Export strategy, a crucial part of international business management, can directly affect the success of transnational companies' business performance linked to their host-country nationals. In the meantime, a well-rounded export strategy should be formulated based on the analysis of both internal and external environment scanning.
This report offers export strategy recommendations for Aussie Fresh, an Australian company that sells fresh fruit, vegetables and wines to Asia. From the standpoint of business consulting, the common analyzing tools used were Hofstede's cultural dimension values, Porter's five forces model, PESTEL framework analysis, SWOT analysis and VRIO framework.
Final recommendations for Aussie Fresh entering the Vietnamese market are reflected in four aspects.
First, it is advisable to adopt direct export as the entry strategy as it is the least risky one judging by the status quo. Meanwhile, Aussie Fresh should choose local distributors carefully by leveraging favorable trade agreements between two countries. Secondly, it is recommended to fit in Vietnamese business culture by identifying suitable agents/distributors for the company's products. Suggested fresh produce and wines can be distributed through retailers such as supermarkets, hypermarkets, convenience stores and hotels, bars and restaurants. Thirdly, they should choose warehouse locations adjacent to Vietnamese local distribution centers that are easily accessed by sea freight. In terms of transportation, small product samples can be shipped by air while sea shipping can be used to deliver products in larger quantities.
[...] Implications AUS Yes NO YES YES Parity VIE Yes Yes NO YES Advantage 3.6 Entry Strategy Evaluation Based on the above analysis, Aussie Fresh is recommended to adopt direct export entry strategy entering Vietnamese market. As an entry strategy with low risks and no long-term asset requirement, direct export strategy has the advantages of easy market access and exit, which is a good match with the SWOT analysis outcome. However, to ensure the smooth implementation, it is important to think twice before choosing distributors, evaluating transportation costs and leveraging tariffs and quotas. [...]
[...] " International Herald Tribune 28 Sep ProQuest Newsstand, ProQuest. Web Oct Harmonic Analysis; Study data from Vietnamese Academy of Science & Technology provide new insights into harmonic analysis. (2010, November). Computers, Networks & Communications,1465. Retrieved October from ProQuest Computing. (Document ID: 2173574491). Nguyen Pham Muoi, & David Roman. (2010, August 19). World [...]
[...] Only after a thorough assessment and analysis, recommendations on export strategy can be reliable and executable Purpose This report aims to give recommendations for Aussie Fresh, an Australian company that sells fresh fruit, vegetables and wines to Asia as to what the most effective export strategy would be to enter the Vietnamese market based on business situational analysis and external environmental scanning frameworks from the standpoint of business consulting Scope and Methodology The report will begin with delving into the customer's profile and industry trend. [...]
[...] Aussie Fresh can capitalize on the key trends of this market in Vietnam and the potential of marketing fresh produce into this densely populated country. To examine the current competitive landscape, five Forces framework will be applied to test Vietnam's fresh fruits and vegetables produce market attractiveness. First, the market remains attractive as there are not aggressive competitors in this category. Second, the entry and exit barriers are comparatively low because Australian side does not have to be technologically and skillfully advanced. [...]
[...] (Document ID: 2131197111). Allen, Richard S., et al. "Porter's generic strategies: an exploratory study of their use in Vietnam." Journal of Business Strategies 24.1 (2007): 69+. Academic OneFile. Web. Retrieved 2 June 2010. Linowes, Richard Tsurumi, Yoshi, & Nakamura, Toro. (1993). The Vietnamese manager's traumatic entry into Australia: Understanding cultural divides; Executive commentary. The Academy of Management Executive, Retrieved May from ABI/INFORM Global. (Document ID: 129399). "Five big pitfalls in Asia. " International Financial Law Review (2009): ***[insert pages]*** ABI/INFORM Global, ProQuest. [...]
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