Global market entry: opportunities and challenges
21/11/2024
Introduction:
In this assignment I will be analysing the external and cultural factors
which impact international business operation for Revolut who are
considering expanding internationally. This report will be divided in 2
parts; Part one will focus on the external factors for Revolut and Part two
will explore the cultural factors. For both however, I will be selecting two
countries which will become Revolut’s market entry so that they are able
to expand their card business to those who would be interested in them.
Part One:
Introduction:
Revolut is a neobank and financial technology company that is situated in
London founded in 2015 by Nikolay storonsky and Vlad Yatsenko, it gives
banking services for customers and businesses. It has become very
popular over the years and has made around $45 billion by 2024. It has
gone from being an initial offering of currency exchange and travel related
financial services to a full-on banking company. This report will give an
insight of the situational analysis on potential markets for international
expansion. The two countries I will be choosing are both Germany and
Sweden as both have multicurrency accounts and travel benefits because
both are in central location in Europe as well as a high volume of
international travel among residents.
International business support systems:
International business support systems are significant in the global spread
of companies like Revolut, which is an online banking service who offer
their services through their mobile app. These systems include trade
associations, government agencies, and international chambers of
commerce. These allow resources to be provided, network opportunities
as well as regulatory guidance which is crucial for foreign market entry.
Trade associations:
Trade associations are organisations that look over communication of the
interests of businesses in specific industries. They ensure very valuable
resources: market research, setting industry standards, and even
advocacy on behalf of members. Regarding Revolut, interaction with trade
associations will facilitate them in the following way:
- Market insight: Sometimes, trade associations conduct research and
release reports regarding market trends and consumer behavior in various
regions. For example, the European Fintech Association would provide
, Global market entry: opportunities and challenges
21/11/2024
insight into changes in regulations affecting fintech companies throughout
Europe. With the aid of such insights, Revolut will be able to structure their
services to meet the local demands more aptly.
Government agencies:
Government agencies also play a huge role in assisting international
business operations through different programs that promote exports and
foreign investment. This support can make a big difference in the
international strategy of Revolut:
- Export assistance programs: Many countries have export promotion
agencies that assist businesses in getting into foreign markets, For
example, the UK’s department for international trade provides a
range of services for UK-based companies planning to expand
abroad, including advice on market entry and financial support.
Revolut could use these resources to identify potential markets and
navigate local regulations.
International Chambers of Commerce:
International chambers of commerce provide a means for businesses to
connect with others around the world through promoting free trade and
economic cooperation:
Establishing Trade Relations: Many chambers run trade missions and
business forums, enabling companies such as Revolut to meet with
prospective partners or clients in target markets. Similarly, events at the
International Chamber of Commerce gather businesses from different
countries in search of collaboration opportunities.
Real-World Examples of Support:
These organizations have supported international operations, and the
following are a few real-world examples.
In 2020, it also supported the European FinTech Association in creating a
broad platform of interested parties with the express purpose of helping to
shape EU legislation on digital finance, which impacts directly on
companies like Revolut and shapes an increasingly positive regulatory
environment for its existence.
The DIT in the UK has been very active in supporting fintech firms through
bespoke advice on considerations of market entry, via workshops and
one-on-one consultations, targeting destinations such as Australia and
Canada.
PESTLE analysis:
21/11/2024
Introduction:
In this assignment I will be analysing the external and cultural factors
which impact international business operation for Revolut who are
considering expanding internationally. This report will be divided in 2
parts; Part one will focus on the external factors for Revolut and Part two
will explore the cultural factors. For both however, I will be selecting two
countries which will become Revolut’s market entry so that they are able
to expand their card business to those who would be interested in them.
Part One:
Introduction:
Revolut is a neobank and financial technology company that is situated in
London founded in 2015 by Nikolay storonsky and Vlad Yatsenko, it gives
banking services for customers and businesses. It has become very
popular over the years and has made around $45 billion by 2024. It has
gone from being an initial offering of currency exchange and travel related
financial services to a full-on banking company. This report will give an
insight of the situational analysis on potential markets for international
expansion. The two countries I will be choosing are both Germany and
Sweden as both have multicurrency accounts and travel benefits because
both are in central location in Europe as well as a high volume of
international travel among residents.
International business support systems:
International business support systems are significant in the global spread
of companies like Revolut, which is an online banking service who offer
their services through their mobile app. These systems include trade
associations, government agencies, and international chambers of
commerce. These allow resources to be provided, network opportunities
as well as regulatory guidance which is crucial for foreign market entry.
Trade associations:
Trade associations are organisations that look over communication of the
interests of businesses in specific industries. They ensure very valuable
resources: market research, setting industry standards, and even
advocacy on behalf of members. Regarding Revolut, interaction with trade
associations will facilitate them in the following way:
- Market insight: Sometimes, trade associations conduct research and
release reports regarding market trends and consumer behavior in various
regions. For example, the European Fintech Association would provide
, Global market entry: opportunities and challenges
21/11/2024
insight into changes in regulations affecting fintech companies throughout
Europe. With the aid of such insights, Revolut will be able to structure their
services to meet the local demands more aptly.
Government agencies:
Government agencies also play a huge role in assisting international
business operations through different programs that promote exports and
foreign investment. This support can make a big difference in the
international strategy of Revolut:
- Export assistance programs: Many countries have export promotion
agencies that assist businesses in getting into foreign markets, For
example, the UK’s department for international trade provides a
range of services for UK-based companies planning to expand
abroad, including advice on market entry and financial support.
Revolut could use these resources to identify potential markets and
navigate local regulations.
International Chambers of Commerce:
International chambers of commerce provide a means for businesses to
connect with others around the world through promoting free trade and
economic cooperation:
Establishing Trade Relations: Many chambers run trade missions and
business forums, enabling companies such as Revolut to meet with
prospective partners or clients in target markets. Similarly, events at the
International Chamber of Commerce gather businesses from different
countries in search of collaboration opportunities.
Real-World Examples of Support:
These organizations have supported international operations, and the
following are a few real-world examples.
In 2020, it also supported the European FinTech Association in creating a
broad platform of interested parties with the express purpose of helping to
shape EU legislation on digital finance, which impacts directly on
companies like Revolut and shapes an increasingly positive regulatory
environment for its existence.
The DIT in the UK has been very active in supporting fintech firms through
bespoke advice on considerations of market entry, via workshops and
one-on-one consultations, targeting destinations such as Australia and
Canada.
PESTLE analysis:
