The scenario of this report determines several available options for an organisation to enter in an appropriate market. In this regard, an organisation needs to analyze opportunities and challenges in the specified country by considering:
- Discuss the problem statement and objective of Marks and Spencer.
- Design a Methodical approach and Mind Map of paper based on the specified objective of the firm.
- Evaluate the availability of market entry strategies for Marks and Spencer.
- Analyze the current conditions of Sao Paulo and associated challenges of new market entry.
In order to enhance business productivity and profitability, management of business organisations involves global expansion at the multinational and global level. In this context, the following report will focus on describing the market entering strategy into Sao Paolo via a British Multinational by considering marks & Spencer PLC which is one of the most renowned fashion and apparel organisation incorporated in the United Kingdom.
1.1 Problem Statement
Brazil is a massive market of 200 million people and a top 10 economy in the world. Rio De Janerio and Sao Paulo are the biggest cities in Brazil which offers broad range of business opportunities (Sassen, 2016). Sao Paulo is one of the most populous city in Brazil which offers great opportunity for multinational organisation to establish their business within the city. The major challenge for expanding market in Sau Paulo is persistent bureaucracy which influence entrepreneurs in Brazil. The taxation and governmental policies are rigid which affects the psychology of business owners to expand their business within the country. Another problem business managers faced is the language. In order to expand business in another country, first step decision makers take is to collect data. In Brazil most of the data and information written in Portuguese which are hard to interpret and analyse.
The objective of this study is to develop market entering strategy so that Marks & Spencer Plc can enter into major markets of Sao Paulo Brazil. In this context, researcher have formulated few objectives which are described below:
- To understand the market entering strategies.
- To analyse the conditions of Sao Paulo for expanding business.
- To identify challenges management of Marks & Spencer PLC may face while expanding into Sao Paulo.
1.3 Procedure of the assignment
In order to accomplish the objectives of the assignment, researcher will construct a systematic and structured study. Researcher will utilise precise methods of research so that readers can provide with an idea of the subject matter (Fitzmaurice and etal., 2015). At initial level researcher will provide brief introduction of the topic by describing meaning of global expansion strategies. Researcher will than formulate specific objectives of study which will be describe further in great detail so that market entering strategies can be comprehended effectively and efficiently. In this manner, researcher will be able to accomplish the objectives and goals of the study.
2. METHODICAL APPROACH
In order to enhance business productivity and profitability, management of organisations devise strategies and plans so that the can establish or increase their business operations in different countries. Sao Paulo is one of the most inhabited city in Brazil which offers great chance for multinational organisation to set up their enterprise inside the city (Sassen, 2016). Marks & Spencer is British multinational organisation which headquartered in City of Westminster, London. The organisation desire to expand its business operations to one of most renowned and lively city of Brazil. In this context, the researcher will devise precise market entry strategies and plans through which the management of Marks and Spencer could easily establish its business operations at Sao Paulo. In this context, researcher will elaborates the term global market expansion in brief and in succinct manner. Researcher will also analyse the conditions of Sao Paulo in order to obtain information that whether business can be expanded there or not. This is essential as this will provide brief idea to researcher and thus, he or she will able to provide effective recommendations. Eventually, researcher will identify challenges which management of Marks and Spencer could face while establishing their business operations at Sao Paulo.
3. MINDMAP OF PAPER
The above mind-map depicts the conceptual framework of the research study. Researcher has described the topic which he or she will going to cover in the study in order to accomplish the aim and objectives of the research study effectively and efficiently. Researcher provides brief introduction to the topic which help in providing explicit knowledge about the subject matter. Researcher than devise the objectives of the study which is the base of whole research. Eventually, researcher will demonstrate the procedure of the paper. In the next step, research will describe the methodical approach of the research paper. In the core area, researcher will elaborate market entry strategies. Researcher will discuss about the condition of Sao Paulo in order to obtain knowledge whether market can be establish there or not. Eventually, researcher will identify challenges and provide recommendations of the research study.
4. MARKET ENTRY STRATEGIES
Each and every organisation needs to enhance or increase its profitability and revenue in the market. This is possible only by expanding the organisation or business in a wider market or we can say global market. The organisation starts expanding its business into different markets in various countries of the world (Blach and et.al., 2017). In order to achieve this profitability and new heights of success, an organisation can use various types of market entry strategies. These strategies play a vital role in expansion and development of each and every business needs to enter into a new market. The various market entry strategies can be described as below –
- Franchising – This is a most common strategy which can be used by organisations in order to expand its business in a new market. Franchising is useful for the organisations which are already popular or well known in the market locally or globally. This is most suitable way to deal with take advantage of global market(Sassen, 2018). So it can be effortlessly exchange starting with one nation then onto the next nation's market. The constraint is that, it doesn't grow business works in each and every level. The organisations need to outfit its business administration by using establishment technique keeping in mind the end goal to going into global market over the world. They can set up different establishments in different nations in regard to arrangement of its different consultancy administrations (Nölke and et.al.,2015). It has constraint is that, the significant advantage of establishment set up is that they can be make their future rivalry in establishment.
- Joint venture – In this strategy two or more organisations work together to develop a new venture or business. This support both the companies This is additionally successful approach which could be utilized by Organisations in addition to association in the event of beginning a joint wander with a few other administration counselling brands in universal market (Lasserre, 2017). So they can make securing with different other administration counselling firm and begin another autonomously oversee organization towards counselling organization in the market. Impediment of this approach is that, Organisations in addition to association need to endure extensive variety of costing with a specific end goal to beginning another joint wander. Advantage of this approach is that, it gives the best approach to working together as nearby organization in country.
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