International Marketing Strategies for Costa Group of Holdings Ltd

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STRATEGIC MANAGEMENT

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Executive Summary
The report aims at analysing international marketing strategies and the process of
implementing them. Therefore, the Costa Group of Holding Limited in Australia is selected.
The study starts with explaining the food-focused agribusiness industry of Australia. Then it
analyses the opportunities present in the international market for Costa. Using Porter's
diamond model, the suitability of Canada for business expansion is examined. Next, the best
entry mode for the company is selected that is exporting. The firm should not use licensing,
as it has several disadvantages such as loss of property rights. For the future, the firm should
consider building a strategic alliance with the most competitive agribusiness company of
Canada, so that it can better capture the marketplace and run the business more extensively.

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Table of Contents
Introduction................................................................................................................................4
Discussion on the Australian Food-focused Agribusiness sector-.............................................4
Identifying global opportunities for Costa group of holdings Ltd.............................................5
Discussing various international strategies appropriate for Costa-............................................8
Considering the most suitable and unsuitable entry mode to the international market for Costa
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Providing recommendations for the impending strategic direction of Costa in Canada..........10
Conclusion................................................................................................................................10
References................................................................................................................................12

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Introduction
The focus of the report is to comprehend and appreciate the strategy application. Therefore,
the Costa group of holdings Ltd is chosen for identifying international business opportunities
for the company. First, the report carries out a discussion on the Australian focused
agribusiness industry and then applies the Michel Porter's diamond model for recognising
opportunities in global markets for Costa. Besides, the study confers various global strategies
suitable for the company while identifying the aptest and inept entry mode in the worldwide
market. Considering the findings of the analysis, recommendations are developed for future
strategic direction for the firm in the global market.
Discussion on the Australian Food-focused Agribusiness sector-
The food-focused Agribusiness industry is an essential contributor to the national economy of
Australia. The area influences the local economy by creating employment and offering
prospects for service and commerce. The Australian Government's Industry Innovation and
Competitiveness Agenda recognise the Agribusiness as a part of economic advantage for the
country. The agenda priorities the sector as a progress area by the Food and Agribusiness
Industry growth Centre. The industry includes agriculture production pertaining to foods,
food processing and the main input to these functions. The entire industry is classified into
two sub-industries. The food items contain food processing, beverage manufacturing and
central contributions to the subsector. On the other side, agribusiness includes all the
agriculture, which is linked directly to food production. The overall sector hired about
522000 employees in 2015 and near about 178500 business trading, were there in the
industry as of June 2015. The industry generated $53.9 billion as of 2014-15, that was
equivalent to 3.3% of the overall GDP. Food and Agribusiness grew at the speed of 1.0% per
year, and the labour productivity increased by 2.4% per year. Australia is a clear exporter of