Market Feasibility Report.
Australian Wild Tuna, in the Thai market.
Table of Contents
Sam’s Australian Wild Tuna Pty Ltd4
Internationalizing a Product1
Market Feasibility Report
The following report analyses the market feasibility of the developing country of Thailand for Australian Wild Southern Blue Fin Tuna, for an organisation named Sam’s ‘Australian Wild Tuna Pty Ltd’. Global ...view middle of the document...
Australian Wild Tuna Pty Ltd
The Southern Ocean is thousands of kilometres from any major populated regions, helping it be one of the cleanest of the world and this is supplier for Sam’s ‘Australian Wild Tuna Pty Ltd’ located in Castle Cove, Sydney. As a long time fisherman, Samuel O’Brien began to sell his fish privately in1990. Samuel in 1994 established ‘Australian Wild Tuna Pty Ltd’. The organisation is now a producer domestically in Australia of Southern Bluefin Tuna, and nationally expanding especially in focus of regional towns of Australia. Sam’s Tuna prides itself on high quality product but also holding the capability of handling the whole process of catching, feeding, ranching, processing and also freezing its product avoiding use of any outside contractors.
Internationalizing a product
Advantages of internationalizing a product:
* The idea of spreading business risk so ‘not all your eggs are in one basket’ if problems occur.
* Maximize overall volume of sales thus expand market share
* Produce profit margins that are preferred then that of the domestic market.
* Customer base is diversified, which reduces the reliance on domestic markets.
* Global economic integration- the possibilities are endless as an open door to accessing new ideas and ways of information and advancing performance and capabilities through the learning of new technologies and methods. (Hsu,Y 2011)
* With a foreign presence, the product or organisations gains certain credibility as it is seen as a more dominating to the customer.
* Increased competition leads to increased product quality as well as competitive pricing. This increase in competition helps organisations who are internationalising minimise risk of losing market share to clients who themselves use internet to find goods and services therefore a larger customer base. (Brady,D.L 2010)
* Minimize cost per-unit for providing/manufacturing the product as economies of scale is increased, this also in turn with offsetting cumulative costs of undertaking business at domestic market (elevated energy prices, import obligations etc.
* To offset seasonal fluctuations in local markets - Demand may fall in domestic market for economic reasons, through a focus on the other countries that may be under-going a more healthy economic growth; this will stabilize sale fluctuations that are related with the seasonality or economic cycles of demand.
Disadvantages of internationalizing a product includes
* A firm having to develop a physical presence in the offshore market, having to accommodate for different customer base, different competitors, and other individual unique characteristics of the market. It can be difficult to acquire the appropriate knowledge and seize opportunities within the market to succeed in the long run.
* Sam’s Australian Wild Tuna Pty Ltd would have to dedicate resources for the conducting of the foreign market through acquiring personnel who...