Executive Summary

This research focuses on the most significant global expansion and market entry tactics for Mejuri, a Canadian
fine jewelry brand, to extend its operations into the Indian market. Considering this, this research assesses a
variety of different techniques to determine the most pertinent ones based on their relative virtues and demerits.
The research report is organized as follows. The first section provides an overview and a set of reasons for
internalization. Section 2 addresses several internalization strategies, while Section 3 discusses the country
analysis using the PESTEL framework. Section 4 analyses the different entry modalities and recommends the
most appropriate one for the business. Section 5 covers the challenges of global expansion, followed by Section
6, which covers solutions. Finally, Section 7 concludes the study.
Table of Contents
Introduction

The term "internalization" refers to the process by which enterprises from one market (commonly referred to as
their home market) expand their activities into an international call (often referred to as the target market). As a
result of global expansion, a business entity can save money that would otherwise have been spent on
outsourcing. As a result, internalization lowers the overall cost of production and the sale of goods and services
by a wider margin. In addition, Internationalization is also a critical component in establishing a competitive
advantage for the business. Taking this into consideration, in this study, a global firm, Mejuri, will be advised
an effective Global expansion technique based on the analysis of its competitive and other features. Mejuri is a
well-known Canadian-based fine luxury jewelry brand that reshapes the personal jewelry choices of women
(Mejuri, 2022). The company sells jewelry online as well as in shop-in stores.  Mejuri now operates two stores
in Canada, five stores in the United States of America, and one in the United Kingdom. With annual revenue of
$43.9 million (Konaequity, 2022), the company is active in the Apparel & fashion segments. Roughly 208
workers were working for this company in 2021, and the company boosted its workforce by 247% from the first
known quarter to the current (Konaequity, 2022). Depending on the company's innovations, performance, and
progress, a strategy for its global expansion to India can be devised.

1. The rationale for Global expansion

1.1 Good brand image: A brand is described as emotionally value-added, including the relationships, ideas,
fantasies, experiences, and illusions associated with a particular product (Aaker, 1997). According to
this definition, the ability to successfully compete in today's market relies on a brand's image and reality
being in sync with the sense of fact held by the target audience (Smith and Taylor, 2004). From the
beginning, Mejuri placed a high value on creating its brand. The company should now explore new
markets for expansion because global branding is critical in building a competitive advantage over local
competitors. Because of this, the value of a worldwide brand is higher, which also increases consumer
awareness.
1.2 Solid business model and innovative products: Mejuri sells handcrafted, everyday jewelry directly to
consumers compared to traditional retail. All of the materials used by Mejuri are of the highest quality,
from the precious metals (such as recycled gold) to the fine diamonds and gemstones (AAA-grade).
Furthermore, they feel that transparency and traceability are critical to avoid any harmful effects at any
point of the creation process, and they are devoted to the most outstanding level of sustainability. As a
first step, Mejuri prioritized vendors recognized by the Responsible Jewellery Council (RJC) throughout
its supply chain. In addition, 80% of Mejuri's gold is sourced from recycled materials. Due to these
efforts, the company's supply chain will be 100% traceable in the next few years (Mejuri, 2022).
1.3 Solid Financials and consistent growth: Mejuri's revenue was $17.87 million in 2020 and $43.91
million in 2021, indicating a considerable increase. The company has grown its revenue annually by
 $4,879,111 since its inception, and its revenue growth rate from the first known quarter to the present
quarter is 265.9 percent, which is incredibly impressive. Mejuri grew its sales by about 500 percent in
2021 due to its perfect digital strategy. The company, however, has not expanded its operations into
rising economies such as India, which is well-known for its love of jewelry. Due to the company's
comfortable level of free cash flow generated by steady earnings may be invested in other profitable
endeavors such as global expansion.
1.4 Existence Of International Demand: The future of the jewelry industry will be built on a foundation of
long-term sustainability since both the younger and older generations alike are beginning to act on their
values when making purchases. In 2018, Vogue magazine proclaimed sustainable jewelry creation as the
future frontier for the jewelry business. People increasingly demand higher quality from their brands,
and jewelry is no different. Many consumers are willing to pay more for products with more significant
ethical standards, according to a study conducted by Ipsos Mori in 2014, which found that over 80% of
consumers cared about a business's moral standards (Tilley, F., 2019). As a result, this is the ideal time
for the company to grow into other countries.
Porter Diamond Theory of National Advantage
The Porter Diamond Theory of National Advantage has been developed to comprehend multinational
enterprises (MNEs) ' competitive advantages. Businesses can also use the model to guide and shape their
approach to investing in and operating in various national markets across the globe. With the model's
support, we can figure out the country's and company's advantages in terms of business expansion (See
Table 1).
Table 1: Porter's Diamond Theory of National Advantage

Name of factor Description

Strategy, Structure, As a D2C fine jewelry brand, Mejuri offers handcrafted daily jewelry
and Competition in the without the traditional retail markup (Mejuri, 2022). Although India's
Industry jewelry business has a significant unorganized sector, just a tiny
number of jewelers are committed to creating environmental jewelry.
As far as sustainable online jewelry making in India is concerned, there
isn't a significant participant.
related supporting Metal-based industries and the mining industry are related supported
industries industries for the jewelry business in India, and due to this, the demand
is relatively high in India.
Demand Factors Gold jewelry usage in India is the highest in the world. In 2021,
demand for gold jewelry in India rose by 93% to 611 tonnes. In the
fourth quarter of 2021, the country's consumption of gold reached a
 record high of 797.3 tonnes, up from 446.4 tonnes in 2020. (World gold
council,2021). Gold jewelry for everyday use, such as office wear, is
becoming increasingly popular as the working population, particularly
women, grows.
Factor Conditions Due to a lack of skilled workers, the company may face difficulties.
One in five Indian workers is "skilled," according to the Human
Development Report (HDR) 2020. However, the country's low labor
cost allows for this obstacle to be addressed by training the local
workforce.
Source: Author Construction using the model elements
2. A) Strategies for overseas expansion
Most large multinational companies (MNCs) are not global. This remark signifies that these companies
have been unable to reach the same level of domestic and home region success beyond their home
countries or regions when it comes to sales volumes and activity bases (Rugman and Verbeke 2004,
2005, 2007, 2008a, 2008b). However, a well-thought-out international strategy can help the company
succeed.
If a company wishes to expand internationally, it must first devise a specific action plan. In terms of
internalization strategy, there are four basic options to consider: International strategy, multi-domestic
strategy, Global strategy, and Transnational strategy.
2.1 International Strategy: Companies pursuing an international strategy don't care about expenses or
cultural adaptations. Their products are sold over the world with little to no modification. For instance,
even though Harley Davidson distributes its bikes internationally, they do not have to reduce their costs
or modify the bike to meet local motorcycle standards. People from foreign countries buy a Harley
because it differs from the motorcycles in their own country (Kennedy, 2022).
2.2 Multi-Domestic Strategy: A company that employs a multi-domestic approach emphasizes adaptability
to local needs rather than price or efficacy in each market. For example, rather than trying to push all of
Netflix's American shows on the world's consumers, it adapts the content that appears on its local
channels in countries like New Zealand, Portugal, and India (Kennedy, 2022).
2.3 Global Strategy: A global strategy company compromises its ability to respond to local market needs to
focus on reduced cost and higher efficiency. A multi-domestic approach is the exact opposite of this one.
Minor changes to products and services may be made between markets, but a global strategy emphasises
supplying almost identical products and services throughout all countries to achieve cheap costs and
economies of scale as a result. For example, Microsoft sells the same applications worldwide but tailors
them to local languages (Kennedy, 2022).
2.4 Transnational Strategy: This strategy is intermediate
between multi-domestic and global systems. Such a company
seeks to balance the goal of lower costs and efficiency and the
necessity to adapt to local preferences in different countries.
For example, Mcdonald's and Kentucky Fried Chicken (KFC)
use the same brand names and essential menu items all over
the globe. However, these businesses also cater to the
preferences of the local population (Kennedy, 2022). On a
two-axis graphic, the strategies are illustrated in Figure 1. The
X-axis represents local responsiveness, whereas the Y-axis Figure 1. Four Internalization Strategies,
Source: Grey ,2020
represents cost pressure.
2. B) Most appropriate strategy
As of now, Mejuri, an international jewelry manufacturer, is attempting to grow its operations in India.
Due to the company's established brand and image, it can leverage this by expanding its operations to
India using a Transnational Strategy, a strategy that sits somewhere between multi-domestic and global
systems. Furthermore, as people's living standards, lifestyles, and incomes are under transformation in
India, the company can adopt a middle-of-the-road strategy and incorporate specific locally and
culturally relevant elements into its existing product range.
3. Country Analysis
3.1 Country Attractiveness analysis
According to Witcher and Chau 2010, the PESTEL framework is a "mnemonic used in strategic
management to group macro-environment factors to help strategists look for sources of general
opportunity and risks." Thus, an Analysis of India's attractiveness in the current setting will be done
using the PESTEL framework (political, economic, social, technical, environmental, and legal). (See
Table 2)
Table 2. PESTEL Analysis

Attractiveness factor Conditions in India

Political A country's currency and financial markets are directly affected by
political issues. In addition, the country's political issues impact
businesses operating in the country. Indian politics have been
tumultuous due to a dispute with its neighbors. However, the
situation has greatly improved in the previous few years, and now the
country has a very stable governmental structure in which businesses
can flourish. (Tradingeconomics.com.,2021).
Economic The economy of India is one of the most dynamic on the globe.
Businesses can look forward to expanding their operations as the
 country's GDP is continuously rising. Liberal industrial policies in
India have attracted more foreign investment since the country's
economic reforms in 1991, particularly following the Foreign
Investment Promotion Board (FIBP). The economy has
greatly benefited from it. India's tax policies, on the other hand,
encourage economic expansion in the country.
In many fields, India is now the world leader right now. The
enormous domestic market offers a wealth of business prospects. The
fastest-growing sectors are I.T., telecommunications, healthcare,
retail, and infrastructure (IBEF,2021).
Socio-Cultural India is a country with a wide range of cultures. Understanding the
country's customs and beliefs is essential for a company to succeed in
the country. The business should also know the supply of local labour
and product demand. Companies can gain from a larger populace.
Because the bulk of the population is employed, it is easier for
companies to find laborers at a reasonable cost. As a result, there is
much room for global corporations to expand their operations in the
country's huge domestic market.
Technological India, the third most technologically advanced country globally, has
an enormous I.T. infrastructure and a highly qualified I.T. workforce.
(Garg, S., 2021).
Environmental However, despite its recent achievements, India still faces many
environmental problems, including poor air quality, marine pollution,
landslides, resource scarcity, the extinction of species, and the
diversion of consumer trash into rivers. Expats may find it
challenging to live due to these issues.
However, it is worth noting that India has some of the world's most
popular tourist attractions, attracting millions of people each year.
However, India's vow at the 26th Conference of Parties (CoP26) to
achieve Net Zero emissions by 2070 is comparable to talking and
doing the walk when it comes to averting climate calamity
(Downtoearth.org.in. 2021).
Legal Indian corporations are governed by the Companies Act of 2013. In
addition, in India, labor regulations include the Employees' State
Insurance Act 1948, the Industrial Disputes Act 1947, Maternity
Benefit Act 1961, and the Payment of Bonus Act 1965 (PBA), among
others (Ncib in. 2021).
To sum it up, the legal climate in India encourages foreign direct
investment.
Source: Author's construction

Mejuri has a good possibility of finding success in India based on the country's PESTEL analysis. The
country’s political, socio-cultural features are very much good for the corporation to extend its
operations to India. As India’s environmental considerations are in favor of a sustainable business eco-
system Mejuri has a high probability of success in India. As the nation’s working population is
expanding day by day many multinational enterprises are considering India as an appealing site for
growth. In addition, the technological growth in the nation, availability of a cheaper labor force, and
convenient government policies are all in favor of company expansion in India. Although the country's
jewelry business is crowded with important players, the firm's unique idea of ecologically friendly and
sustainable jewelry is a good selling advantage. Additionally, the company may attempt to Indianize its
items or include cultural elements in their jewelry in order to make it more attractive to Indian clients.

3.2 Port Five forces model

As a methodology for analyzing the five competitive factors that influence any sector, Porter's Five
Forces can be used to identify and assess an industry's weak points and its strengths. The Five Forces
analysis is widely used to evaluate an industry's structure to decide a company's strategic direction.
Using Porter's model, companies can improve their long-term profitability by better understanding
industry rivalry (Investopedia,2020).

Force Relative Strength Description

The Bargaining Low to medium Eighty percent of the gold used at Mejuri comes
power of Suppliers from reclaimed sources. The Responsible Jewellery
Council (RJC)-certified suppliers are given
preference (RJC). It is essential to use Kimberley
Process-compliant diamonds since this assures that
the diamonds they use don't feed armed conflict
(Mejuri,2022).
Even though the jewelry sector in India has many
suppliers, the company may run into problems
because it only uses RJC-certified vendors.
The Bargaining Low Mejuri is a well-known brand with a large following
power of Customers of loyal customers. Since its inception, the company
has sold over 1.4 million jewelry pieces. The brand's
revenue grew by 63% in 2020. Customers'
bargaining power is reduced when demand is high.
Clients' negotiating power is meager in India
because of the strong demand for gold jewelry.
The Competitive Low to medium There are two main categories of competition in the
Rivalry jewelry industry in India. One is composed of local
 players, while the other is composed of players from
other countries. In India, a substantial portion of the
jewelry industry is unorganized. There is a
competitive advantage for Mejuri, though, as it uses
recycled gold and environmentally responsible
processes across its supply chain. Moreover, it's an
advantage for the business to expand into India
because of the company's strong social media and
online presence.
The threat of Low Stone jewelry and other synthetic jewelry are
substitute Products examples of substitutes for gold jewelry. On the
other hand, gold and diamond jewelry will always
have a higher perceived worth. Moreover, demand
for precious metal jewelry is rising in lockstep with
rising living standards and incomes. So no other
substitute can replace gold and diamond jewelry
products.
The threat of new Medium to High Due to the low capital requirements, the threat of
entrants new entrants is moderate to high in the Indian
jewelry business. In India, the government's norms
and regulations regarding entry into the jewelry
business are stringent. Mejuri's product line and
innovative business model, on the other hand, will
undoubtedly make it one of the most successful
jewelry businesses in India.

According to Porter’s five forces model framework Mejuri has low relative strength in terms of
consumers’ Bargaining power and the danger of alternative items is extremely low. Suppliers'
bargaining power and competitive rivalry forces' relative strength is low to medium. The risk posed by
new entrants, on the other hand, is evident. However, because Mejuri's brand image has already been
established globally, the company can enter the Indian jewelry market.
4. Modes of Entry

For a corporation to enter an international market, there are numerous options. There is no one-size-fits-
all global market entry approach. Tariff rates, the degree of product adaption required, marketing
 expenditures, and shipping costs are just a few of the many considerations the company will have to
make while deciding on a strategy. The following are the most common ways a business might get
started.

4.1 Exporting: Direct exporting refers to a company's decision to sell its products to a specific market.
In many cases, firms turn to agents and distributors once they have developed a sales program to
represent the brand in that market further. The company's interests are represented through agents
and distributors who work closely with the business (Saxena,2022).
4.2 Licensing: Licensing is a somewhat complex agreement in which one company gives the right to
utilize another company's product or service. If the license buyer has a sizable percentage of the
market, this is an incredibly effective technique (Tradestart, 2022).
4.3 Franchising: A franchise is a means of distributing goods or services that involves a franchisor, who
sets up the brand's trademark or trade name and a business system, and a franchisee, who pays a
royalty and frequently an initial fee in exchange for the right to conduct business under the
franchisor's name and system (IFA, 2020). If a company has an easily scalable business model,
franchising is good (Tradestart, 2022).
4.4 Joint Ventures: Joint ventures are a specific type of collaboration in which a third firm is
established and run independently. A third business is formed when two companies agree to
collaborate in a particular market, geographical or product-related. In most cases, both the risks and
the rewards are shared equally (Tradestart, 2022).
4.5 Partnership: Entering overseas markets with a partner is nearly always a need, and in some regions
(such as Asia), it may be mandatory. A simple co-marketing arrangement to a more complex
strategic alliance for production can be a partnership. Partnering is an incredibly effective technique
in areas where the business and social cultures are significantly different from the parent company,
as local partners bring local market knowledge, contacts, and clients if they are well selected
(Tradestart, 2022).
4.6 Greenfield Investments: Greenfield projects necessitate the most international business expertise.
A greenfield venture is when the business buys property, develops a facility, and operates a business
in a foreign country regularly. Due to government laws, transportation costs, and the availability of
technology or specialized labor, some markets may need the company to take on the expense and
risk associated with this method (Tradestart, 2022).
5. b. Appropriate Entry strategy for the company

All of the methods mentioned above have their pros and downsides. Considering its business plan, brand
reputation, and market share, Mejuri should open its subsidiary (Greenfield Investment) in India.
Customers can buy from the company's physical locations in major metro areas, and it can deliver across
 the country via online orders. In addition, Mejuri's massive internet and social media sales and presence
can significantly help in saving costs and generating sales.

6. The Challenges of Internalization

Meeting the challenges of international expansion is vital. Without the correct preparation, all thoughts
of success within an unknown market will be unattainable.

5.1 Compliance with local laws and regulations: Complying with regulations becomes more
complicated when a company grows and expands. As a company's footprint and personnel grow,
compliance with local norms, tax duties, and regulations can be challenging.
5.2 Hiring the right talent: A company's international expansion might make it challenging to recruit
top-notch employees from other countries while still trying to preserve its unique culture. Meeting local
norms and criteria can put even the most robust talent acquisition strategies to the test, from establishing
that hiring practices conform with local legislation to guaranteeing that a quota for native hires and
foreign talent is reached.
5.3 Understanding the cultural differences: It's critical for a company's growth to be conversant in the
target market's language, culture, and business etiquette.

6. Solutions to the issues

Effective methods must be designed and executed to address the difficulties above, including the
following.

 Outsourcing to an expert will assist in adhering to local employment laws and business licensing
requirements, thereby saving time and minimizing risk.
 While contacting local chambers of commerce for resources can be an effective method of
sourcing talent, partnering with an experienced executive search agency or consultant can also be
an effective method of locating professionals with strong technical abilities.
 Having at least one employee on-site who speaks the native language and is familiar with
the product positioning and offer can make the difference. Clients also feel more comfortable
with those who speaks their language and can provide the service in their time zone.
7. Conclusion
From the preceding discussion, it can be stated that India is one of the most appealing countries for
Mejuri in terms of global company expansion. Revenue growth, great demand, a distinctive business
model, and a diverse product portfolio can contribute to this company's globalization success. Therefore,
establishing the subsidiary or market entry technique may be the most appropriate for this country's
international strategy in terms of commercial expansion. First, however, it must employ robust
 marketing strategies to promote its brand in India. Furthermore, the business can benefit significantly
from its internet presence and social media impact.

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