Identification of international opportunities
One of the major opportunities for Ingham enterprise is increase in the demand for poultry items. It is reported that average global economy is growing and with that the demand for protein food is increasing in the global market. This provides huge opportunity for Ingham enterprise in selling their high protein poultry items in the global market (Ahmad 2014). On the other hand, another major opportunity for Ingham enterprise is having both chicken and turkey based products. This will help in targeting different market segments based on the popularity and preferences for particular type of meat. Demand for fodder is also increasing mainly in the under developed and developing countries (Camelia 2014). Hence, this is another major opportunity for Ingham enterprise to tap the livestock market in these countries. Developing countries such as India and China are having huge population and thus market for agri products is more in these countries. This will also act as business opportunity for Ingham enterprise in their global business.
With the increase in health consciousness among the average customers around the world, demand for organic food products is increasing. Ingham enterprise with their existing infrastructure can focus more on producing organic food products that will help them to tap the growing demand for organic products in the global market (Lee and Yun 2015). It is reported that Ingham enterprise cancelled their halal certification in 2008. Thus, if they can have this halal certification again, they will be able to tap the market opportunity in the Islamic countries. Demand of meat is always high in the Islamic countries and thus halal certification will help in tapping this opportunity. Thus it can be concluded that Ingham enterprise is having huge market opportunities only if they can operate in the global market.
Identification of the international strategies
In order to identify the potential international strategies for Ingham enterprise, Ansoff matrix will be the most effective tool. According to this tool, there are mainly four strategies being available to the business organizations in enhancing their business in the global market (Hussain et al. 2013). One of the major strategies that can be initiated by Ingham enterprise is developing newer products. Ingham enterprise is not having any vegetarian foods other than meat based food. Thus, with the help of the market development strategy, Ingham enterprise will be able to develop new products that will targeted to the vegetarian population around the world. Target customer segments will get increased for Ingham enterprise. Another international strategy that can be initiated by them is product diversification (Oh, Sohl and Rugman 2015). This will enable Ingham enterprise to enter in a new market segment different from their existing one. For instance, they can launch ready to eat packaged food. This will help them to tap the larger market segments apart from their existing customer segments. There are number of countries where ready to eat food is having huge market share and diversification will help Ingham enterprise to tap this market.
Customization or product adaptation can be another effective international business strategy for Ingham enterprise (Hussain and Khan 2013). This is due to the reason that food products are having forms with different tastes in different countries. Thus, it will be effective for Ingham enterprise if they can customize their existing products in accordance to the preference pattern of the target market. This will help them to target the customers from different countries properly. This strategy can also be termed as product development strategy according to Ansoff matrix (Griffith et al. 2014). It should also be considered that initiation of the product adaptation strategy will also enable Ingham enterprise to source their raw materials from the local partners. Thus, the cost of operation will get reduced due to the low cost involved in sourcing materials locally.
However, it is also identified that transnational strategy may also be suitable for Ingham enterprise. This is due to the reason that with the help of the transnational strategy, Ingham enterprise will be able to maintain some of their global elements as well as customizing others elements according to the target market (Miska, Stahl and Mendenhall 2013). For instance, Ingham enterprise can maintain their brand name, logo and some of their core product offerings as well as offering some more specific products accordingly. This will help them to target the local market along with maintaining their existing brand identity and value.
Identification of the mode of entry
Greenfield investment
There are number of mode of entries available for the business organizations in doing business in the global market. Each one of these entry modes is applicable in different situation and for different sets of business. In the case of Ingham enterprise, one of the most effective entry mode strategies will be Greenfield investment (Tulung 2017). This is due to the reason that with the help of Greenfield investment, they will be able to set up their plant and base in the target country and can manufacture the products according to the local market trend. This strategy will also help Ingham enterprise to change their business and product strategy in accordance to the change in the local market trend. In the current business state of affairs, taste and preferences of the customers are changing rapidly and it is important for Ingham enterprise to have flexible operation facilities to cope up with this change. With having the physical facilities in the target market, Ingham enterprise will be able to offer products according to the change in the market. In addition, having the physical setup in the target market will help Ingham enterprise to offer products in competitive price by sourcing the materials locally.
However, in the case of Greenfield investment, the major barrier that will be faced by Ingham enterprise is increased cost of investments. This is due to the reason that in the Greenfield investment, the entire investment for setting up the facilities in the target market should be borne by Ingham enterprise. Thus, the business risk will increased for Ingham enterprise and they will also face in having positive return on investments (Stoddard and Noy 2015). Furthermore, Ingham enterprise will have the risk related to the political risks and other external risks. In case of any unwarranted incidents in the target country, it will be difficult for Ingham enterprise to get the maximum out of their investments.
Joint venture investment
Another major mode of entry that will be effective for Ingham enterprise will be joint venture. This refers to the process of entering in partnership with another firm preferably from the target country. Thus, the risk and level of investment will get divided between the two entities. Moreover, partnership with a domestic firm will help in determining and catering the local market effectively (Sun and Lee 2013). This is due to the reason that domestic firm will have more market data about the local market that will be beneficial for Ingham enterprise. However, on the other hand, it should also be noted that initiation of joint venture may pose challenges in the business operation of Ingham enterprise. In the case of joint venture, business decision in the host country cannot be taken only by Ingham enterprise; rather they have to consult with their partnering company also. This may create issues in the decision making process.
Direct exporting is another potential mode of entry for Ingham enterprise in operating in the global market. This refers to the transportation of the goods from the home country to the target market without having any physical facilities in the host country. However, this strategy will not be appropriate for Ingham enterprise due to the fact that agri products sold by them should be made offered in competitive price and export strategy will increase the price by means of tariffs and taxes (Sui and Baum 2014). In addition, in the case of direct exporting, product adaptation strategy cannot be implemented according to the taste and preference pattern of the target market. This will further increase the challenges for Ingham enterprise in operating in the host market (Eriksson et al. 2015). However, it should also be noted that direct exporting strategy will help Ingham enterprise in having less risk related to investments in the host country.
Conclusion
This report concludes that Ingham enterprise is having huge opportunity in doing business globally. In this report, different opportunities in the international market for Ingham enterprise are being discussed along with the potential international strategies for Ingham enterprise. It is identified that entering in the foreign market can help Ingham enterprise to enhance their sales volume, revenue and market segments. In addition, this report also concluded that Greenfield investment will be the most effective mode of entry for Ingham enterprise due to the reason that it will help in offering localized products in competitive price. A few recommended steps are being discussed in this report that can further enhance the strategic direction of Ingham enterprise in their future course of business.
Agribusiness is one of the major business sectors in Australia with having the position of employing ones of the largest workforces in the country. It is reported that agribusiness of Australia is estimated at US$ 256 billion. It is also reported that agribusiness in Australia will continue to witness growth in the coming years. Australian agribusiness consists of meat, poultry and farming activities and with having market span of over 60 countries in the global market (Plunkett et al. 2017). Thus, it can be said that agribusiness of Australia is well established and expanded with having maximum opportunity in the future. However, it should also be noted that with the increase in the opportunity in this sector, competition is also increasing due to the inflow of new companies. It is causing the existing companies to witness the increase in competition and affecting their profitability (Whitton, Baker and Mounter 2016).
Ingham enterprise is one of the largest producers of poultry and fodder products in Australia. They are founded in 1918 in Adelaide and currently they are having more than 100 stores around Australia and New Zealand with having employees of more than 9000 (inghams.com.au 2018). Thus, they are one of the leading names in the Australia agribusiness sector. However, till now, the products of Ingham enterprise are only available in Australia and New Zealand. Thus, it is becoming more important for them to tap newer markets in maintaining their competency in their business operation.
This report will discuss about the international opportunities available for Ingham enterprise along with discussing potential strategies for the enhancement of their business. In addition, different entry mode strategies will be discussed that will be suitable for Ingham enterprise. In accordance to the above identified elements, a few recommended steps will also be discussed.
Reference:
Griffith, D., S. Lee, H., Seob Yeo, C. and Calantone, R., 2014. Marketing process adaptation: Antecedent factors and new product
Ahmad, F., 2014. Three Significant Events in the Poultry Industry, During Last Three Decades. Veterinaria, 2(2), pp.6-10.
Camelia, G., 2014. Evolution trends of the Romanian post-accession agrifood trade. ANNALS ECONOMIC SCIENCES SERIES Volume XIV Issue, p.119.
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Oh, C.H., Sohl, T. and Rugman, A.M., 2015. Regional and product diversification and the performance of retail multinationals. Journal of International Management, 21(3), pp.220-234.
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