Vitasoy Expansion Into The UK
Vitasoy Expansion Into The UK
Strategy of Expansion
To expand the business of VITASOY to the United Kingdom successfully, the right strategy has to be chosen and implemented as a way of generating positive results for the market. A strategy in this case is a platform that can be utilized to ensure that a user is able to attain his set objectives in the market. Therefore, VITASOY needs to find the right approach because of expanding into a new marketing hemisphere. The primary strategy that needs to be initiated in this perspective is the franchising strategy. Sidhpuria (2009) explains that the franchising strategy is an established policy that has proven to offer rapid growth and reduced risks in the market hemisphere.
Siebert (2015) shows that the franchising strategy needs to be utilized because it focuses on attracting clients in their market atmosphere. The rationale for the usage of the strategy is that it creates an image in the minds of the current and future clients on the issues associated with the firm’s commodities and services that can assist them. Furthermore, the strategy is based on the entity of permitting a number of individuals to share brand identification, proven marketing and distribution systems, and successful approaches of undertaking business. The implication here is that the firm needs to put into practice the franchising strategy because it is designed to enhance a strategic alliance within groups of individuals that have specific connections.
Sherman (2011) indicates that the franchising strategy entails individuals with responsibilities based on a common objective to dominate the market. The other reasons as to why the franchise strategy is suitable for the company in question is that the firm has its brand name, which is an indication that expanding to the UK will be a successful approach. The presence of the brand indicates that the firm will be recognized and respected, and the right marketing approach across different markets will be applied. The firm also has a clear sales proposition that is understood and easily communicated; hence, its expansion to the EU will have a successful outcome. The firm also needs to use this strategy because of the nature of its products concerning the matters associated with consistency in price, availability, and desirability entities reflected within the brand name.
The strategy of franchising will permit the firm to rapidly expand beyond its original area of operation, hence reaching positive results. Furthermore, the strategy of franchising is perceived to work well for the companies with repeatable business models that can be easily moved into new markets. The policy of franchising entails a franchisor selling both intangible and tangible products to the franchisee, but the franchisee ought to agree to abide by strict regulations on aspects associated with doing business. It is true about the strategy because it is an essential form of gaining foreign returns, and it involves long-term commitment (Khan 2014, 7). Utilizing the strategy also means that the firm will be relieved of many costs and risks of opening a new market in the United Kingdom. Fundamentally, the franchising strategy is appropriate for VITASOY to utilize while expanding to the United Kingdom based on the rationale explained above.
The Practical and Feasible Action Plan
Evaluate the Readiness of the Business
It is appropriate to offer a concept that is relatively similar to what the European Union uses so as to curb the right market. Also, one needs to review the financial status of the company as a way of enumerating the profitability earned over years. Furthermore, market research has to be undertaken to determine what paths can be implemented to generate the right products in the market. Based on the fact that the firm will be exposed to a new market, the management has to be ready to changes as a way of adapting to the needs of the clients. Additionally, evaluating other alternatives like finding partners and sources to cover financial debt is a route path to succeed through the franchising strategy.
Learn about the Rules and Regulations
It is appropriate to be aware of what is practiced in the United Kingdom for one to participate in a business in their market. One of the rules that have to be noted is completing a disclosure document. The document, in this case, asks the applicant to offer a wide range of information on matters associated with the business and illustration of the management team (Ungson et al. 2014, 13). Thus, one has to act as required so as to penetrate the new market.
Importance of the Firm’s Model
It is significant to be aware of the franchisee fee and degree of royalty because it assists the business to evaluate its future earnings. The right approaches that can be utilized for advertizing need to be known so as to ascertain that profits will be earned within the predicted time frame (Khan 2014, 64). An example can entail advertizing through online platforms as being cost-effective and modernized.
Create and Register as a Franchisor
After reading the terms and conditions of attaining a space in the United Kingdom market, one needs to be ready to register the firm. The registration may include some challenges because the firm might be asked to provide more details or be rejected (Siebert 2015, 31). Significantly, the firm should be ready for any response as a way of acting in a professional manner.
Hire the Right Personnel
After being offered the opportunity to work in the United Kingdom, the firm needs to hire the right employees so as to get the right market outcome. One of the employees will have to be a consultant who is familiar with the European market. The approach is fundamental because it aims at assisting the firm to attain their objective based on experience (Ungson et al. 2014, 23). Thus, right employees must be hired needs to be done with ease and professionalism for positive results to be attained.
Selling of franchises takes place after filling out the registration form. The process entails finding the right clients and convincing them to purchase the products in question (Khan 2014, 18). In this case, the firm can use online marketing as a form of reaching out the clients in a modernized perspective.
The right training has to be instigated so as to help the firm attain its set objective effectively. Te implication here is that the firm needs to train their employees annually to generate positive results in the market (Thomson et al. 2010, 12). Training also tends to motivate employees to do what is right because it offers them specialized experience.
Thus, it is significant to follow the mentioned steps of franchising strategy for the firm to successfully thrive within the United Kingdom market. The rationale is based on the fact that following the set rules and regulations is a key to the firm’s success. Moreover, it is apparent that the franchising strategy is appropriate for the VITASOY Company because of the positive results associated with is usage. Fundamentally, implementing the strategy to the letter will generate results that are significant and essential for the industry as a whole.
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