The growth of globalization across the countries provide huge opportunities to the business organizations to expand their operation all over the world. The globalization develops the opportunities and business prospects for the organizations as well as improve economies of the countries. Hence, most of the governments of different nations have brought out favourable business policies for the organization and reduce the barriers for the foreign organizations to make entry in their countries that encourage the business organizations to expand their business across the nations (Appannaiah and Reddy, 2010). As a result, the business organization and the targeted country both are benefitted. Hence, the business organizations search scopes for their business in all across the world and try to penetrate the market of the countries where the organizations find more scopes. In this ways, the international business is growing. In order to make entry into the market of other countries, the companies have to apply effective market entry strategy that help in getting successful entry in the market of destined country as well as support in carrying out fruitful business operation in the target market. The Endless Wave Pty Ltd. is a sports equipment’s and apparel company mainly operates it business in Australia. The company has several branches in Torquay, Victoria, St. Kilda, and Melbourne. The company has been very successful in Australia and held 10% market share of the industry (Campbell and Craig, 2016). The company has high quality surfing equipment plus apparels, which have high demand in the Australian market. The company is popular among the young population of Australia, especially the sports freak teen agers are the customers of the company. The company has recognized good scope for its business in Bali Indonesia as the Sea beach of Bali is very attractive and it is one of the most popular tourist destination in Asia for its exotic sea beach. The sea is suitable for the water sports like surfing and the water sports are getting popularity in this particular sea beach as the tourist from all over the world are coming here, who like water sports. Hence the company wants to make an entry in this market of Bali. The report has adequate scope for analysing the market entry strategy of Endless Wave Pty Ltd. The secondary research has been used in this study and statistical data from different authorities are used to analyse the scope of the organization in this target market (Czinkota, Ronkainen and Moffett, 2011). The research need some primary research also in order to recognize the current situation of the market. The absence of primary research is significant limitations for the study.
The industry Endless Pty Ltd constitutes of the huge amount of the varieties in the products which consists of high product quality. It is simply including the surfboards and the other related accessories to the surfboards before entering into the market of Indonesia. Other than the company is a renowned in the Australia for the delivering of quality products to the customers. The company is consisting of the high quality products that are illustrated by the growth which is being made by the company in the Australia only (Cherunilam, 2010). As being the large private company with consisting of 950 employees worldwide, the competitive advantage is being gained which enables the company to continue its international activities. The company is depicted to have entered successfully in the 20 other markets internationally other than Australia. The key location which is being targeted by the company is Bali sea beach of Indonesia (Dalton, 2004). It is also identified to be gaining the maximum attraction of the tourist due to the surfing activities and also this business decision made by the company will have to face a great amount of competitors in the market of Indonesia. The segments that are made within the industry are dependent on the functional activities which are carried out by the company.
The Indonesian market is being targeted by the company which is mainly focused on the Bali Sea beach. This beach is the targeted location for the carrying out its business activities in the Indonesian market. The initial target is being made by the company is the youths and the local with the tourists who are visiting the place from the worldwide (Doyle, 2013). The expansion of the target is being dependent on the structure which is being targeted by the company for the betterment of the market and also the expansion is being made by illustrating the growth in the industry. The targeted customer segments made by the company will be expected to be gaining the more attention for the products that the company is dealing with (Jeannet and Hennessey, 2004). Thus the saturation in the market is not identified in the targeted location as the craze for the product is more in that region. This shows the market is in the growing position which enables the company to have an advantage of placing its own product in the market. This is identified to be very much competitive and also the company will have to face for the purpose of surviving in the market of Indonesia.
The key competitor that is being identified by the Endless Wave Pty Ltd is the Surfider Foundation, and it consists of the huge market as it is being made by showing the vast market is being made by showing the construction of the market. The vast market captured is showing the explanation of the work which is identified to be showing the capturing of the market, and also the undertaking of this market is also showing the enhancement of the work which is illustrating a kind of barrier which is a part of the work. The formation of the work is being identified to be a part of the work (Floyd, 2006). The working is being made by showing the explanation of the work as is explained according to the market. It is explained to be becoming the major barrier as it is explained by the business environment of the Endless Wave Pty Ltd. These are the competitive analysis which is being made for the company, and also it is surrounding the market of the surfing in the Bali of Indonesia.
Strength
Weaknesses
Opportunities
Threats
As per the overall analysis of the SWOT is undertaken, it clearly shows the strengths, weaknesses, opportunities and the threats which are presented in the form of the analysis as it is being made in this case. This is simply explaining the internal analysis of the company with showing the external analysis by illustrating areas of the success and the failure. Therefore, by the help of this analysis, the company can be easily able to reframe the structure in order to mitigate the threats before entering the foreign market.
As per the SWOT analysis is being undertaken, the following are the explanations which can be provided to this context and are represented in the following points as expressed in this case:-
The overall discussion of the strategy is making the appropriate conduct as it is being carried out by the company. This shows the appropriate process for capturing the market and also the explanations are based on the theories as it is being explained in this case. This is simply explaining the structures that are involved in the establishment of the target (Mitre?ga, 2006).
The company Endless Wave Pty Limited will enter into the market with the help of joint venture strategy. The company will carry out the business with the collaboration of another local company. It will enable the company to expand its business operations and also helps to understand the local business environment (Pinnock, 2010). The company will enter into the joint venture to gain more benefits and use the resources of the local resources to build its brand reputation. The revenues, expenses, assets and liabilities will be shared by both the companies. It will provide a wide opportunity to the company to gain new expertise and capacity. The company will be able to use the human resources, technological resources and financial resources of that company. The risks will also be shared among them, and the joint venture is referred to be the most flexible strategy. The government also provides some opportunity for the local companies to expand their business operations (Pinnock, 2010). The goals and objectives will be set on the basis of the needs of the management of the company. In the joint venture, the company does not have to file taxes as the business organizations. The partners are allowed to transfer their portion of losses and profits directly to the income tax return.
The management team of Endless Wave Pty Limited will be responsible for managing the business operation of the company. The manager of the company will manage the operations and also deal with the situations. The chief executive officer will be responsible for carrying out the business and examine issues and opportunities (Kreitner, 2007). The executives will manage the day to operations, and the employees will contribute their efforts for the development of the company. The joint venture will be governed and managed by the legal agreement. Different departments will be managed by different executives. The marketing department will be managed by marketing manager, the finance department will be managed by finance manager, the human resource will be managed by human resource management, and information technology will be managed by IT managers (Pride, Hughes and Kapoor, 2010). The structure of the company will be simple and following the decentralization structure. The roles and responsibilities will be delegated by the top management to lower and middle-level managers.
The management team of Endless Wave Pty Limited has to adopt different strategies in order to expand its business operations. The company can establish its business in Bali with the use of the resources. The company should determine and analyze the demand and supply of the market before commencing the business. The management team should prepare a five-year plan which will include capital investment, the projection of the future growth, human resource management, collaborating with other organizations, developing the structure and providing quality services to the customers (Keith, 2008). The strategic plan should include analyzing the business environment and effectively using it to attract customers. The tasks and objectives should be clearly described to the team members. The management team has to focus on increasing the profit margin with an increase in the revenue. The sales revenue can be increased with the use of promotional and marketing strategies and provide significant information to the customers. The company will expand its business by acquiring other business organizations (Kister and Hawkins, 2006). The capital investments will be done in major aspects of the operation and plans will be based on the development in the specific location. The employees should be provided with adequate training so that they will be able to manage all the business activities. The management team will focus on not to use much debt source to finance its activities, otherwise, it will lead to the increase in the debt level.
As per the data collected from the secondary resources and the analysis of the data it is perceived that the potential destination of the company Endless Wave Pty Ltd. is very much lucrative for their business. The main reason behind the conclusion is the tourist potentiality of this particular place. The particular place Bali is one of the most beautiful sea beaches in the Asian region and the people from all over the world specially people from the East Asian countries frequently visit this place. There people from different Asian countries like India, Pakistan, Bangladesh, Malaysia consider this place as the most attractive honeymoon destination in this region. Apart from this, it is one of the major tourist destination for the Australian population also. The beach in Bali is considered as high surfing destination as there are many young visitors of this beach prefer water sports especially surfing. The honeymoon couple wants to have fun and try different types of water sports on the sea beach in Bali (Pride, Hughes and Kapoor, 2010). Hence, the company Endless Wave Pty Ltd. has the adequate opportunity and business prospects in this place. However, in order to make an entry in this specific market, the company has to take care of some specific requirements of the targeted customers. The company has to evaluate the taste of the people who usually visit the place as the market is based on the out comers or visitors who visit the market frequently. In this matter, the company has to analysis the nature of the visitors, such as their nationality, religion, race, ethnicity etc., because all these help in judging their preferences that support in developing the products and services for the target market. For effective market entry it is most important to develop the products and services that attracts the target customers of the company Endless Wave Pty Ltd. Hence, it is vital to recognize the need and demand of the market and as per the market demand the company can develop their products and services (Steele, 2009). In this matter, as the destination Bali is tourist place, and the economy of this place largely depend on the visitors who visit this place. The tourists are from many countries hence; the company has to develop wide range of products in order to serve the diverse customers. Apart from this, the company has to implement joint venture in order to make an entry in this market in Bali. The joint venture should be with any domestic company, which operating in the similar sports and style substances and work for the young population. It will be useful as the domestic company has the knowledge and experiences about the market and customers, which are important for the business operation. Therefore, by joint venturing the Endless Wave Pty Ltd can be able to apply the experience of the domestic company within this particular market as well as help in maintaining the legalities of the domestic country for operating business. In case the joint venturing method of market entry is not preferred by the company Endless Wave Pty Ltd (Tracy, 2015). then they company may acquire a local business organization of Bali, which has shown significant performance in last few years, then the company can be benefitted by the experience and expertise of the local company. Otherwise, the company can do adequate market research, which help them in gaining the knowledge about the destined market.
Conclusion
The globalization provides the opportunities to the business organizations to expand their operational activities across the globe. Due to the globalization cross-border businesses are increasingly growing. The business organizations across the world are trying to grab the opportunities over the different countries in the world. This help the business organization in expanding the business hence the productivity and profitability of the business organization can be increased. The Endless Wave Pty Ltd is an Australian company mainly operates in sports substances and apparel industry (Verbeke, 2013). The company mainly produce the product related sea surfing and sports apparels. Besides this, the company deals with surfboards, plus accessories, bather, wetsuit, board shorts, bikinis, jackets, t-shirts, jeans, belts, wallets, etc. However, the main products of the company are specialized surf products, according to the vision of the company “the quest for endless wave.” The goal of the company is to provide the surfers ultimate experiences and become the vital surfing company. The company is successfully doing business in Australia as well as in other countries in Asia, Europe, and North America. The company expands its market in South Africa also. Currently, as the company has discovered potential business scopes in Bali and Indonesian Sea beach, the company intends to make an entry into the water sports and apparel market in Bali. Bali in one of the most beautiful sea beach and extensively popular among the tourist. The company wants to explore this particular market (Worthington and Britton, 2015). Moreover, in order to make an entry in this particular market the company Endless Wave Pty Ltd. has to implement effective market entry strategies that help the company in establishing in this potential market. The company can apply the joint venture for entering the market of Bali as it helps the company with it experience and expertise in this particular market as well as help in complying with the domestic rules and regulations required for the business operation.
References
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