IndexIntroductionHistory of Holland and BarrettGlobal Market Entry StrategyOpening Franchise Stores in ChinaMarket Entry Strategy through Manufacturing Quality ProductsEntry Strategy in Manufacturing Affordable Health SupplementsEntry Strategy in certification by organic associationsGlobal Market Entry Strategy Opening of Healthcare Consultancy in ChinaConclusionIntroductionInternational trade management involves how a particular company internationalizes and how it involves global marketing in its business management. Commercial management involves the various stages followed towards the exchange of services and goods by various companies. Any company has the main objective to expand internationally so as to provide its services and products to different countries of the world with the aim of providing services worldwide. International trade is primarily involved in the exchange of services, capital and goods that occurs across international borders or territories. In most countries, the above types of trade usually represent a significant share of gross domestic product (GDP). Trading globally tends to give countries and consumers the opportunity to be exposed to new products and markets. Almost any type of product can be available on the international market. The products supplied mainly include jewelry, currencies, water, spare parts, food, clothes, oil, stocks and wine. The mainly traded services concern the banking sector, tourism, transport and consultancy (Anderson, E. et al., 1987, p. 85). A product that tends to be sold in the global market is an export and the product that is mainly purchased from the global market is an import. Exports and imports are accounted for in a country's current account in the balance of payments. Industrialization, advanced technology including multinational corporations, outsourcing, transportation, and globalization are all classified as factors that could have a large effect on the international trading system. By increasing international trade, there is a fundamental impact on the continuation of globalization. Without international trade, countries would be limited to services and goods that are largely produced within their borders. Therefore, international trade is mainly limited to the exchange of goods and services and is only exposed to a lesser extent to the exchange of labor, capital or other factors of production. The exchange of goods and services can act as a substitute for the exchange of factors of production. Instead of importing a factor of production, the country can import goods that use that particular factor of production and, therefore, incorporating it (Basche, J.R., 1971, p. 4). One example is how the United States imports labor-intensive goods from China. Instead of importing Chinese labor, the United States mainly imports what is produced with Chinese labor. The combination of international trade with international finance forms above all a branch that relates to us of the global economy. My research paper will focus on Holland and Barrett's entry strategies into global markets. We will focus on the different strategies used by Holland and Barrett. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay History of Holland and Barrett The Holland and Barrett foundation dates back to the year 1870, thanks to a partnership that occurred between Major William Holland and Alfred Slapps Barrett . They both bought the shopgrocery store that sold groceries and clothing. They started a company that dealt with vitamins, minerals and also other herbal supplements. The headquarters were established in Nuneaton, Warwickshire, which is located in the United Kingdom and Ireland. The company has other stores located in China, Malta, Gibraltar, Cyprus, Singapore, Spain, the Netherlands and South Africa (Bheenich, R. et al., 1989, p. 99). Holland and Barrett recently began the company's international expansion through the franchising process. In October 2008, Holland and Barrett Company primarily opened the franchise's three stores in South Africa. The other franchises opened include one in Malta, Gibraltar, China and Singapore, which occurred between 2009 and 2012. The sole objective of the Holland and Barrett Company is the expansion of the company brand into the global market through the process of collaborating with the most major franchises in the country. Global market entry strategy by opening franchise stores in China Holland and Barrett are among the UK's largest health food retail companies who have primarily entered the Chinese market for the first time by opening two stores in franchises that were located in Shanghai. Capitalizing on growing Chinese demand for health supplements, Holland and Barrett had their primary goal of global expansion, opening over 500 stores in less than five years from the time they began operations (Cunningham, MT, 1986 , p. 9). According to the strategy embraced by Harvey Kamil, president of Holland and Barrett's parent company NBTC. The global market entry strategy will begin with the company starting from Shanghai, China and spreading across the world, becoming the number one health supplement manufacturer in China and other parts of the world in the future. Chris Wood, Deputy and Minister in Charge of the British Embassy in China, said he was particularly excited by the step taken by the British home improvement retail company towards their movement and entry into the competitive market of China. Most Chinese consumers are becoming increasingly wealthy in today's economy and, therefore, provide the demanding market for the lifestyle products Holland and Barrett are producing. Some of the products that achieved fame for a short time from the company include Rolls-Royce and British brands such as Burberry. The company is using the products to enter the competitive market and towards the global market with a big shock which leaves other competing companies with great shock. Holland and Barrett Company mainly uses the already existing products in its production scope to gain fame over other companies (Collett, WE, 1991, p. 58). The strategy that the company has embraced is to grow the company at a faster pace and the certainty of occupying over 500 stores in less than five years of its establishment. Through its goal of producing health supplements it provides a large market for Holland and Barrett because it is a commodity that is used by both highly paid and low paid people in the country. Products like Rolls-Royce are sought after by everyone as they are products that enable one to lead a healthy life with continuous consumption. Market Entry Strategy through Production of Quality Products Most of the local people continued to appreciate the products of Holland and Barrett Company as they are good quality products. The local population is also intrigued by the new stores that the company mainly opens, often providing new brands of their health supplement products (Elinder, E., 1965, p. 9). According to the testimony of Xia Guifang, a 54-year-old worker already retired. She said she was interested in the productswhich the retailer Holland and Barrett produces and who has managed to live a healthy life through the use of the products. This becomes a proof that the company mainly provides quality products to its customers, which makes the company grow rapidly. What mainly makes the company sell are the good testimonials that come from customers who have used the company's products. In the case of the UK retailer, Holland and Barrett are known to numerous consumers for their quality products that show positive effects towards the people who use them. Therefore, the company has become among the best because it is dedicated to consumer satisfaction (Jaffee S., 1993, p. 98). This provides the basis for which a satisfied customer will always return and mainly does not return alone, he brings his friends with him, then buys more and more products. This strategy has emerged from the operation of the company and ensures the achievement of quality regardless of anything else. Customer satisfaction is what the company puts first, followed by other things. Through customer satisfaction, the products are mainly advertised in the sense that those who have already used the products recommend them to their friends and family, thus spreading the company's fame everywhere. These become a strategy that usually wins over many consumers in the field of health supplements. Strategy to enter into the manufacturing of affordable health supplements The company ensures that most of the products it provides to its consumers are affordable. Therefore, the Holland and Barrett Company has come to accommodate the highest percentage of people since they can afford their products. This has enabled the majority to live a healthy life and continuously avail themselves of products to ensure a healthy life (Keegan, WJ, 1989, p. 78). For example, the company sells a bottle of cranberry capsules for RMB 278 yuan, equivalent to $44, in franchise stores in Shanghai, China. Another smaller bottle of Avena sativa oats is mainly sold at 69 yuan. Price in the global market is something that can attract more consumers or drive away more consumers. Pricing new brands to various companies is something that has led to their failure. Some companies may list a product at a higher price which may make it inaccessible to middle class men. In the Chinese economy, the majority of people are classified as filthy rich, while the largest segment of people falls into the middle class. This means that over-pricing could lead to a market shrinkage that will make Holland and Barrett's goal of expanding into the global market a dream that will never be achievable. Therefore, the company has come up with some excellent strategies on how to primarily sell its products to its consumers. These are what led Holland and Barrett Company to tap into a larger market where almost everyone in the Chinese economy and the world can afford the products (Korey, G. 1986, p. 38). On the other hand, selling products at a much lower price despite the company's lower production costs can send a negative message to its consumers. Some consumers, especially those from the wealthy class, doubt the quality of the products. In most cases, they believe that by selling products at low prices, the quality of the products may be compromised, resulting in reduced product sales. When product sales decline, there is a negative impact on the company as it means the company cannot expand into the global market. For any company like Holland and Barrett to penetrate the global market,it must first penetrate the local market and win customer satisfaction without extending its production globally. These must be achieved without compromising the quality of the products and ensuring that customer satisfaction is the primary priority. Entry strategy being certified by organic associations According to Mark Stewart-Maunder, who is the global head of franchising of Holland, and Barrett said that the products manufactured by the company have gained demand and that they have an ambitious plan to the Chinese market. The increase in demand for products mainly means that numerous people have tried the company's products and realized that the products are essential, so the demand for the products is increasing rapidly (Khoury, S.J., 1984, p. 258). The high demand of the products becomes promising for the company as a strategy for entering the global market. This strategy, when combined with the franchising strategy along with the affordable pricing strategy, will allow Holland and Barrett to expand globally in a very short period. Demand is a microeconomic strategy that results when the prices of manufactured products are primarily lower and can be offered by a wider range of people. Stewart added that Holland and Barrett retailers are primarily unique in producing quality products that are highly trusted by consumers. What the company assures consumers is quality products that will always meet their health supplement needs. Testimonials from some of its consumers were very clear that the company has observed maintaining product quality, thus being able to compete with other companies producing health supplements in China and around the world (Khoromana, AP, 1991, p.65). . According to Stewart, Holland and Barrett obtained several pieces of evidence from organic associations, citing good manufacturing practice and brand certification. These energize the company in the production of health supplement products as it has the certification of producing quality products. This creates consumer trust in China and also in the global market. This is because for any company to produce health supplements it must be monitored so that it does not produce products that are harmful to consumers. Obtaining certification from organic associations means that the products manufactured by the company are safe for human consumption and particularly in meeting the need for health supplements (Pavord and Bogart, 1991, p. 36). It also introduced the brand's training program at the Natural Health Academy. Holland and Barrett were the first businesses to receive international approval for education development from the UK state. These have played a primary role in popularizing Holland and Barrett retailers in the Chinese market. Being popular in the Chinese market mainly provides the foundation for the company to be able to enter the global market with the strong aspiration to expand. Holland and Barrett company's expansion into the global market has become very accessible due to its familiarity with the local Chinese market. Global Market Entry Strategy Pending Opening a Healthcare Consulting Firm in China After Holland and Barrett leveraged its quality training credentials, the company is launching a healthcare consulting service in China, where clients can mainly book individual sessions in advance to receive healthy living advice. Holland and Barrett have come to the point of knowing that despite selling their products to the public, it's not the only way toensure that its consumers live healthy lives (Piercy, N., 1982, p. 37). Adding the strategy of providing education and guidance to people on healthy living will ensure that the company manages to achieve its goal of expanding globally, thus creating further possibilities for expansion and contact with its consumers. Face to face contact with its consumers will help the company to know the needs of the consumers and thus improve to meet all the needs of the consumers. This is due to the fact that consumer needs keep changing from time to time and the company needs to be close to the consumers to identify what it can do to satisfy its customers. The contact will also provide consumers with information about the products they should use. When it comes to supplementing our health, not everything that works with our friends' bodies can work positively in our bodies. Therefore, before you start consuming some healthy products, it is crucial to get advice beforehand that can help you identify how to start consuming the products. Therefore, adopting this strategy by Holland and Barrett Company will lead to providing products that meet customers' needs. According to Stewart, the franchising manager of Holland and Barrett Company said that it is about providing extra service in the global and Chinese market (Saunders, J., 1990, p. 50). This will make Holland and Barrett different from other companies providing health supplement products. It will act as a competitive factor that will affect other companies letting the Holland and Barrett company become strong in the global market. Incorporating the strategy will make Holland and Barrett the first company in the China market where other companies have not. These therefore offer good advice to Chinese consumers as they can confidently turn to specialists in health consultancy offices. This will give courage to Chinese consumers in the market and other consumers in the global market, enabling rapid expansion of the Holland and Barrett business (Smith, P, 1990, p. 9). In recent years, China has mainly witnessed the growing demand for dietary supplements, driven by the increasing aging of the population, the increase in the more educated consumer population and the increase in incomes. According to the reformed Commission of Public Nutrition and National Development and Development Center, is that more than 260 billion yuan has been sold in the health food sector in China. According to data from the China Health Association Care, China provided a larger market for health supplement products in 2011. This means that Holland and Barrett already had an available market for their products which represented more than 0.1% compared to other developed countries which had 0.03% (Shipley, DD et al., 2006, p. 51). Although Holland and Barrett faced competition from Amway, General Nutrition Centers and Tongrentang, it maintained its production levels. Some of these companies existed many years before Holland and Barrett was founded. The company provides the best health supplement products to China and the global market with the primary goal of expanding internationally. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Conclusion In conclusion, the Holland and Barrett's entry strategies into global markets that the company has incorporated are many and have led the company to achieve its primary objective. Holland and Barrett's main goal was to expand internationally by penetrating the global market. The company started by providing quality products.