The main focus of the report is given on the food and Agribusiness sector of Australia. The analysis has been done to analyse the opportunities of the agriculture business in the international market by using the organisation (Mayer, Borges, and Simske, 2018). In this report, ACCO has been taken into consideration to analyse the opportunities of the company to enter to the new market at the international level. In the beginning of the report, the discussion is made on the Agriculture and food business sector. After that international opportunities will be analysed with the strategies to enter into the new market. The recommendations will also be mentioned for the future strategic direction.
The food and Agriculture business sector is an important sector in then Australian market due to its significant contribution towards the economies. The main focus of this sector is on the regional areas through employment, business and service opportunities. The Australian government industry innovation and competitiveness agenda consider the food and agribusiness sector as strength for Australia in the context of competition. It is a growth sector which contributes in the growth of the economy through food and Agribusiness Industry Growth Centre (Rice, and Mumford, 2015). The government of Australia is committed to developing the right conditions of Australian businesses to invest and grow by the various ways and methods. The government of Australia creates the Australian business in the right condition by Lifting competiveness and productivity of the food and Agribusiness sector, providing tax incentives to peoples to encourage the businesses to invest, helping business to develop the workplace skills which are required and the Australia capabilities in trade and innovation. Food and Agribusiness sector of Australia includes the, food processing, agriculture production related to food and the major inputs to these activities. Australia’s food and Agribusiness industry produced $53.9 billion of industry value added in 2014-15 with the 3.3 per cent of total GDP. The sector is continuously growing with growth rate of 6.1 per cent per annum over the 10 years. It has been seen that the Australia food and Agribusiness sector is increases by increasing the sector share of total exports. The industry spent nearly $ 924 million on research and development, compromising 8 million spent on beverage and agricultural manufacturing machinery. The investment rate of the sector is also high by increasing the growth rate of thee sector (Australian Government, 2018).
The company has the goodwill value and large number of experience in the industry. The company has the opportunities at the international level. The opportunities are described as given below:
Advance technology
Advance technology is the other advantage which the company can grab easily. The company can adopt the new technologies by expanding the business. The company has the opportunity to deliver the services at the international level due to which they can also learn the new technologies. It is observed that the different countries have different ideas to manufacture the products in the market. The companies follow their own innovative technologies to produce the product. It has been seen that the company adopt the technologies with the innovation and development. The continuously adopting the technology, the company has to invest less to train the employees. The risk of new technology is also reduces because the company already use the technologies for the new innovation. The company affects less due to adopting the new technologies. As per the company capabilities, the company can adopt the advance technology easily and achieve the success (Aragón-Correa, Marcus, and Hurtado-Torres, 2016).
Market share
It has been seen that the company can expand the business at the international level as per the capabilities and resources. The company attracts the new customer towards the services by entering into the new market. The large number of customer means high revenue by selling the product in the market. The company has the opportunity to deliver the services at the higher level as per the enough resources. It has been seen that the company deliver the high quality to the consumer. The natural water is required for the production of the plants due to which the company aquifers the groundwater so that they can maintain the quality of services. The quality of delivering the meat and cattle in the market is considered as the competitive advantage for the company. Attraction of large number of consumers and quality of services helps the company to grab the market share. Market share is the opportunity for the company to deliver the services (Diaz–Rodriguez, Nguyen, Kim, and Sendova, 2017).
Export the products
It has been that the ACCO puts their efforts to maintain the competitive position in the market. The innovation and development of the supply chain offered a competitive advantage to the organisation. Then it has the opportunity to export their product to the different countries with the high quality (ACCO brands, 2018). The exporting the products is an international opportunity for the company which helps them to export their product at the international level. The uses of different technology which includes the different properties which helps them in high conservation value of biodiversity. The companies are able to identify the areas because of different technologies. The different areas means the company had the capabilities to conserve in many areas due to which they produce the different products. The different technology uses by the company also helps them to carrying the smooth operation. The company can take the advantage of their resources and capabilities to export the products at the international level (Barney, 2017). The export of the products in the different countries has the international opportunity of the company.
The company can adopt the two types of strategies to deliver the services as per its products and capabilities.
Multi domestic strategy
Multi domestic strategy refers that the company has to sacrifices of the different demand and focus on the local requirements. The company can use a multi domestic strategy as per the services. The different country has different taste related to food; each and every country has their own style to prepare the meal (Li, and Parboteeah, 2015). The company has to produce the product as per the taste and style of the country. It has to sacrifice the overall demand to attract the large number of consumers of the new market. For example- the company can deliver the meat and cattle in the market of Israel because there are large numbers of people eat meat. The company can deliver the services of wheat and crop in Indian market because there are large number of people are vegetarian. The company has to deliver the services as per the local taste of the consumers to attract the large number of consumers and grab the high market share.
Transnational strategy
Transnational strategy refers that the company has to maintain the balance between the local taste and desire of the people all over the world. ACCO can adopt this strategy to reduce the cost or to deliver the services in the large quantity to the large number of people. The company can deliver the services of meat, with the wheat and crop so that the each and every type of employee can consume it (Raptim, 2018). The company can reach at the large number of consumers by offering the services as per the taste of different consumers. The company can grab the high market share and earn the high revenue by reaching at the large number of consumers (Morschett, Schramm-Klein, and Zentes, 2015).
The company can expand the business at the international level with the different ways and techniques. There are different methods from which the company can enter into the international market (Hennart, Sheng, and Pimenta, 2015). But the joint venture is the most appropriate method for the company to expand the business at the international level.
Joint Venture
Joint venture is a method of entering into the new market. In this method, two companies come together to do the particular task. The company can enter the market by developing the contract with the other company as per the new project. The company has to set the plan to enter the new market. As per the multi domestic strategy, the company has to set the plan of delivering services. The company can enter the market with the local taste of product to attract the large number of consumers towards the market. ACCO delivers the services in many countries as per rules and regulation of the government. Joint venture is also a contract which is approved by the government of the country. Different country has the different rules to come into the Joint venture contract (Wagner III, and Hollenbeck, 2014).
Joint venture is an appropriate mode of entry for the company because this method helps them to enter the market with the higher value of goodwill. In this method, the company can easily attract the large number of consumers towards the goods and services by using the goodwill of the existing company. It is a right method and approach to attract the large number of consumers. It is also beneficial in increasing the resources and capabilities of the company. The size of resources of the company will increases by contacting with the other company. Resources of two companies come together due to which the resources is also increased. Resources and capabilities are the important factor to expand the business at the international level (Yan, and Luo, 2016). Thus, the joint venture method is an appropriate method for the company.
From the above analysis, it has been seen that the company uses the different strategies to perform the different functions. It is suggested that the company has to focus on the particular function so that the quality is improved and the people will not find any reason to neglect the product (Dabholkar, 2015).
The other suggestion is that the company has to utilise the resources effectively to deliver the services at the higher level. The company has to deliver the new services instead of diversification of product. The proper utilisation of resources helps the company in enhancing the quality of services (Longoni, and Cagliano, 2015).
The company has to use the cost leadership strategy to achieve the competitive advantage in the market. In this strategy, the company has to reduce their prices as compare to other companies (Neubert, 2017).
Conclusion
From the above analysis, it has been concluded that the company has the opportunity to enter the international market. ACCO deliver the high quality of services to the consumer as per the taste of the consumers. The company has the opportunity to adopt the advance technology and grab the high market share in the new market as per its capabilities. The company has to adopt the international strategies to gain the competitive advantage by expand the business at the higher level. It has been seen that the Multi-domestic and transnational strategy are the most appropriate strategy of the company to attain the large number of consumers. The company can expand the business at the international level but it has to enter with the methods to achieve the success. It is observed that the Joint venture is an appropriate method for the company to enter into the new market. The company has some weaknesses which becomes a disadvantage for the company. It is recommended that the company has to focuses on the one function instead of the multi-function. The company will achieve success by expanding the business at the international level.
References
ACCO brands. (2018) Our Company. [online] Available from: https://www.accobrands.com/us/us/2399/our-company#.XBILaM3hXIU [Accessed 13/11/18].
Aragón-Correa, J.A., Marcus, A. and Hurtado-Torres, N., (2016) The natural environmental strategies of international firms: old controversies and new evidence on performance and disclosure. Academy of Management Perspectives, 30(1), pp.24-39.
Australian Government. (2018) About Us. [online] Available from: https://archive.industry.gov.au/AboutUs/Pages/default.aspx [Accessed 13/11/18].
Barney, J.B. (2017) Resources, capabilities, core competencies, invisible assets, and knowledge assets: Label proliferation and theory development in the field of strategic management. The SMS Blackwell handbook of organizational capabilities, pp.422-426.
Dabholkar, P.A. (2015) How to improve perceived service quality by increasing customer participation. In Proceedings of the 1990 academy of marketing science (AMS) annual conference (pp. 483-487). Springer, Cham.
Diaz–Rodriguez, O., Nguyen, T., Kim, H. and Sendova, T. (2017) Competing dynamics: Analyzing market share in a duopoly. Journal of Statistics and Management Systems, 20(5), pp.925-937.
Hennart, J.F., Sheng, H.H. and Pimenta, G. (2015) Local complementary inputs as drivers of entry mode choices: The case of US investments in Brazil. International Business Review, 24(3), pp.466-475.
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Longoni, A. and Cagliano, R. (2015) Environmental and social sustainability priorities: Their integration in operations strategies. International Journal of Operations & Production Management, 35(2), pp.216-245.
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