential of its competitors to provide a better product than them in the
market. The popularity and dominance of the competitors may be a barrier in establishing the
business in the international market which should be properly analysed. The money generated
from the global expansion of the organization might be reinvested in the business by the
company in order to create more opportunity for the business to enter into new markets. This
may be an effective strategy for the company to increase its market share and the profitability of
the business (Rahardjo and et.al., 2020). The organization may establish better relationships with
the government officials of the target country to ensure flexibility in the operations of the

company and reduce the barriers that may arise in the workflow. The legal structure of the
country may be correctly understood by the organization in to get saved from the penalties and
enforcement by the local authorities. Livesey may also prepare a proper budget to allocate for the
expansion which might give the organization the opportunity to control the losses and difficult
situations.
CONCLUSION
On the basis of the above report it has been concluded that the chosen organization have
been benefited by preparing a proper internationalization strategy for the global expansion in the
targeted country. The company have been able to understand the business environment of the
global market which has helped the organization to gain competitive advantage in the market. It
has been able to increase its market share and profitability by expanding into the international
market. The expansion has resulted in the development of new products for the organization
according to the targeting market. It has been able to increase its popularity in the global market
and created more opportunities for the business in the international environment.

REFERENCES
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