Barriers And Strategies For Entering New Markets: Assessment 2

• The power point presentation is based on the analyses of the barriers that are associated with the entering a market. Along with this, it includes the ways that will help the company to overcome those barriers.

Overview of the company

 

• The company that has been selected is Crowd Delivery which is a new start-up in Brisbane, Queensland, Australia.
• The team of the crowd delivery is highly driven by solid foundations in the tech, multimedia, sales, and accounting.

Employees of company

 

• The company was founded by Warwick Cox in 2015 with 12 employees in begin. Along with this, the company falls under the Food and Beverage industry.

Objective of company

 

• The objective of the company is to become the primary On-demand delivery service for the groceries across Australia and the world. This reflects that the company is willing to expand the business.
• The company offers an opportunity to every person to access to home delivery services for groceries and alcohol on demand.

Market Opportunity #1

• The market that has been selected for the expansion of the business in New South Wales states of Australia.
• According to the report from Nielsen, the online grocery market is expected to reach $2 billion in Australia in the coming 5 years.

• Supermarket and Grocery store is continued to maintain the vast majority in the market at just more than 60% then the other markets of café, restaurants, liquor, food retailing and many other.

 

Barriers

The company finds numerous barriers in the market. Some of them are given below: –

• Competition- There is many supermarket and grocery stores are available that are offering good products at low prices to the customers due to which people like to visit the stores.
• Changing demands of the customers- The demands of the customers are changing in Australia as they are willing to buy more of the healthy products instead of grocery products.

Ways to Overcome

• The company should start providing the healthy products to the customers on demand for which they need to tie-ups with the suppliers.
• This will helps the company to make it different from its competitors and to meet the needs of the customers who are looking for healthy products.
• Market Opportunity #2

 The company has the opportunity in Victoria, states of south-eastern Australia in Melbourne city as the state is the most densely populated state.

• The company will be able to generate the high revenue due to the high population in the state.
• This is the fact that the Food and Beverage industry of Australia is increasing with the revenue accounted to US$279m in the year 2018.

Barriers

 

• The major barrier faced by the company is changing the lifestyle of the people in the market of Australia. People like to visit the place where they can buy everything under one roof (Departmental stores).
• Another barrier that the company will face is the nearby grocery stores that provide the home delivery to customers.

Ways to overcome

• Promotion of the company and their service is an effective way to generate awareness about services with the help of sales team.
• Crowd delivery should add more products that they can offer to their customers.
• The company should provide the products at the affordable prices.
• Market Opportunity #3

• The grocery market has grown in New Zealand as it is expected to achieve the value growth at constant prices with CAGR of 3% in 2016.
• In the country, it has the vast opportunity as the county has a diverse multicultural population of 4.33 million people. The preferable city of the country is Auckland with population 1.4 million.

The major barriers of the company in the market of New Zealand are: –

• Political factors of the country
• Multicultural population with diversified needs

• The company should adopt the diversification strategy that helps them in satisfying the needs of the customers.

Along with this, the company should appoint political consultant before entering into the market of New Zealand

Conclusion

• In the end, it can be concluded that the company has the vast opportunity in the states of Australia and also across the border of Australia.
• Moreover, the company also has an opportunity in other potential markets where they can spend their business.

References

• Bassanini, A. and Brunello, G. (2011) Barriers to entry, deregulation and workplace training: A theoretical model with evidence from Europe. European Economic Review, 55(8), pp.1152-1176.

        Burmaster, A. (2009) Opportunities Abound For Online Grocers [Online]. Available from:

        Crowd delivery (2018) Crowd delivery [Online]. Available from:

        Euromonitor International (2016) Grocery Retailers in New Zealand [Online]. Available from

        FMCG (2017) Online grocery market set for massive growth [Online]. Available from

• Geroski, P.G. and Jacquemin, A. (2013) Barriers to entry and strategic competition. New York: Routledge.

       Global Agricultural information network (2009) New Zealand Report [Online]. Available from

       Global Agricultural information network (2017) Australia Report [Online]. Available from

       Holderness, A. (2017) 100 Australian Tech Companies to Watch in 2018 [Online]. Available from:

       Karakaya, F. and Parayitam, S. (2018) Market entry barriers and firm performance: higher-order quadratic interaction effects of capital requirements and firm

• competence. International Journal of Markets and Business Systems, 3(2), pp.121-140.Klinger, B. and Lederman, D. (2011) Export discoveries, diversification and barriers to entry. Economic Systems, 35(1), pp.64-83.
• Statista (2018) Food & Beverages [Online]. Available from.