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Evaluating International Markets

Evaluating International Markets



The global economic boom in the last previous decade has led the companies to expand in a different market, adopt new technology, introduce new products and systems and others (Waidergorn  & Trieloff, 2014). The economic boom has also been fostering productivity, efficiency, and employment growth.  The business of today is largely impacted by the global and dynamic functions of the business.  Powerful technological, political, industrial and demographic forces are joining to develop the new foundation of the global economic order based on which the framework or structure of the global market and economic system will be developed. It is contradictory that either the company is willing to participate directly in the process of internationalization or not. However, the company will still come under the radar of the impact concerning the maximization in the number of the domestic organization who are manufacturing, exporting in most of the international markets, increase in the growth of the regional businesses, and also the increase in the number of the global competitors. Without adopting internationalization, the company will not be able to function according to the world market policy thus affecting the business scenario.

There are many market trends that tend to impact the international business these factors also help the company to shape its business in the economy:

1.     The interdependence of the world markets

2.     The increase in the goth of the regional free Trade areas winch includes APEC, ASEAN, NAFTA, and EU.

3.     The goth in Walt and the development of the various nation Is Is increasing the purchasing power of the people around the world.

4.     Due to the market evolution of the emerging market such as Poland, Brazil, Malaysia, India, Russia, and China

5.     Availability and accessibility concerning the advanced method of transportation and communication due to the growth in the information technology (Times, 2019)

The above-mentioned forces tend to impact international trade thus leading to the extensive development in the global trade that has contributed to the perception that the world has become an independent and a smaller place. In the report, the product that has been selected for getting an entry in the international market is “Gobi”. The product has been selected forth market entry in the United Kingdom.

Justification for the choice of the international market to enter

The market that has been selected for the product is “Gobi”. The Gobi is the product from the house of the Gobi Company whose objective is to focus on progressing through education, design, and innovation. The company aims in attaining a sustainable competitive advantage by becoming a resource of the community that tends s to inspire new opportunities and possibilities by bringing the company expert in concern to material science with the leader engaged in working in architecture and industrial design. The operational equation of the Company is a challenge, partnership, solution, and innovation (OECD, 2019). The company is collaborative, creative, insightful, adaptive and responsible.  It company started its operation in 2011 and aims in providing authentic, sustainable and eco-friendly products to their customers. The company believes in serving the community. This strategy would help the Gobi company to sustainably operate in the nation.

The product “Gobi” is made in France. The bottles that the company wants to distribute in the United Kingdom.  As the company believes in sustainable operation, so it manufactures eco-friendly, affordable and reusable bottles  (Lopez, 2019).

Résultat de recherche d'images pour "GOBI LAB"

Image 1: Gobi Labs Water Bottles

(Source: GOBILAB, 2019)

The company aims in entering the UK market as it is considered to be the 3rd largest e-commerce market internationally in 2016.  In2017, e-commerce sales reached 586 billion British pounds. The value concerning the online retail sales in the nation in the same year was 67.8 billion euros.  The B2B e-commerce market sales with the assistance of the online website reached 133.6 billion British pounds in the year 2017 (UKgovernment, 2019). The figures highlight that the e-commerce market is increasing every year with the increase in the demand for the products. The increase in product demand is due to the increase in the demographic quantity. By the year 2021, around 93% of the internet users in the United Kingdom are forecasted to go for online shopping signifying the highest online shopping penetration rate in Europe, United Kingdom (Al-Romaithi, 2019).

Capture d’écran

Image 2: The Total UK Ecommerce share of the total retail market (2012 – 2017)

 (Source: www.SaleCycle.com)

The above-mentioned graph indicates the e-commerce market share concerning the retail sector between the years 2012 – 2017. The graph highlights the increase in the market share from 2012 to 2021. Another thing that must be considered is the Pestle Evaluation, which will highlight the external factors affecting the product in the UK (Plecher¸2019).

Present Strategy of Gobi Lab

The aim of the Gobi Lab is to manufacture sustainable products and simultaneously reduce waste.  Moreover, the company wants to completely substitute plastic cups and plastic bottles with their own BPA free and eco-friendly water bottles (Rahman, 2019). The company aims to protect life so that people by manufacturing eco-friendly products. The company is only present in Linkedin (social available), has provided their mail id (hola@gobilab.com) and their address (23 rue Blondel-75002, Paris – France
Phone: +33 1 70 23 28 06). This indicates very limited awareness or presence for the customer who really wants o purchase to avail eco-friendly, BPA free, transparent, water bottles. The company also writes its own blog. The company is beneficial for both individuals as well as for business organizations. The CSR initiative of the company is to access every free water points or locations. The present partners of the product are Amazon, Allianz, Google, Louis Vuitton, Sanofi, and others. This indicates that the company is seeking a global presence through the shadow of other brands which is limiting its own brand name in the market thus limiting its continuation in the business. This would make the company vulnerable as other companies then would try to acquire the company's operations due to Gobi’s limited financial investment capacity. To know the Gobi Lab Company's capacity to enter the UK market, It is necessary for the company to know about its strengths, weakness, threats and market opportunities. Based on this evaluation the Gobi Lab Company can draft an export strategy for the UK (US-Embasies, 2019).

SWOT Factors



The bottle can be washed in the washing machine. The product is eco-friendly by the implementation of the precautionary principle. It can hold up to 14 oz. Of water. It is very light weighted. It BPA free and transparent. The bottom part of the bottle can be changed as desired. It is available in various colors. The Gobi can be changed according to the mood of the consumer. It is affordable so it is pocket-friendly (US-Int.Trade.Administration, 2019).


It is a very new product in the market so the individuals are not aware of the brand Gobi bottles. As the company only manufactures in France so the awareness is only limited to that region. This is very depressing for a sustainable product like Gobi bottles. The company lacks investment concerning promotional activity and another form of advertisement.


There are various opportunities for the product in the UK market. If the company follows the online strategy then it can for partnership with the online shopping sites such as Alibaba, Amazon, Flipkart, or Club factory. Here the company also needs to mention the nation it wants to sell and promote the product. For promotional activity, the company can talk to sports icons to feature their products. Is it an eco-friendly product, it has a wide and open market opportunity to grab it. Moreover, the company can go for promotional messages or advertisements on Facebook, Instagram or on Twitter. It can also organize campaigns, such as live campaigns in shopping malls or in other public spaces to make aware of their product and educate the customers concerning the harmful effect of the plastics and useful effects of the eco-friendly and BPA free product. Gobi company can also go for business to business relationships as this would help the company to be taken care of in safe hands.


The production capacity for the Gobi bottles is very less so there will be less presence of the product. Due to its less awareness, the product is not so known to the people or the consumers. There are other bottles available in the market in the UK market such as Breacom Waters Lt., Danone Waters Ltd.., Highland Spring Group, Harrogate Water Brands, Nestle Waters, Wenlock spring and Shepley spring. These companies are well established in the nation and have a wide presence to sell their brand. This would be a big threat for the company if the Gobi company does not do its promotions and another sort of advertisement socially or in any other medium.

Table 1: SWOT Evaluation

(Source: the Gobi, 2019)

The strategy which will be adapted to enter the international market

Entry Mode in the United Kingdom

For entering the United Kingdom market, it is necessary for the Gobi Lab to evaluate the political, legal, social, economic, social, technological and environmental factors. For the entry mode in the UK, Gobi Lab's cam opts for promotional merchanding and Contractual agreements with the distributor o the regions. For this, the company needs to build a strong supply chain.

Pestle Factors


Political Factors

·       Brexit Policies – The Company needs to abide by the policy and regulations of the UK’s Brexit guidelines. It is the 6th largest economy which is indicating high purchasing power.

Economic Factors

·       The rise in the GDP of the nation also increases the increase in the income of the people thus increasing the spending power of the nation.

·       The United Kingdom is also seeing a rise in their imports the indicating a high opportunity and chance for the Gobi water bottles to get sold in the United Kingdom.

Social Factors

·       It is a great opportunity for the Gobi Lab to export product is the UK market. The nation is socially friendly so promoting production in this nation through Tesco or Sainsbury would not be difficult.


·       No license is required for the Gobi Lab company to market their eco-friendly, BPA free water bottles

Table 2: Pestle Evaluation

Source: Author’s Creation

Marketing Strategy for Gobi Lab in the United Kingdom

The cost of the marketing associated with the Gobi Lab water bottles is mentioned below:

Marketing Aspects


Estimated Marketing Cost

50,000 €= 43290.25£

Cost of merchandise landed

12£ / product

Including shipping

Mode of Entry

10/12€ = 8,64/10,36£

Table 3: Marketing Cost of the Gobi Labs Water Bottles

 (Source: Author’s Creation)

Strategy to attract the Customers of United Kingdom

Gobi Labs can go for online marketing through Facebook, Twitter, Instagram, and Linkedin. In Uk, the statistics concerning social media users are 38.68 million users. In the year 2017, 92% of the marketers used Linkedin for promoting their product, so Gobi Lab can follow a similar marketing policy in the social media channels too.




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