BMG871 International Business Research Skills Assignment Sample 2023
Option 3
International Business Research Tasks
1.0 Introduction
The main aim of this research report is to find a proper place in Latin America to explore the business where they will have the most potential market for its business expansion. Latin America is itself a very potential place for exploring the clothing business. Apart from the UK a company has its branches in the United States, Asian countries Australia and New Zealand. Currently a company is planning to explore Latin America to expand its business. Apparently this country has also gained popularity for its sports as well. In this respect, this report will provide a brief idea regarding the way this business will get its expected growth. Along with that, it will point out the way the data will be gathered and implemented for further research to make a clear understanding and justification of this business idea.
1.1 Background
Latin America is a small but a potential market for sportswear and outdoor pursuits business. According to the survey of 2018, Latin America is the fifth largest sportswear market in the world. It also shows that the tendencies of participating in sports are also increasing significantly among Latin Americans It is also an official sponsor and supplier of association football teams. Apart from this, it is also associated with Charlton Athletic, AFC Bournemouth, Dundee United, Luton Town, Blackpool, & Oldham Athletic (Buallay 2019). A company is gradually exploring different new markets with their sportswear and sport equipment. As a result, lots of countries have constructed low-cost fitness facilities all around region. According to this discussion, Brazil would be an increases the frequency for to start a new branch. Brazil is now well for its athletics, and as among the most well-known countries in the area, this has a large percentage of prospective buyers. On the other hand, if business’s approach or product promotion is factored, it will demonstrate that somehow this business is well-known in the UK sports world.
Figure 1: Rate of Sales different Sportswear and Outdoor Pursuits in Brazil
(Source: statista.com)
It has a good grip in the Asia pacific region, France, and Australia. Other than football, a company has also expanded the product range into rugby equipment as well. To grow their sales, a company is currently focusing upon that Latin American sector. As a result, it could be suggested that the organization must perform proper market research in order to fully understand the region’s growth potential and success. There are several factors that influence an industry’s capacity to develop. However, the industry’s pricing scheme, and also the country’s political and economic conditions, would have an effect on the ability to develop a significant consumer market. Despite being such a sports-loving nation, financial position just isn’t very robust; this can provide a problem for the corporation. In the following sections the report will discuss the can make a proper market entry and earn potential growth in this country.
2.0 Research Objectives
Research objectives are something that helps to point out the basic idea on the boss of which the entire research will be constructed. Focusing on the selected topic it needs to be said that this will point out the principle objectives which will help to find out the appropriate way to determine whether Brazil will become a potential market for their products or not. This is important to analyze the related issues of market expansion when it comes to internationalization of any business. it has expanded its business in many other countries but while entering a completely new market there can be multiple threats and risks that needed to be analyzed before (Smart 2018). However, the main aim of this research is to determine the potentiality of Brazil as a software market for development. The objectives of this research paper have been identified below-
- To evaluate the can find out a suitable as well as potential market for selling their sportswear, bicycles and outdoor pursuits
- To identify a market and its potentiality for business expansion of sportswear, bicycle and outdoor pursuits
- To find out a strong target customer for the sports company
- To evaluate the challenges that can influence the business growth in the Latin American market.
- To provide some suitable recommendations through which can develop the business in its new market.
3.0 Identification and Justification of Research Approaches
Research approach plays a significant role in maintaining appropriateness of a work. It not only guides the way a research needs to be conducted but it also helps to collect proper data by analyzing which the final outcome of a research can be obtained. This research is based on finding a proper Latin American country for business expansion of their sportswear and bicycle. Latin America is a prominent place of sportswear business and sports at the same time. Therefore, a proper selection of research methods will help this company to find a proper place for making a potential market entry in a country (NETO 2019). The corporation had also aimed primarily Brazil as a location to enter. To gather necessary data regarding the selected country, this research have chosen the tertiary research methodology. In addition, the data will be analyzed using a primary method of data analysis (Elhassan and Braima, 2020). However, there seem to be some few other aspects which have an impact on the work results and procedure. The observational study and inductive research strategy are being used in this case. The researcher collects pertinent data from multiple credible sources in this manner, which is then handled as per positivism philosophy for ultimate section.
Secondary data helps to collect data from a wide range of resources and it is not limited to any. Through this way, it can intervene in different research papers as well as market results of different companies who already exist within the selected country. Moreover, the descriptive research design will also help the researcher to research in depth manner from these wide ranges of sources and find out the proper way through which can make a proper business practice in Brazil. However, in 2020 the business of the fashion industry has changed drastically (Vanni 2018). It has mainly impacted negatively on business, consumer behavior, supply chain and sales growth as well. It is also focusing on the business rate of different outdoor pursuits in this Latin American country (Darshan, and Krishnegowda 2020). Brazil is a developing country, thus after covid the current situation of these countries can also be evaluated in a proper way through this research. It is expected that the secondary research method will help to gather information regarding these aspects to make a proper research result.
4.0 Target Audiences
Target audience refers to the particular segment of the population that involves a particular opportunity for taking action on the identified problem. This research is also planning to find out a particular section that will be most appropriate to sell the bicycle and sportswear. In the case of Brazil it can be said that there is a potential market for bicycle selling in this country. Bicycle is a potential transportation system that requires less energy to continue its service. Along with that it does not require any fuel energy that makes it a sustainable source of transportation. Especially after covid 19 pandemic, the economic condition of a large number of people has changed (Dodds 2019), making bicycles an affordable transportation service for many. Along with that Brazil has become one of the most promising markets for sportswear business and the participation of both men and women has significantly increased. Thus a company must target the both male and female consumers from 18 to 45 age group people. It will make a company grow in sales. Thus, this research is targeting people from the 18 to 50 age group that includes both sports persons and common people who are regular users of bicycle and outdoor pursuits. In this regard, it will also analyze the consumer records of this country as currently the consumer centricity is at its peak in this country.
Latin America of Expansion
The Latin America of Expansion is being defined to use as the verdict for the GDP to be expected in growing 2.6% that to in 2020. In the strong economical countries forwarded to expand in some countries like Mexico, Argentina, Colombia and Brazil. Latin America’s strong and deviated growth has been lead with the outstanding use of any business expansion that has opportunities. To grab the opportunities is the main criteria in expand the business and thus have outsourced the business in international level. Latin America is being used as the generally understood the use of consist in the entire continent that have South America in getting with the addition for Mexico. This has been used as the islands use with the Caribbean that have inhabitants to speak about with the Romanian language. This has been used as the one source of indicator used that needs to be anticipated use by the Latin America countries. This needs to work with the low latency network to work on the high-speed workloads that have need to use by the technology in gathering service and manufacturing business. This needs to understand by the facts of the studies to be expected in expanding within the Latin America. It is being used as the tendency where the sports based companies have a region to expand their multiple nation states for varying levels of economic complexity (Rezaee et al. 2018). The socioeconomic pattern thus has so called sources with the latin America depiction that have colonial era where the region must be used as the region to control for Spanish and Portuguese empires. It has been used as various other parts where region with favorable conditions with locations near the costs have coasts near them to have develop many types of plantations. In the 19th century Latin America have relevant sources in order to define as the exporter of commodities in detailing with the investments of growth in rail road’s and economic expansion growth.
5.0 Research Challenges
Despite being one of the largest sportswear markets and so as in outdoor pursuits there are some significant challenges that can impact the business performance of in Brazil. Currently Brazil is going through some serious economic crises that can significantly impact their market entry and business performance at the same time. It seems many companies are closing football and sports shoes factories in this country. While intervening in this country a company must look into this issue. Along with that, many global players are currently dominating this market (Landrum 2018). Especially in case, of sportswear, and outdoor pursuit products like shows, climbing cloth sets, and its accessories the local people depend on international brands. Utilizing this business set up many international brands has already captured the apparel market in this country (Jedel 2019). Thus it will face tough competition in this market. Nike and Adidas have a very good grip in this market and they sponsor a lot in different sports as well as they sponsor in many outdoor pursuits like mountain expedition and rock climbing. This is, therefore, going to give a tough competition to in regard to exploiting the sports market. Apart from that retail channel distribution differs in different countries of Latin America. In addition, consumer habits and cultural preferences influence sales ratio significantly. However, after covid 19 pandemic the business type has been transformed into traditional to digital systems. Thus, a company needs to strengthen the digital business to acquire this market. As this is an economically weak country thus if a company cannot maintain the price quality of the products especially of bicycles then it will fail to grip this market. The significant threat can face is the chance of Mexico to overtake the sportswear market of Brazil by 2026. Hence the critical discussion in this respect is whether it will be beneficial to invest in Brazil or Mexico will become a better choice. However, needs to do concrete market research before entering into this new market (Lofreta 2017).
Figure 2: Impact of Covid 19 on different Apparel Industry
(Source: businesswire.com)
Still, it can be said, that there are some potential chances of exploring business in Latin American sportswear, bicycle and outdoor pursuit industry. It is the firm’s obligation to work out the best way to provide this firm with a strong foundation both productivity and expansion (Khurana, and Ataniyazova 2020). As the assessment demonstrates, there’s now a strong probability that Mexico’s company will intersect with Brazil’s, the business will need to do additional research before entering into the market. Bicycle sales, but at the other hand, were increasing significantly in Brazil, and that might be a prospective opportunity for their growth. If a company can properly identify the hazards and resolve them as according their seriousness, it will be easier for companies to develop an effective framework. Then following the map will give it a good scope to make gradual growth in the selected country.
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Understand problem |
6.0 Mind Map
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New Business intervention |
| Decide mechanisms of change |
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Policy and Relations |
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Nuances of Foreign Politics |
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Currency Exchange and Inflation Rates |
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Get evidence of effectiveness |
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Managing Global Teams |
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Test and adapt |
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Identify modifiable causal factors |
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Clarify delivery |
Figure 3: Mind Map
(Source: MS word)
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Exporting |
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Joint ventures |
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International business expansion |
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Franchising
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Identify modifiable causal factors |
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Direct investment |
Figure 4: Mind Map 2
(Source: MS word)
Reference List
Journals
Buallay, A., 2019. Sustainability reporting and firm’s performance: Comparative study between manufacturing and banking sectors. International Journal of Productivity and Performance Management.
Darshan, S. and Krishnegowda, Y.T., 2020. The collision of pandemic covid-19 on luxury market in India. UGC Care Group I Journal, 10(7), pp.104-111.
Dodds, M., 2019. The Impact of Corruption on Sport Sponsorship. JYU dissertations.
Jedel, J., 2019. The funding of professional sports entities by state-owned companies and private institutions. The necessity or philanthropy?. Baltic Journal of Health and Physical Activity, 1, pp.41-53.
Khurana, K. and Ataniyazova, Z., 2020. Insights and future forward for fashion and textile value chain in Uzbekistan. Research Journal of Textile and Apparel.
Landrum, N.E., 2018. Stages of corporate sustainability: Integrating the strong sustainability worldview. Organization & Environment, 31(4), pp.287-313.
Lofreta, B., 2017. New players in the field: sports web radio in Brazil (Master’s thesis).
NETO, M.J.R., COUNTRY OF ORIGIN EFFECT: EVIDENCES FROM EUROPEAN CONSUMERS’OF A BRAZILIAN FASHION BRAND.
Smart, B., 2018. Consuming Olympism: Consumer culture, sport star sponsorship and the commercialisation of the Olympics. Journal of Consumer Culture, 18(2), pp.241-260.
Vanni, M.B.S., 2018. Brazilian Açaí Berry and Non-Timber Forest Product value chains as determinants of development from a global perspective (Doctoral dissertation, The London School of Economics and Political Science (LSE)).
Rezaee, M.J., Jozmaleki, M. and Valipour, M., 2018. Integrating dynamic fuzzy C-means, data envelopment analysis and artificial neural network to online prediction performance of companies in stock exchange. Physica A: Statistical Mechanics and its Applications, 489, pp.78-93.
Elhassan, T. and Braima, B., 2020. Impact of Khartoum Stock Exchange Market Performance on Economic Growth: An Autoregressive Distributed Lag ARDL Bounds Testing Model. Economies, 8(4), p.86.
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