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Holland and Barrett Business Ideas

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Introduction

International trade management involves how a particular company internationalizes itself and how it does involve global marketing in its trade management. Trade management involves the various steps that are followed towards the exchange of services and goods by various companies. Any business has the main objective to expand internationally in a way that it will provide its services and products to different countries in the world with the objective of provision of services worldwide. International trade is mainly involved in the exchange of the services, capital, and goods that occurs across the international borders or the territories. In most of the countries, the above kinds of trade usually represent a significant gross domestic product (GDP) share. By trading globally tend to give the countries and consumers the opportunity of being exposed to the new products and markets. Almost each and every kind of product can be available in the international market. The products provided mostly includes the jewelry, currencies, water, spare parts, food, clothes, oil, stocks, and wine. The services that are mainly traded involves banking, tourism, transportation, and consulting (Anderson, E. et al., 1987, p. 85). A product that tend to be sold on the market globally is an export, and the product that is mainly bought from the global market is the import. The exports and imports are accounted for in the current account of a country in the balance of the payments. Industrialization, the advanced technology that includes multinational corporations, outsourcing, transportation, and globalization are all under classification to have a big effect on the international trade system. By increasing the international trade, has the imperative impact to the globalization continuance. Without the international trade, the countries will limit themselves to the services and goods that are largely produced within their borders. Thus, the international trade is mainly restricted to trading of goods and services and is only exposed to a lesser extent for trading in labor, capital or other production factors. The trade in services and goods can serve as the substitute for the trade in the factors of production. Instead of a country importing a factor of production, the country may import the goods that make use of that particular factor of production and, thus, embodying it (Basche, J.R., 1971, p. 4). An example, is the way the United States import the labor-intensive goods from China. Instead of the United States importing the Chinese labor, it mainly imports that are produced with the Chinese labor. The combination of the international trade with the international finance especially forms a branch that is referred to us the global economics. My research paper will emphasize on the Holland and Barrett entry strategies in the global markets. These will entail focusing on the different strategies used by the Holland and Barrett.

Holland and Barrett History

Holland and Barrett foundation were in the year 1870 which was through a partnership that occurred between the Major William Holland and the Alfred Slapps Barrett. They both bought the grocery store that sold groceries and clothing. They started company dealt with vitamins, minerals, and also with other herbal supplements. The headquarters were established in Nuneaton, Warwickshire that is across the United Kingdom and the Ireland. The company has other stores that are located in China, Malta, Gibralta, Cyprus, Singapore, Spain, Netherlands, and South Africa (Bheenich, R. et al., 1989, p. 99). Holland and Barrett have lately started the company’s international expansion via the process of franchising. In October 2008, the Holland and Barrett Company mainly opened the three stores of the franchise in South Africa. For the other franchising that has been opened include one at Malta, Gibralta, China, and Singapore that occurred in 2009 to 2012. The sole aim of the Holland and Barrett Company is the expansion of the company brand in the global market through the process of partnering with the bigger franchises in the country.

Strategy of Global Market Entry Being Opening Franchise Stores in China

Holland and Barrett are among the largest firms in the United Kingdom health food retailer that mainly entered the market of Chinese for their first time by opening two franchise stores that were located in Shanghai. By tapping into the China’s burgeoning sector demand of the health supplement, Holland and Barrett were having a primary aim of their expansion globally by having over 500 stores in less than five years from the time they started working (Cunningham, M.T., 1986, p. 9). According to the strategy that is embraced by Harvey Kamil, NBTC chairman of the company of the parent of Holland and Barrett. The entry strategy to the global market will start by the company starting from Shanghai, China to spreading all over the world in their future being the number one producer of the health supplements products in China and to other parts of the world. Chris Wood who is the deputy and minister that heads the British Embassy in China said that he was mainly excited by the step being embraced by the British retailer household company towards their movement and entry into the competitive market of China. Most of the Chinese consumers are becoming increasingly wealthy in today’s economy and are, hence, providing the discerning market for lifestyle products that Holland and Barrett are producing. Some of the products that have achieved fame for a short while from the company includes the Rolls-Royce and the British brands like the Burberry. The company is using the products to enter the competitive market and towards the global market with big shock that leaves the other competing companies with great shock. Holland and Barrett Company mainly uses the products that are already existing in their production scope to gain fame over other companies (Collett, W.E., 1991, p. 58). The strategy that the company has embraced is making the company grow at a faster rate and the assurance of occupying over 500 stores in less than five years from the time of its establishment. Through its target by producing the health supplements provides a great market for Holland and Barrett because it is a good that is being used by both the highly paid and low paid individuals in the country. The products like Rolls-Royce is wanted by everybody since they are products that keeps one to have a healthy living with continued consumption.

Strategy of Market Entry Through Producing Quality Products

Most of the local people have gone forward in liking the products from Holland and Barrett Company since they are products of good quality. The local people are also curious of the new stores that the company mainly opens often providing new brands of their health supplement products (Elinder, E., 1965, p. 9). According to a testimony by Xia Guifang who is a 54-year-old worker who has already retired. She said that she was interested with the products that Holland and Barrett retailer’s produces and that through the use of the products she has managed to live a healthy life. This becomes a proof that the company mainly gives quality products to its clients that also makes the company to grow rapidly. What mainly sells the company is the good testimonials that comes from the customers who have been using the products from the company. In the case of the United Kingdom retailer, Holland and Barrett have been known by numerous consumers to have quality products that show positive effects towards the people who use them. Therefore, the company have become among the best since it is devoted towards its consumer satisfaction (Jaffee S., 1993, p. 98). These provide the basis that a happy customer will always come back and they mainly not return alone, they bring along their friends, hence, buying the products more and more. That strategy have presented itself from the functioning of the company, and it ensures ensure that quality is reached regardless of anything else. Customer satisfaction is what the company puts in being the first priority that is followed by other things. Through customer satisfaction, the products mainly advertize themselves in the sense that those who have previously used the products recommend them to their friends and family members, thus, the fame of the company spreading all over. These become a strategy that usually wins many consumers in the health supplement field.

Strategy of Entry Being Producing Affordable Health Supplement

The enterprise warrants that most of the products it provides to their consumer are of affordable prices. Therefore, the Holland and Barrett Company mainly have come to take the greatest percentage of people since they can afford to their products. These has enabled the majority to living a healthy life and goes again and again for the products to ensure healthy living (Keegan, W.J., 1989, p. 78). For example, the company sells a capsules bottle of cranberry at 278 RMB yuan that is equivalent to $44 in the franchise stores in Shanghai, China. Another smaller bottle of the oats Avena sativa is mainly sold at 69 yuan. The price in the global market is something can either attract more consumers or send away more consumers. Setting the price of new brands to various companies is something that has led to their failure. Some of the companies may quote a product a higher price that may make it unaffordable to the middle-class men. In the economy of the China, it constitutes a majority of the people being classified as filthy rich with the larger bracket of people falling in the middle class. These means that over quoting the price may lead to narrowing of the market which will make Holland and Barrett target of expanding to the global market a dream that will never be achievable. Therefore, the company has made some excellent strategies towards how they mainly sell their products to their consumers. These are the one that has led to Holland and Barrett Company tapping a broader market whereby almost everybody in the China economy and worldwide afford the products (Korey, G. 1986, p. 38). On the other hand, selling products at a very lower price despite the company lower production costs may send a bad message to its consumers. Some consumers particularly from the wealthy class will doubt the quality of products. In most cases, they believe that by selling products with low prices, the quality of the products may be compromised which will lower the sales of the products. When the products sales are reduced, there is an adverse impact on the company since it means that the company cannot expand to the global market. For any company in the likes of Holland and Barrett to penetrate in the market globally, it must first penetrate in the local market and win customer satisfaction without extending their production globally. These need to be achieved without compromising the quality of the products and ensure that customer satisfaction is the primary priority.

Strategy of Entry Being Certification by the Organic Associations

According to Mark Stewart-Maunder, who is the global franchising manager of the Holland, and Barrett said that the products of being produced by the company have gained demand and that they have an ambitious plan for the Chinese market. The demand for the products increasing mainly means that numerous people have tried the products from the company, and they have realized that the products are essential, hence, the demand for the products is rising rapidly (Khoury, S.J., 1984, p. 258). The demand for the products being high becomes promising to the company as being a strategy for entrance into the global market. This strategy, when combined with the franchising strategy together with the affordable prices strategy, will make Holland and Barrett to expand globally within a very short duration. Demand is a microeconomic strategy that is achieved when the prices of the products being produced are mainly lower and can be afforded by the greater bracket of people. Stewart added that the Holland and Barrett retailers were mainly unique for the production of quality products that are trusted by the consumers most. What the company assures the consumers is of quality products that will always satisfy their needs of health supplement. The testimonies from some of its consumers were very clear that the company has observed maintenance of product quality, hence, being able to compete with other companies that produce the health supplements products in China and globally (Khoromana, A.P., 1991, p. 65). Holland and Barrett have acquired various proofs from the organic associations according to Stewart whereby he cited the brand’s good manufacturing endorsement and certification practice. These give the enterprise energy in the production of the health supplement products since it has certification of quality products manufacturing. These creates trust from the consumers in China and also in the global market. These are because for any company to produce any health supplement products it must be so much monitored so that it does not produce products that are harmful to the consumers. Earning of the certification from the organic associations is a translation that the products being produced by the company are safe for human consumption and particularly in catering the health supplement need (Pavord and Bogart, 1991, p. 36). It has also introduced the brand’s scheme of training from the Natural Health Academy. Holland and Barrett were the first enterprise to receive the United Kingdom state’s Education Development of the International endorsement. These played a primary role in making the Holland and Barrett retailers becoming popular in the China market. Being popular in the China market mainly provides the foundation towards the firm succeeding in entering the global market with the strong aspiration that it will expand. The Holland and Barrett firm expansion into the global market became very accessible through to its familiarity in the local market of China.

Strategy of Entry in Global Market Being Opening of Health Consultancy in China

Upon Holland and Barrett leveraging its credentials of quality training, the firm is launching a service of health consultancy in China, where the customers can mainly book in advance for one-to-one sessions in order to receive some advice of healthy living. Holland and Barrett have gone to an extent of knowing that despite selling their products to the public is not the only way of ensuring that its consumers live healthy lives (Piercy, N., 1982, p. 37). By adding the strategy of providing some education and guidance to people about health living will ensure that the company succeeds in its goal of expanding globally, therefore, further creating more chances of expansion and contact with their consumers. The face-to-face contact with their consumers will help the company to know the consumers’ necessities and, thus, improving towards meeting all the consumer need. These are so because the consumer needs keep changing from time to time, and the company needs to be close to the consumers in order to identify what it can do to satisfy its customer. The contact also will provide knowledge to the consumers about the products they should use. When it comes to supplementing our health, not everything that work with our friends body that may work positively in our bodies. Therefore, before starting consuming some of the healthy products, it is crucial in receiving the advice in advance that may help in identification of how to start consuming the products. Hence, the embracement of this strategy by Holland and Barrett Company will lead to providing products that suit the customers’ needs. According to Stewart, the franchising officer of Holland and Barrett Company said that it is all about giving the extra service in the global and Chinese market (Saunders, J., 1990, p. 50). These will make the Holland and Barrett to be different from other companies that provide the health supplement products. It will act as a competition striking out factor for the other companies leaving the Holland and Barrett firm being strong in the global market. Incorporating the strategy will make Holland and Barrett the first firm in the Chinese market where the other companies have not done it. So these provide the Chinese consumers with some good advice since they can confidently approach the specialists in the health consultancy offices. These will give courage to the Chinese consumers in the market and other consumers in the global market that will enable rapid expansion of the Holland and Barrett firm (Smith, P, 1990, p. 9). China has mainly witnessed the growing demand that arises for the nutritional supplements in the most recent years, whereby it is driven by the increase of the aging population, increase in the better-educated population of the consumers and the rising incomes.

According to the Reform Commissions of the Public Nutrition and National Development and the Development Center, is that over 260 billion yuan in the field of the health foods were seen to be sold in China. China in 2011 provided a broader market for the health supplements products according to the data from the China Health Association Care. These means that Holland and Barrett had already available market for their products that accounted for more than 0.1 percent as compared with other developed countries that had 0.03 percent (Shipley, D.D. et al., 2006, p. 51). Despite Holland, and Barrett experiencing competition from Amway, General Nutrition Centers, and Tongrentang it has maintained its production levels. Some of the firms existed many years before Holland, and Barrett was being established. The company provides the best health supplements products to China and the global market with their primary objective of expanding internationally.

Conclusion

In conclusion, the Holland and Barrett entry strategies in the global markets that the company has incorporated are many that have led towards the firm achieving its primary objective. Holland and Barrett main aim were to expand internationally by penetrating into the global market. The company started by providing quality products in the China market through opening franchise stores. The company target at the time of commencement was to open 500 franchise stores in China at the first five years of the company starting operations. Holland and Barrett then introduced that strategy of providing its products like Rolls-Royce at an affordable price. These enabled the company to have a wider customer base that mainly targeted the high and middle-class people who would afford the health supplements products. The company was able to achieve its goal since it received most of certification from the organic associations from China. Then the company was able to eliminate its competitors by giving priority towards customer satisfaction first by providing quality and safe products for health supplementation. Then, it finally ended up opening the health consultancy offices in China. The offices were open to consumers who may need any advice concerning the health supplements products that the company provided like the cranberry capsules. The strategies that the Holland and Barrett Company incorporated in its entrance to the global market played a crucial role towards the company succession in expanding globally. Therefore, Holland and Barrett Company is the largest company known for its production of health supplements products.

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