University of Northampton MKT3040: AS1 Portfolio on Global Strategies

This portfolio, submitted for the MKT3040 module at the University of Northampton, examines key concepts in global marketing. It begins with an exploration of the glocalisation framework, analyzing its definition and benefits for companies adopting a 'think globally, act locally' strategy, using Boohoo ...Read More

AS1 - Portfolio
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
The glocalisation framework.......................................................................................................3
Benefits a company achieve by adopting a “think globally but act locally” strategy.................3
Example of one real business world that supports glocalisation.................................................4
TASK 2............................................................................................................................................4
Background of India....................................................................................................................4
Political risks in India..................................................................................................................4
Economic environment of India..................................................................................................4
Advantages and disadvantages of Boohoo to move in Indian market.........................................4
TASK 3............................................................................................................................................5
Internationalising triggers and motives.......................................................................................5
TASK 4............................................................................................................................................6
Comparison as well as evaluation of waterfall approach versus the shower approach as a
market expansion strategy with real example..............................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Glocalisation is the practice that involves implementing business activities on local and
global level both (Almeida and Simões, 2019). It involves a company or a business organisation
to conduct its operations and functions on both local as well as international level.
This portfolio consists of various tasks related to glocalisation concept, reviews on merging
BRIC market, internationalising as well as various market expansion strategies.
TASK 1
The glocalisation framework
The glocalisation framework is the practice that consists of operating business activities on
local as well as on international level, both. Glocalisation leads to decentralised authority
structures and channels in the business operations. It also involves localizing of needs and wants
of local market into a global market.
Benefits a company achieve by adopting a “think globally but act locally” strategy
It is the mixture of two words global and local. A company can achieve a lot by adopting
the strategy of thinking globally but acting locally (Batet and José, 2020). Some of the benefits
related to Boohoo are explained as follows:
 Boohoo can create a worldwide impression of its local values, traditions and culture in
global world.
 There is an increase in the productive capability of an economy in which Boohoo will
operate its business functions, thereby increasing its profits and sales.
 There is access to the international market for Boohoo with increased chances of success
along with entry in new markets.
 Boohoo gets chances of international recruiting talent from the market that will result in
better performance and greater profits.
 There is a better opportunity for Boohoo to offer increased jobs to the local people as it
can provide them with lower labour rates and can have great profits for company.
 Boohoo can offer and provide great accessibility to its customers with its products and
services by providing them with lower priced and increased quantity of its products in
market.
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Example of one real business world that supports glocalisation
Boohoo is a clothing fashion company that was founded in 2006 in Manchester, UK. It was
founded by Mahmud Kamani and Carol Kane (Boohoo, 2022). The profits and revenues earned
by Boohoo is nearly 1.23 billion pounds in the year 2020. There is a huge demand of its products
in market among the young target audience because of its inexpensive activewear and other
clothing products.
TASK 2
Background of India
Indian economy adopted and implemented centralised planning with public ownership, rules and
regulations, red tape and with a lot of trade barriers (Eichelberger, Hickel and Thomas, 2020).
The government of India used the policy of liberalisation in its economy after facing the crisis of
1991.
Political risks in India
The political risks that has to be faced in Indian market because of slow decision making process
of the government. It is because of political instability that is present in market. This results in
adverse conditions along with unpredictable foreign investments, imports and exports
(Hasselwander, Bigotte and Fonseca, 2022). In the Indian market, there is lot of insecurities
related to information and cyber, corruption along with various frauds, strikes and closures of the
economy and many others.
Economic environment of India
The Indian economy is middle income developing economy. The economic environment is
growing and its predicted that it will grow by 6.9% in 2022-2023 year. It needs to have growth in
its employment rate with creating nearly 90 million non-farming jobs from 2023 to 2030, with
increase in its employment rate to grow by 1.5% per year from the year 2023 to year 2030.
Advantages and disadvantages of Boohoo to move in Indian market
Boohoo is a fashion company that was founded in Manchester, UK. It was founded in 2006 by
Mahmud Kamani and Carol Kane (Marošević and Bošnjak, 2018). If Boohoo moves to the
market of India, it will have various advantages and disadvantages. These are discussed as
follows with context to Boohoo:
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Advantages:
 There will be very low operation costs for various activities and functions of Boohoo.
 Boohoo will have very talented and skilled people that it can select and recruit for its
companies’ operations and activities.
 There will be easy registration and other relevant establishing processes and procedures
in the Indian economy.
Disadvantages:
 There will be an issue of cultural and traditional changes as well as beliefs that will be
faced by Boohoo in its settlement of its company in India.
 Boohoo company can face issues and problems related to the corruption and other
governmental interference in its establishment.
 Boohoo can face financial issues at the initial process of its establishment and settlement
in Indian economy.
TASK 3
Internationalising triggers and motives
There are numerous triggers as well as motives that a company chooses to internationalise its
market. The motive of internationalising by a company is done to see that company can have a
larger market for its products and services, it seeks a larger market, increased resources. It can
have a large pool for talented and skilled people that can be very effective and efficient for its
business operations and functions resulting in increased profits and other benefits that it can avail
from the international market (Mishra, Choudhary and Anand, 2020). There are various triggers
also that a company needs to face during internationalising its operations. The triggers have
adverse effects leading to unfavourable conditions for it. These adverse effects or triggers that
company faces are such as increased competitive pressure, reduction in the local market as well
as increased taxation rates and others.
Motive: The biggest motive that a company chooses to internationalise that it gets an
access to international market opportunities, which is comparatively larger than its local market.
It gets an international base of its target audience. According to Jessie, Macarena and Chris, the
international market offers numerous marketing opportunities to companies that choose to
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internationalise or try for taking advantage of being the first mover in global market. There is
company’s desire to grow and expand its business operations and activities in international
market area. For example, Sony was founded in 1946 in Tokyo, Japan. Its owner Akio Morita
wanted to never restrict its operations in Japan and took the advantage of internationalising its
business in whole world. In the recent time period, it now has one of greatest and biggest market
area in world as it has its expansion in many countries of globe.
Trigger: The company that chooses to internationalise its operations has to face the biggest
challenge of increased level of competition in market. It faces competition from the country’s
local market as well as also from the other international companies that are already present in
that economy (Tijssen, van de Klippe and Yegros, 2019). According to the view point of Thomas
Hout, Michael E. Porter and Eileen Rudden, the companies succeed in global market but there
are a lot of competition level that they have to face especially from American, European and
Japanese companies, as these are the global competitors that are present in international market.
The innovation is the biggest support that develops and helps these companies in increasing the
competition in global market. These companies execute their strategies in a very aggressive way
and effectively than their competitors thereby increasing competition pressure. For example,
Marks and Spencer has its operations in many countries and face a high level of competition
pressure from Zara, H&M and many other companies.
Thereby, from the above it can be seen that there are various triggers and motives that a
company has to face while choosing for internationalising its market.
TASK 4
Comparison as well as evaluation of waterfall approach versus the shower approach as a market
expansion strategy with real example
Basis Waterfall approach Shower approach
Definition It is an approach or a development
strategy or process that is used in
sequence for attaining business goals
and objectives.
It is also known as
simultaneous strategy. It is also
used to reach and cover market
that helps in taking advantage
of economy simultaneously
along with expanding of its
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business activities and
operations.
Purpose It is used for expanding business
activities in the international market
This approach is helpful in
cover larger market of
customers.
Advantages There are various advantages like
implementation of new strategies or
processes, easy expansion in market,
maintaining a fixed or stable position
in market, there is even risk
minimising, it also allows company to
expand business activities with the
availability of few resources, higher
profits along with preventing products
storing. For example, Boohoo can use
this strategy for expanding its business
activities in other countries in which it
does not have its operations.
Numerous advantages that
shower approach provides to
the companies that use this
approach is that there is
simultaneous entry in the
market and that too within a
very short time period. It also
allows the company to create
various marketing barriers for
its competitors in international
or global market, thereby
leading the company to expand
at a faster level. McDonald can
simultaneously grow its
business activities in many
countries.
Disadvantages The disadvantage that is present in this
approach is that the errors or mistakes
done can only be done or corrected
during the phase or step only, it has to
face lower rate of success in initial
stages and there is easy imitation that
can be done of products that are
innovated or introduced recently. A
company, for example, Boohoo, if
executes its expansion in
The disadvantages that shower
approach has is that there is a
great need for the management
of company to coordinate its
business activities and
operations with development
and involvement of various
coordination instruments that
can reduce wastage of
resources and easy expansion.
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underdeveloped country then it will
face lower profits as compared to its
expansion in developing countries.
CONCLUSION
It can be concluded from the above report that glocalisation is the concept that involves both
global and local market. Shower approach and waterfall approach that are related to business
expansion strategies are also explained.
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REFERENCES
Books and journals
Almeida, F. and Simões, J., 2019. Moving from waterfall to agile: Perspectives from IT
Portuguese companies. International Journal of Service Science, Management, Engineering, and
Technology (IJSSMET), 10(1), pp.30-43.
Batet, B.M. and José, C.M., 2020. Glocalisation de la communication publicitaire: enjeux et
pratiques en afrique subsaharienne. Glocalisation de la communication publicitaire, pp.1-280.
Eichelberger, L., Hickel, K. and Thomas, T.K., 2020. A community approach to promote
household water security: Combining centralized and decentralized access in remote Alaskan
communities. Water Security, 10, p.100066.
Hasselwander, M., Bigotte, J.F. and Fonseca, M., 2022. Understanding platform
internationalisation to predict the diffusion of new mobility services. Research in Transportation
Business & Management, 43, p.100765.
Marošević, K. and Bošnjak, D., 2018. Regional development and glocalisation: Theoretical
framework. Ekonomski Vjesnik, 31(1), pp.201-213.
Mishra, P.S., Choudhary, P.K. and Anand, A., 2020. Migration and child health: Understanding
the coverage of child immunization among migrants across different socio-economic groups in
India. Children and Youth Services Review, 119, p.105684.
Tijssen, R., van de Klippe, W. and Yegros, A., 2019. Globalisation, localisation and glocalisation
of university-business research cooperation: General patterns and trends in the UK university
system.
Online:
Boohoo. 2022. [Online]. Available through: < https://www.boohoo.com/>
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