Assignment Sample on MKT744 Global Marketing and Sales Development

Introduction

International business expansion activities assist organisations to improve growth opportunities by introducing new services and products to new audiences overseas. Marketing plays an essential part in increasing brand awareness by efficient promotion activities through providing essential information to those customers. This study would be focusing on evaluating India as the international market for increasing business opportunities for Fordway Solutions. It would provide an overview of Fordway Solutions providing efficient IT services in UK while evaluating India as the chosen international market for increasing business operational effectiveness globally. Incorporation of PESTLE analysis would help in evaluating political, economic, socio-cultural, technological, legal and environmental activities impacting on management of efficient business development practices in Indian economy. Besides, competitive advantage of Fordway Solutions and associated marketing and promotional activities would be analysed for development of modification requirements before entering India. Identification of challenges, global expansion of businesses along with recommendations for addressing those challenges would be represented in this study.

Overview of Fordway Solutions

Fordway Solutions is a UK based business in Godalming, England that serves IT services in a UK domestic market. This business is one of the most progressing small and medium organisations providing services of increasing structural support for small businesses. Fordway Solutions has a total employee number of 97 employees in 2020 while generating revenue of approximately $19 million (FORDWAY, 2021). This focuses on use of advanced technologies for providing excellent and advanced quality IT support for emerging small organisations in United Kingdom. It mostly used cloud based activities for development of advanced technological infrastructure and increasing operational effectiveness to its clients. This organisation was focusing on expansion of associated business activities in evolving Indian IT industry providing advanced IT and ICT support to small and medium sized organisations. This would require this organisation to focus on evaluating potential business operational and economic development opportunities for increasing customer base and generating more revenue on an international market.

Justification for choosing India for increasing Business Opportunities Internationally

PESTLE Analysis of Indian IT Industry

Table 1: PESTLE Analysis of Indian IT Industry

(Source: Influenced by WORLD BANK, 2021)

Analysis

India has efficient political stability promoting a democratic overview on management of economic, social stability and encouraging individuals to participate in economic development. However, increasing branching in tax payment activities has been negatively impacting economic growth. Economic development attributes, year-long lockdown and social distancing activities have negatively impacted the economy. As published by Statista, GDP growth rate in India was at -7.25% in 2020 due to corona virus (STATISTA, 2021). It is expected to grow by 9.5% in 2021 and 8.52% that would be beneficial for increasing economic stability for business development. India has also experienced an inflation rate of 6.18% in 2020 (STATISTA, 2021). However, IT industry has experienced a positive growth opportunity with an overall valuation of $99 billion in 2021. Increasing importance of e-commerce has helped Indian IT sector for efficient growth opportunities in future.

India has the second largest population in the world. As of 2020, World Bank has predicted the total population of India has reached 138 billion (DATA TOPICS WORLD BANK, 2021). This has increased the importance of India as one of the largest free markets to expand international businesses without any strict government regulations. Younger generation focusing on increasing initiation of new businesses would be efficient for increasing demand for IT or ICT infrastructure for associated services. On the other hand, technological infrastructure in India is not advanced compared to countries such as UK, Japan, USA and others. Increased focus on incorporating technological knowledge based education in Indian education institutions would be beneficial for increasing technological advancement requirements. Both private and public business efforts in development of technological infrastructure in Indian economy would be beneficial for increasing IT and ICT infrastructure requirements in future.

Legal requirements for expansion in its market have severe strict legislations to follow in maintaining an efficient transaction. India included a corporate tax of 40% of overall revenue for international businesses (TAX SUMMARIES PWC, 2021). This would negatively impact on management of operational costs for increasing business growth attributes in India. However, high revenue generation possibilities would be beneficial for decreasing economic support for business survival in a flourishing IT industry.  In addition, international businesses would be beneficial by maintaining legal business attributes including “legal rules, conventions, treaties, domestic legislation and commercial customs or usages” for business development. Fordway Solutions would be required to follow “Competition Act, 2002”, “Trade Unions Act, the Industrial Employment Act, 1946”, “Factories Act, 1948”, “Payment of Wages Act, 1936” to operate a business in India. Besides, “Health and Working Conditions Code, 2020”, “Minimum Wages Act, 1948”, “Maternity Benefit Act, 1961” can be recognised as other essential acts to follow while maintaining business activities in India. Following the “Environment Protection Act, 1986” would be beneficial for Fordway Solutions to maintain quality of environmental wastage along with reducing pollution generation activities.

Critical Evaluation on Choosing India as Efficient International Market

India can be recognised as a stable economy with exceptional economic growth opportunities during past years before facing a negative impact on GDP growth, high inflation. It was identified that India has 6.8%, 6.53% and 4.04% GDP growth in 2017, 2018 and 2019 consecutively before experiencing a negative -7.25% impact in 2020 (STATISTA, 2021). Besides, it is expected to maintain around 6% of GDP Growth rate along with a maintained inflation rate for increasing its economic capability for consumer purchasing and associated activities for maintaining an efficient business process.

In association with economic stability, a vast population of over 1.38 billion customers would lead to millions of target customers compared to other developed nations having a lesser population contributing to a low number of targeted customers. As poised by Oláh et al. (2019), a larger number of potential customer bases enable better sales opportunities to increase profitability. This would indicate that incorporation of efficient product development according to the needs of increasing technological development opportunities in India would be beneficial for Fordway Solutions for gaining an effective customer base in India. It would further increase business development chances for improving customer attractiveness by providing higher quality and affordable IT or ICT support along with efficient infrastructure development opportunities while exposing in Indian IT sector.

Government focus on business reforms, effective digital competitiveness as well as ease of doing business would be beneficial for Fordway Solutions for choosing the Indian It sector for business expansion. As suggested by Lee (2019), ease of doing business in the international market indicates government or national authorised entities helping businesses to overcome economic obstacles. This would be beneficial for small and medium-sized businesses like Fordway Solutions in maintaining high resource management, supporting operational activities with a skilled workforce for providing quality services. Besides, government protectionist policies with assistance in fair participation in competitive business industry in India would be beneficial for growing business holistically.

Competitive Landscape of Fordway Solutions

Fordway Solutions can be recognised as one of the leading organisations providing cloud services, IT consultancy, and flexible infrastructure development opportunities for management of efficient business practices. This organisation has focused on maintaining a higher quality, use of advanced technologies at an affordable price for last 27 years. As per the views of Keiningham et al. (2020), procurement of advanced products helps businesses to increase value-adding perception to their targeted customer base enhancing overall output efficiency. This has helped Fordway Solutions to gain efficient condolence and resilience with changing business environment along with the development of a loyal customer base in its domestic business operations in England.

Fordway Solutions has a small employee’s base of around 97 in total with an identity as a small and medium-sized business operating in England, UK. Lack of human resources and capital requirements would create challenges for this business to focus on international expansion activities. In the views of Watson IV et al. (2018), international business expansion activities require high investment to develop an effective entry to new markets, marketing and promotional activities for leaching out of targeted customer pools. Other than this, lack of human support would create challenges for the management of inefficient business operations creating higher failure opportunities while expanding to the international market in India for Fordway Solutions.

Development of International Marketing Strategy for Fordway Solutions

Existing products and Services

Fordway Solutions focuses on increasing business optional effectiveness by incorporating relevant cloud strategies to cope up with fast-paced digital transformation globally. As collected by Ištvanić et al. (2017), businesses providing personalised or customised products and service solutions according to customer objectives, goals, budgets increase audience attractions. As stated on this official website, Fordway Solutions is focusing on streamlining business activities by providing cloud-based IT services for maximising overall performance. With the help of an expert in this organisation, businesses would be able to form their infrastructure as well as enhance their agility and flexibility in their operations. As identified by Kushwaha et al. (2020), personalised products and services create better value for customers by prioritising their needs or expectations. This has helped this IT service providing organisation in attracting a larger number of businesses to improve their business infrastructure to attend its full potential for achieving an efficient market position.

In association with cloud-based IT services, Fordway Solutions has focused on incorporation of consultancy, security and management of services. As proposed by Rodríguez et al. (2020), management of cloud-based IT services helps businesses to decrease complexities and increase organisational capabilities for attending better project management activities. This has created efficient business attributes by enhancing resourcefulness helping businesses to move forward in evolving macro or microeconomic situations. Fordway Solutions further focuses on implementing high-quality security infrastructure for helping businesses to decrease the challenges of cyber threats. As reported by Rejeb et al. (2019), efficient security infrastructure helps businesses to increase reliability and effective workspace without creating challenges in future operational risks. Highly advanced security practices would help businesses in data branching possibilities by detection of system vulnerabilities, protecting from online viruses has helped Fordway Solutions to manage efficient business practices in UK.

Proposed Modifications for Market Entry in India

Fordway Solutions would be beneficial by maintaining similar business attributes including service qualities and operations system including a vast and integrated service portfolio. Personalised IT services, security protections, alignment between different operations, and management of them would help in providing consultancy reports to business owners would help in attracting a large number of customers in India. As noted by Lin et al. (2020), diversified products provide options of various products and services to attract a large number of customers. This would be an efficient defence system for Fordway Solutions to compete against its variety of IT associated services while boosting its brand image. It would further assist in decreasing requirement for investment in product or service modifications while focusing on maintaining quality of services provided to new customers in India. However, incorporation of a traditional business headquarters while operating in an international market like India would be required for management of country centric service activities.

Pricing decisions and Proposed Changes

Fordway Solutions focuses on development of efficient business practices accessing the budget of its customers. As mentioned by El-Kassar and Singh (2019), incorporation of high price flexibility in business management activities helps in increasing demand for a product. This would be beneficial for this IT service provider to attract a larger number of customers to get its services. On the other hand, imposition of development of associated cloud services as per the beads of budget and organisational objectives would further be advantageous for increasing market position in Indian IT sector. However, maintaining an efficient operational and servicing cost would ensure management of effective profitability for Fordway Solutions to maintain profitability while expanding business operations in international market.

Maintenance of industry-wide pricing activities according to Indian standards would be required to change its pricing policies for effective business operations. As opined by Lawrence et al. (2019), incorporation of competitive pricing activity helps in increasing sales activities by maintaining better relationships with customers to boost revenues. This would prevent losing customers to other competitors based on increasing or unrealistic pricing policies. Understanding basic requirements and budgeting activities of its tagged customer base along with reasoning to their expectations would be beneficial for Fordway Solutions for increasing business opportunities economically.

Promotional Activities

Fordway Solutions focuses on increasing digital media campaigns along with incorporation and integration of different online software and applications for efficient promotion in UK.  As poised by Makrides et al. (2020), implementation of online or social media marketing or advertising campaigns assists in increasing brand awareness to a larger number of customers. Technological development of business practices in India would help international businesses such as Fordway Solutions to increase their visibility while operating online. It would require an investment of low capital as well as time and effort to introduce and manage effective online services for management of IT services and solutions for increasing organisational capability for small and medium sized online businesses operating in India.

Fordway Solutions would be recommended to incorporate integrated online platforms including websites, Facebook, YouTube and others. Implementation of tools such as “omnichannel marketing” would be beneficial in management of integrated business promotional practices in international market. As mentioned by Lopes et al. (2021), application of “omnichannel marketing” increases effectiveness of modern marketing activities including innovation and streamlining of associated activities. This would be advantageous for Fordway Solutions to increase its presence in multiple online platforms along with management of better connections with a new customer base in India.

Distribution Practices

Fordway Solutions would focus on incorporation of a mixed operation process of increasing its operational effectiveness in India. This organisation would focus on development of headquarter in India, potentially in the technologically developed city of Bangalore. This would be beneficial for Fordway Solutions to develop an efficient business practice for management of overall distribution activities in this South Asian country. As narrated by Keiningham et al. (2020), construction of business headquarters in international business practices assists in increasing brand recognition while increasing profitability requirements. This would also benefit Fordway Solutions to decrease required taxation as well as comply with government protection helping businesses to improve their operational effectiveness in India.

Development of India-centric websites along with specific social media and online presences would be beneficial for Fordway Solutions to increase better communication practices in this country. As narrated by Hedenstierna et al. (2019), a specific online presence based on operating countries helps in simplification of operational practices. This would be helpful to manage country specific activities as well as delegate required operational processes for management of human resources efficiently. Besides, incorporation of country-specific employment and service management activities further would be beneficial for increasing customer attractions in Indian economy.

Potential key challenges to Global Expansion for Fordway Solutions

Lack of Capital Support for International Expansion

Fordway Solutions would face severe capital insufficiency for taking efficient control over international business expansion activities in India. As incited by Nambisan et al. (2019), international business expansion activities require a high investment of capital for addressing entry costs, diversifying product portfolios to reach new customers. As a small and medium sized organisation operating in England, Fordway Solutions would face severe challenges in management of capital for international business development. This would also create challenges for finding any effective investor supporting its operational expansion in India due to low return on investment opportunities. As reported by Andreassen et al. (2018), lack of value creation opportunities with high labour and operational management cost decreases chances for attracting investment. However, efficient labour costs and low operating management activities would encourage Fordway Solutions in management of efficient operational activities in India.

Inefficient Technological Infrastructure

UK has an advanced technological infrastructure compared to Indian IT sector. This would indicate that insufficient technological support would be severe challenge faced by Fordway Solutions to efficiently enter in Indian market. As poised by Mustafa and Yaakub (2018), inefficient technological infrastructure decreases scalability as well as capacity of business operations. This would also create challenges for this organisation in management of highly advanced data management as well as development of customisable cloud services for its customers. As developed by Mustafa and Yaakub (2018), inefficient technological infrastructure decreased effectiveness of data acquisition and data drove solving activities by inadequate computing support. It would decrease the operational efficiency of Fordway Solutions to provide efficient cloud services personalized for its customers. Hence, management of data activities including efficient infrastructure and computing support would be beneficial for maintaining its customisable and advanced IT and ICT support activities in India.

Recommendations for Profitable Global Expansion for Fordway Solutions in India

Customization of existing product lines to attain Indian customers

Fordway Solution delivers cloud services to its clients and would facilitate a company to achieve its full potential in terms of Information technology. The company must conduct a market analysis and evaluate the preferences of potential Indian clients. This would help Fordway Solutions to strategically modify its product line so that Indian clients are drawn in. Based on observations made by Wang et al. (2020), customizing a product line helps a company to fulfil the demands of an international market. The market share of Fordway solutions would increase if their products attain the fluctuating demand of Indian clients. The scope of attaining a competitive edge in the cloud industry would also be prominent. In this way, Fordway Solutions can attain a profitable business expansion in the Indian market. In-depth Market analysis is imperative as customer preferences shift abruptly and a sense of rigidity in the product line would not satisfy their fluctuating demands. It is thereby recommended to Fordway Solutions conduct an in-depth analysis of the Indian market so that upcoming shifts in the market trends are identified.

Expanding into new channels and focusing on band growth

Customers tend to interact through variable channels and by targeting these channels with an efficient marketing strategy, Fordway Solutions could gain market share. According to Berman and Thelen (2018), mufti-channel marketing or distribution helps a company target a larger customer base. Therefore the chances of converting target customers into potential clients are relatively higher when variable marketing channels are utilized. Higher brand awareness is also developed as customers would come across the advertisements or content shared on the different channels. Based on the opinions of Harahap et al. (2018), in the contemporary market, where “word of mouth marketing” is prevalent, brand awareness is easily developed when multiple channels are utilized to promote a service. Therefore Fordway Solutions could attain brand growth by deploying multichannel marketing and eventually achieve a profitable business expansion in India.

Conclusion

A business expansion report was presented for Fordway Solutions and the targeted market was fixed as India. A PESTLE analysis of the Indian subcontinent suggested a stable political condition in the targeted market. The economic stability was somewhat affected due to the Corona Virus outbreak. The possibility of Fordway solutions to gain economic advantage was further tarnished by the substantially high inflation rate of India. In contrast, the IT sector of India was subjected to extensive development and strong government-led investment was directed towards the sector. A marketing strategy to promote their service in the Indian market was conceptualized. Their state-of-the-art technology which helped to maximize the utility of cloud-based services would come in handy to numerous industries across India. Therefore a strong demand would eventually be developed for a company that deploys cloud support in the Indian market. Contrasting trade regulations would serve as a challenge for Fordway Solutions’ market expansion strategy. Accordingly, it was recommended to the company to strategically modify their product line and focus on marketing through variable channels.

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