Leaping the ditch (entering the Australian market)
Leaping the ditch (entering the Australian market)
Baker G. NZ Business, July 2007, Vol. 21 No. 6, Start page: 12, No of pages: 2
Purpose – To discuss the challenges facing New Zealand businesses wishing to enter the Australian market. Design/methodology/approach –Gives examples of New Zealand companies that have succeeded in making this transition and others that have been less successful. Emphasizes the importance of effective distribution systems and detailed planning for building a profitable network and an iconic brand. Points out that Australia consists of four very large markets and eight or nine reasonably sized ones, making it important to decide how best to focus and how to resource growth to ensure sustained business development. Offers advice on managing the transition from New Zealander Adrian McFedries, managing director of an Australian-based strategy, franchising and international business consulting group. States that preparing the foundation for international expansion can take up to twelve months, whilst companies consider which parts of their commercial and economic model need to be changed. Stresses the importance of domestic market strength,strong cash flows, profitability and the ability to remove a key senior management person from head office as basic prerequisites for “going international”. Observes that the decision to move into overseas markets should also act as a catalyst to examine the position of the business in the domestic market. Originality/value – Provides an overview of the factors that a company needs to take into consideration when entering a new market.ISSN: 0113-4957Reference: 36AS050
Keywords: International trade, Market entry, Small enterprises,Strategic evaluation
