IB Group08

International
Business
Major Project
Group 08
Market Entry Strategy Analysis
Aarti Singhal MBA21070
Amit Patil MBA21078
Anushka Jaiswal MBA21083
Pratiksha Shukla MBA21041
Rishabh Dev Gupta MBA21117

Introduction
• Founded in 2016 • India fit low-cost business model leveraging technology
• Largest B2B e-commerce platform • Transparency, accessibility, affordability and national
• Lifestyle, electronics, home & kitchen, staples, fruits reach
and vegetables, FMCG, pharma, toys and general • Empowering them with technology, financial inclusivity,
merchandise and supply chain capabilities
Why internationalize in Spain?
Strategic location Growing ecommerce market
Strong logistics infrastructure Large number of SMEs
Business-friendly environment
Challenges
Demographics: Government: Regulatory/Legal:

• aging population which • Government policies and regulations might • Restrictions on certain types of
could impact consumer affect the marketing industry in Spain advertising or marketing
behavior • stay up-to-date with the latest regulatory tactics, as well as compliance
• need to adjust its marketing changes and comply with all applicable law with data privacy laws such as
strategies GDPR.
International Trade and Administrative Economics: Capital Market:

Aspects:
• Challenges related to customs, tariffs, • difficulties in securing funding or • Challenges such as
and logistics finding suitable investment unemployment, inflation, or
• Have understanding of the opportunities consumer spending habits
import/export process and the • navigating the complexities of • fluctuations in the
regulatory requirements the Spanish financial system. exchange rate`
Target Market
Fashion
Industry Electronics Tourism
Including different sub-sectors Spain is home to several major Wide range of businesses, including
such as clothing, footwear, electronics companies, including hotels, restaurants, transportation
accessories, textiles Indra, Amper, Abengoa, and Telvent. companies, tour operators.
Automotive
Pharmaceuticals
Industry
Major companies such as SEAT, Companies such as Grifols and
Ford, and Volkswagen have Almirall have a strong presence in
production facilities in the country. the country.
Competitors
Projected Sales
2023 2024 2025
Number of Registered Users 10000 20000 30000
Revenue per user (in £) 833 833 833
Transaction Sales
Annual Revenue (in £) 8330000 16660000 24990000
Commission on the transactions
between the buyers and sellers Exchange Rate 99.76 104.75 109.99
Annual Revenue (in Rs) 831000800 1745101680 2748535146
Subscription Sales
Subscription fee for certain Number of users in India – 3 million active users
services such as credit GMV in India – 2.5 billion £
financing, logistics, and
advertising. A competitor Interempresas has 600000 registered users as of 2020 and
provides B2B platform services to businesses in similar industries that
Financial Services Udaan plans to operate in. Udaan will aim to capture at least 5% of that
market in 3 years
Charges a percentage of the
loan amount as interest. During entry year, the number of users targeted is around 10000. The
exchange rate has been assumed to increase at an annual rate of 6%.
Operational concerns and Solutions
Changing customer ● Using personalized content for marketing
Expectations put sale on ● Gain customer loyalty by providing seamless journey
pressure ● Combine predictive analytics with prescriptive description
● Gather unconventional data sources to gain new signals and
channels
Increased number of channels ● More than 65% SMEs prefer remote and digital interactions
● Adopting hybrid approach is appropriate since the get go
in B2B Buyers ● Driving sales through influencer marketing and turning
ambassadors of local sellers
Last mile Logistics- Traffic ● Warehouses- Turning Madrid Airport area in largest logistcs hub.
congestions and Logistic ● Loading and unloading-using digital platform to reduce
Inefficiency ●
congestion
Geolocation services
● New communication channels- Chatbots
● Public transport deliveries- Usage of Spanish public underground
and train networks
● Increasing more fixed hubs in country for deliveries
International Strategic Entry Modes
Wholly Owned Venture Merger Acquisitions
Advantages: Advantages: Advantages:

 Retain greater control over the  Easier GDPR Compliance and  Benefit from local market
operations and greater flexibility other regulatory requirements knowledge, be treated by the
 Diversification  Benefit from the expertise, local government as a local firm
 Appropriate as a long-term knowledge and experience of the  Quickly reach an established
international expansion strategy existing management and key customer base
Disadvantages: personnel by retaining them  Easier regulatory compliance
 High risk due to the costs and Disadvantages: Disadvantages:
length of establishing a new  Technological process differences  Significant investment to acquire
business in a new country  Cultural conflicts seamless a well-established firm
 Exposed to protectionist policies to integration of systems and  Cultural clashes within the
protect & support local business processes. organization
RECOMMENDATION: Wholly Owned Venture

1. Unique low-cost model: It solves core trade problems faced by small and medium businesses. It offers higher value to its
users by also taking care of logistics and payments
2. Asset-light business model: They do not believe in owning assets and also are not planning to go asset-heavy as of now.
Marketing Campaigns
Collaboration with Local Offering Competitive Pricing: Building a strong social media
Farmers and Artisans: Owing to Affordability is one of the biggest presence: Udaan can build a
rich agriculture of the rural areas challenges in rural areas, thus strong social media presence
of Spain, Udaan can collaborate Udaan can offer competitive and engage with customers
with local farmers and artisans pricing on its products, which through interesting and
to create a range of unique and would help to attract customers informative content to help
exclusive products are not in rural areas who are quite price- create brand awareness and
available on other e-commerce sensitive sustained interest in Udaan's
platforms products
Create a Loyalty Program: Partnership with Local Retailers: Focusing on Customer Service:
Customers in rural areas are Udaan can partner with local Udaan can invest in training its
highly loyal and value personal retailers in rural areas to offer customer service staff to
relationships. Udaan can create their products in physical stores. provide friendly and
a loyalty program that rewards This would help to increase personalized service to
customers for their repeat Udaan's reach in rural areas and customers. This will differentiate
business to build long-term provide a convenient way to Udaan from its competitors and
relationships customers to shop for Udaan's create a positive brand image
products
Thank You

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International

Aarti Singhal MBA21070

Amit Patil MBA21078

Anushka Jaiswal MBA21083

Pratiksha Shukla MBA21041

Rishabh Dev Gupta MBA21117

Why internationalize in Spain?

Strategic location Growing ecommerce market

Strong logistics infrastructure Large number of SMEs

Demographics: Government: Regulatory/Legal:

International Trade and Administrative Economics: Capital Market:

Annual Revenue (in Rs) 831000800 1745101680 2748535146

Wholly Owned Venture Merger Acquisitions

Advantages: Advantages: Advantages:

RECOMMENDATION: Wholly Owned Venture

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