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The business environment is changing faster than even before. Change in customers, technologies, competitors, collaborators, regulation, suppliers, and so on is the only constant in many industries. Managers have begun to recognize that streamlining their businesses is just the first step. To prosper and grow, they realised the importance of strategy. What is strategy? "Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations". (G. Johnson, K. Scholas, 2005). Basically, strategy is about two things: deciding where you want your business to go and find out how to get there.
Traditional approaches to strategy focus on "where do you want to go?" which can be defined selecting an attractive market and picking unique strategic positioning, specific set of competences, or a particular vision for the future. But traditional approaches to strategy often collapse because they overemphasize the degree to which it is possible to predict which industries, competences, or strategies must be chosen. They also underemphasize the importance and challenge of creating and executing the strategy which is chosen. Even traditional strategies are not wrong but rather that they are just not enough in industries with intense, high-velocity change. The fundamental strategic challenge is to manage this change.
Aims and Objectives
Aim of this research is looking at different market entry strategies, evaluating different strategies that are pursued by multinational cooperations, considering the pros and cons of these strategies and identifying the various factors that affects firm`s choice of strategy.
The objectives of the study will be:
A literature review of market entry strategies .
A research methodology chapter.
1.2 Research Questions
The questions which are need to be answered as follows;
Vodafone was established as a subsidiary company of Racal Electronic Plc in 1984 in Newbury, London. The company has less than 50 employees at that time. Vodafone is the first cellular network launch in the UK. It was floated in the stock exchange in October 1988. The first digital (GSM) mobile phone service was launched in the UK by Vodafone in 1991. With loads of value added services Vodafone progressed and expand rapidly as specified on the website www.vodafone.com. In 1999 Vodafone became second largest company in the FTSE 100.
Vodafone strategies for acquisitions, collaborations and merger helped to become largest mobile telecommunication company in the world in 2000. Annual report of 31st March 2006 shows that the group had 186.8 million proportionate customer and 553 million venture customer (pre-paid) in its subsidiaries, joint ventures, associates and investments with the turnover of $ 64,470 m. Today Vodafone has ownership interest in 27 countries across 5 continents and partner networks in further 33 countries.
2. LITERATURE REVIEW
Firms typically chose between four main strategic postures when competing internationally:
a global standardisation strategy, a localization strategy, a transnational strategy and an international strategy figure shows which strategy is most suitable under each conditions.
2.1 Global Standardization Strategy
2.3 Transnational Strategy
2.4 International Strategy
2.5 Basic Entry Decisions
Which foreign market?
Timing of Entry
Scale of Entry
2.6 Entry Modes
2.6.4 Joint Ventures
2.6.5 Wholly Owned Subsidiaries
Table 14.1 page 483
2.6.7 Strategic Alliances
3. RESEARCH DESIGN CHAPTER
3. 1.Research Methodology
The research methods section is provides the information by which the validity of a study eventually judged, because of this methods section is the most important chapter of the research. In literature there are different methodological approaches mentioned which describe the way of finding out knowledge (Guba&Lincoln, 1990).
In order to approach research objectives the longitudinal exploratory dissertation will adopt both qualitative and quantitative research strategies which are often necessary for "triangulation" meaning "getting a fix from two or more places" (Green at all, 2002).
"Qualitative research is an overall term to describe the work researchers do in formulating their interpretations of the subjects of their studies and giving representations of these interpretations in order to add body of knowledge." (Baker and Hart 2008)
The qualitative data collected by the researcher, determined by Sunders as;
Based on meaning expressed through words
Collection results in non -standardized data requiring classification into categories.
Analyses conducted through the use of conceptualizing
(Sunders, Lewis Tornhill 2003)
Quantitative method is focusing on the concepts, testing of ideas etc. and the project-ability of the results. It is one of the necessary elements for market researchers to find out key preferences and trends of their target costumers lie in relation, they may be thinking to he proposed marketing initiative (Kim, 2003).
Fundamental elements for quantitative research are:
Deductive; testing of theory
Natural science model in particular positivism
( Gahuri & Gronhaug, 2003 )
3.2 Research Methods
Different strategies can be employed in carrying out a research. Some clearly belong to deductive tradition and others inductive approach. The traditional ones are; experiment, survey, and case study. (Robson 1993). Later (Yin 2003) added two strategies; archival analysis, and history. The justification of the research strategy adopted should be based on the objectives of the research and the questions to be answered.
All strategy decisions should not always be so coldly rational. (Saunders et al 1997). The researchers preferred style, preferences and ideas should be reflected in the researchers work. (Hakim 1997). Despite this the choice or research strategy depends on form of research question, control of behavioural events and if the research focuses on contemporary events opposed to historical events.
Adopted from: Yin 2003; Pg. 5.
Due to the fact that this study is based on contemporary issues and answers to the question "how", all the named strategies would be relevant apart from the history strategy.
Survey is the collection of large amount of data, in a big population in a highly economical way. (Saunders et al 2003). Though this method is termed as easy to explain and understand, it's inappropriate because only small sample of population will be used. An experiment is a classical form of research which owes much to the natural sciences. (Saunders et al 2003). The purpose of experiment is to study whether a change in one independent variable produces a change in another dependent variable. (Hakim 2000). A case study involves an empirical investigation of a particular phenomenon within real life context using multiple sources of evidence. (Robson 2002). It involves a small population.
However these strategies are not mutually exclusive and two can be used at the same time. In collaboration with (Dahl 2003) who used experiment as a strategy to get his findings, this study will use an experiment and a case study to get a deeper understanding in the study.
3.3Data Collection Techniques
In order to answer the research question, and make a conclusion there is need for data collection. There are two different categories of data collection; primary and secondary.
Primary data: "Primary data is information collected for a specific purpose of addressing the research problems" ( Phipss and Simons 2003 pg:375 ).
Collecting the primary data is rather expensive and time consuming. The main purpose of primary data collection is that data that collected is unique and before it is published, nobody knows it. In primary data collection, initial material collected during the research process. There are many methods of collecting primary data and the main methods in marketing include: (Geoff, et al, 2002)
Depth interviews and group discussion
Secondary Data: Secondary data, information has already been collected for other proposes. Secondary data is cheaper and more quickly available than primary data. It is useful for researcher before collecting the primary data. Secondary data utilizes the data that collected by someone else in order to another a study that you are interesting in completing. That's why commonly known as second-hand analysis. According the Geoff (2002) the major sources of secondary data are two types.
Internal sources: Internal sources data generated by the organization itself such as sales force reports, accounting reports, and reports from previous marketing research and consumer complaints reports.
External sources: These data gathered from outside the organization including; newspapers, government statistics, published reports etc.
3.4 Data Analysis
Data analysis contains examining, categorizing, tabulating, testing or otherwise recombining both quantitative and qualitative evidence to the initial preposition. (Yin, 2003).
Data analysis section is process of summarizing data with the intent extract useful information and developing the conclusion. The research approach of this study will be a combination of deductive and inductive approach. It will be deductive because the existing concept of loyalty and its impact on business decisions and strategy will be first tested using data and inductive, because the data collected will be analyzed to give a new dimensions to the loyalty concept and its strategic effect on business.