38

27

39
15
 16

29

3
 • F-commerce is becoming more common in Bangladeshi millennial and
Gen-Z cohort due to convenience (Tanni, 2021)
Technological • Statistics revealed that approximately 450 million active users on
Facebook visited buying and selling groups on the platform due to
which it launched its own marketplace for local buying and selling
(Zhos, 2016)
• F-commerce provides consumers with opportunity to browse through
products using just a smartphone, which led to an increase in its
adoption (Ahmed, 2022)
• GSM Association (2018) and IDLC (2018) revealed that Bangladesh
witnessed an increase in F-commerce thanks to higher smartphone and
internet penetration in the country.

Environmental • According to Haider (2018), traffic infrastructure is declining on a daily

basis, which will urge more consumers to shop online
Legal • Facebook businesses will now need to have a trade license according to
the new policy imposed by the government to expand its taxes (Noman
and Kashem, 2021)
Table I PESTEL Analysis

The analysis of the external factors suggests that the country has a higher rate of adoption of F-
commerce due to higher smartphone usage, Facebook subscriptions and internet penetration (GSM
Association, 20 I 8; IDLC, 20 I 8). Moreover, the most tech-savvy cohorts (millennials and Gen-Z)
have an inclination toward F-commerce in Bangladesh due to the convenience and direct
interaction the platform provides to the brand and its products. Technology and social factors lead
to more businesses taking the opportunity, and the F-commerce industry is exponentially growing.
However, its ability to influence the economy (Tanni, 202 I) led the government to impose a
mandatory license policy for Facebook businesses to expand tax nets (Noman and Kashem, 2021),
which could be a hurdle in the growth of the local economy.

2.2. Porter's Five Forces Analysis

5
 20

37

4
30

31

20
 26

5 1
• Unique product lines of in-house designs • Negative brand perceptions due to a
and high-quality merchandise of famous defective product in the beginning of the
top seasons (Friends and Marvel) (Zaman business (Zaman and Chowdhry, 2022)
and Chowdhry, 2022) • New vendor on-board led to low product
• Young team compnsmg designers and quality and negative word of mouth
social media savvy individuals (Zaman and (Zaman and Chowdhry, 2022)
Chowdhry, 2022) • Financial loss in returns and replacements
• Stays on top of local and social media to street vendors (Zaman and Chowdhry,
trends to incorporate into designs and 2022)
social media engagement (Zaman and
Chowdhry, 2022)
• Ability to adapt to external opportunities
and market trends (Zaman and Chowdhry,
2022)
Opportunities Threats
• Internationalization requires sustainability • Unprecedented challenges like the
in suppliers' network pandemic brought several setbacks for
• Higher smartphone usage and internet businesses across the globe (Kuckertz et
penetration in Bangladesh along with tech- al., 2020)
savvy individuals preferring F-commerce • The boom of several players like Daraz and
due to convenience Alibaba led to a threat to small firms
(Zaman and Chowdhry, 2022)
• Market saturation has led companies to
lower their prices, which hinders their
ability to compete at a higher rate
• The country's government has decided to
make trade licenses mandatory for
Facebook-commerce businesses
Table 4 SWOT Analysis

8
The SWOT analysis proposes that the company has a good local presence due to its unique designs
and ability to keep up with trends, competition, market saturation and bad reputation over quality
control issues, which have led to a major challenge for the brand's way forward. Considering this,
the analyses have led the report to identify strategic choices discussed in the third section -
Strategic choices.

3. Strategic Choices

This section will identify strategic choices using TOWS and Ansoff product/market matrix and
internationaLmarket entry modes. The TOWS Matrix is a strategic tool that helps organisations
match their internal strengths and weaknesses with external opportunities and threats to generate
various strategic options (Kottler and Keller, 2005), while as per Ansoff (1957), the
product/market matrix assists in providing options for market growth. Finally, as per Hollensen
(2020), the international Market Entry Modes refer to companies' various strategies to enter
international markets, such as exporting, licensing, franchising, and direct investment.

3.1. TOWS

Strengths Weaknesses
Opportunities SO Strategic Options WO Strategic Options
Ability to adapt to external Financial losses can be overcome by
opportunities can help the company adapting to the trend of higher phone
to negotiate with sustainable usage and internet penetration and
suppliers and partner with them to marketing to the relevant users and
fulfil international partnership creating engagement
vision with Disney and Marvel
Threats ST Strategic Options WT Strategic Options
Ability to engage with social media Market saturation and negative
users can provide capability to build brand image m the local market
competition through advertising and provides opportunity to rectify

9
 marketing of product lines and new quality issues and beat the
launches competition Via international
expansion
Table 5 TOWS matrix

3.2. Ansof'f'Matrix

The American expert Igor Ansoff proposed a 2x2 growth share matrix known as the AnsoffMatrix.
It is a strategic planning tool that allows the organization to align its strategy with strategic
direction (Johnson, Scholes and Whittington, 1998). The 2x2 grid matrix produces four possible
growth strategies focusing on existing and new products and markets (Ansoff, 2007; I 957).

Products
Emtfng New

hlsUng Market Product

P n :tration D velopm nt
Ill
ti
...
.:t t
I'll
:E
M rket
Now Div rtif1c: tion
D velopment

Figure I Ansoff Growth Matrix

Source: Ansoff (2007)

According to the figure, there are four strategies: market penetration, product development, market
development, and diversification. Market penetration focuses on penetrating the existing market
with existing products. The strategy's main goal is to increase sales volume by selling the same
product to the same market. Product development focuses on developing and marketing new
products to the same product. On the other hand, market development is about existing products
launching in a new market that could be either a new segment or a new geographical territory.
Lastly, the riskiest strategy is diversification, which is about launching new products in a new
market (Hollensen, 2010). According to the analysis in the TOWS matrix, there are two possible
strategies: market penetration and market development. Baker (2022) writes that there are several
strategies through which a company can penetrate deeper into their existing market, such as
revising prices, intensifying marketing efforts and forming business partnerships. The other
strategy is market development, through which a company can look for international market
expansions for growth and business scalability.

In such cases, Mad Koffee have two strategic choices available: increase marketing efforts by
allocating a part of budgeting to digital advertising in order to capture the attention of Gen Z and
millennials who prefer to shop via Facebook groups and marketplace. Moreover, the company can
also collaborate with design firms who can provide more unique and distinctive designs along with
revision of prices to compete with big and other Sivffi players. For market development, the
company has the option to expand internationally by using one or more market entry modes that
are discussed below. However, one limitation for international expansion could occur in form of
compliance to sustainability standards.

33. International Market Entry Modes

There are multiple ways of expanding into international markets, such as exporting, joint ventures,
strategic alliances, and greenfield ventures. Exporting is one of the easiest ways of gaining entry
into a new market. It comprises the sale of products and services via a distribution method (Cook,
2002). Licensing and franchising is a mode in which aspects of a brand are shared against a fee.
However, in a franchising model, the brand and its operations are shared entirely by the franchisee
(Leitmannslehner and Windsperger, 20 I 2). Strategic alliances and partnerships are formed by
forming a contract with a local business/partner in the target country to achieve a common
objective (Ireland, Hitt and Vaidyanath, 2002). Lastly, wholly-owned subsidiaries, also known as
greenfield ventures, are the most expensive to set up because they require setting up entire
operations in a new country (Hennart and Brouthers, 2007). The advantages and disadvantages of

11
each mode are presented in the table format below (adapted from Shaker, Ireland and Hitt, 2000;
Tien and Ngoc, 2019; Liang et al., 2012; Osland et al., 2001).

Type of Entry Advantages Disadvantages'

Exporting Easiest market entry with the Local knowledge is limited
lowest risk of all modes with little control over
operations
Franchising and licensing Low cost, low risk Little control over operations,
must adhere to legal policies
Partnerships and strategic Shared investments and Cross-cultural issues
alliances resources, relatively lower
risk
Acquisition Reduced uncertainty, easy Higher cost, integration
integration, already issues with home country
established entity policies, globalization vs
localization issues
Greenfield ventures Local market knowledge, High cost, uncertainty, setup
higher returns, higher control time delay
Table 6 Advantages/Disadvantages of Entry Modes

Considering different market entry modes, it can be said that for Mad Koffee, the most appropriate
options for strategic international expansion are exporting and partnerships with a local partner.
These both are less risky and does not require high costs to integrate strategies in the business
models considering the financial situation of the company. The next section of the report will
discuss the chosen strategy in action for local and international growth.

4. Strategy in Action
4.1. SAF Matrix

This section will choose one strategic action for growth and one for internationalization to pursue
using SAP framework.

12
 Strategic Options
Growth Internationalization
SFA Matrix Option 1: Option 4:
Option 2: Market Option 3:
Market Strategic
Development Exporting
Penetration Alliances
Suitability 7 5 6 4
Acceptability 6 4 5 4
Feasibility 7 4 5 3
Total 20 13 16 11
Table 7 SFA Matrix

4.2. Suitability

Suitability relates to the SWOT of the company; whether the strategic option increases strengths,
reduces weaknesses, exploit opportunities and encounter threats efficiently. The first strategic
option in growth is more suitable as compared to the second. The reason is that market penetration
will elevate Mad Koffee strengths by increasing marketing efforts and mitigate negative brand
perceptions gradually with strong engagement and marketing to the same audience. On the other
hand, internationalization is more suitable when it comes to exporting because the exporting line
is unique and targets the generational cohort dominating tech and digital platforms.

43. Acceptability

Acceptability refers to the evaluation of strategic options to assess stakeholders' reactions, risks
and returns. The table format for risks and stakeholders' reactions is below:

Strategic Risks Stakeholders Risk Mitigation Returns

Options Reaction Strategies

13
6
4.4. Feasibility

Feasibility evaluates the financing and resource ability of the company for strategic options
devised. Market penetration and exporting requires the least amount of investment amongst all
four. Moreover, the company also has adequate resources in form of a team of young individuals
and vendor networks. Therefore, the two strategic options selected are: market penetration for
growth and exporting for internationalizing.

5. Conclusion

The report conducted a thorough analysis of the case study of Mad Koffee encountering different
challenges. The company now required options for a way forward to maintain growth and
profitability in a challenging business environment. The strategic options for the company selected
after the analysis are market penetration and exporting. However, it is recommended to first focus
on organic marketing to rebuild brand image and increase profitability to invest on marketing
activities for penetration and exporting purposes. One key takeaway from the project is that the
project allowed investigating both the internal and external environment, as associated with the
business environment for Mad Koffee. However, the applicability of the environmental analysis,
both internal such as VRIO and competencies and capabilities, as well as, external, such as the use
of PESTEL and Porter's 5 Forces Analysis can be used in the context of different industries such
as fashion, luxury, or others. In addition to that, there are also SAFe analysis allowed a thorough
understanding and interpretation of the existing strategies or new proposed strategies.

15
23

25

12

24

10
 22

28

11

18

19

14

13
24. Shaker A. Z., Ireland, D.R. and Michael A.H., (2000) 'International expansion by new
venture firms: international diversity, mode of market entry: Technological learning, and
performance', Academy of Management Journal, 43(5), 925 - 950.
25. Tanni, H. T., (2017) F-Commerce: A double-edged sword. Available at
[Link] (Accessed: 2
December 2023).
26. Tien, N. H., and Ngoc, N. M. (2019) 'Comparative Analysis of Advantages and
disadvantages of the Modes of Entrying the International Market', International journal of
advanced research in engineering and management, 5 (7), 29 - 36.
27. Zhos., A. (2016) All you need to know about Facebook Marketplace in 2016. Available at:
[Link] (Accessed: 2 December
2023).

18
BUSI_1633 Sansunya Rujisakmetee 001073966
ORIGINALITY REPORT

23 %
SIMILARITY INDEX
17%
INTERNET SOURCES
11%
PUBLICATIONS
20%
STUDENT PAPERS

PRIMARY SOURCES

Submitted to University of Hull

1 Student Paper 1%
2
[Link]
Internet Source 1%
Submitted to quantic
3 Student Paper 1%
[Link]
4 Internet Source 1%
[Link]
5 Internet Source 1%
[Link]
6 Internet Source 1%
[Link]
7 Internet Source 1%
Submitted to ALC College
8 Student Paper 1%
[Link]
9 Internet Source 1%
 [Link].fi
10 Internet Source 1%
Submitted to Sheffield Hallam University
11 Student Paper 1%
Submitted to Pearson College
12 Student Paper 1%
Submitted to RMIT University
13 Student Paper 1%
Submitted to Brunel University
14 Student Paper 1%
Submitted to University of Greenwich
15 Student Paper 1%
[Link]
16 Internet Source 1%
Submitted to De Montfort University
17 Student Paper 1%
Submitted to University of Wales Swansea
18 Student Paper 1%
[Link]
19 Internet Source 1%
20
Manisha Singal, Mollie Gehrt. "Turning
Passion into Business: Setting up Beliveau
1%
Estate Winery", Journal of Hospitality &
Tourism Cases, 2023
Publication
21
Shehreen Amin Bhuiyan, Minhazul Abedin.
"The curious case of Facebook commerce: an
1%
analysis of the digital commerce
management guide 2021", Southeast Asia: A
Multidisciplinary Journal, 2023
Publication

22
[Link]
Internet Source 1%
23
Submitted to North South University
Student Paper <1%
24
[Link]
Internet Source <1%
25
[Link]
Internet Source <1%
26
Submitted to MAHSA University
Student Paper <1%
27
Submitted to Roehampton University
Student Paper <1%
28
[Link]
Internet Source <1%
29
Submitted to Southampton Solent University
Student Paper <1%
30
[Link]
Internet Source <1%
31
Submitted to Kepler College
Student Paper <1%
32
[Link]
Internet Source <1%
33
Submitted to Ateneo de Davao University
Student Paper <1%
34
Nirosha Hewa Wellalage, Vijay Kumar, Ahmed
Imran Hunjra, Mamdouh Abdulaziz Saleh Al-
<1%
Faryan. "Environmental performance and firm
financing during COVID-19 outbreaks:
Evidence from SMEs", Finance Research
Letters, 2022
Publication

35
[Link]
Internet Source <1%
36
[Link]
Internet Source <1%
37
Annick N. Adjei, Ishmael Ackah. "External
analysis of local content dynamics in the
<1%
upstream petroleum sector of Ghana and
Ivory Coast", The Extractive Industries and
Society, 2023
Publication

38
Submitted to Coventry University
Student Paper <1%
[Link]
 Internet Source
39
<1%

Exclude quotes Off Exclude matches Off

Exclude bibliography Off