Entry Plan into International Market
This assignment will provide you with firsthand experience in developing a strategic marketing plan for entering a new international market. Choose a global company that you are familiar with for this paper. NFL entering the UK. Use the Internet or Strayer Library to research the following components of the global company that you have chosen: 'Company Profile (History & Analysis) 'Product(s) 'Financial Status 'Market Position 'Analysis of current global operating environments 'Integrated marketing communication (IMC) Strategy 'Strengths and Weaknesses Analysis 'Sustainable Competitive Advantage(s) enjoyed by the firm 'Sources of funds for the project 'Pro-Forma Balance Sheet & Income Statement for five (5) years 'Cash-Flow Statement Note: You may also use the following resource for your research: ◦Financial profiles for global companies: http://news(dot)morningstar(dot)com/stockReturns/CapWtdIndustryReturns.html Write an eight to ten (8-10) page paper in which you: 1. Choose a country into which the company you selected may expand. Note: Ensure that the country you chose is currently not doing business with the selected company in any capacity (e.g., exporting, FDI, or contract manufacturing). 2. Develop a brief profile of the country that you have chosen. The summary should include: a.Geographic and historical data regarding international business b.Political and legal environment for conducting international business c.Business customs and practices d.Economic environment e.Socio-economic analysis which should include the factors of concern (e.g., population characteristics, language, GDP, taxation, personal income, labor, industries, communication networks, imports / exports, and major trading partners' countries). Note: Refer the following resource to complete this criterion of the assignment: 'A Basic Guide to Exporting Contents http://export(dot)gov/basicguide/eg_main_017244.asp 'Business week's Magazine covering Global Marketing http://bx(dot)businessweek(dot)com/global-marketing/ 3. Ascertain the possibility and feasibility of financial, distribution, and marketing partnerships for the company within the chosen country. Your research should include: a.Market structure and analysis (e.g., channels- direct or indirect) b.Currency considerations c.e-Commerce d.Impact of regional and global trade integration e.Potential volume of trade f.The marketing mix components g.Key cultural dimensions affecting marketing operations 4. Analyze the key reasons why the entering the market in the country that you have chosen is justified. Include your research and analysis from Criteria 1 and 2 of this assignment to support the response. 5. Determine at least three (3) potential risks of foreign market expansion into the country that you have chosen (e.g., language barriers, regulatory, taxation, expropriation, etc.). Suggest one (1) strategy to mitigate each risk that you have determined using weighted metrics with a baseline number(s). 6. Determine at least three (3) potential benefits of foreign market expansion into the country that you have chosen. Suggest one (1) strategy to maximize each benefit that you have determined. 7. Suggest at least two (2) ways in which you would adapt the operational strategies of your chosen company both to fit the changing dynamics of foreign markets and to foster a competitive advantage for the company. 8. Use at least six (6) academic resources in this assignment. Note: Wikipedia and other similar Websites do not qualify as academic resources. Your assignment must follow these formatting requirements: 'Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. 'Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: 'Formulate, implement, and evaluate effective marketing strategies based on an analysis of global operating environments, market dynamics, and internal capabilities. 'Analyze the major economic, cultural, and political / legal aspects of the international business environment, including the economic dynamics of foreign trade, impact of regional and global trade integration, and key cultural dimensions affecting marketing operations. 'Assess the potential risks and benefits of various international markets and formulate effective market entry strategies to support foreign market expansion. 'Integrate global information systems in the use of market research. 'Integrate the concepts of market segmentation, product development, and pricing policies into viable marketing strategy to fit a variety of international market environments. 'Construct product distribution channels and logistics to meet marketing objectives and fit a variety of global market environments. 'Analyze an integrated marketing communication (IMC) strategy to support global marketing operations. 'Integrate global e-Commerce into the marketing strategy. 'Evaluate and adapt corporate marketing strategies to fit the changing dynamics of foreign markets and foster a competitive advantage. 'Use technology and information resources to research issues in international marketing. 'Write clearly and concisely about international marketing using proper writing mechanics. Additional information This assignment will provide you with firsthand experience in developing a strategic marketing plan for entering a new international market. Choose a global company that you are familiar with for this paper. NFL entering the UK. Use the Internet or Strayer Library to research the following components of the global company that you have chosen: •Company Profile (History & Analysis) •Product(s) •Financial Status •Market Position •Analysis of current global operating environments •Integrated marketing communication (IMC) Strategy •Strengths and Weaknesses Analysis •Sustainable Competitive Advantage(s) enjoyed by the firm •Sources of funds for the project •Pro-Forma Balance Sheet & Income Statement for five (5) years •Cash-Flow Statement Note: You may also use the following resource for your research: ◦Financial profiles for global companies: http://news(dot)morningstar(dot)com/stockReturns/CapWtdIndustryReturns.html Write an eight to ten (8-10) page paper in which you: 1. Choose a country into which the company you selected may expand. Note: Ensure that the country you chose is currently not doing business with the selected company in any capacity (e.g., exporting, FDI, or contract manufacturing). 2. Develop a brief profile of the country that you have chosen. The summary should include: a.Geographic and historical data regarding international business b.Political and legal environment for conducting international business c.Business customs and practices d.Economic environment e.Socio-economic analysis which should include the factors of concern (e.g., population characteristics, language, GDP, taxation, personal income, labor, industries, communication networks, imports / exports, and major trading partners’ countries). Note: Refer the following resource to complete this criterion of the assignment: •A Basic Guide to Exporting Contents http://export(dot)gov/basicguide/eg_main_017244.asp •Business week’s Magazine covering Global Marketing http://bx(dot)businessweek(dot)com/global-marketing/ 3. Ascertain the possibility and feasibility of financial, distribution, and marketing partnerships for the company within the chosen country. Your research should include: a.Market structure and analysis (e.g., channels- direct or indirect) b.Currency considerations c.e-Commerce d.Impact of regional and global trade integration e.Potential volume of trade f.The marketing mix components g.Key cultural dimensions affecting marketing operations 4. Analyze the key reasons why the entering the market in the country that you have chosen is justified. Include your research and analysis from Criteria 1 and 2 of this assignment to support the response. 5. Determine at least three (3) potential risks of foreign market expansion into the country that you have chosen (e.g., language barriers, regulatory, taxation, expropriation, etc.). Suggest one (1) strategy to mitigate each risk that you have determined using weighted metrics with a baseline number(s). 6. Determine at least three (3) potential benefits of foreign market expansion into the country that you have chosen. Suggest one (1) strategy to maximize each benefit that you have determined. 7. Suggest at least two (2) ways in which you would adapt the operational strategies of your chosen company both to fit the changing dynamics of foreign markets and to foster a competitive advantage for the company. 8. Use at least six (6) academic resources in this assignment. Note: Wikipedia and other similar Websites do not qualify as academic resources. Your assignment must follow these formatting requirements: •Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. The topic should remain the same however the NFL entry into the UK Mark should be an NFL team entry into the UK market a team being based in the UK note London is the local of choice
Entry Plan into International Market
Name
Institution
This paper outlines a research on firsthand experience in developing a strategic marketing plan for entering a new international market. The research mainly focuses on an African business located in the Eastern outskirt of Africa and explains how the same business can be embraced and expanded in various parts of the world, India being the country in context for its expansion.
Company Profile (History & Analysis
Africa is coming up with new business inventions and Kenya is part of the emerging countries within the continent. Initially invented in Kenya, Safaricom Company is a mobile telecommunications industry which provides various services under one roof to members of East African communities and beyond. It was started as a monopoly operation for telecommunications and Kenyan departmental post. Operations were launched in 1993 under analogue networks but were later upgraded in 1996. The company was incorporated as a private limited liability company on 3rd April 1997 under the Companies Act, and later converted into public company on 16th May 2002. It is integrated and one of the leading communications in Africa, keeps customers updated through press and offers media coverage all through the year due to the programs and services offered by the company. As a result of its comprehensive range of services, Safaricom has attracted over 17 million of subscribers over the years and is regarded as the next big business ventures going global in the recent years.
Product(s)
Some of the services offered by Safaricom Company include post-pay and pre-pay services, mobile number portability, affordable broadband internet, mobile internet, bonga points, sms, M-Pesa among others. Of all the above mentioned services, this research articulates on M-Pesa as an integral part of service provider. M-Pesa (M for money and Pesa is a Swahili word for money) was launched in 2007 to enable subscribers to deposit, transfer and withdraw funds via a text message. M-Pesa enables basic banking transactions without visiting the bank, making it the world’s most developed mobile payment system. For one to carry out an M-Pesa transaction, one needs to visit an M-Pesa agent with a national ID card or passport where the funds are deposited in one’s handset from which it can be used for various services such as cash transfer, cash withdrawal, airtime purchase, payment of bills among others. As a result of M-Pesa services, East Africa is ranked as the most innovative in the Sub-Saharan Africa. Financial Status
Safaricom has been voted the best performing company in East and Central African region with a yearly turnover of 18 billion since 2010.
Market Position
M-Pesa was invented by the Kenyan mobile network operator safaricom, and Vodafone (Tanzanian mobile operator) is the minority shareholder of up to 40%. By 2011, the service had grown rapidly attracting 17 million subscribers in Kenya alone. The growth of M-Pesa services in Kenya has interfered with the formal banking institutions and as a result, several banks joined forces to influence Kenyan finance minister to examine M-Pesa with an effort of slowing its growth but failed since the service had grown to extent measures. It was then promoted and financed by Kenyan government to open new branches in Tanzania, Afghanistan, South Africa, India, Egypt and other markets are still underway. Analysis of current global operating environments
Safaricom in conjunction with Vodafone are the forefront of the broader enterprise operating model looking forward to attract and retain creative, talented and innovative individuals who are happy about the evolving technology and are willing to push the frontiers forward to satisfy customers’ and contribute to society in general. East Africa has highly educated and skilled workforce surrounded with conducive and operating environment to internal business. As a result, the company is planning to set up services and sales hub in Kenya to serve members of society. Apart from creating jobs, the partnership will also position the enterprise strategically to ensure future growth.
Integrated marketing communication (IMC) Strategy
An Integrated Marketing Communication (IMC) is an assertive marketing idea which utilizes prolonged measures of customer details in tracing marketing strategy (Tapestry, 2010). A study was conducted in Nairobi to examine the IMC techniques used with M-Pesa money transfer services. The objective study involved techniques and identification of strategies used by Safaricom, so as to compare the strategy applied on M-Pesa with those of its competitors such as Zain and Zap, identify the challenges experienced during the IMC strategy applied and the available recommendations. The study results yielded that Safaricom had applied strong IMC strategies in contrary to its competitors to spread facts on M-Pesa innovations, confirming that the IMC strategy technique used was successful. Some of the recommendations involved more concentration on customer need other than the product, shifting from mass media to multiple communication forms among others (Safaricome, 2013). Strengths and Weaknesses Analysis
M-Pesa has both merits and demerits to both financial institutions and customers. Some of the merits include increased transactions to the institution since MFIs, banks and Microfinance programs seek for cost reduction, customer trust and efficiency. Also, M-Pesa protects the customer against the risk of robbery by carrying bulky amounts while travelling to the bank, and also helps them to cut down costs (Safaricom, 2013). On the other hand, some of the demerits include customers wait longer before banks confirm to them that their money has been credited to their accounts, it is challenging for customers to make direct withdrawals from banks using their M-Pesa channel. Sustainable Competitive Advantage(s) enjoyed by the firm
One of the sustainable and competitive advantages enjoyed by Safaricom is the use of strategic positioning. Companies position themselves according to the merits they possess over their competitors and their strength. To sustain the competition, a case study was conducted to examine the purpose of strategic positioning and several questionnaires were also conducted involving the cutting edge technology to arrive at a promising Primary data. The collected data are assembled and categorized with regard to relations between the categories which are then recorded for accurate analysis. The data was then analyzed to examine the accuracy, adequacy, usefulness and credibility of information in bid to reply to questionnaires to obtain the purpose of the study. The study resulted that the cutting edge technology assisted Safaricom to sustain competitive advantage, and that M-Pesa and a 3G technology were first discovered by Safaricom and was the best telecommunication service provider among its competitors. Sources of funds for the project: Pro-Forma Balance Sheet & Income Statement for five (5) years
The growth of Safaricom services was sponsored by Microfinace institution, Faulu in partnership with the UK Department for International Development (DFID) since 2003 to 2007. In 2009, an international mobile money transfer service was launched between Kenya and United Kingdom, where the project was piloted by three UK based agents; Western Union, Provident Capital Transfers and KenTv. In UK, the outlets offering these services are mostly located in areas with higher number of Kenyan migrants to help them facilitate money transfer between them and their families back at home. Cash-Flow Statement
In 2013, Safaricom Ltd expanded its funds reserve to 70.26%, earning 39.13% billion from its operation with a cash flow margin of 31.48%. The company spends 25.36 billion to invest on activities and also financed 7.58 billion in financing cash flows.
2/ Geographic and historical data regarding international business
India is the seventh largest country and second populous country located in the South Asia, with over 1.2 billion people. It is also the world’s popular democracy. Modern humans are believed to have originated from India between 73-55,000 years back. There was a transition of Indian culture from Chalcolithic to the Iron Age (Mas & Morawczynski, 2009). India’s geological processes kicked off 75 million years ago when the southern part began to experience the eastward drift. Peninsular India is the stable part of India and it’s believed to be the oldest and geologically. b.Political and legal environmentfor conducting international business
As stated before, India is the world’s greatest populous democracy, a multiparty system with six approved national parties inclusive of Indiana National Congress and over 40 regional parties. Three general elections were held in 1951, 1957 and 1962 where Jarwaharlal Nehru won. Upon his unexpected death in 1964, Indira Gandhi became his successor in 1966 who lead the Congress election victories in 1967 and 1971 (Mas & Morawczynski, 2009). The Congress brought about change in leadership when Indira was assassinated and her son Rajiv Ganghi took over the throne. Indian constitution came to effect in 1950 and states India as a socialist, sovereign, secular democratic republic. Quasi-federal is India’s traditional government which has grown over the years with a strong centre as a result of economic, social and political changes (Mas & Morawczynski, 2009). c.Business customs and practices
Indian’s historic culture dates back to 4,500 years ago when the Hindu founders of Hindu Mythology, philosophy and literature were laid to rest (Mas & Morawczynski, 2009). Many practices and ...