• Posted on October 22, 2020
• Unique Submission Team

Global Marketing AC Club

1.0 Introduction

Sports and leisure activities has become a trend around the globe; it is being implemented in a wide range of industries. Every organisation wants their employees to be fit and enjoy their work, hence, there are various types of activities planned to keep them motivated.   There may be equipment available in the premises for daily relaxation. Additionally, there are events organised during the weekends for charity occasions which attract people to participate in leisure activities. Activities that people elaborate on for entertainment and pleasure is stated as leisure activities. Leisure activities are connected to the quality of life aspsychic, social, material, structural and professional areas of life.  These areas are beneficial in leisure sports activities, directly or indirectly (JožeJenšterle, 2019).

2.0 Company overview

AS Club – A company providing floating bean bags for the UK mass market. Products are designed by owner and produced in China. The owner has extensive experience in water sports, for many years as was a national swimmer, lifeguard and trainer. His education was attained from National Sports Academy. The idea come after a long day of teaching children here in the UK.  Realising that ideally everybody should be able relax in the pool, with the products he designed –with a decision that this was the method to achieve it.According to Statista (2019) there are 4.49 million swim club members on monthly basis in England in 2018 and 84% of population of England live within 2 miles of the 3,158 swimming pools – these figures were leverage for AS Clubs business idea. Government health and safety (2018) prohibited any large floating equipment to be used in a public swimming pools which decrease the options for a successful business in United Kingdom and from this hindrance came the intensification of the idea of taking the business internationally.“Most entrepreneurs will only pursue international activities when stimulated to do so. A variety of proactive and reactive motivations can cause an entrepreneur to become involved in international business.” (Hisrich, 2013, p. 12) just changed the places Rosanna

Company Mission: AS Clubs goal is to provide unique, quality beanbags to satisfy the need for relaxation andcomfort anywhere in the world; around the pool, in the sea, in the home or garden. Due to their hybrid design, the beanbags can be used for a varied of pursuits. We have cultivated a strong and loyal customer base by maintaining the best customer service. The company’s products are designed and manufactured to the highest possible standards, and they are always looking for ways to improve theironline store.

Company Vision:To satisfy the need for relaxation and rest in a luxury environment with unmatching comfort for less money. They are committed to find the best way to make life better.

Below are examples of available products form AS Club:

The products are the finest solution for every occasion, every environment and every customer relaxation.The floating chairs can be custom screen printed with a corporate logo. Here needs more

3.0 Macro environment analysis

According to Samiee and Chirapanda(2019) the initial step in accommodating an empirical test of export market strategy coalignment is to identify and test the pertinent macro- and microenvironmental influences on the implemented strategy.

More info why we decide those three countries to make pestle?

The reason behind AS club undertakes the countries i.e. Spain, Greece and France due to these countries are famous for their tourism business. AS club innovation product demands for those location where there is high tourism exist as with the large visitor, firm can get the chances to tap more customer base for their floating bean bag (Cisneros-Martínez et al., 2018).

At the same time, the resorts, villas exist more on such location which give rise more requirements or attraction towards the floating bean bag (Bagur-Femenías et al., 2019). This is also a valid cause of analysis the countries like Spain, Greece and France etc.

 

P O L I T I C A L

SPAIN Spain’s’ current government is in the form of parliamentary statutory monarchy as it is based on Spanish constitution. The government works within an organised manner. It is found that due to strong rules or laws in Spain, the corruption is considered as average (Sadun, 2015). This can be indicated with the following graph. Based on this figure, it is clearly stated that there is a reduction of corruption rate from year to year. It presents that the influences of political leaders have become asource for the decrease of corruption. In this case, Spain would prove to be effective in terms to expand the business of floating bean bagsto the local market as political leader interferences are limited.Spain has a better percentile rate of 81.28 on voice and answerability in 2016, which actions the extent to which a country’s inhabitants are able to contribute in choosing their government, as well as freedom of expression (Market line ,2018). GREECE The political scenario of the country can be explained as unbalanced and the vast disagreement of the political leaders has made the economic performance poor in previous years (Aithal, 2017). With the hand of corruption, tax evasion it has taken its shape within the country and is considered to record billions of Euros in tax returns that are uncollected each year which is also one of the threats for AS Club. In addition to this study, it is also found that there is high corruption in Greece due to the country’s political atmosphere strongly influencing businesses. (Statista, 2019).   FRANCE As per the statistic, it is found that France is a democratic country in which people tend to have adequate freedom. It also consists of moderate risk from political instability and threat of violence or terrorism. However, there is strong regulation overcorruption and unauthorised activities. Simultaneously, France is indicating incapability’s to eradicate the problem of poverty as half of the population live below poverty line (Zhang & Kim, 2013).  This isnot beneficialfor AS Club in respect of expanding their business in the French market, as local people may not have strong purchasing power to purchase products such as floating bean bag. It would be not appropriate to target France forthe exploration of higher profit margin.   Furthermore, it is also deliberated that France consists of less corruption in comparison to previous years. Likewise, currently, the corruption is reduced by 21% (Gaffney & Kolinsky, 2014). But still, there are threats of freedom. Inducing hesitationfor new entrants towards entering France for their business expansion.

 

E C O N O M I C

SPAIN: According toValdemarin (2015)Spain captures 25th position in the world largest GDP country. This indicates that the country consists of strong employment and trading process alongside of making proper balances of import and export. This makes the country GDP stronger. These can bejustified with this graph. This increasing GDP trend in Spain presents the country’s stable economy. It would be beneficial for AS club to exert in such region where there is positive economic growth. This country possesses the appeal of a large purchaserbase. This is because the stable economy supports the people’s standard of living. With the improving economy, people hold enough purchasing power to avail innovation services as to enable them to experience the floating bean bag. (Barberá, 2014).   GREECE: Greece consists of a developed economy as 85% of it depends upon service sector, 12% industry and only 3% in agricultural sector. The major contributor in Greece is tourism and merchant shipping (Sigala and Chalkiti, 2014).The service sector supports the economy during the time of financial crisis. The country has sustained its fight with the crisis of joblessness. The rate of unemployment is around 18 percent in Greece which is reducing compared to the previous time(Bell and Blanchflower, 2015).Concurrently, due to unavailability of resources for the firm, it becomes a challenging task to achieve the distribution or logistics services at low cost (Sierzchula et al., 2014). This, in turn affects the final price of the product.   FRANCE France has a diversified economy and it has the third largest economy in the European Union after Germany and the United Kingdom etc (Stuiver et al., 2016). Price competitiveness has been one of the main reasons for the loss of export market share for France.According to the MarketLine data provided by Reserve Bank of St. Louis, the actual broad real exchange rate for France with an Index value of 100 for 2010 rose from an annual average of 94.79 in 2017, an average of 96.67 in 2018. (Market line 2018). The rate of exchange is also stable there and the host nation currency is also sustainable i.e. 1 Euro =0.91Pound sterling.The infrastructure quality is sound, which will also help the company to establish its business there

S O C I A L

SPAIN On the basis of the survey, the level of education is good. It is also indicated that the skills of foreign language among the people are enhancing which would be of benefit for AS Club in order recruit employees from Spain. (Ruiz-Real, et al., 2019). Siesta is a traditional break at mid-afternoon has altered rising competition among the global companies. The culture of work has motivated in the direction of shorter breaks for lunch and the workers in workplaces stay at their own desks during the afternoon in larger cities. Additionally, in response to other customs, Spaniards extremely value private relationships and give importance to personal meetings. This graph projects Spain’s population is decreasing – the majority of the current population of 66% belong to the younger age category. It would be beneficial for companies like AS club to effortlessly target the people in Spain with their floating bean bag. It means that for establishing a business in this country is to make personal connections with corresponding people and establish trust. Spaniards are also deeply rooted in their culture. There is a culture of shorter breaks for lunch and the workers in workplaces stay at their own desks during the afternoon in larger cities (Aran et al., 2015). Additionally, in response to other customs, Spaniards value private relationships and give importance to personal meetings.   GREECE European culture has major influences over Greek society, as Greece consists of both a rich culture and heritage (Sörensson and von Friedrichs, 2013). The existences of varied food, ancient history which is why many tourists find Greece a fascinating country. Greece has significantly deeper cultural and historical roots than many other European countries in the area. (source:Market line,2018) According to Eurostat, (2017) nearly 36% of Greece’s’ inhabitants are at risk of poverty or social exclusions.  Among EU nations is aprominent figure. ? Greece has significantly deeper cultural and historical roots than many other European countries in the area.  It is also found that the income growth of Greeks is 1.2% slower and income per capita at US$17244 was lower than average (Qiang et al., 2013). In such a case, people do not have enough purchasing power so it could ultimately affect the selling of floating bean bags and possible profitability within this market.     FRANCE France is considered as one of the most modern countries in world. It has population of 63.5 million. The life expectancy rate for men is 79 years while 85 forwomen (Mathilde et al., 2018) .The countries is famous for its cuisine, fashion, perfume, cars, culture and language etc. This give rise high standard of living and high tourist visitors. The level of skill and demographics of the populace is moderate and the structure of class, hierarchy as well as power along with education is also an influencing factor for the business of the company(Mooij,2019).

 

T E C H N O L O G I C A L

SPAIN Theessential features for AS Club are telecommunicationsand accessibility of the internet as business operations require superior telecoms to maintaininteractions and connectivity. (Sammut‐Bonnici and Galea, 2015). The system of communication in Spain is highly developed and TELEFONICA the main company that provides communications services with innovative facilities which is a prodigious opportunity for AS Club.According to Marketline(2017) there are 51.3 million subscribers using the internet in Spain, this ratio is increasing rapidly. The increasing trend of online activities in Spaincould offer varied opportunities to AS club in respect to target the audiences through use of social-sites as large population of Spain belong to the younger generation. In this case, it becomes a suitable for the company to access wide base of customers and make them aware of the floating bean bag. This way, the availability of technology could support the company in their expansion of business to theSpanish market. GREECE Besides the economy setbacks, Greece is still a very well-developed country.Kitsioset al.(2015) report; it consists of a high technology infrastructure including cell towers to power networks.  It is found that the country possesses enough advanced technology which could support the digital connectivity and provide assistance to big firms(Brenner and Smith, 2013). However, digital nomads, tech start-ups and individuals easily leverage modern technology, and this is because of reliable infrastructure. But at the same time, it is found that Greece is more followed the ancient or existed technology and it sometimes not support the current business environment in term to stay in the competition for longer period of time.   FRANCE In context to France, it is identified that country is early adopter when it comes to technology. This can be justified with these examples such as it launched its first satellite. The usage rate of internet is high as compare to other nation as 86% individuals used the internet and the figure is growing year by year(Jackson and Wang, 2013). The recent study revealed that France hasconsidered to strengthen their technology system; currently it does not have many resources which support their objectives (Baden-Fuller &Haefliger, 2013). Likewise, France continues to struggle in respect of implementing tools and methods which assists in controlling and monitoring the problem of global warming and other issues like high carbon emissions etc. But they are failing in this due to unavailability of technical staff or devices to support it appropriatelyBlomfieldNeira and Barber, 2014).

 

E N V I R O N M E N T A L

SPAIN Spain is the country which is not only having a strong GDP rate, it also consists of advanced technology which support various aspects.  Environmental issues is anoperationin which the country controls quite responsibly. Likewise, the country commenced development of regulations related to planting trees and an adaptation of recycle and reuse method(Piecyk et al.,  2015).Moreover, the government concentrates thoroughlyon areas such as pollution control or carbon emission reduction through set standards within which, it is compulsory to use it (Cavaco &Crifo, 2014). Such areas give the positive opportunities to AS Club with regard to achieve high acceptance of the floating bean bag, as this product is quite environmentallyfriendly- the production of this product does use the ‘recycle’ method. The company environmental objectives can be suited well with the country’s environmental standards. This allows AS Club to perform their operations with best practice in mind. GREECE With the help of several global agreements, the country became more concerned for the environmental pollutionindicating several regulations would be enforced on AS Club(Colicchia et al., 2013). The rapid growth of environmental issue give rise to the European union to sign the numerous international agreements on environment conservation. It majorly focuses on the problems like air pollution, ozone layer damage and disposal of hazardous waste etc, (Gretzel et al., 2015). Overall, this means that Greece actually stands within international expectations for environmental policy. According to Castaño et al (2015), there is a large problem of carbon emission is identified from the Greece environmental environment due to high importing of goods result in carbon release which creates air pollution. In respect to this, AS club could not explore this market as the firm is more focused towards environmental aspects.     FRANCE IN France there appears to be a problem related to pollution; recorded as an environmental issue. In respect to this, France has taken several initiatives in the form of development of policies regards to remove the air pollution. Reduction of carbon emissions becomes a focal area for the country to action. Veluru (2018) states, in this country – several industries must deal with environmental regulations, indicating AS Club would also need to abide by such regulations.

 

L   E   G   A   L

SPAIN The law of Spain enables foreign investment which is equal to 100 percent of equity and according to Doing Business of World Bank (2015) which enables to begin a business within thirteen days in Spain. Reforms are anticipated to establish relief from the bureaucratic pressure of Spain (Monteiro, 2018). However, the index of ease, performing business operations which commenced in 2014 is considered a weak point in the index of Spain.  Influencing the country to rank at 142 among 189 economies. On the basis of this index, it acquires no less than thirteen days to begin a business. Furthermore, the Spain also includes the strict copyright and data protection laws which could support the AS club in respect to save from the unethical practice of copyright of product development patent. Simultaneously, the country is highly bureaucratic which means there are a fair number of legal hoops to jump through when investing in the country or opening a local business (Retamal, 2017). At the same time, low restriction over the entrants of innovative organisations could also support the business in terms of simpler entry into the country and develop their new customer base. GREECE The legal environment of Greece is largely guided by the European Union and its legal environment is considered strong, legally.Weakenedby the financial crisis, Greece has become more particular about the implementation of laws and regulations (Choez et al., 2015). Hence, there is a favourably developed legal structure,indicative that Greece is also a suitable market for the company to expand its business. Tax paying rates in Greece is very high 50.7% compared to other European union nations like Cyprus 24.7% which is doubled in Greece (Market line, 2018).   FRANCE The legal environment of France is considered as relatively strict in termsof employment and environmental laws. Likewise, companies need to follow these regulationsof the legal length of a working week – 35 hours in all types of companies and employees are not forced to work more than 4.5 hours without a break. There is an anti-trust regulation and the law of discrimination prevails in France. The government has also imposed copy-right law on each company.

 

3.1 Market selection attractiveness

 

3.1.1Country Comparison. France, Greece, Spain and the UK

 

 

Need more here

Spanish economic grief was largely sourced in the collapse of the housing market and the effects on banks that were exposed to bad property loans. By contrast, Greece’s economic crisis was based on a number of structural problems, such as expensive public spending in combination with chronic tax evasion, creating a massive debt crisis, as with Spain the property crash plunged the so-called “Celtic Tiger” into recession and its banks suffered significant losses. (countrywatch.com 2019). The Spanish economy growing with nearly 3% after s economic financial crisis butnow on recovering trajectory and one of the fastest growing economy in the Eurozone (HIS Market 2019). As can be seen on

Although the global press and major national governments continue to talk about how emerging markets are rapidly growing and are quickly becoming the engine of global economic growth (Amankwah-Moah et al, 2018.)  London and Hart, (2004, cited Amankwah-Moah,et al, 2018). stress; the underdeveloped infrastructural challenges facing both emerging market and non-emerging market organisations competing in emerging markets is also related to institutional challenges, which can be very severe in many respects. In view of this with the most recent crisis and the imposed strain on both Greece and Spain, the implications enforced on their respective countries, it could be said they are potentially still in recovery, strengthening their markets once more.

 

Source: Hofstede Insights (2019)

The indices of Hofstede can be criticized for several reasons, especially regarding the internal validity of the dimensions and the method of constructing the scales. Kogut and Singh (1988, cited, Ambos and Hakanson, 2014) Cuervo-Cazurra and Genc (2011; Drogendijk and Holm 2012, cited Hutzschenreuter, et al. 2015)may argue that manager’s perception of distance may be driven by the relative development of the home country and the foreign country.

3.1.2 International Market attractiveness analysis

 

Reviewing the differences in distance between France, Spain and Greece, there are several things to consider – The French are not renowned for their customer service efforts, the customer is not king, as it is in other countries, such as the UK. AS Clubs mission is customer focused, this could impact the efforts of their business, considering the method of distribution within the country.  Other aspects of implications on cultural distance of France would be to consider the 35-hour week and institutionally bound five weeks annual leave for employees. This could again impact the operation of AS Club within France.

When considering Greece and its distance, in business it is important to build up trustworthy and long-lasting relationships, there is a less formal structure when performing business operations in Greece.  In comparison with the UK – existing with its rules and regulations – The deficiency in formalities may impact the capacity of business for AS Club within Greece. To an individualist culture – UK, Greece could be perceived as nepotistic, but in collectivistic societies their behaviour is considered normal – Family are prioritised when it pertains to employment.

When contemplating the characteristics of Spain; teamwork is considered completely natural, employees tend to work in this way with no need for strong motivation from Management.  This would be considered a beneficial attribute for AS Club in the operations process for the Spanish market.   Society is motivated by competition, accomplishment and success, a value system that starts in school and continues throughout organisational life. The British are a highly Individualist citizens.  They live in order to work and have a clear performance ambition.

In Collectivist societies people belong to ‘in groups’ that take care of them in exchange for loyalty.  The UK maintains heavy consumerism for new and innovative products and the fast highly creative industries it thrives in – advertising, marketing, financial engineering. they place a higher degree of importance on leisure time, they act as they please and spend money as they wish.

There is a fundamental difference between psychic distance and cultural distance. It is objective and consequently independent of the specific actor. Psychic distance is a subjective perception of an actor.  (Johanson and Vahlne, 2016)

Conceptual Framework.

Source: Hedenbergh and Råberg (2016)

 

Once the proactive analysis is completethe indication is that Spain has the most favourable and productive prospect for AS Club.This evaluation process involves assessing the attractiveness of the various segments in the market, Therefore, considering the overall attractiveness of the segment.  E.g. size and growth, as well as company objectives and resources. (Lancaster and Massingham, 2011) While on one hand, country-specific (objective) characteristics and managers’ (subjective) perceptions of them are relevant to the decision to enter a country, on the other hand, it is also true that the firm’s volition, driven by strategic objectives, plays an important role in foreign market selection. (Magnani et al, 2018)

 

The following are statistics of tourism trends in Spain.

 

 

 

Need analysis why have it here instead of appendix? Please let them going down? Too much pictures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As indicated in the above figures the recognition of Spain and the prospects of expansion for AS Club, indications of economic growth compared to the UK, it is indicative there is an apparent advantage to exploit the market.Amankwah-Moah et al (2018.)  highlight: the global press and major national governments continue to talk about how emerging markets are rapidly growing and are quickly becoming the engine of global economic growth

As the effects of Brexit will not be realised until it has occurred, the pre-empting of any difficulties that AS Club could face, particularly if there is a ‘No-Deal’ cannot be speculated. Contingency planning is highly recommended as this uncontrollable consequencewould undoubtedly pose numerous difficulties for AS Club.There are other factors to consider apart from economic growth.  Each country has varied idiosyncratic attitudes to imports and foreign companies entering their territory.  Institutional distance is a consideration a company should understand prior to entering foreign markets.Ghemawat, (2001, cited Magnani, et al, 2018) proposes;institutional distance may include aspects of administrative distance i.e. the extent to which local governments raise barriers to foreign competition, the legal framework and its enforcement, property rights, information systems, and regulatory regimes.  “These aspects also affect decisions on the mode of entry” (Meyer et al., 2009, cited Magnani et al 2018, p.2). When observing the figures for the considered countries and the comparison of Spain and the UK, it would be a viable decision for AS Club to commence a distribution strategy in Spain.Johns and Wellhausen (2019) insist; market entry conditions play a crucial role alongside asset mobility and market exit.  When start-up costs are high, host governments must take less lest they deter existing and potential foreign companies.

 

4.0 MicroenvironmentAnalysis

NEED MORE about industry!

Leisure products compose the largest segment of the global leisure equipment & products industry, accounting for 76.7% of the industry’s total value (Datamonitor 2011). In respect to the hotel and tourism industry, (Kolibrie Investments, 2017) identified that Spain is rich in it as Spanish economy and hotel sector has a positive correlation to each other. There are various tourist visits to Spain just to explore the attractive resorts, pool and leisure.

According to (Brogi and Parcu, 2018), the favourable climate conditions also appeals the visitors to larger extent. Thus, the existences of such significances on tour and trip may offer major benefit to AS club in respect to find the best suited target people for their product i.e. floating bean bag.

4.1 Porter’s five forces

 

A micro analysiswould support the company immenselyinapprehending the target market as the company hasestablished tofocused on the Spanish Market.

New entrants’ threat	The global leisure industry is difficult to be entered from small companies because global manufacturers hold most of the market states Datamonitor (2011) and this discourages newcomers unless they are with different innovative product (Afuah 2009) or using online sale platforms as AS Club also operate in Spain via online sources (Harding, 2017). Barriers to entry in this industry are moderate due to the vast amounts of technology represented in certain aspects of the leisure industry, the possibility of new entrants copying the success of existing products is low(Datamonitor 2011). On the basis of this study, it can be stated that AS club may face issue regards to enter into Spain market and make their position in it. This is because Spain market already has their biggest player in the leisure and tourism sector so it would be challenging for the small firm like AS club to position them in local market (Heras, 2018).
Power of bargaining	It plays a significant role and in this market the consumers are cost-sensitive and can simply transfer their custom to substitutes that may end the same services and products (Karakaya and Parayitam, 2018).  Customers hold the capability to influence the costs and demand high quality at the same price, this decreases the revenues of the traders.
Substitute’s threat	There is an low substitute threats in Spain market. There is no direct service of substitutes accessible for AS Club; however, the service has potential to exchange via other processes (Aithal, 2016). The company can build their patent product service as it could be difficult for other companies to duplicate its products since the company will survey and analyse the customer satisfaction that they will expect from the company. However, AS club could gain benefit with the low substitution threats as it try to come up in Spain market with their innovation floating bean bag so with the low substitution, they can maintain their position in market for longer duration (Gaspar et al., 2018).
Suppliers threat	in this market, the company does not need modifications in the process of suppliers as the bargaining strength of the suppliers is extremely low.  The suppliers are an international company, allowing AS Club to sustain lower expenditures.
Competition threat	it could be perceived as high as there are numerous organisations. In hindsight there are also several companies that do not possess websites.  The other companies can tender low prices but with partial quality of service (Grant, 2016). Consequently, AS Club can face opportunities and threats simultaneously, henceforth the company should make appropriate strategies according to the target market.

 

Competitors

There are several competitors present in Spain, among them are PuskuPusku and Poufs.es.  These are the leading companies who are also engaged in selling bean bags.AS Club needs to be tactical in implementing a corporate strategy modifying products and services when required. The company needs to analyse the market trends and customer preference in order to manufacture or sell innovative products for gaining a profitable customer base in Spain (Burns and Dewhurst, 2016). In order to compete with Spain’s existing competitors, AS Club needs to build an effective differentiation strategy. The differentiation can be bringing through target the consumer based on digital platform. It is found that Spain majority of population belong to adults or younger generation and this nature of people largely involved in the usage of social-site. So, it would be best to promote the product based on Facebook or Instagram etc. It provides benefits to firm in term to capture larger audiences of Spain and it also them to save the maximum investment in the promotion of product and service.

AS club could also convey differentiation in their product through incorporatinghigh-quality standards in the floating bean bag this is completed through providing the customer different shapes and designs of bean bags (Zehiret al., 2015). Likewise, when considering the product for children, they can develop bean bags which appear as a cartoon character.For adults, selected ‘logo’ bean bag can be offered. This way they perceive product offerings are ‘tailored’ for them – this could appeal to many people. This would the best way to differentiate the product from the firm key competitors.

Considering the distribution network, it is suggested to the AS Club, on the basis of their capability they shouldproceed with one of the following:

Retailer- this will be a very interesting factor for AS Club, specifically for the SMEs who do not manage the large production volume. Open export to specific stores, a palpable business tendency in Europe of late (Lüttgens and Diener, 2016). This kind of purchaser generally likes to have minor commercial needs and can disburse a high cost for the goods as there is no middle person in this supply networks like importers, distributors/wholesalers.

Wholesaler- for this condition, when the products’ volume is not an obstruction of business. (Bell and Rochford, 2016), the company should set off exchangevia the initial connection in the distribution network that usually consists of wholesaler- dispenser-suppliers-customers.

The main vended products within this network are apparel, decor, tools and crafts. In the case of retailers, there is also the facility of online stores. Spaniards expenditure -EUR 12.97 billion on online supplies this facilitates an additionalattention-grabbing network for business purposes. Therefore, the company can attain both channels in order to start-up their business in Spain.

Customers

Spain is an attractive tourist destination and has been analysed that the aggregate contribution of travel and tourism industry in Spain has gradually increased since 2012. In the year 2012, this industry had collected 145.8 billion Euros and in 2018 it has increased to 177.9 billion Euros. Furthermore, it isexpected that in the coming years by 2028 it will increase to 224.3, Billion Euro. (Lewis, 2017).

(Source- Statista, 2019)

From this analysis, it can be considered that in Spain, AS Club can develop a strong purchaser base as hotels and accommodation could obtainthe floating bean bags for customer entertainment as stated in the company vision.Customers can rest and relax within a deluxe environment. The company can achieve great opportunities, indicated in the below figures.

On the other hand, consumer mindset has changed. The appearance of the collaborative economy has made consumers comfortable with the idea of paying for access to goods and services rather than buying goods to own (Oaten 2016). This has made their consumption more ‘efficient’, as sharing assets, such as cars, bicycles and sports equipment and leaves them with more money to spend on things they enjoy. In this case, AS Club could offer some holiday complexes to rent company products seasonally with included maintenance and collection after requested period. The leisure consumer behaviour is a strong indicator of prospect in each country economy because in order to spend on leisure consumers should be confident in their financial circumstances to spend on non-essential activities (Oaten 2016).

 

 

According to Statista (2019) survey B2C e-commerce sales experienced an increased trend from 2007- 5.9 million to 32 million in 2017 which is a favourable trend for AS Club online sales strategy. Furthermore, the average spending of internet users who purchased goods and services via Internet in 2018 amounted to over 1.9 thousand euros (Statista 2019) makes Spain very attractive for AS Club. Moreover, tourism industry in Spain has steadily increased since 2012 until now, collected 145.8 billion Euros and in 2018 it has increased to 177.9 billion Euros (Lewis, 2017). According to World Bank’s group (2015) Spain is on 33th place of ease starting new business from 52^nd year ago. It is still lot behind other EU countries but ahead from Greece and Italy.Although regulations in Spain are not the worst for existing businesses, entrepreneurs still face a battle against bureaucracy to get their businesses started.Six procedures for 13 days and company could register its business in Spain (Tallantyre 2014).All those factors make Spain one attractive destination for leisure company invasion (Datamonitor 2010).As Statista (2019) observed,annual average spending on leisure and sport-related goods and services in Spain for 2017 increased by 100 Euro per person which is an advantageous factor for the company.  All those factors make Spain one attractive destination for leisure company invasion (Datamonitor 2011).Just changed the place

 

4.2 Threats and opportunity analysis

 

 

 

5.0 Proposed STP Objectives for AS Club

 

 

 

 

5.1 Market segmentation

 

The initial focus for AS Club is to target boutique hotels and private villas with pools. This will be B2B segmentation. There exist no exact statistics on the quantity of boutique hotels or private villas in Spain.  There are however many websites advertising for these types of accommodation as possible holiday ‘stay’ choices. The indicative statistics of accommodation types in Spain are part of the analytical process of AS Club entering the market in thissaturated tourist destination – Where tourism is active all year round.

 

 

 

Source: Statista (2019)

The indication of this statistic is to signify the continual influx of tourism annually. There are indications of many hotels with indoor pool facilities open throughout the year.FIND

Global market segmentation is based on the premise that companies should attempt to identify customers in different countries who share similar needs and desires.  (Keegan and Green, 2013) In this instance AS Club has considered the international market with the anticipation to develop and optimise their current strategy they have adopted within the UK.  As there are limitations to segmentation strategies within the UK market. (CRITISISE)  HSE/ PRIVATE POOLS UK

The strength of the market, its offerings and their importance are indicative through the statistics during the market segmentation analysis.  The characteristics of the segmentation and immediate opportunities are heightened; due to the vast numbers of hotels and villas located in Spain – across much of the nation.  For AS Club to implement a robust strategy and succeed, it would be a vital detail to strive toward a differentiation focus.  According to McIntosh and Siggs, (2005, cited, Ahmad et al, 2017) there are five dimensions that set the boutique sector apart from traditional offerings – Unique character of the property, personal touch. the homely feel of the accommodation, the high quality of the standards offered and the value-added essenceof offering personalised services and facilities which are high tech. Similarly, “a boutique hotel could refer to those which do not belong to any part of large hotel chains and design individually with personalised services” (Lim & Endean, 2009, cited, Goh, 2015, p 127).  In reflection of these observations it could be argued that many tourists and travellers do not consider any of these aspects when booking their hotels – booking for other reasons, location, price and service offerings other than the above mentioned. BACK UP

With the second segmentation of private villas: there are several websites for contact purposes for AS Club.

 

 

 

 

 

 

 

There are many more. This segmentation possesses a unique challenge of locating owners of the accommodation, as many do not live at the properties, they are purely purchased as an investment for additional income.

Further considerations for AS Club would be to establish further markets in the future maintaining opportunities to exploit the market to its full capacity.  Styles,et al (2013, P.3) outline “the decision to build a pool and the selected design are critical, though these decisions are likely to be guided by marketing considerations. It may not be necessary to have a pool onsite – there may be options to organise a pool share or guest-use scheme with neighbouring establishments.”Although this factor could be seen to hinder AS Clubs strategy – in view of this, this would be a further opportunity for AS Club to achieve greater market share within the Spanish market; with the assistance of the local distributor who has market knowledge, further targeting could prevail.

 

 

 

5.2 Behavioural segmentation

 

Behaviour-based segmentation is conspicuous with the benefits sought from the product, with the identification of specific buying behaviours, in terms of shopping frequency and volumes of purchase.  In this segmentation AS Club will focus upon the behaviours of the tourism industry within Spain.

Johansson2017) declares; mass markets have mostly vanished, especially from the B2B sector. The buyers want tailored solutions that represent the same values as they have in form of features, Eco friendliness, design etc.  The customers in today’s market are far more demanding than ever before.Lancaster and Massingham (2011) suggest, a neglected but valuable, method of segmenting industrial markets involves customer purchasing approaches and company philosophy.Considering AS Clubs’ philosophy prioritises customer service, quality products and improving purchasing options.  The opportunities to achieve influenceover the segmentation.  The behavioural attributes of the segment CITE

 

Magnani et al (2018) suggest possible strategies for existing companies to exploit existing markets. these strategies poses decisions for AS Club for the most pertinent option to elect – As Dunning (1993, cited, Cuervo-Cazurra and Narula, 2015) maintains; a broad array of what we consider to be asset-augmenting activity as an aspect of resource-seeking investments, “asset-seeking” has become a “catch-all” motivation as, rare is the company that does not want to augment its assets or to improve its competitiveness.  Cao (2018, p. 544) concedes; “A critical issue is that the transference of business models fromhome to host country does not itself guarantee success.” Considering these observations, AS Club must strategise by implementing effective communications combined with a developed aptitude in a comprehensive marketing mix.  A further consideration would be to ensure resources are readily available. Cuervo-Cazurra and Narula, (2015) affirm; not all firms have the resources to serve all customers in an adequate manner. Trying to serve the entire market could be a recipe for disaster. The overall aim of segmentation is to identify high-yield segments.

 

 

Strategy	Action	In Host or Home Country	Conditions
Exploit.	Exploits existing resources.	Host Country.	Obtain better conditions.
Buy Better.	Exploits existing resources.	Home country.	Avoids poor conditions.
Upgrade.	Develop New resources.	Host country.	Access better conditions.
Escape.	Explores new resources.	Home country.	Avoids poor conditions.

 

Source: Adapted from: Magnani et al (2018)

 

 

 

 

Segmentation:

Behaviour-based segmentation is conspicuous with the benefits sought from the product, with the identification of specific buying behaviours, in terms of shopping frequency and volumes of purchase.  In thissegmentation AS Club will focus upon  the behaviours of the tourism industry within Spain.

 

 

 

 

 

 

 

 

 

 

 

5.3 Targeting

 

 

 

 

AS Club, as a micro business, would not manage with the intensity of mass marketing.  Particularly in a market of this magnitude.   The potential of niche marketing would be beneficial to the business. In this circumstance the most appropriate targeting strategy would be direst selling and one to one marketing.  These strategies would be appropriate to manage the segment.  Introducing the benefits if the product directly to the market. Hotels consider the psychographic variables when targeting their own segment for the tourism industry.  These psychographic variables are used when purchasing behaviours correlate with the personality or lifestyles of consumers.  AS Club can use this to their advantage when delivering their marketing message.

 

 

 

 

 

 

 

 

 

 

)

As indicated in the above table there are variations of accommodation on offer for tourists in Spain. Although the specification of types of hotels used for accommodation for holiday stays are not indicated in these statistics – in terms of opportunity for AS Club the prospects in penetrating the market are vast.  In retrospect of the statistics even if AS club sought just one percent of the hotels in Spain, the whole capacity of the company would excel.

Further indications are revealed in the rental housing and other rented accommodation along with holiday home non-rented, these holiday ‘stays’ could be potential ‘pool’ access provisions. It would be advisable for AS Club to establish further details on this segment through travel to an initial resort.

 

5.4 Positioning

 

Positioning strategy is another effective tool for achieving success in international market as companies uses various strategies to position the product or service in the mind of people. In context to AS Club, it is identified that floating bean bag would be proven useful for the selected target market. So, the marketer would position the product among the target audiences based on its usage and application approach. In respect to this strategy, the marketer promotes the product in the mind of consumers based on the product usage and application which could benefit them (Castellano et al., 2013). Similarly, AS club promote their floating bean bag among the hotels and villas based on the product benefits as marketer can highlights the benefit which floating bean bag provide to hotels. This can be done through outlines the areas which helps the client to perceive the product in best possible manner. Marketer should ask the client to put the bean bag in their water pool and then analyse the visitor response. In that way, the company can successfully achieve the positive perception of target audiences and their loyalty to long duration.

Moreover, the company can also position the product based on quality and design as they can offer alternate designs of bean bags to hotels and villas. Likewise, the bean bag can consist of designs for each demographic group such as children or adults.  Via this adaptation, the product is attractive to a higher quantity of customers.Additionally, AS Club can present the quality and design to target audiences through communicating the manufacturing process details of the floating bean bag (Morganti et al., 2016).Simultaneously, the availability of the product at an affordable price can also attract the target market to a greater extent. This can be actioned by AS club to directly access the manufacturer and remove middlemen as it is understood that the company manufacture the bean bag in China to be sold in the UK. Therefore, to make a direct availability to client in the Spanish market, AS Club could affiliatewith manufacturers in order to produce and make it available at a moreequitable price. This benefits the organisation to position the product among the target market in a successful manner.

 

 

6.0 Marketing mix

A method utilised by the companies and marketers to support in determining a product offering (Resnick, et al., 2016). AS Club should analyse thebean bag trend in Spain in order to determine customer preferences and competitors so that the company would be able to adopt asuitable strategy. Johansson (2017) advocates- the playing rule to stay in business in today’s market is to move away from traditional marketing or mass markets to a more individual and targeted marketing.  According toCamilleri, (2018) Companies with limited resources will usually target just one or a few sub-markets.  However, this form of marketing could also involve a high-risk factor. If the selected segment fails, the company can experience hefty losses.

 

 

Marketing Mix framework

Product adaptation

Pricing

Promotion

Channel selection

Positioning/Branding

 

 

 

6.1Product

 

AS club should enter the Spanish market with uniqueness’ along with an innovative marketing strategy, this supports the companyto implement their product in the market as differentiated.

It has been analysed and decided the company would need to diversify their products as the competitors that exist in Spain have varieties of products, however the company can surpass competitors by launching its floating bean bag in the market.AS Club products are branded with their own logo. Offerings of their own products will maintain their AS Club branding – propositions for individual accommodation branding will be extended to segmentations for their own branding to be added along with the company’s.  This will augment the brand awareness for AS Club.

Branding: This strategy is important to undertake in the marketing mix as AS club enters the new country.  A necessity to identify the strategy for brand creation. It can be stated that the use of social media would be the most appropriatemethod to create the brand. This is done through developing the Facebook pages which highlight the benefits of floating bean bags for the people who enjoy relaxing in pools and regular holiday makers, this can be presented it in the form of pictures and images (Leekha,et al, 2014). The combination of digital platform or commercial area could help to develop a perception among the consumer mindset that floating bean bags could augmentthe enjoyment andpleasureto their lives and holidays.

 

6.2 Place

 

The company should target the location where there are a cluster of retailers and wholesalers so that the customers can easily acquire them. They should select the place where there is demand for the product.  An alternative to this would be to approach the target market, i.e. boutique hotel and private villas, and adopt a direct selling strategy.“The product must be available in the right place, at the right time and in the right quantity, while keeping storage, inventory and distribution costs to an acceptable level.” (CIM, 2015. p. 6)

 

6.3 Price

 

AS Club believe their bean bags should represent exceptional value for money. Hence, it is not necessary for the company to always adjust the productprice or to make it the cheapest merchandise.  A major tenet of marketing ideas that the company follow is that the customers are generally happy to spend more for items that serve them well. (Kotler, et al., 2015). In respect to apricing strategy, it is crucial for AS club to adopt a competitive one. This could prove to be useful for the company in termsof capturing a larger target market thus, greater market share. Moreover, the competitive pricing strategy also supports the company towards the changing of prices as per the competition (Nagle and Müller, 2017). This will assist in sustainability forAS Club to withstand even in times of a recession, or low tourism seasons.

 

6.4 Promotion

 

AS Club always believes in attracting the target customer based on their quality and design, but not with excessive promotion. Creating awareness on international market is important as there are chances of less familiarity about firm in other country. That’s why company must adopt the promotional social media activities. In response to promotion, currently online platform is inn current trend and survey result in Spain presented that local people are extensively used the social-networking sites (Liu et al., 2015). This one could be the best way to get in touch with wider audiences of Spain. As we can see from the Fig.? more than 57% of Spain population use social media for recommendation, 38% chosen product because of good recommendation and 19% changed someone’s mind about purchasing product of particular brand states Statista (2019)survey from 2037.57 respondents.Those facts helps company to explore customer behaviours via social media influence.

 

 

Fig.? Social media

 

Video content sharing represents 87% of the total Internet use and there are 8 million registered users of YouTube in Spain(businessculture.org). Twitter and Facebook are also extremely popular in Spain, as a local platform using the English language to encourage networking on a global level and organisational use of social media for promoting with investment in digital marketing increasing year-on-year. SMEs and organisations in Spain- both private and public, are currently thinking about how to use social media as a tool to manage the client and stakeholder relations. It’s necessary to believe that transparency when using social media on behalf of AS Club in Spain, will develop better social relationships by improving credibility and influence. At the same time, the target market including hotel and villas could also get easily approached by the company as now every hotel has a site or post on social sites. So, it becomes easy to promote the floatingbean bag to Spain hotels and villas.

Moreover, the online platform also proves to be effective for AS Club in many ways; majorly include to save the expenses as online practices does not ask for the investment of high cost so this could help the company to make the product available on affordable prices for broad market and to attract the target audiences. Moreover, the availability to sharing the views is another benefit that AS Club can gain with the social-site practice. This is because site like Facebook, Instagram allows company directly to target the client and start communication with them. This could help them to build the strong relationship for longer duration. Alongside, it also assists the company to not only influences the Spanish target market, but also other international country as social-site platform has a wide reach and accessibility (Lohse, 2013).Hennig-Thurau et al. (2010, cited, Fink, et al, 2018). concur; Social media and has the potential to disruptively innovate consumer communication in the emerging digital economy. Facebook communities where individuals self-select into communities, offer an attractive marketing option for a growing number of firms.

6.5People

 

Every organisation is dependent on the individual who run business from the staff who are engaged on the front-line sales to the Managing Director. Including the appropriate personnel is an important factor as they are very crucial part of the business, proffering the goods and services the company are offering (Išoraitė, 2016). According to Statista (2019) after financial crises many employees in Spain have lost their jobs and the Mediterranean have the highest unemployment. In recent years many aspects outline slow but sure recovery of the employment market in Spain, the unemployment rate among the younger age groups is still quite high. In fact, nearly 50 percent of those aged 16-19 did not have a job in 2018.

 

 

 

 

 

 

 

This figure shows 31 percent in ages 20-24 and 20.4 for 25 to 29-year-olds. Youth unemployment figures in the European Union reached 15 percent in 2019 reports Statista (2019). The unemployed rate for under 25s was highest in Greece, followed by Italy and Spain as three main Mediterranean countries rates of over 30 percent in the younger workforce groups. After recession in Spain, youth unemployment levels are still high 50.7 percent, the highest in the EU after Greece (Jones 2015). According to a recent study by Cambridge University Press into the attitudes of young people revealed that 70 percent of young Spaniards think that being able to speak English is more important than having a university degree (Jones 2015). Amongst young Spaniards it is clear that English is a necessity for future employment. Henceforth, AS Club should recruit young people from these unemployed groups to perform valued and equal importance in order to run the business helping educated young people. It will increase the popularity of the company products in young consumer group as helping youngsters to practice English language in their own country. The company should also provide some training ability for the employees for increasing their competency and further success

6.6Processes

 

AS Club,as a necessity must analysed the preference of the customers in the Spanish market along withwhat variations they are looking for,first and foremost the company believe in their customers. The company at no time want to divest anything from their products, as to maintain their profit margin; they believe in betterserving their customers as per their choice (Išoraitė, 2016). By this way the company can lead the industry.  Also, for such analysis, IT support is ofimportance, benefitting in any communication also assisting in customer feedback. Design as well as features should be eco-friendly, attractive and premium in quality and in this process, continual R&D will help the company to examine the market demands or to survey the quality and quantity of products.

 

6.7Physicalevidence

 

By providing quality training for employees working in the salesdepartment enabling AS Club to retain a loyal customer base(Veerbeek et al., 2014).  The customers always look first at the appearance of the staff, as well as their behaviour, body language and so on.  This can be developed through suitable training and simultaneously it will aid to create in unimpeachable attitude within them (Kotler, et al., 2015). The company should also develop an appropriate packaging system as it is necessary to deliver the products to the customers who have ordered. Packaging should be innovative and eco-friendly. The company should also take the initiative to exist online as the trend to shop in Spain is via the internet.  Yet again, feasibility persists in direct selling may well deliver higher sales opportunities and brand awareness.  By means oflocal people who work within the tourism industry, regardless of what sector to become advocates of the brand(Pratt et al., 2015).  This, together with local people using AS Club products for their own personal use once more enhances brand awareness along with the target market usage of the bean bags.

 

 

 

                

                

7.0 Market Entry Strategy

 

The speed of entry that internationalising company wishes to achieve will influence its preference with respect to the positional attributes of the inside member its connects to( Håkanson et al. 2016). This is yours I just put it here if you like leave it.

 

https://www.gov.uk/world/organisations/department-for-international-trade-spain

7.1 Distribution Arrangements

 

Distribution segment is the important one for the company in term to effectively gain the expansion in Spain market. In concern to distribution channel, Asker (2016) stated that choosing of right distributors is important as best intermediary is one which has proper range or access to the target market. SoMane (2015) suggested that opt for the right distribution may help firm to grab the target market properly without failing in it. For this, AS club manager need to open their store then export the floating bean bag to Spain market. This way, firm can avoid the major expenses related to implement the manufacturing unit in the local market. Other than that, company can also contact to the local distributors for offering their product among the target market. The exporting arrangement may bring lot of benefits as compare to the tie-up with Spain competitors. this is because AS Club is small organisation so it would be an challenging task to work with the big players as definitely they provide awareness to product but the profit margin relatively less with the tie-up strategy.

In practicality, the exporting of product becomes possible as The Range is the big distributor of bean bag so in that case it would be beneficial if AS Club contact them and make them convinces about the floating bean bag distribution channel. This practice could help the firm to timely distribute the product to target markets including Hotels, Resorts and Palaces. In respect to this, the e-commerce’s platform plays an important role for making people aware about the existences of firm. For the distribution, the Spain local supplier i.e. The Range would help the firm to timely delivery of firm floating bean bag to target market.

https://www.therange.co.uk/furnishings/bean-bags/#sort=relevance&page=1&lpp=24

 

7.2 Distribution Strategy

 

In the views of Parry et al. (2016), distribution strategy assist firm to effectively make it available the product to final users. In respect to this, AS club should pursue that distribution strategy which is affordable yet effective. Likewise, the selective distribution strategy is the best way to timely supplying of product to final consumers. Moreover, under selective strategy, the supplier enters into agreements with limited number of selected dealers in same geographic area. This process could help the firm in term to hire the distributor of only particular area in order to reach towards the target market Poh et al. (2013). For example, the hotels resort and villa owners are the target market for the firm so to contact them, the firm need specific distributor as AS club has narrow target customers. So, this strategy helps them in many ways such as saving the firm cost of hiring different location distributor or open up their manufacturing unit in Spain. Therefore, the selective distribution strategy tends to support AS club in feasible manner.

 

8.0 Market Entry Recommendations

 

Parra-Lopez et al. (2015) recommend that out of three selected countries, Spain is more appropriate for the business expansion of floating bean bag. This is justified with the analysis of political, social and economically environment of Spain. Likewise, Parrella et al. (2013) found that Spain has a corruption free politics due to less interferences of political leader so this contribute well for the AS club in terms to easily perform their function in Spain market. At the same time, (Fernandes et al., 2015) analysed that increasing population of Spain in term to adults and younger people may support the firm in term to achieve high recognition to product.Moreover, the study of Kallendorf (2013) presented that AS club does not have their store or any occupancy in Spain market so this can challenge the firm in term to perform several task such as market research and building of customer relationship. This area could support the firm to expand the business in Spain. Furthermore, the population figure also presented that Spain population will increase so it would be beneficial for firm to explore new market where there is high opportunity to grow. In respect to this study, Asker (2016) identified that AS club marketing strategy i.e. to promote the product via online basis is also provide benefits to them as Spain people are heavily indulge in social-site activities. This way, it can be stated that Spain will be the best recommendation to expand the business of floating bean bag.I don’t know why done this but please check it

 

 

9.0 Conclusion

 

 

 

 

 

 

 

 

 

 

 

10. Reference

 

 

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ONS (2016) Top 50 countries visited by UK residents travelling abroad 2015

{Accessed 23 July 2019]

Institutional distance may also include aspects of administrative distance (Ghemawat, 2001, cited Magnani, et al, 2018) i.e. the extent to which local governments raise barriers to foreign competition, the legal framework and its enforcement, property rights, information systems, and regulatory regimes. These aspects also affect decisions on the mode of entry (Meyer et al., 2009, cited Magnani et al 2018, p.2)

 

 

 

We live in a very different environment, as much-discussed in the globalization literature (Held et al.,1999; Narula, 2003, citedCuervo-Cazurra and Narula, 2015), with shrinking economic distance, lower transaction costs and de-facto economic integration.

Cuervo-Cazurra, C., Narula, R. (2015)

not all firms have the resources to serve all customers in an adequate manner. Trying to serve the entire market could be a recipe for disaster. The overall aim of segmentation is to identify high-yield segments.

Geographic segmentation involves selecting potential markets according to where they are located. This segmentation approach may consider variables such as climate, terrain, natural resources and population density, among other geographic variables.

 

A differentiated marketing strategy will usually involve targeting a number of segments. This marketing coverage strategy entails developing an individual product or service offering and creating a marketing plan for each and every segment. Hence, the company should carry out a thorough market research to learn about how it can satisfy its selected segments

• Concentrated marketing

 

9 Product Positioning

• The final stage in target marketing is product positioning. Firms formalise “positioning statements” which specify the position they wish to occupy in their target customers’ minds, relative to other competitors’ products or services. Customers continuously compare products or services. Therefore, marketers must build their positioning strategies to improve the customers’ (and prospects’) perceptions of their products

Firstly, they are built around benefits for prospective customers. Secondly, they differentiate the specific firms’ products or service from those of key competitors. Thirdly, the respective firms need to possess relevant skills, resources, and the credibility to deliver on their implied statements and promises. Finally, an effective position is defensible, which means that an aggressive competitor cannot act quickly to neutralise or preempt another positioning strategy.

 

Social media and has the potential todisruptively innovate consumer communication in the emerging digitaleconomy. Facebook communities where individuals self-select intocommunities concerned with specific themes, offer an attractive marketing option for a growing number of firms (Hennig-Thurau et al., 2010, cited, Fink, et al, 2018).

 

 

 

Closer relationships are developed by more frequent interactions with customers, fostering customersknowledge, that allow the firm to better anticipate and adopt appropriate responses to changes in an industry or customer group. (Racela, 2014)

Racela, O.(2014) Customer orientation, innovation competencies, and firm performance: A proposed conceptual model. Procedia – Social and Behavioural Sciences 148 (2014) 16 – 23. Available from:
https://doi.org/10.1016/j.sbspro.2014.07.010 [Accessed 17 July 2019]

 

Concurrently, exporting is the key means of internationalisation for emerging-market firms, the majority of which are exporters (Luo and Tung 2007, cited, Samiee and Chirapanda, 2019). In addition to information asymmetry, emerging-market exporters tend to face lesser access to export assistance (Leonidou, et al, 2015, citedSamiee and Chirapanda, 2019), thus creating a challenge in developing or adapting appropriate marketing strategies for targeted export markets.

The initial step in accommodating an empirical test of exportmarket strategy coalignment is to identify and test the pertinentmacro- and microenvironmental influences on the implemented strategy.

Samiee, S., Chirapanda, S., (2019) International Marketing Strategyin Emerging-Market Exporting Firms. Journal of International Marketing 2019, Vol. 27(1) 20-37. https://journals.sagepub.com/doi/10.1177/1069031X18812731 [Accessed 19 August 2019]

The liability of foreignness is essentially a reflection of level of psychic distance between the home and host country, whereas the liability of outsider ship reflects a firm’s lack of a network position in the “targeted” network in the foreign market.

Such mutuality is crucial with respect to gaining foreign business and market knowledge but is also important with respect to foreign institutional knowledge, particularly the more informal dimensions of institutions in psychically distant and emerging economies, which are often a greater impediment to internationalization than formal rules and laws.

Elango (2009), while focusing specifically on foreign firms’ strategies for “minimising” their liability of foreignness, showed that a particularly effective way was through gaining the network benefits that come from joining business groups in the host country. Yamin and Kurt, 2018.

Yamin, M., Kurt, Y. (2018) Revisiting the Uppsala internationalization model Social network theory and overcoming the liability of outsidership.  International Marketing Review, Vol. 35 No. 1, pp. 2-17. Available from: https://doi.org/10.1108/IMR-11-2014-0345 [Accessed 25 August 2019]

When people have broad and frequent exposure to representations of a foreign country, they will tend to experience a smaller psychic distance because they will feel more familiar with it.

 

Ambos, B., Håkanson, L. (2014) The Concept of Distance in International Management Research. Journal of International ManagementVolume 20, Issue 1, March 2014, Pages 1-7. Available from: https://doi.org/10.1016/j.intman.2013.10.003 [Accessed 25 August 2019]

The studies in this issue show that under certain circumstances distance may in fact have positive effects.  Distance research is grounded in a negative view of the concept The near exclusive dominance of this negative impact of distance is particular surprising, as the positive effect ofdistance, that is to say the ability to gain an arbitrage of doing business in foreign markets is truly one of the oldest and mostestablished arguments on why firms engage in international markets in the first place (Ghemawat, 2001; Kogut, 1985; Ricardo, 1817, cited, Ambos and Håkanson, 2014)

 

 

 

Fig. ?? Distribution of sports regularly participated in Spain 2018.

Source: Statista (2019)

According to Statista 7.8% of 181,104 respondents from 18 years and older of the Spanish population participated swimming sports. Thus, founding that for establishing a business in this country is to make personal connections with sport active people and establish trust.

 

Source (Statista (2019)

 

Source: Statista (2019)

 

 

 

 

 

 

 

The European Commission launched the Sustainable Consumption and Production and Sustainable Industrial Policy (SCP)Action Plan (COM, 2008, cited, Golob and Kronegger, 2019). It includes different proposals and policies aimed at improving the innovation of eco-friendly productsand encouraging more sustainable and environmentally consciousproduction and consumption.

 

Golob, U., Kronegger, L. (2019) Environmental consciousness of European consumers: A segmentation-based study.   Journal of Cleaner Production 221 (2019) 1-9. Available from: https://doi.org/10.1016/j.jclepro.2019.02.197 [Accessed 24 August 2019]

 

A study by Golob and Kronegger (2019) indicates that Spain, is dominated mostly by Sideline environmentalists, along with several other countries. is the biggest, the most diversified segment, representing 50% of all EU consumers. The UK is within the category of moderate Environmentalists. Although Spain are not as environmentally conscious as the UK, AS Club can still use this to their advantage within the segmentation.  The reason for this would be to inspire supplementary environmental awareness within the host country.  The restrictions in attitude of the Spanish on environmental sustainability can be enhanced through AS Clubs products bearing in mind the typical tourist inflatables.  In a survey of 2,000 holidaymakers, conducted by OnePoll for Hotels.com which revealed nearly half of Britons purchase an inflatable for their holidays, but only 28 per cent take the blow-ups back home at the end of a trip. (Telegraph Travel, 2017)

The durability of plastic also means that uncontrolled disposal is problematic as plastic can persist in the environment for a very long time.  Appropriately designed measures to recycle plastic can also improve competitiveness and create new economic activities and jobs.

Eur-Lex (2013) GREEN PAPER on a European Strategy on Plastic Waste in the Environment. European Commission.  Available from: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52013DC0123 [Accessed 24 August 2019]

 

Telegraph Travel (2019) A ‘sanctuary’ for abandoned inflatables opens in Majorca. Telegraph.co.uk 28 September.Available from: https://www.telegraph.co.uk/travel/destinations/europe/spain/majorca/articles/sanctuary-for-inflatables-opens-in-majorca/ [Accessed 14 august 2019]

 

Johns and Wellhausen. (2019) argue; even if a host government is genuine when making initial promises, sometimes it may later wish to retract incentives, increase environmental or labour standards, or increase corporate taxes.

 

After 40 years of distance-related research, there is no consensus on the definition of the distance concept. Core elements of the concept, such as the level of analysis and definitive reference points are still unresolved and, moreover, except for some notable contributions, theories that might move us closer to resolving such important issues remain scarce.

Exploring moderation effects and thereby adopting a more differentiated approach may yield a better understanding of the overall effect of different dimensions of distance.

 

 

 

 

 

 

Fig…?? Uppsala Model.

 

Source: Hiltunen and Kuusisto (2010)

 

Hiltunen, R., Kuusisto, H. (2010) Network model of internationalisation. Faculty of Technology Management Department of Industrial Management. Available from:https://lutpub.lut.fi/bitstream/handle/10024/61793/nbnfi-fe201004271722.pdf?sequence=3&isAllowed=y [Accessed 11 August 2019]