International marketing plan

Notion App: An International Marketing Plan to the Philippines Your Name Subject and Section University Professor’s Name Date Candidate Number: 288787 Company: Notion Product/service: Notion Application Country: Philippines Word Count (sections 1-9): 2602 1 Introduction This international marketing plan examines how Notion has strategically entered the Philippine market by maintaining an office. It defines the company's product portfolio, its reasons for expanding into the market, and an evaluation of internal and external forces that may affect Notion. 2 Internal analysis Preparedness of Notion for Internationalization The Notion is set for internationalization, which is further complemented by Notion's technology, such as the new Notion of AI that integrates search, generation, analysis, and chat. This feature puts Notion from being an excellent all-in-one workspace to being flexible for use across users ranging from teams, individuals, and organizations (Teton-Landis, 2021). Thus, according to the Nine Strategic Windows model, Notion is in the “Expansion into New Markets.” It is a mature company that wants to hit high-growth foreign markets (Solberg, 1997). Also, the company’s value chain has also experienced a high level of internationalization. The Philippines has a vast and constantly growing group of internet users, numbering 69 million in 2023, and steadily enhancing its program infrastructure, which makes it fit well into the Notion strategy (Balita, 2024a). Justification For Internationalisation Theory For Notion to initiate market entry into the Philippines, the Uppsala Internationalisation Model must be used. This model suggests that companies expand internationally through a step-by-step accumulation of local knowledge and reduce uncertainties (Rani, 2021). Notably, Notion's plan to open a local office brings the company closer to Filipino businesses and institutions, acquires information relevant to this market, and adapts its platform to it. This gradual approach minimizes risk and propels enduring growth at the same time. Moreover, Notion AI also has a significant role in this strategy. It can help local users automate something independently (Notion, n.d.). With AI integrations, Notion meets the local need for higher efficiency and interaction with digital tools thereby supporting the Uppsala-based growth strategy (Notion, n.d.; Rani, 2021). The International Competitive Advantage When applied to Porter's Diamond Model, the sources of competitive advantage identified in this paper reflect Notion's strengths in the Philippines. With a rapidly expanding digital economy and the need for productivity applications, Notion's AI integration is more suitable for the country. The objective combines notes, tasks, and collaboration into one solution, giving the company a competitive advantage over the existing multiple solution providers. These dynamics are supported by Porter's Five Forces analysis, which shows that Notion has moderate competition, but because of its AI and the high level of integration, it does not have many threats of substitution. Switching costs that reflect the cost that users must incur to switch from Notion to other software are also high and add up to the position of Notion Ltd. Finally, the company has a rich and diverse offering that is mainly concerned with the all-in-one platform. When comparing Notion to local competitors, Notion currently has an international market for software and applications. It actively updates AI and other digital tools and features, positioning it as one of the best in the Philippines collaborative workspace. Primary and Possible Precursors to Internationalisation Market growth can be recognized as the primary reason for Notion to seek expansion in the Philippine market. The Philippines' digital economy accounted for PHP 2.05 trillion to the country's GDP in 2023, contributing 8.4% to the annual local economy (Philippine Statistics Authority, 2024). Moreover, the digital citizens’ growing technological literacy has more expectations from the platforms that enable them to work smartly. In 2021, although there are many internet users in the Philippines, it is also one of the countries in Asia with the lowest digital literacy, particularly among 10-14 and 65 and above years old. Despite this, 40% of Filipinos have acquired one of the six information and communications technologies (ICT) (Philippine Institute for Developmental Studies, 2021). This is where Notion’s integrated workspace model, backed by AI, meets these needs squarely. Prompts may include improvements in the availability of 5G networks because areas accessible to 5G are still limited, such that there are only 66 new 5G sites across 74 cities and towns in the Philippines in the first quarter of 2023 (Globe, 2023). 3 External analysis Political Environment Generally, the political structure of the Philippines has been relatively stable and friendly to foreign players such as Notion that want to invest in this market. The Data Privacy Act of 2012 (Republic Act No.10173) involves handling personal information. This Law requires technology companies, including Notion, to process and collect handles to user data. This regulation creates a protected environment where users and businesses can trust the platforms they might feed with their crucial details. Compliance with global data protection norms is the Philippines' significant advantage, influencing Shiseido's market entry strategy for Notion. The recently passed CREATE Law implemented in 2021 allows significant tax discounts to foreign firms, cutting the corporate income tax from 30% to 25%, and a plethora of tax measures for firms that intend to invest and expand. The Philippine government also values digitalization and FDI, manifested through current efforts to develop and enhance internet capability and user awareness. It must be mentioned that the government has initiated its "Digital Philippines" program, which complies with Notion's priorities and promotes a suitable climate for digital platforms. In addition, the Philippines is one of the leading outsourcing grounds for information technology (IT) and business process outsourcing (BPO), which confirms that Notion's positioning in the market is linked to the development of the digital economy. Economic Environment Digital Economy The Philippines showcased its digital economy's robust growth as it expected to generate 24 billion USD in 2023, attributable to an increase in internet users and the use of digital transactions. The organization discovered that a staggering 69 million of its population is online and needs tools such as Notion to improve productivity. The emerging IT-BPM industry and a rapidly growing eCommerce market worth USD 15 billion in 2022 are more prospects. The emergence of 5G networks and higher levels of development of the networks make the conditions more suitable for cloud-based applications such as Notion (Mateo, 2023). Moreover, the CREATE Law has facilitated foreign firms by providing tax incentives. Socio-cultural Environment The Philippines is heavily ripe for adopting such tools that operate on digital spaces such as Notion, as the country's population spends an average of 9 hours daily on the internet –consuming, creating content, and learning, which are all activities done chiefly on social media platforms, online shopping sites, and educational platforms, respectively. Generation Z and millennials have a high level of tech...