Pinkberry Company’s Entry in Ireland

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Introduction
Business and market drivers
Trends Affecting the Target Irish Market
Reference

Introduction

Several factors have been identified to affect the business environment and subsequently influence whether a firm would succeed in its new venture or not. Such factors are like the available resources, laws and legislation of the country and that of the regional trading blocks like European Union, infrastructure, demography, government policy, climatic conditions, the current economic condition, and many more. To properly understand the implication of these factors on the entry of Pinkberry in Ireland, we would apply the PEST framework to identify the market environment of this country. This would be critical in identifying how these factors are likely to affect the success of Pinkberry with its product range.

Business and market drivers

Frozen yogurt business is flourishing with the market environment promising a good future investment in the next decade. Pinkberry has diversified the products it offers to the market so as to cut itself a competitive edge in the American market. However, its plan to enter the Irish market will be determined by some market environment. Before these factors are known, the factors that drive or propel this industry should be known. According to Kotler & Lee (2009), environmental sustainability and technological advancements are some of the most important factors that drive the industry to its heights. It is predicted that internet marketing will continue making an integral aspect of the retail business as many people are now going online around the globe. It therefore follows the continuous and expanding buyer power of the people is what has kept the business on the upward trend (Kotler & Lee, 2009).

Trends Affecting the Target Irish Market

Political Factors

Pinkberry is currently operating in the American market, and planning to venture into Irish market as earlier stated. The two countries have different political environmental settings; hence there would be a need to a different approach in the new business venture. The retailer’s performance in each of these countries faces different political challenges, some of which emerge from the legislations set by the European Union.

It is noted that US companies are the largest source of inward investment in Ireland, following the continuous marketing of the country as attractive region for investment. This is because there has been a stable government in the country that encourages investment. In fact, according to US Department of Commerce, the estimated return on Irish investments is the largest in Europe. Ireland’s political environment is described as pro-business due to the stability of the government. This has seen American firms prosper in several sectors of their economy.

The development of Euro is considered an important aspect for any business enterprise that has interest in investing in Ireland and other European countries. It is critically important as Pinkberry will be able to able to handle one currency in its regional trade, hence easy access to other European markets (Hill, 2002).

Current Economic Factors

The economic factors that define business environment are comprised of tax, interest rates, economic performance of the country and region or globe, inflation, and the strength of the local currency in the global exchange (Henry, 2009). It must be noted that economic factors do affect the buyer power of the people and they considerably impact on the demand of the products on sale.

Among the European Union countries, Ireland’s corporate tax at 12.5% is generally considered to be among the lowest in the region, hence the success of many American companies (Mooij, 2010). In fact, a recent survey indicate that although there has been regular pressure from other countries as concerns in relation to competition, Ireland still rank the most favorable (the first out of sixteen) in terms of low tax, both personal and corporate. Ireland therefore offers a good opportunity for Pinkberry to easily access other markets in the Europe, the Middle East and Africa (EMEA). Basically, Ireland’s economy is considered open and thus allows easy trading, which helps to develop easier entry for any new firm.

Ireland also falls within the Euro countries which uses the euro currency. The government do not restrict on whether a firm repatriates its earnings or interest, which makes its easy for investors to make the payments through the use of any currency. There is no restrictions on the what kind of bank account to operate as a foreigner as everyone is free to open a bank account anywhere within the country with any currency.

Infrastructure

The success of many businesses in Ireland is built on the premise of successful and consistent positive approach by the governments in developing ways of boosting business. With this in mind, the country has boosted its economy by attracting foreign investors through their world class infrastructure in the roads, rail, and sea transport systems. Other service sector support systems like banks have also been developed to help finance businesses.

The current economic status of Ireland has also been boosted by its exemplary transport system. Most of the transport system is run as a public utility, comprised of rail transport and road transport, supported by less rugged terrain. This makes the process of transportation less complicated with little cost as the government run the transport sector on behalf of the public (Porter, 1980). It will lessen the cost of moving Pinkberry products from one region to another, thus high profitability.

Social Factors

Several studies have indicated that social changes in the Europe’s major cities have changed the way people behave in terms of food consumed. Ireland is located in the Western Europe, occupying about five out of six part of the island of Ireland (Mooij, 2010). It located within the North Atlantic Ocean, in the Western part of Great Britain. It’s strategically situated along the major air as well as sea routes between America and Europe. It noted that slightly more than 40% of the populations live within the radius of 100 km of Dublin.

The Ireland population is seen to have taken the shape of pyramid, with the younger generation taking the larger population over the last 50 years. This is followed by the middle aged population, representing the baby boomer generation immediately after the World War II. It is predicted that the rise in life expectancy will lead to an increased pillar formation, where by 1930 the country will be composed of an average age of 39, more than the present day 35. This phenomenon is likely to pose threat to Pinkberry in terms of labor unavailability as majority of the population will be moving towards old age, symbolized by lower propensities to work.

Climate

Considering the nature of Pinkberry business, the climatic condition will greatly determine whether the company will succeed in the new market. The climatic condition of Ireland can be summarized as humid, mild, abundantly high rainfall, and with neither cold nor hot extremes. In short, the summers are normally warm while winter can be described as mild as it is observed to be warmer as compared to other regions in the latitude. The warmth throughout the year is attributed to its location at the Atlantic Ocean, which supplies it with Gulf Stream wind throughout the year.

With its business of frozen yoghurt and other frozen products in the form of ice cream, Pinkberry is advantaged as the demand for their products is likely to be consistent throughout the year, with little expectation of low demand even during the so called winter.

Technological development

The e-commerce in Ireland has significantly grown into a recognizable level. The government initiated a program to ensure unlimited connectivity to the rest of the world, thus setting precedence where businesses make use of internet to market their products. It is estimated that Ireland’s internet connectivity is well over 98% and is considered one of the highest networked countries in the region.

To continue supporting the e-commerce development, the government of Ireland has developed a policy to legally support and validate electronic transactions. This was effectively achieved through the passing and signing into law of the Electronic Commerce Act in 2000, creating an equal treatment to all forms of businesses (Mooij, 2010). Pinkberry has an open opportunity to develop their marketing strategies and make a proper entry into the Irish market, with the help of e-commerce.

Reference

Henry, A. (2009), Understanding Strategic Management. Oxford. Oxford University Press.

Hill, C.L. (2009), International Business: Competing in the Global Market Place. New York. McGraw Hill.

Kotler, P., & Lee N. (2009), Up and Out of Poverty: The Social Marketing Solution, Wharton School Publishing.

Mooij, M. (2010), Global Marketing and Advertising: Understanding Cultural Paradoxes. London. Sage Publishers.

Porter, M. (1980), How competitive forces shape strategy, Harvard business Review.

Click Here To Order Now!