INTERNATIONAL BUSINESS

International Business

International business

Introduction

Everything Everywhere (EE) is a UK based company, which provides fixed and wireless broadband communication services including standard mobile phone services. The company offers messaging and telecommunication services to users and companies. The company also owns and operates retail stores of mobile phone. This company can be taken as entry mode by a firm entering a new international market (Hong Kong) where the firm currently does not have presence (About EE, 2013). This report describe that how the company can expands internationally, this report is mainly focused on Hong Kong, an international city at southeast China with individual legal system, currency, market freedom that separated from central government at mainland China. Moreover, this report also describes the circumstances under which this entry mode may lead to greater corporate advantage than other entry modes.

Rationale for the Chosen Country to Enter

A company to evaluate opportunities in the foreign market often sees an opportunity to expand its market, whether for competitive advantage, is not to depend solely on the domestic market. However, for the company, choose a segment of the external market, the volume of products to be offered internationally, and understand how you will transport production and customer relationships across international borders, the company requires a detailed study of their own limitations and the market reaction to the entry of a new competitor (Levitt, 1993, p. 249). These decisions are what make up the international marketing strategy. Hong Kong is one of the world's economic and financial centres. Therefore, it is mistakenly associated as a place of expensive and available only for big business while it is also a global point of close cooperation between small and medium-sized enterprises from around the world. In addition, Hong Kong speaks more efficient system of legal protection. It is not surprising that in the area of competitiveness' Hong Kong economy is the leader, and there solutions adopted for the promotion, development of economic activities and cooperation between small and medium-sized enterprises with scientific and research centres are copied by other countries (Cui & Jiang, 2009, pp. 434-444). In Hong Kong, the Hong Kong Science and Technology Park offers a wide range of services to the industry, ranging from a series of management programs and support, to help companies, especially small and medium-sized enterprises in establishing cooperation with universities. These are the reason behind choosing Hong Kong for the international market expansion.

PESTAL Analysis

International marketing differs from domestic marketing not only by the size of the market because the first tends to be higher, but the higher degree of uncertainty facing the firm to decide to enter the foreign market (HKTDC, 2013). But before entering the international market, the companies go through a process in which important decisions are made, for example, in which countries get and what initial volume of sales allocate your chosen market. Such decisions involve analysis of several factors, such as political, economic and cultural.

Political Analysis

For Everything Everywhere (EE) Hong Kong is a good choice for the reason ...