This article consists of 16 pages and 3169 words. In order to have full access to this article, email us thedocumentco@hotmail.co.uk
Charles Bigham’s Market Expansion,Ref No: 3997
Contents
Why Charles Bighams Should Internationalize?. 2
PESTLE examination to enter the American market 5
Executive Summary
In the led report, the data that is gathered shed lights on the global business and the idea of the new business market. The nation of America has been additionally breaking down as far as its worldwide exercises and degree or possibility for the new market development from abroad. The organization of Charlie Bighams means to the expand its business in the American market, along these lines, the data gathered imprints for the current state of the nation and its people with the assistance of PESTLE analysis and SWOT analysis. Also, the report additionally means to explore the appropriate territory or areas of business that is required to be worried before the organization Charlie Bighams takes an activity for its development in the market of America. Notwithstanding the above data, there is information gathered with regards to various market entry technique alongside the proper methodology set apart for the chosen association. This technique arrangement to feature the suitability of joint ventures with the local organizations of America.
Introduction
This report aims to make the considerations on market expansion of the Charles Bighams. The report will study the current position of the company and explore the facts about why the company should consider internationalization. Thus, this report will analyze the selected country with different aspects and models of market expansion in order to make suggestions to the Charles Bighams about where and how they should make the market to be expanded. The report has also aimed to suggest the Charles Bighams about the factors of expansion that they should use and limitations that they could face while expanding to the said country.
Why Should Charles Bighams Internationalize?
The increasing globalization has made the business to be looked at with different aspects catering the needs of multi cultured people and making the considerations on promoting the business worldwide to increase the revenues and profits of a business. With respect to the current conditions of the Charles Bighams, it could be seen that the company has been looking to develop its base in the state of United Kingdom, however, the state has not been spending on food that much which makes the Charles Bighams consider the expansion of the market. The following benefits could follow the idea of market expansion.
-
Increase in Customer base:
The company could extend its customer base by expanding its market in different countries. This will give the organization a chance to make the sales to be increased with the number of customers to be expanded (Gaur et al., 2014).
-
Increased Revenues
The increase in customers and chances for sales will make the revenues to be increased eventually and making the Charles Bighams able to make the profitability to be maximized (Boso et al., 2016).
-
Decreased risks and increased returns
The increased return has although been discussed in the above section, however, another benefit that market expansion will bring is decreasing the risks. As stated that the people of the United Kingdom spend less on food thus to make the risks to be decreased of the company to be eliminated from the market (Cavusgil & Knight, 2015). Thus, expanding to another market here will provide the Charles Bighams to be able to make the risks to be eliminated.
-
To tap another niche market:
Another aim that could be attached with the expansion on Charles Bighams is to make another niche market to be tapped. The idea of expansion is to make the same target audience to be made into customer base with a different market and thus it seemed that market expansion with internationalizing the organization could seem the perfect idea for the same (Marano et al., 2016).
Uppsala Model
|
Country |
GDP |
Value of money in comparison to GBP | Expansion Opportunities | Political and Government favour | Opportunities for the customer base |
| USA | 1 | 0.74 | 1 | 2 | 1 |
| New Zealand | 4 | 0.53 | 5 | 5 | 3 |
| Ireland | 5 | 1 | 3 | 1 | 4 |
| Germany | 2 | 1 | 2 | 3 | 2 |
| Canada | 3 | 0.59 | 4 | 4 | 5 |
Source: (World Bank, 2017)
The Uppsala model makes the considerations to compare the countries that could be the possible options for the expansion of a company. The model states about what country is to be selected on what basis. The comparison factors of the model are to make the analysis on countries that could be considered for the expansion. Thus, this model was used in the internationalization of Charles Bighams (Vahlne & Johanson, 2017). Here the Uppsala model explains the comparison of countries that were considered as the best available options for the expansion of Charles Bighams. It states the countries being ranked from 1 to 5 for the selected factors being discussed. As it can be seen in the table that the USA fits best according to the factors of selection that Charles Bighams looks for the expansion. USA has the best GDP among the selected country as well as not such market restrictions with respect to political and governmental regulations as well as has the target market that could be tapped by the Charles Bighams.
SWOT Analysis……….
| Strengths | Already developed market name which could make the goodwill to be used to capture a market. The company has been working in the United Kingdom since 1996 and thus have developed this goodwill and structure.
The company has an already tapped market and people with same interest could like the products of Charles Bighams. The process of segmentation for selecting the customers could be used as a key in the American market as well. |
| Weakness | The customer base they currently have is different from the customer base that is possibly having different taste in foods. This could become a hurdle for the Charles Bighams.
A small sized company that could be facing a number of challenges in a new country with respect to its structure and its operations. |
| Opportunity |
The new taste offered by Charles Bighams in America could increase their competitive advantage. A tapped market or the same niche market could be found in the state they are expanding into. This could be looked as an opportunity. |
Recent Comments