MK7041 MANAGING GLOBAL VALUE CHAINS ASSIGNMENT SAMPLE 2024
Introduction
International marketing is very important to carry out potential opportunities for any new start-up firm. Every start-up company makes a unique strategy to get success from the global market. Their global management and operation techniques follow that strategy to make the whole process successful on a global level. How these operations carry out from a company’s end will be determined by secondary studies. How a start-up company tries to capture a global business market with its unique strategies will be discussed in this report.
How a company tries to enter a new country with a key strategy will be elaborated. All theories that help to make this operation successful will also be discussed and some global marketing strategies that are unique in the current scenario will be described briefly in this report. Global marketing methods and secondary analysis will be done to understand the current market value and position of the chosen firm.
Background of the chosen firm
The company named Arrivals is a newly started company and it has been involved with the production of the zero-emission transport for the customers towards setting its own identity in the market. It is a UK-based company which is involved in the retail industry to reach many people for better productivity of the company. Arrival has been recently established in the year 2015. It also has listed the NASDAQ with the current valuation of $13bn, which makes it the largest tech company in the UK. The performance is good and it is one of the second leading companies in the country UK.
The company has been founded by Denis Sverdlovsk who is the general director of YOTA Groups. It is a global company which has the headquarter in London of UK. The company has interactions with other companies which enables it to provide more vehicles for the growth of the firm. It also enables various customers to purchase various zero-emission vehicles which have increased sales in the year. It develops electronic vehicles which can travel up to 120 miles in a single point of charging. It provides good features in the car which helps to satisfy the demand of customers.
In 2019 the company named; Arrival has implemented innovative software to produce more effective electric cars in the market (Belingheri and Leone, 2017, p.87). Now they are currently innovating new software and products that can help to mitigate the pollution. In the UK the government has decided to give them some financial help to do the same. It is a very important thing for a company to get some financial help to make innovations in the automobile sector. As it is related to the environment, the government is ready to provide them loans to mitigate air pollution from the UK.
The company is currently trying to capture the global market with its unique products and key strategies. Their main objective is to reduce the fuel consumption from a vehicle and implementing new electronic cars to reduce carbon emissions (De Pelsmackeret al, 2018, p.87).
Analysis of the firm’s current strategies
The concept of planning is required for the business and it helps to focus on the various stages of the business. The plan of the business helps to operate the business globally. In the operation of the company, Arrivals has to concentrate on the activities which can interface the customers easily, it can provide success in the basics of long-term. The operation regarding the activities has to be effective and it has to allow for accepting various types of challenges in the market (Belingheri and Leone, 2017).
The planning has to be required for the application of the technology and it leads to specify the objectives of the production of vehicles for achieving profit in the future market. It is down from the business globally and provides better performance (Erten and Leight, 2019, p.87). The start of business ethics and principles are generally based on the business model and his designs. This set of the production of the company, Arrival has been into achieving the validation of the market and lead to building the function of the company.
The design of the company has to be understood by the customer and would increase the productivity and the sales of the company. The design helps to encourage people which make trains to reduce the risk factor of the company to lead the business and its operations globally. The decisions have to be made in the new circumstances, it can be uncertain and we are not flexible.
The key principle of the strategies that decision-making is flexible and it involves many options to design the start-up in various effective ways(Spender et al. 2017, p.38). The concept of one certainty uncertainty rises from one company to another therefore Arrivals have to focus on the opportunities which are available on the market (Hasaniet al, 2017, p.99).
Currently, Arrivals is following a Market penetration strategy to capture new countries like Germany. In Germany, the average emission index was 129.9 gCO2/km (Spender et al, 2017, p.87). This data was collected in 2018. Currently, the average emission index keeps increasing. Arrival companies are currently approaching this country to deliver their products and capture the automotive market with their unique marketing strategy.
That is why they are hitting this market with a Market Penetration Strategy. This strategy will help to drain their competitors from Germany’s market. It will give them a boost to operating their business from Germany. They are currently targeting this country because they will also capture Netherland, Denmark in the coming days. Their main target is to go to those countries where the pollution level is high. It is their key strategy. Where demand is high the business opportunities are relatively high (Kamali, 2019, p.98).
Global operations and its international competitiveness
Arrivals always try to hire well-skilled employees for their business development process. To complete all operations smoothly on global business, it requires understanding the operation technique and competition. Global operations are related to customer service, after-sales service, and import and export operations to maintain the global operations efficiently.
Maintaining global operations can hike the revenue and it also makes a brand value in the business sector. In the last financial year, they got 5 million dollars extra compared to their previous year’s financial statistics value (Kalogiannidis and Chatzitheodoridis, 2021, p.87).
Arrivals have the potential to make competition with their rival brands. Tesla is one of its indirect competitors. In the UK there are some brands but Arrivals is managed to sustain their position by maintaining innovation in their workplace. Currently, they have 1500 employees who are capable to handle work pressure and that are why this company doesn’t have any doubts when it comes to the market competition. They have developed so many electronic products that help to reduce the carbons from the emission of the vehicle.
They have implemented their unique marketing strategy that helps to maintain the competition in the International business market. Researchers have said that a monopoly market is very bad for business. It is not very good to make competitions and all benefits will go to the consumers with their aggressive pricing (Stoianet al, 2018, p.87).
Market selection process
In every business sector, it is very important to choose the proper market selection that helps to find opportunities from the company. It is one kind of growth potential factor that helps to enlarge more competition through quality products. Germany is a market where most innovations happened in the past. Doing businesses in those countries is more beneficial where growth opportunities are high.
According to business researchers, Germany country has the potential growth to make any business successful. In Germany, there is a high percentage of Carbon and Arrivals can capture the market with their unique products (Chatterjeeet al, 2021, p.87). The governments of Germany surely appreciate their efforts. Arrivals Company has their market researchers and they have said Germany is good to target from their business analysis part. Germany has so many skilled workers so there is a high chance of innovation.
The company tries to gain its capital but sometimes the company chose skilled workers over profits. In the future, those employees can give a good amount of profits to the company (Solberg, 2017, p.87). The market selection process depends on some crucial factors that have discussed below-
- Firm related factors: When any firm chooses a market for selling perspective the first thing that comes to mind is import and export. Every firm looks for effective ways to do their import and export duties. It is a very important factor when it comes to market selection factors (Peganet al, 2020, p.87).
- Market-related factors: This is the most considered case when it comes to the market selection process. Every firm lookout for market-related factors such as demands of their related field products, economic and industrial policy, and business regulations. These all are external factors that can influence business growth. Arrivals consider all these factors in their quality checks for hitting Germany’s market.
- Political factors: In every business industry, firms chose a stable country where political influences are less as it can damage their business operations. Arrivals consider this factor when they choose a country for their business operation in the global market (Morganet al, 2019, p.98).
Justification of new market entry method
How this company managed to choose the correct market for their business has already been discussed in the previous part. Now it is important to make justification on their approach. Arrival companies always focus on some market entry methods that help to establish their business development goals in the local and global markets.
To comply with all government and business regulations it is important to satisfy all those requirements. Arrivals have implemented a special team to look out on these matters. All those market entry methods have discussed below. These methods can be considered as their primary business entry strategy when it comes to establishing their business in the global market (Katsikeaset al, 2019, p.876).
- Licensing/Franchising: It is a very sophisticated process when it comes to a business. Taking permission from the government is the primary or initial step of the market entry method. International marketing requires a license to do business with any country. Arrivals have taken permission from the German government to do their business transactions in Germany.
- Direct investment: This is another way to penetrate the new market. Companies directly invest their full-scale production unit to satisfy customer’s demands. Multinational companies do these types of actions and researchers have said this is an effective method for international marketing entry perspective.
- Exporting: Exporting is the first way to make the brand famous in the penetrating country. The international business market has some risks. To mitigate those risks companies export their products to the new country to see the customer’s reaction. If reactions are good then the company implements its manufacturing plants. Exporting products is profitable and it can satisfy customer demands on a small scale. Arrivals have implemented this technique in their global business operation as they are new in the International business. It is better to take the low risk for a new market (Solan, 2020, p.98).
International marketing strategies in the new market
Standardization and the adoption of the 4 Ps have been discussed below to understand the firm’s international business strategy in the new country’s business market.
Standardization: Global standardization is a very good strategy when it comes to the international market. Companies like Arrival Ltd can implement this kind of business strategy but this strategy works efficiently when the company has a good reputation in the global market. As this is a new start-up, the company should avoid following this kind of strategy for their new international business market. Global standardization mainly helps to work with different cultures to promote a company’s product (Lee and Griffith, 2019, p.87).
Adaption of 4Ps: The marketing mix paradigm is the key to success when it comes to business in a new market. 4 Ps are the marketing mix concept that helps to provide better value in the business. Product, price, place, and promotion are the main key aspect of this strategy (Arab, 2018, p.87).
Product: This is the first factor of the marketing mix. It refers to selecting a product for the business for a specific country where the demand for that product is high. Product adoption, extension, and invention all come under this segment. The main objective is to target those potential customers who need this product. The researcher team analyzes the business scenario and makes this selection.
Place: It is very important to choose wisely when it comes to place selection. In every country, companies do their best research to determine the place where they can make their product warehouse unit. This will help to organize their delivery credentials. Choosing a country is also important as choosing a warehouse. Commercial availability or availability of manpower is the main factor when it comes to this place selection process.
Price: It is very important to set the product price according to the customer demand and competition of the market. Selecting an aggressive price range can help to make the business approach successful but there is a risk factor involved with this kind of pricing. Cost-cutting techniques help to deliver a product but reduce the quality of the product. So it is very important to select the correct pricing without compromising the quality.
Promotion: Promotion is an essential part when it comes to business. It does not matter whether the business in the local market or global market. When it comes to Arrivals promotion perspective they can promote their unique ideas to engage more customers. Researchers have said that promoting innovative ideas work better than promoting traditional advertisement. Arrival Ltd. can promote carbon-free automobile products and their newly battery-operated cars in the new business market for gaining customers.
After comparing these strategies Arrival Ltd. can use the adoption method of 4Ps to gain customers in Germany. It would be more relevant to use this strategy for Arrival Ltd.
Recommendations
The automobile sector is innovating new techniques to mitigate carbon emissions from vehicles. Arrival Ltd. has implemented their new products that can help to reduce carbon emission. This process can generate more revenue in the future but if the company replaced fuel vehicles with their electronic vehicle then the company can generate huge revenue and also can provide better eco-friendly products.
The company can boost their research and development team to design new products which can completely absorb the carbon from the emission of the vehicle. It will save lots of money and also increase the engine performance. Both recommendations can give profits but it depends on the company’s decision.
Conclusion
After analyzing all factors it can be concluded that a start-up company should implement a strategy to penetrate a country like Germany from a business perspective. A startup like Arrival Ltd. can accomplish its business goals in a country like Germany. Market selection and market entry methods are very effective to grow a business.
A business that has future opportunities can be established easily with government support. Satisfying all regulations and business process helps the business to be established in new business markets internationally. Standardization and adoption of the 4 Ps depend on the firm’s current position. Arrival Ltd should consider the 4 Ps model for their international business.
References:
arrival.com (2021) available at: https://arrival.com/ [Assessed on 23rd, April 2021]
Belingheri, P. and Leone, M.I., 2017. Walking into the room with IP: exploring start-ups’ IP licensing strategy. Management Decision.
De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online reviews and hotel performance. International Journal of Hospitality Management, 72, pp.47-55.
Erten, B. and Leight, J., 2019. Exporting out of agriculture: The impact of WTO accession on structural transformation in China. Review of Economics and Statistics, pp.1-46.
Hasani, T., Bojei, J. and Dehghantanha, A., 2017. Investigating the antecedents to the adoption of SCRM technologies by start-up companies. Telematics and Informatics, 34(5), pp.655-675.
Kalogiannidis, S. and Chatzitheodoridis, F., 2021. Impact of Covid-19 in the European Start-ups Business and the Idea to Re-energise the Economy. International Journal of Financial Research, 12(2), pp.56-61.
Kamali, P., 2019. Exporting Through Intermediaries: Impact on Export Dynamics and Welfare.
Kazan, E., Tan, C.W., Lim, E.T., Sørensen, C. and Damsgaard, J., 2018. Disentangling digital platform competition: The case of UK mobile payment platforms. Journal of Management Information Systems, 35(1), pp.180-219.
Spender, J.C., Corvello, V., Grimaldi, M. and Rippa, P., 2017. Startups and open innovation: a review of the literature. European Journal of Innovation Management.
Stoian, M.C., Dimitratos, P. and Plakoyiannaki, E., 2018. SME internationalization beyond exporting: A knowledge-based perspective across managers and advisers. Journal of World Business, 53(5), pp.768-779.
Chatterjee, S., Chaudhuri, S. and Sakka, G., 2021. Cross-disciplinary issues in international marketing: a systematic literature review on international marketing and ethical issues. International Marketing Review.Solberg, C.A., 2017. International Marketing: Strategy development and implementation. Routledge.
Pegan, G., Vianelli, D. and de Luca, P., 2020. Introduction to the country of origin effect in international marketing strategies. In International Marketing Strategy (pp. 1-21). Springer, Cham.
Morgan, N.A., Whitler, K.A., Feng, H. and Chari, S., 2019. Research in marketing strategy. Journal of the Academy of Marketing Science, 47(1), pp.4-29.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review.
Solan, H.P., 2020.A research paper on 4 PS of marketing.
Arab, N., 2018. Relationship between dimensions of Brand Equity and 4Ps of Marketing Mix-Place, Product, Promotion, & Price: Coca Cola-Consumer Based Qualitative Survey.
Lee, H.S. and Griffith, D.A., 2019. The balancing of country-based interaction orientation and marketing strategy implementation adaptation/standardization for profit growth in multinational corporations. Journal of International Marketing, 27(2), pp.22-37.
arrival.com (2021) available at: https://arrival.com/ [Assessed on 23rd, April 2021]
Belingheri, P. and Leone, M.I., 2017. Walking into the room with IP: exploring start-ups’ IP licensing strategy. Management Decision.
De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018.Digital marketing strategies, online reviews and hotel performance.International Journal of Hospitality Management, 72, pp.47-55.
Erten, B. and Leight, J., 2019. Exporting out of agriculture: The impact of WTO accession on structural transformation in China.Review of Economics and Statistics, pp.1-46.
Hasani, T., Bojei, J. and Dehghantanha, A., 2017.Investigating the antecedents to the adoption of SCRM technologies by start-up companies.Telematics and Informatics, 34(5), pp.655-675.
Kalogiannidis, S. and Chatzitheodoridis, F., 2021. Impact of Covid-19 in the European Start-ups Business and the Idea to Re-energise the Economy.International Journal of Financial Research, 12(2), pp.56-61.
Kamali, P., 2019. Exporting Through Intermediaries: Impact on Export Dynamics and Welfare.
Kazan, E., Tan, C.W., Lim, E.T., Sørensen, C. and Damsgaard, J., 2018. Disentangling digital platform competition: The case of UK mobile payment platforms.Journal of Management Information Systems, 35(1), pp.180-219.
Spender, J.C., Corvello, V., Grimaldi, M. and Rippa, P., 2017. Startups and open innovation: a review of the literature. European Journal of Innovation Management.
Stoian, M.C., Dimitratos, P. and Plakoyiannaki, E., 2018. SME internationalization beyond exporting: A knowledge-based perspective across managers and advisers. Journal of World Business, 53(5), pp.768-779.
Chatterjee, S., Chaudhuri, S. and Sakka, G., 2021. Cross-disciplinary issues in international marketing: a systematic literature review on international marketing and ethical issues. International Marketing Review.Solberg, C.A., 2017. International Marketing: Strategy development and implementation. Routledge.
Pegan, G., Vianelli, D. and de Luca, P., 2020. Introduction to the country of origin effect in international marketing strategies.In International Marketing Strategy (pp. 1-21).Springer, Cham.
Morgan, N.A., Whitler, K.A., Feng, H. and Chari, S., 2019.Research in marketing strategy.Journal of the Academy of Marketing Science, 47(1), pp.4-29.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions.International Marketing Review.
Solan, H.P., 2020.A research paper on 4 PS of marketing.
Arab, N., 2018. Relationship between dimensions of Brand Equity and 4Ps of Marketing Mix-Place, Product, Promotion, & Price: Coca Cola-Consumer Based Qualitative Survey.
Lee, H.S. and Griffith, D.A., 2019. The balancing of country-based interaction orientation and marketing strategy implementation adaptation/standardization for profit growth in multinational corporations.Journal of International Marketing, 27(2), pp.22-37.
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