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Aussie Fresh export strategy

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  1. Introduction
    1. Background
    2. Purpose
    3. Scope and Methodology
  2. Business Problem Snapshot
    1. Key Terms
    2. Aussie Fresh's Profile
  3. In-depth Business Case Analysis
    1. Industry analysis and Vietnamese environment scanning
    2. Cultural differences between Australia and Vietnam
    3. Five forces framework analysis
    4. PESTEL framework analysis
    5. SWOT analysis and VRIO summary
    6. Entry Strategy Evaluation
  4. Conclusions
  5. Recommendations

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 [...]

[...] Meanwhile, Aussie Fresh is very familiar with domestic clients' buying behavior and product seasonal needs, which can be a plus in mapping out their marketing strategy In-depth Business Case Analysis 3.1 Industry analysis and Vietnamese environment scanning From the standpoint of industry trend, fresh vegetable, fruit produce and wines have a huge market potential in Vietnam. All businesses trading with farmer products can be imported at their own pace, especially, for example, high quality fresh vegetable and fruits and wines are becoming popular due to an expanding medium-high class with increasing income (Muoi, 2010). [...]

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