Cyprus is a small island largely famous for its weather, attractions and business infrastructure which is a unique combination. Over the years Cyprus has seen some rapid economic growth which has attracted a lot of foreign investments. There is great potential for continuous growth within the region especially the tourism sector which has contributed well to the growth of it economy.
Premier Inn is the recommended company to enter into this foreign market. It is a well recognized UK brand that has recently started branching out into the foreign markets. It currently has two foreign subsidiaries in Dubai and India, the company however does have great plan for expansion into other international market such as Asia and Africa. We recommended Premier Inn to enter the Cyprus market because research showed that tourism in the country has risen over the years with most of their holidaymakers being British.
The choice of market entry modes has a great effect on the success of Premier Inn in Cyprus. This report has identified and evaluated all 6 potential entry modes and came to the conclusion that Premier Inn should use joint ventures to enter the Cyprus hospitality market.
[...] (Peng 2008) Premier Inn will have to choose which mode best fits in with their business and the chosen market environment. Exporting Exporting is one of the most common international entry modes widely used by firms. This entry mode refers to the transferring/exchanging of goods or services produced by a firm in the host country into different countries. For example, Nissan exports its cars from Japan to the UK. The liberation of trade as a result of globalisation and the reduction of trade barriers encouraged the growth of the use of this entry mode. [...]
[...] Further research on all three countries showed us the degree of business risk in the country environment. Using the “country risk assessment model” we rated different factors for each country on a scale of 1-5 low risk high risks). After that we came to the conclusion that the best country to invest into of the three is Cyprus. Cyprus is a small island largely famous for its weather, attractions and business infrastructure which is a unique combination. Over the years Cyprus has seen some rapid economic growth which has attracted a lot of foreign investments. [...]
[...] Cyprusprofile.com (2013) Company Premier Inn The chosen company for investment for the Cyprus market is Premier Inn. It is one of the largest and fastest growing budget hotel chains in the UK owned by hospitality corporate Whitbread Plc. The brand first emerged in 2004 under the name Premier Travel Inn however in October 2007 it was re- branded to Premier Inn. They currently have over 600 budget hotels in the UK, two in Dubai and one in India. The target market for their budget hotels are leisure and business travellers. [...]
[...] This mode of market entry is illustrated in Figure 1.1 below illustrating how the licensor enters into the foreign market. This mode of entry utilizes the local knowledge and distribution channels the licensor doesn't currently possess as it is time consuming to develop. Cavusgil, S. T., Knight, G. A., & Riesenberger, J. R. (2012) Fig 1.1 : Licensing as a Foreign Market Entry Local Sales Exports Franchising Franchising is a revised version of licensing where a franchiser (seller) sells their business idea to a franchisee (buyer) for a fee. [...]
[...] [online] Available at: http://cyprus.usembassy.gov/doingbusinesscy.html [Accessed: 19 Mar 2013]. Cyprusprofile.com (2013) Country Overview - Cyprus Profile. [online] Available at: http://www.cyprusprofile.com/en/country-information/overview [Accessed: 14 Mar 2013]. Cyprusprofile.com (2013) Country Overview - Cyprus Profile. [online] Available at: http://www.cyprusprofile.com/en/country-information/overview [Accessed: 17 Mar 2013]. Fao.org (2000) CLIMAGRImed. [online] Available at: http://www.fao.org/sd/climagrimed/c_2_02.html [Accessed: 19 Mar 2013]. Flatworldknowledge.lardbucket.org (2012) Exporting, Importing, and Global Sourcing. [online] Available at: http://flatworldknowledge.lardbucket.org/books/international-business- opportunities-and-challenges-in-a-flattening-world/section_13.html [Accessed: 15 Mar 2013]. Flatworldknowledge.lardbucket.org (2012) Exporting, Importing, and Global Sourcing. [online] Available at: http://flatworldknowledge.lardbucket.org/books/international-business- opportunities-and-challenges-in-a-flattening-world/section_13.html [Accessed: 15 Mar 2013]. [...]
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