Akansha answered on
May 29 2020
Running head: International Marketing
This report is about Woolworths' introduction and the country (India) it feels like to expand. The report mentioned the introduction of India and the mode of entry and competitive strategy of doing business in India. Marketing; Recommendations regarding production; and Research and Development considerations; International HRM issues as well as considerations are also discussed in this report.
Brief background to company and India 4
Additional Analysis 5
PESTLE Analysis 5
Entry mode and multinational structure and competitive strategy 7
Mode of Entry 7
Competitive strategy with justification 8
Marketing and R&D considerations 9
R&D considerations 11
Recommendations regarding production 12
International HRM issues and considerations 13
Brief background to company and India
Woolworths commonly famous by the name "Woolies") is one of the largest supermarket or grocery chain owned business firm of Australia registered as Woolworths Limited. Woolworths was founded in the late 1990s, Woolworths formed a nearly double-headed monopoly of Australia’s supermarkets with Coles, accounting for approximately 80% of Australian market. Woolworth sells groceries (vegetables, meats, fruits, packaged foods, and so on), but they furthermore sell DVDs, magazines, health & beauty products, pet and baby products, household products, and stationery. Cu
ently Woolworths operates 1,000 stores within Australia: about 968 supermarkets as well as 19 other grocery stores with a similar logo. Woolworths Online website was originally called "HomeShop" and was their "click & collect" moreover home shopping product delivery services. Woolworth is Australia's biggest supermarket chain with almost 995 stores in all over Australia, Woolworths also relies on about 115,000 employees from stores, support
anches and distribution centers to provide Woolworths customers with better service, reach, convenience and value (Courtemanche, Pinkston, Ruhm & Wehby, 2016). Woolworth is proud to work closely with farmers and growers to make sure the best quality products for their customers. Australian growers and farmers purchase 85% of fresh fruits and vegetables and approximately 100% of fresh quality meat and products. This makes Woolworth Australia fresh food talent. Woolworths is Australia's best innovative retailers, Woolworth understands that their consumers are also looking for innovative and simple methods to shop. With the Woolworths supermarket app, consumers can also shop at home and also on a very comfortable price. The suitable part is their services are that their groceries are sent directly from farms to kitchen bench.
With the improvement of the convenience of commercial policy
ought by the cu
ent Prime Minister, Mr. Narendra Modi, India is also facing an opportunity for expansion. These reforms help attract foreign direct investment and help improve Indian business practices. Reference has been made to the developments that have taken place since 1991 and the improvement in GDP since 1999. The country ranks 100th in terms of operating convenience, and the improvements made within 1 year are commendable. After the recent developments in the United States and India, India should be a second largest consumer market in the whole world. India is also considered as a major business infrastructure development economical country with major development projects. The main multinational corporations with abundant resources and co
ect knowledge of ways and relationships are the main beneficiaries of development and growth model in India. The wave of entrepreneurs is moving in a positive direction of growth.
Political Factors: As one of the world's largest democracies, India acts as a federal government. Political policy has affected large-scale government policies, interests of politicians, and the views of many political parties. Therefore, India's business environment has affected many environmental factors. The tax system is designed to be well (Deli and Muff, 2015). The coalition government takes tax, service tax plus sales taxes and all other taxes.
Economic Factors: Since the execution of Industrial Improvement Policy in the year 1991, the Indian economy has remained steady. According to the policy, the reduction in industrial licenses, liberalization of the foreign capital, and creation of new FIB etc has resulted in an ever-changing Indian economic environment. With a five percent of increase in the GDP growth in 2013, GDP is reached $ 5.07 million in 2014 and up to 4.35% in 2015. (Gallego-Alvarez and Fernández-Gómez, 2015).
Social Factors: There are social factors that affect the business environment, for example, due to the increase in the Indian population, there has been a significant increase in pension expenditure and an increase in the number of older people employed. India's population is more than 1.2 billion; of which 15 to 65 years of population is around 70%. Therefore, the percentage of
oken structures by age is the percentage. These structures include flexibility in work attitude and income distribution and so on.
Technological Factors: Technology affects the growth of technology significantly and presents a new cost reduction process. India uses 3G & 4G technologies and also encouraged many of its technology projects. Additionally, there is also an IT department in the world to promote continuous IT development, software improvements and some other technological advances in the country which help Woolworth in their business expansion in India. Recently, India tried to launch their satellite (Hashi and Buckley, 2014).
Legal & Environmental Factors: Recent authorized reforms have been executed in India, for example recycling, minimum wage hike as well as disability discrimination, which have directly affected Woolworth business in India. However, where environmental issues, industrialization and u
anization are adversely affecting the air quality of India and it also leads to health problems. Therefore, the Environmental Tension Group, Voice Control and Waste Control and Disposal Rules have been established (CAO, 2017).
Entry mode and multinational structure and competitive strategy
Mode of Entry
This strategic decision has had a major impact on the competitive advantage of any multinational company. When companies try to enter foreign markets, entry mode will play a crucial role. Multinational companies need to understand whether foreigners have the ability to control local businesses, reduce risks, monitor operations and achieve goals. The three input modes are as follows -
Exports: This is the most common and simplest form of import that involves the export of domestic products to any country. This means that products and services are sold from one country to another for sales, distribution, and sales. Exports have many advantages that can help the company gain knowledge about the local market. This can be achieved through large investments. This is one of the quite attractive and simple market methodologies. There are few drawbacks such...