Discuss about the International Business for Technology.
Companies around the globe are considered to provide products and services with help of technology, transfer of goods, this helps firms and organization to grow in different culture and environment (Hyman, Yang & Fam, 2008). To enter into international market mode of entry should be known to entrepreneurs because there are many entries. The best entry suited for business will help in maximum growth of businesses.
Companies have lots of reason to go international but many of them go for expansion and growth. Companies are expanding internationally to have growth so that there can be supply of products to customers and can even earn benefits in terms of profits. Having enormous growth in its home country Boost Juices thought of expanding its wings globally and the outcome obtain is wonderful because it has market strategies and innovation with its products. This company is using natural extract to attract customers not only this but the brand has launched many campaign and project, which enormously is helping in promotion. The innovation ideas are not only seen in products but also in store development and retail chain, this brand has captured customers not only in Australia but also in so many countries with its innovative market strategies.
Boost juice is an Australian brand. It is most popular brand in beverages sector; this brand has created its place all over the world. The setup of this brand was in 2000 and recently it is ruling the market and has become most selling brand of juice bars in the world. To have healthy life and alternative to fast food the concept of boost juice was introduced. Founder of Boost Juices did not had professional background but still she had wonderful idea of starting new approach that has concern with health. In the categories of wellness this brand is unbeatable; starting of brand had just clicked to her when she was unable to have healthy food on street of Australia. This is huge company ruling over 17 countries with more than 350 retail chain stores. This company always wants customers always experiences new and unique whenever they approach the store. Not only providing products and services to customers but also have concern to nature as well as environment (Redrup, 2013).
For healthy living customers prefer organic food. It is leading health concern brand with this concept it has introduced healthy snacks like fresh yogurt, boost juice sell best quality products that comprises of healthy foods with variety of fruits and vegetables. This brand needs to have outlook of nutritive diet for every country in order to expand into international market because each and every country has different nutritive value (Shenkar, Yadong & Chi, 2014). Businesses before entering into any market should have proper analysis and study so that there cannot be issue in understanding their customers. The services that is selected has unique factor that has maximum effect on people because many of people are having concern about their health. The services provided to customers are ensuring with quality products without any addition of artificial preservative or colors. Providing natural drink to people with unique blend of nature leaves major impact on customers and attracts them to boost juice bars. This brand has huge variety of products with innovative style that is always being attractive to customers. All the products are in concern with health and claim to give effective, fresh juices to their customers with innovative idea.
In 2004 this brand entered into international market. It completely took over the entire juice brand. Growth can be the only reason for companies to expand globally. This brand is ruling over 17 countries with 350 retail shop around world. Why there is need for a brand to go globally? The reason is expansion and spreading of business. Domestic market is small saturated therefore growth rate is small, these are the reasons for a business to go internationally but boost thought of spreading its concept of natural healthy products to all its customer. The consumers across the world are facing the same concern regarding their health as Australia. This became main reason for boost juice to enter into international market. It is not easy for any business to expand internationally because going global the firm must know every minor difference of each countries. The minor mistakes done can swipe off the brand from market and the firm may lose its identity in that countries. This is not at all fixed for any brand that if it has occupied its place in domestic market will have benefit in other countries. The selected brand has entered into many countries with huge success and is ruling complete market with leading brand in juice sectors. Boost has formed marketing strategies to rule international market with study of country’s value, taste and purchasing power of customers. This brand has their partners in every country that has expertise in wellness categories. It was difficult task for boost to make sure that it brand image does not get eroded from market with this reason this organization has set experts that look into this matter. The main reason for boost juice to enter into international market is because of over growth of wellness industry (Silverman, 2011). Obesity and health related problems are growing in western countries and companies are taking benefits. The proper strategies made will enhance the productivity that means the company needs to focus on strategies that help in entering into international markets (Carpenter, 2012). There are many barriers that stop companies to entry these firms so that they can stop maximum globalization into their country. To enter into any countries market the barriers must be known so that strategies can be framed in overcoming these obstetrical. Taxes are in form of barriers in which the companies need to pay to government; these are in exporting parts; when goods are exported from one country to others (Sakarya, Eckman & Hyllegard, 2007).
Political- it will arise when companies think to enter into market of other countries. Every country has different policies and government laws regarding international entry. Government has framed laws regarding mode of entry for every businesses; there are rules made in respect to different sectors. The political analysis for international extension is described below with reference to different countries.
Political environment is different from that of domestic. There is difference in political environment in every state within same countries therefore it is actually difficult for entrepreneur to study in detail. In political issue taxation is an important part; the companies need to pay huge taxes to the government. In spite of paying taxes, companies do not perform well. This will have huge lose to companies therefore it is required to have a proper research before entering the markets.
Economic- this is for sure, that international expansion of companies affect economics of both countries in positive ways. Increase in GDP will affect the growth of country, for these reason governments of every country is in support of expansion, it will also increases globalization. One disadvantage that international penetration has is decreasing of local industries to develop; this is for the host countries. The economic condition of developing countries can be improved by international expansion.
Financial- Boost juice has its strategy to sell its products on value price. This product is more into providing effective benefit to consumers. The price of boost juice’ products are relatively low and will attract both local and tourist. The main issue arises for the financers, when the company has franchising as mode of entry into international market who can invest their money into the business. This can be one of the reasons for a company to build its identity so that it can get good financers. Penetration into different market requires lot of funding and cost that can overcome by franchising.
Legal- legal and political issues are nearly same for international expansion. Every country has their legal formalities and it can differ from one to another. Government policy and laws formed are for international expansions are for both countries- host and home. The companies that are entering into international market should follow the legal formalities and term with host countries. The policy of international expansion will improve the relation with other countries.
Cultural- There is major difference between cultures with huge diversity in their taste, value and purchasing power; therefore it is important to do research before entering into international market. Every country have their unique culture, this should be kept in mind before making market plan for products. Boost juices bars have value for every culture, with this it is well socialized company because with innovation it also has concern for social. This company is environmental friendly; it is because the cups that it provides to customers are eco friendly. It even has concern for customers taste and preferences therefore the customized products are also available.
To remain safe in international market, this company has moved for franchising because in this there is no need for complete study of the host countries rather than this brand can choose best experience person who can represent the brand. The only thing is there requires training for the franchisee so that they can get complete idea about the brand that they are going to represent.
A business can enter into new market with different mode of entries. The different mode of entries that a business can adopt is exporting, franchising, licensing and joint venture and so on. (Alexander & Myers, 2000). The modes for entry for retailer chain are
The recommendation for Boost Juice to enter into international market is franchising. It goes best with selected company the reason is that the company is providing juices services to customers. Being a new startup company it requires more profit initially that can be achieve only when it goes for franchising as entry. The reason behind selection is specific because the company has already has achieve brand name so it will be easy for franchisers to work with that company who has brand image. It is system of providing the complete trade mark to other entrepreneur who is ready to start business in their home countries. The price, menu and taste of products should be kept same as that of the original brand, this helps in keeping the brand status according to the owner. This company has provided franchising to nearly 17 countries; boost juice aim to select most perfect entrepreneur with different background. It focuses on such entrepreneur that has complete knowledge in retail operation of successful businesses, marketing sales training and operations. With this they need to focus on value of boost juice while providing product to customers. They should even have maximum funding resources. Boost Juices Company is providing training to franchisers so that there would not be any mistake in leading their brand. It is easy to provide franchise to entrepreneurs of their home country because they are much aware about their countries culture, purchasing power and many other factors (Delaney, 2016). Franchising is excellent for famous brand that already has their image in market and carries their standard in providing products. Low political risk and low cost are advantages of international franchising (Quinn & Doherty, 2000).
Based on complete analysis and study of boost juice the strategy that it should adopt is international strategy; this company has good local support and should even go for international market. The marketing strategies are framed to have international expansion of products and services throughout global. Customers at boost juices store have different experience every time. Customized juices are made to meet the demand of people in different parts of world. Example- customers according to their likes and taste can have customized drinks, this strategies is helping to retain maximum customers. The company is doing extremely well in its home country and also best in international expansion (Geiersbach, 2010).This can now move into more countries to have more benefit and profit and even providing more products to customers that enhances the major problems faced by western countries. This brand can have maximum growth and development of product for customers globally. The need to international or global will provide the brand new image and popularity. When any brand is famous in its home country it should certainly move for international extension.
Conclusion
International expansion does not only have to expense their brand but proper training and expertise is required to represent the brand globally. The correct selection of mode of entry into international market is important or primary step to have success, but before entering globally the brand should built it’s identify in home country. The selected company has set an example around world that with good marketing strategies and innovation one can rule whole market. Complete analysis of international market is done with help of social economical legal and culture. For retailer stores there are different mode of entry into international markets, the selection done by this company is franchising mode. This mode of entry is profitable to companies like food sectors and effective without the companies to have more studies done on the host countries.
References
Alexander, N & Myers, H. (2000). The retail internationalization process. International marketing review. Vol. 17 . (4).
Carpenter, A. M (2012). Challenges and opportunities in international business. Viewed on 9 January 2017. Online from https://2012books.lardbucket.org/pdfs/challenges-and-opportunities-in-international-business.pdf
Delaney, L (2016). International Franchising. A global strategic Initiative. Viewed on 9 January 2017. Online from https://www.thebalance.com/international-franchising-a-global-strategic-initiative-1953329
Geiersbach, N (2010). The impact of international business on the global economy. Vol. 3 (2).Viewed on 9 January 2017. Online from https://www.saycocorporativo.com/saycouk/bij/journal/vol3no2/article_8.pdf.
Hyman, R. M, Yang, Z & Fam, K. S (2008). International Business Research. The open business journal. Vol. 1 pp 68.
Kermond, C (2009). From little things, given a Boost, big things grow. Viewed on 9 January 2017. Online from https://www.smh.com.au/small-business/entrepreneur/from-little-things-given-a-boost-big-things-grow-20091202-k6h8.html
Krieger, E (2011). Ripe and ready for more success. Viewed on 9 January 2017. Online from https://www.startupsmart.com.au/advice/business-planning/boost-juice/
Morrison, J (2011). The Global Business Environment: meeting the challenges. 3 edition. Pp 29.
Quinn, B & Doherty, M. A. (2000). Power and control in international retail franchising- Evidence from theory and practice. International marketing review. Vol. 17.
Redrup, Y. (2013). The juicy secrets of my success: Lessons from Boost juice founder Janine Allis. Viewed on 9 January 2017. Online from https://www.smartcompany.com.au/finance/economy/31769-the-juicy-secrets-of-my-success-lessons-from-boost-juice-founder-janine-allis/
Sakarya, S, Eckman, M, Hyllegard, H.K (2007). Market selection for international expansion: Assessing opportunities in emerging markets. International marketing review. Vol. 24. Iss: 2.
Shenkar, O, Yadong, L & Chi, Tailan. (2014). International Business. 3 edition.
Silverman, S (2011). Juicy boost business plan. Viewed on 9 january 2017. Online from https://digitalcommons.calpoly.edu/cgi/viewcontent.cgi?article=1086&context=agbsp
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