XYZ Company: A Comprehensive Strategic Report on Global Expansion

This report provides a comprehensive analysis of business expansion strategies for XYZ Company, focusing on globalization and market entry. It evaluates the UK, India, and China as potential markets, ultimately recommending the UK due to its favorable business environment. The report examines entry barriers, international laws, e-commerce considerations, and product liability in each country. It further details a globalization strategy for XYZ Company, emphasizing internal and external organizational aspects, and discusses global competitive dynamics using an actor-reactor model. The report concludes by recommending a phased market entry process for the UK, including market research, strategic alliances with major retailers, and promotional activities to establish customer relationships and achieve market success. The analysis leverages various sources to support its conclusions and recommendations.

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Running head: COMPREHENSIVE STRATEGIC
Comprehensive Strategic
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Introduction
Globalization at present is defined as the process through which businesses are
observed to operate its business at a global level (Mosedale, 2014). In addition, the
globalization process is mostly used for business expansion. This report mainly focuses on
the business expansion strategy and dynamics of a cloth and apparel manufacturing
organization, namely XYZ Company. Through this study, three countries will be chosen for
the business expansion as well as select one of the three countries. The study also focuses on
differentiating the business environment based on the four basic factors such as barriers,
laws, and e-commerce, and product liability. In addition, the study also focuses on
highlighting the globalization strategy along with global competitive dynamics as well as the
process recommended for the purpose of entering the preferred market.
Selection of Countries
For this report, the UK, India, and China have been taken into considerations for
business expansion of XYZ Company. This is owing to the reason that these countries have
large market size. At the same time, people of these countries prefer to use fashionable along
with unique products at affordable price. The analysis of these countries has been explained
underneath.
Analysis and Compare of Selected Countries
Barriers to Entry
Expenses can be observed to be a major barrier in this market, as the cost of the
property is significantly high. At the same time, market competition is also a strong barrier in
the above-mentioned three countries, wherein XYZ Company may face issue to decide the
product price (International Trade Administration, 2018a). On the other hand, India has the
potential market for business but the infrastructure and foreign tariff are high. At the same

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time, product demand of this country can be measured is varies in each state (International
Trade Administration, 2018b). With respect to China, the economic growth has observed to
be low. Simultaneously, business regulation in China has been unfavorable in the last few
years (International Trade Administration, 2018c). These aforementioned factors can be
considered to be the major entry barriers in selected countries for the business of XYZ
Company.
International Laws. With the intention of developing a business in the UK, the
higher associates of XYZ Company must focus on certain laws such as Sale of Goods Act
(SoGA) 1979, Supply of Goods and Services Act (SGSA) 1982, and Consumer Protection
(Distance Selling) Regulations 2000 among others. Only proper maintaining of these laws,
XYZ Company can conduct business in the UK (Kelly, Holmes, & Hayward, 2005). In the
context of India, initially XYZ Company must follow up Indian Contract Act, 1872 to
establish contract within the suppliers. At the same time, Mercantile Law is another law,
which has been implemented in each business sectors. Besides, the company will maintain
Indian Contract Act 1872, the Negotiable Instruments Act, the Sale of Goods Act 1930, and
Indian Partnership Act 1932 and Companies Act 1956 to conduct business in India
(Department of Higher Education, 2015). For expanding its business in China, XYZ
Company must follow Company Law of the People's Republic of China, 2014 (HFG, 2014).
E-commerce. With respect to e-commerce in the UK, it has been observed that many
people of the country have been using the internet in their daily life. Hence, the scope of
business expansion is likely to happen. At the same time, e-commerce growth is also
observed to be high in India. In the case of China, the growth rate of e-commerce is low,
XYZ must focus on these factors to expand their business (Dobreva, 2018).

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Product Liability. Any organization in the UK has product liability under the
Consumer Protection Act 1987. Any type of negligence regarding product manufacturing as
well as breach of contract has treated to be offense. The consumer can claim his or her rights
under the Consumer Rights Act 2015 (Freeman, Dobson, & Roberts 2018). On the other
hand, similar aspects are being followed in India under the Consumer Protection Act, 1986
and The Sales of Goods Act, 1930 (Seth, n.d.). In the context of China, every organization
must maintain product quality law, while manufacturing and selling product within the
market. However, the country has not maintained any specific product liability law (Global
Legal Group, 2018).
Selecting the Most Appropriate Country for Business Expansion
Based on the above discussions, it has been identified that varied countries have
different types of business prospect and constraints. After analyzing the various factors, the
UK has been taken into consideration for the business expansion of the XYZ Company. India
and China have not been selected for the business, as both, the countries have major
drawbacks. Contextually, in India, the entire country was divided into several parts, wherein
demand and cloth preference are completely different (International Trade Administration,
2018b). Hence, XYZ Company will face failure to provide appropriate product to the
customers. On the other hand, economic growth and governmental support in China are
observed to be weak and non-preferable. In the context of the UK, economic condition,
government support, market diversity volume, and consumer trend has been observed to be
reasonable for XYZ Company to expand its business.
Globalization Strategy
According to the Zou and Cavusgil (2014), it can be stated that XYZ must focus on
three major factors prior to creating a global strategy. These are internal organizational

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aspects, external organizational aspects, and global strategy. With respect to the internal
aspects, the higher associates of XYZ Company must analyze market orientation,
organizational culture, capability, and experience in the global market. Based on this, XYZ
Company will examine the potential external factors such as international market, cost,
competition, technology, and business environment of the UK. After analyzing these factors,
the company will develop a strategy. Initially, the company will investigate the ways to
penetrate the market. After that, they will develop the product as per the demand of the
customers. At the same time, the company will take an integrated decision against the
competitor’s behavior. The company can consider merger and acquisition among others to
enter the market. However, the success of these strategies depends completely on XYZ’s
financial and strategic performance in the global market.
Global Competitive Dynamics
Organizational performance is one of the major factors, which has been examined
through the process of competitive dynamics. With respect to XYZ Company, four factors
have been observed, which can help in analyzing global competitive dynamics. These include
actor, reactor, action, and response, which can further assist in enhancing the organizational
performance. In here, the actor is the company itself, which will provide the product in the
market. The action is the promotional and distributing strategy through which the products
will reach the customers. The response is consumer satisfaction and the reactor is the
development of the brand image. By following this process, the company will be able to
develop market performance in a sufficient manner (Albers & Heuermann, 2014).
Recommending the Process of Entrance in Foreign Market
Based on the above aspects of globalization, it can be recommended that XYZ
Company must focus on their financial as well as workforce capability prior to business

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expansion. With the intention to penetrate the UK market, the company must conduct market
research in their initial stage. It will help them to identify the market demand and trends. The
next step is of entering into the UK market through an alliance with biggest sellers within the
market such as Tesco Plc, Sainsbury, and others to sell the products within the market.
Additionally, XYZ Company must provide attractive offers and arrange promotional
activities such as free sampling to develop a proper customer relationship. By following this
strategy, they will able to penetrate the market of the UK, which will lead the organization
towards market success.
Conclusion
After analyzing each various aspects of globalization, it can be inferred that XYZ
Company can expand its business in the UK market. Appropriate business environment and
market flexibility can be considered as the major reasons behind selecting the markets of the
UK. The company will use proper business stagey and dynamics to penetrate the market.
Only proper alliance and promotional activity can assist the organization to attract customers
in the UK market.

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References
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