SKD Jewellers: International Market Expansion Strategy Report

This report assesses SKD Jewellers' potential expansion into the global market, focusing on India. It examines various market entry strategies, including direct exporting, direct investment, and joint ventures, ultimately recommending a joint venture approach. The analysis incorporates PESTEL and SWOT frameworks to evaluate the macro and micro environmental factors influencing the Indian market. The report also addresses the 4Ps of the marketing mix (Product, Price, Promotion, Place) and Hofstede's Cultural Dimensions to tailor the expansion strategy to the Indian context, highlighting the importance of cultural sensitivity and affordable pricing. The promotional strategy emphasizes both social and traditional media to reach a broad audience within India.

Running head: INTERNATIONAL MARKET
International Market
Name of the Student
Name of the University
Author’s Note

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Executive Summary
This particular part has focused to evaluate on how SKD jewelers can expand their business in
the global market with the help of different market entry strategies and policies in the global
market. The domestic companies, on the other hand, look for the suitable strategies for
expanding the business in the global market. It is usually anticipated that the business expansion
in the internationalized countries can make the considerable profits for the businesses. However,
it is also notable that lack of appropriate strategies and systematic methods can even lead to the
expansion failure.

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Table of Contents
Assessment Part 2: Report...............................................................................................................3
Introduction:....................................................................................................................................3
Company Background:....................................................................................................................3
Missions and objectives:..................................................................................................................4
Macro Environmental analysis (PESTEL):.....................................................................................4
Micro environmental analysis (SWOT):.........................................................................................6
Various Market entry strategies:......................................................................................................6
Direct exporting...............................................................................................................................6
Direct investment.............................................................................................................................7
Identified market entry strategy and justification of chosen market entry strategy:.......................8
Joint venture.....................................................................................................................................8
4Ps of marketing mix:......................................................................................................................9
Hofstedes’ Cultural Dimension:....................................................................................................10
Promotional strategy:.....................................................................................................................10
Reference List:...............................................................................................................................12
Appendices....................................................................................................................................14

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Assessment Part 2: Report
Introduction:
Every business marketer strives to strengthen the competitive position of the business in
the global market. The domestic companies, on the other hand, look for the suitable strategies for
expanding the business in the global market. It is usually anticipated that the business expansion
in the internationalized countries can make the considerable profits for the businesses. However,
it is also notable that lack of appropriate strategies and systematic methods can even lead to the
expansion failure (Johanson and Mattsson 2015). Especially, when the small companies decide
to expand the business in the newer region or country, it becomes much crucial to select the
appropriate strategy for the successful business prospects.
Company Background:
SKD Jewellers has started their journey in the fashion industry. Designing innovative
jewelers in affordable price range is the primary aim of SKD. Business experts aims to expand
the entire business in multinational countries. We can see in this case study; SDK Jewellers is the
UK based domestic company that intends to expand the business in the Asian countries
especially in India. We are generally concerned about the products or services that are needed to
offered to the target market if we happen to expand our companies in different locations of
India. Similarly, the company has decided to develop a variety range of jewelries and bring
flexibility to the services. Having presence in the south east region of England, the company has
already gathered the remarkable responses from the local customers (Jewelrycatalogue.net 2017).

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Therefore, it is essential for the company to develop the most effective product specifications by
understanding the cravings of the international customers.
Missions and objectives:
 To expand the business in the global market
 To render variety of products
 To bring service flexibility
Especially, in India the customers would prefer the reasonable price of the jewlleries.
The company is also focusing on the latest trends of the jewelers, designs for expanding the
business in the multinational countries. With the help of an effective macro and micro
environmental analysis the study has focused to evaluate various environmental factors along
with opportunities and threats before entering in India.
Macro Environmental analysis (PESTEL):
Political:
Political environment is highly influenced by some of the major factors such as
government policies, politicians’ interest ideologies of several political parties. The taxation
policy of India is well developed that enables the business experts for running their entire
process of business smoothly. The customers of SKD Jewelers would not have to face
difficulties in purchasing services and products due to systematic union Government.
Economic:

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India is economically developing country due to which business organizations have to
focus on low cost strategy. SKD Jewelers tend to follow moderate cost strategy in order to draw
the attention of India customers.
Socio-Cultural:
People belonging to religious backgrounds and socio-cultural attitudes prevail in the soil
of India. Therefore, in order to attract the attention of various cultural backgrounds SKD
Jewelers should focus on rendering diversified products and services. The products should be
designed in such a way that people of various cultural backgrounds and attitudes show their
interest in purchasing products.
Technological:
In last five years, India has become technologically advanced. With the emergence of 4G
technology India does not have to face innumerable challenges in communicating with the target
customers.
Environmental:
The weather of India is not very much suitable for surviving smoothly. As a result, it
becomes difficult for the foreign employers for staying longer period of time due to repeated
health issue. Recently, some of the major regulations have been implemented on noise control,
environmental pressure group so that business experts do not have to face major challenges.
Legal:
In the recent past, a number of legal changes have been implemented in India, such as
recycling, minimum wage increase and disability discrimination, which has directly affected

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businesses there. Still the taxation policy of India is very much systematic. Business experts do
not have to face challenges in running their business process.
Micro environmental analysis (SWOT):
Before entering in the market of India, SKD Jewelers should evaluate their strength,
weakness, opportunities and threats in order to form effective marketing strategy and policy.
Strength Weakness
 Flexible work culture
 Agile workplace
 Economic strength
 Diverse culture
Opportunity Threats
 Business expansion  Competitors’ Market threat
Table 1: SWOT analysis
(Source: Jormanainen and Koveshnikov 2012)
Various Market entry strategies:
There are various market entry strategies being discussed in order to select and identify
an effective market entry strategy for SKD jewelers. Three market entry strategies namely direct
exporting, partnership and direct investment are being shortlisted. However, all these strategies
are having various merits as well as demerits, which will have implications on the business
performance on the organization in the host country (Ulhøi 2012). In this case, India is being
selected as the target market. The following sections will discuss and evaluate the shortlisted
market entry strategies for SKD jewelers.

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Direct exporting
Direct exporting refers to the transportation of the goods from the manufacturing facility
to the end of customers in India. In this case, SKD jewelers will not have to invest in having
manufacturing facility in their host country. Thus, with the help of initiation of the direct
exporting, they will just transport their products to the Asia Pacific regions and will sell it
(Brouthers 2013). Thus, it will help them to reduce the risk involved in investing in new country.
This is due to the reason that, in the case of direct exporting, SKD jewelers will not need any
facilities other than importing and retail agents to enter in the foreign countries. Moreover, the
investment for them will also be lees due to the absence of any facilities in the host country.
On the other hand, this strategy will pose some challenges for SKD jewelers also. One of
the key challenges will be increased in the price of the product. This is due to the reason that, in
the case of exporting the products, they have to incur the import duties being levied by different
countries. In addition, with the involvement of the intermediaries such as import agents and retail
agents, the price of the product will get further increased. It will eventually increase the end price
of the products, which will reduce the market potentiality in India.
Direct investment
The next strategy being shortlisted is the direct investment. With the help of the direct
investment, SKD jewelers will have their market presence in the host country. Moreover, due to
having manufacturing facilities in the host country, they can regulate the price of the products by
sourcing the raw materials locally. In addition, another advantage that can be gained from the
initiation of this strategy is the effectively catering to the domestic requirement. This is due to
the reason that, the taste and preference pattern of the customers from the host country will be

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less from the customers in home country (Stevens and Dykes 2013). Thus, having the
manufacturing facilities in the host country will help to cater to the domestic requirement
effectively and providing customized products for the target market.
Joint Venture:
Specific reasons are there behind selecting joint venture strategy as one of the most
effective market entry strategy. Joint venture is another most helpful business expansion
strategy that is developed by merging with other companies. The company can easily share
resources with the merging company, which is an advantage for a smaller enterprise that has
limited resource (Laufs and Schwens 2014). However, the process can sometimes be
disadvantageous for the company since it creates more difficulties in making the preferable
decisions for the company benefits. In fact, when the company is planning to expand the
business in a different country, the cultural barriers become one of the major concerns. Similarly,
in this partnership business process, this cultural barrier could turn out to be much
disadvantageous.
Identified market entry strategy and justification of chosen market entry strategy:
Joint venture
The last strategy, joint venture refers to the collaborating with another organization to
enter in India. In this case, SKD jewelers can opt for joint venture with another local
organization having similar expertise in the target country. This will help to reduce the risk of
huge investment by decreasing the amount of capital invested. This is due to the reason that, with
the initiation of the joint venture, both the organizations will invest to have manufacturing

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facility and thus, SKD jewelers has to invest less (Jormanainen and Koveshnikov 2012). Another
advantage of this strategy will be the effective determination of the domestic requirement. This is
due to the reason that, the local partner in the joint venture will have more idea and information
about the target market. Thus, it will help SKD jewelers to target the market in India effectively.
4Ps of marketing mix:
In order to expand the business process the marketing managers of India SKD Jewelers
should maintain effective promotional activities for drawing the attention of Indian customers.
Product:
Different fashionable and designed jewelers are the core product with which SKD
Jewelers tend to deal. In quest of expanding the entire process of business in the market of India
the business experts have rendered variety of products and services in order to draw the attention
of customers of different socio-cultural backgrounds.
Price:
Affordable price range is the business strategy that SKD Jewelers tend to follow in order
to drag the attention of large number of customers. As per the demographic market scenario, the
target customers of India are possessed with average income status. As a result, high price cost
strategy may not be effective in drawing the attention of target customers.
Promotion:
Both social media as well as traditional media are the selected for promoting the entire
process of business in the market of India. Social media has already expanded their widespread

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wings in different geographical location of India. As a result, people by sitting at their own
workplace can get an in-depth overview about the products and services.
Place:
The business process is planned to expand in such areas where people can easily avail
while purchasing products and services. As a result, it will be beneficial for both the service
providers and service users.
Hofstedes’ Cultural Dimension:
Power Distance Index Power should be distributed equally in a business organization. Seniors
and Junior employees should not be discriminated at the workplace.
Individualism vs. Collectivism Individual effort for the success of business is not more effective than
the collective decision. In order to render the success of group
performance is highly important.
Masculinity vs. Femininity Both male and female employees should get equal respect and dignity.
Uncertainty Avoidance Organizations should always make effective risk analysis in order to
avoid uncertain situations.
Table 2: Hofstedes’ Cultural Dimension
(Source: Kaustia and Knüpfer 2012)
Promotional strategy:
However, I have observed that expanding business in the multinational countries is not an
easier process for a small company. It is required selecting the appropriate strategy that would
suit well for the business when the concern is about the profitability and competitive nature. I

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have selected the direct selling method that is associated with both advantages and
disadvantages. The most advantage of adopting this strategy is the collection of the capital
resource. We have noticed that the company is a small enterprise that has the limited capital
resources. With the help of direct selling process, the company would not invest large amount of
capital resource for entering a new geographical market. In spite of being much advantageous
direct selling process, the company may face the considerable challenges due to the
transportation barriers. It is thus always necessary to develop an alternative idea for entering a
global surrounding. `
Conclusion:
This particular part has focused to evaluate on how SKD jewelers can expand their
business in the global market with the help of different market entry strategies and policies in the
global market. From the evaluation of the three identified strategies in the earlier sections, joint
venture is being chosen as the recommended strategy. This is due to the reason that, Joint venture
will help SKD jewelers to have their physical presence in the host country along with having low
risk of investment. Moreover, this strategy will also help them to them to effectively determine
the domestic requirement. Due to all these reasons, joint venture is being chosen as the chosen
market entry strategy.