The topic of this paper is to outline an internationalisation strategy and give a consultancy report for the start-up CYCL Indive Ltd. CYCL Indive Ltd is a UK-based, privately held start-up founded in 2014 and specialised in cycling accessories, whereas the WingLights indicator lights embody the company’s primary answer to counteract the omnipresent threat of bicycle accidents in congested urban areas. Designed as a shockproof, waterproof, easy to install solution with a long battery life, the device is supposed to increase the cyclists’ visibility on the road regardless of the angle, lighting or weather conditions.
In the light of received accolades such as placements on the lucrative DTI Sirius initiative and the start-up incubator programme of the University of London for the iterative improvement of the original concept until the current third version of WingLights, CYCL has steadily sharpened its corporate vision towards an internationalisation approach.
Obviously, an expansion of a start-up’s commercial scope to that extent is subject to a thorough analysis of a variety of promising, yet heterogeneous target markets, whose legal and economic framework might result in a substantial adaptation of the product to the local marginal conditions. Examples of these actions include measures of compliance to the prevalent industrial norms, auxiliary formalities regarding the status of the patents, trademarks and designs before the official release, etc.In the first chapter, CYCL’s general offer and the characteristics of the WingLights are scrutinised with the help of the value proposition canvas in order to clarify and justify the existence of potential customer segments, which might have been ignored by the start-up in the past. Following this examination, an appropriate route of internationalisation is drafted, leading to Germany as the near-shore object of investigation in this case. Afterwards, the focus in the second section shifts towards the financial support available within the German target market and the specifics of other accessible channels including the engagement of the entire EU and its member states. Moreover, practical suggestions are addressed in terms of networking opportunities for which CYCL might opt in order to promote both its middle-term development and long-term internationalisation activities.
Table of Contents
Introduction
1. Basic contemplations: The targeting
1.1 The identification of an untouched customer segment
1.2 The modified value proposition
1.3 Acknowledgement of Germany as a suitable foreign market
2. Laying the groundwork for the market entry
2.1 Available support on the part of the target country as well as of the supranational EU
2.2 Ancillary processes in support of networking in Germany in the near and distant future
3. Conclusion: Prospective risks and obstacles hampering the given internationalisation approach
Objectives & Topics
The report aims to analyze the internationalization strategy of the UK-based start-up CYCL Indive Ltd., specifically focusing on the potential market entry into Germany. It evaluates the alignment of the company's value proposition with new, untapped customer segments and outlines necessary operational and financial strategies to facilitate a successful expansion.
- Internationalization strategy of "born global" start-ups.
- Application of the Value Proposition Canvas for market adaptation.
- Analysis of funding and incentive programs for market entry in Germany and the EU.
- Networking and distribution channel optimization for international growth.
- Risk assessment regarding intellectual property and competitive market threats.
Excerpt from the Book
1.1 The identification of an untouched customer segment
In the present state, the most important target group for whom the WingLights are being produced is officially outlined as cyclists coping with getting through heavy traffic in metropolitan areas, where hand signals might not suffice to be noticed by the driving public while turning (CYCL Indive Ltd., n.d.-a; Hirst, 2017; Osterwalder & Pigneur, 2010).
When observed through the lens of the value proposition canvas, the key dimensions related to the characterisation of customer groups lead to the following implications (see also figure 1 and table 1 in the appendix):
o In principle, the job that CYCL’s customers are striving for to be done is reaching their destination (point B) from their point of departure (point A) via a ride, which, in the ideal case, should be comfortable, carefree and not necessarily prone to external conditions. Particularly when a cyclist resorts to his vehicle on a routine basis, e.g. as a “seasoned” commuter, this activity might be additionally linked to an emotional, psychological component, where s/he competes with her/himself in terms of discipline and performance under regular time constraints to reach point B punctually. Consequently, s/he feels emotionally more satisfied of her/himself the more the ride went on according to her/his expectations, whereas any impediments on the street might exert a discouraging effect on her/him.
o As alluded in the previous paragraph, an uncertain behaviour of fellow traffic participants might be the source of most frustrations and delays, e.g. by causing an accident or ignoring the hand signals of the bypassing cyclist in a jam. Such customer pains are very likely to accumulate on the further way as a total loss of time and motivation, depriving the entire ride not only of its safety, but also of its joy.
o The WingLights, by implication, come in handy as an aid to alleviate these pains, if not even convert them into gains helping get the job above done. At this point, the most outstanding features of this application are mirrored by its clever and
Summary of Chapters
Introduction: This section introduces CYCL Indive Ltd. and its flagship product, the WingLights, while outlining the company's motivation to shift from domestic success to an internationalization approach.
1. Basic contemplations: The targeting: This chapter scrutinizes current customer segments and identifies new opportunities for the product, positioning Germany as a primary lead market for expansion.
2. Laying the groundwork for the market entry: The chapter details financial support channels, venture capital opportunities, and networking strategies essential for a start-up to establish a physical presence in the German market.
3. Conclusion: Prospective risks and obstacles hampering the given internationalisation approach: The final section balances the company's competitive advantages with potential risks, such as product compatibility limitations and intellectual property challenges, to assess the feasibility of the entry strategy.
Keywords
International Entrepreneurship, Born Global, CYCL Indive Ltd., WingLights, Market Entry, Value Proposition Canvas, Germany, Venture Capital, Networking, Bicycle Safety, Intellectual Property, Strategic Management, SME, Innovation, Business Scaling.
Frequently Asked Questions
What is the core focus of this consultancy report?
The report provides a strategic analysis for the international expansion of CYCL Indive Ltd., focusing on the practical challenges and opportunities of entering the German bicycle accessory market.
What are the primary themes discussed in the work?
Key themes include market identification, value proposition adjustment, financial incentive structures in the EU, cross-border networking, and intellectual property protection.
What is the main objective of the proposed internationalization?
The goal is to leverage the company's "born global" status to achieve sustainable growth by establishing a subsidiary in Germany, which serves as a testing ground for European market integration.
Which scientific methodology is utilized?
The work employs the Value Proposition Canvas and the "born global" firm internationalization model to analyze the company's current state and its strategic trajectory.
What is covered in the main body of the report?
The main body is divided into three sections: targeting strategies, logistical and financial groundwork for market entry, and a critical evaluation of potential risks and competitive threats.
Which keywords best characterize this work?
The work is defined by terms such as International Entrepreneurship, Born Global, Market Entry, and Strategic Management within the mobility and cycling technology sector.
Why is Germany specifically chosen as the target market?
Germany is identified as a geographically central, highly industrialized lead market with a large population of cyclists and well-developed infrastructure that aligns with the product's value proposition.
How does the report address product compatibility issues?
It identifies that the current WingLights model has limitations regarding specific handlebar types, such as bullhorn bars, and suggests this as a factor that could lead to market gaps filled by competitors.
What role do VC associations play in the company's expansion?
VC associations are considered vital partners that provide not only capital but also international expertise and access to networks that can accelerate the upscaling of the business.
- Quote paper
- Axel Capalbo (Author), 2018, A Consultancy Report. Design of an Internationalisation Strategy for CYCL Indive Ltd. and Its Key Product, Munich, GRIN Verlag, https://www.grin.com/document/1010173
