This essay will conduct an internal and external environment analysis to develop effective business entry strategies. Discussion Magnit and Cityline operate within different industries. It is highly important for the organizations to determine the external environmental opportunities and threats before developing the market entry strategy. Following PEST and Porter’s five Force analyses will help the organizations to determine key external environmental opportunities and threats. PEST Analysis PEST analysis helps an organization to determine the overall impact of external environmental factors on the business performance of the organization. Political India is a politically stable country. The government of India is influencing several international organizations to enter in the Indian market. As the entry of foreign players can overcome several economic and social challenges, government can support the organizations. First of all, the market entry of two organizations can somehow help the nation to overcome challenges like rising unemployment rate. Employment generation will help the people of country to betterment their lifestyles (Shan, 1991, pp.12-15). Looking into these aspects, it can be stated that the political environment is favourable for Magnit retail chain and Cityline internet service provider. Economical India is economically developing country. Purchasing power and disposable income of people are growing at a significant rate on yearly basis. It is true that India has achieved significant growth rate during the period of recent global economic recession and financial crisis. These favourable economic factors can...
This report stresses that Magnit and Cityline are the Russian organizations that do not have any kind of international presence. Huge popularity and high market share in Russia influenced these two organizations to decide to go for global expansion strategy. Magnit is one of the leading retail chains in Russia. On the other hand, Cityline is one of the largest internet service providers in Russia. Magnit is trying to target potential target customers in India as it is true that the demand for consumption of consumer goods in the retail chain has increased significantly among the target customers. On the other hand, Cityline is trying to follow B2B business model as the organization is trying to target the business units and organizations to provide high speed internet prices in competitive package prices. It is clear from above discussion that both the organizations can capitalize on several favourable external environmental opportunities.
This paper makes a conclusion that the external threats are quite minimal for both organizations. It is important for both of these organizations to develop an effective market entry strategy as the future performance in India is highly depending upon the developed market entry strategy. It is important for Magnit to follow Joint Venture Model in Indian market as it will help the organization in initial stages. The associated venture will help Magnit to get required business capital and operation resources in low cost. On the other hand, it will be effective for Cityline to follow Franchisee business model as it will help the organization to reduce initial political risks and high operation cost. The franchisee owners will help the parent company or franchiser or Cityline to develop effective customer base.