Syllabus: Cambridge - IGCSE Business Studies
Module: 3.4 Marketing Strategy
Lesson: 3.4.3 The Opportunities and Problems of Entering New Foreign Markets

Introduction

This lesson directly supports the Cambridge IGCSE Business Studies syllabus, section 3.4.3: The Opportunities and Problems of Entering New Foreign Markets. It is part of the broader theme of Marketing Strategy and aims to help students understand the strategic, operational and ethical considerations a business must evaluate when expanding internationally.

This unit is particularly valuable for reinforcing real-world commercial awareness, supporting Gatsby Benchmark 4 (Linking curriculum to careers) and enabling cross-disciplinary links to economics, geography and citizenship education.

Key Concepts

According to the Cambridge IGCSE syllabus, learners must understand:

• Opportunities of entering foreign markets, including:

  • Higher sales and profit potential

  • Extension of product life cycle

  • Access to growing markets and customer bases

  • Economies of scale and diversification benefits

• Problems and risks, such as:

  • Cultural and language differences

  • Compliance with foreign regulations

  • Exchange rate risks and cost implications

  • Political instability and ethical challenges

  • Logistics and distribution difficulties

• Methods of entry, including:

  • Exporting

  • Licensing

  • Joint ventures

  • Direct investment

• The importance of market research before entry and the concept of localisation vs standardisation in international marketing strategies.

Real-World Relevance

International market entry is a current priority for both SMEs and global brands. Consider these case examples:

• Greggs plc (UK) attempted expansion into Belgium in 2023 but faced challenges with consumer preferences and competitive local bakery culture—an example of poor cultural adaptation.

• Netflix‘s global expansion has been largely successful due to localisation: investing in local language content, partnerships with regional studios, and pricing strategies suited to income levels in each country.

• Dyson moved its headquarters to Singapore to be closer to key growth markets in Asia, illustrating how foreign market entry decisions can also reflect broader strategic repositioning.

Such examples show the need for students to evaluate strategic choices beyond textbook theory.

How It’s Assessed

Students may encounter this content in structured or extended response questions. Common assessment styles include:

• Short answer questions testing definitions or listing advantages/disadvantages

• Data response questions involving evaluation of entry strategies using case studies

• 20-mark evaluative questions asking students to recommend whether a business should enter a new market and justify the decision using analysis and business logic.

Key command words include: Analyse, Evaluate, Justify, and Recommend. These require higher-order thinking and a clear structure in responses (e.g., advantages, disadvantages, application, and judgement).

Enterprise Skills Integration

This topic integrates directly with the Enterprise Skills thematic framework, particularly:

• Decision-Making & Problem-Solving – Students explore real-world trade-offs, evaluate options, and justify actions under uncertain conditions.

• Commercial Awareness – Understanding how market dynamics, stakeholder expectations, and global economic conditions affect business decisions.

• Workplace Readiness – Building the ability to assess risks and opportunities, a key skill in strategic roles within any organisation.

These align with findings from active learning studies showing improved critical thinking and problem-solving when students engage with real scenarios.

Careers Links

This module supports Gatsby Benchmarks 4, 5, and 6:

• Benchmark 4: Students link curriculum to real commercial careers (e.g. international marketing managers, logistics coordinators, export compliance officers).

• Benchmark 5: Bring in employer case studies via Skills Hub Futures or guest Q&A sessions with global business professionals.

• Benchmark 6: Simulated exercises such as market entry strategy debates or business simulations offer workplace-like decision experiences.

These connections build career confidence in strategic business roles and give insight into the complexity of international commerce.

Teaching Notes

Recommended approach:

• Use case studies to ground theory in current affairs (e.g. TikTok’s regulatory battles in the US, or Amazon’s expansion into India).

• Encourage students to role-play as consultants advising a business whether to enter a new market.

• Discuss ethical dimensions (e.g. Western companies operating in countries with poor human rights records).

Common pitfalls:

• Students may oversimplify cultural differences—encourage specific examples.

• Risk of rote learning without applying the content to business strategy.

Extension ideas:

• Compare market entry strategies of two companies in the same industry.

• Introduce data (e.g. GDP growth, population demographics, market share) to simulate decision-making.

Support tools:

• Skills Hub Business: Curriculum-mapped simulations exploring strategic decision-making.

• Skills Hub Futures: Zero-prep activities that integrate international strategy into workplace contexts, with evidence built in for Gatsby Benchmark tracking.