International Expansion of Gousto in Australia: A PESTEL Analysis and Market Entry Options

Management
Report

EXECUTIVE SUMMARRY
Gousto is UK based meal kit provider company. Australia is the selected company for
international expansion of Gousto. The PESTEL analysis of Autrlia depicts that various external
environment factors have created opportunities and threats dot international expansion of
Gousto. The specific product launched by the company in Australia will be fitness recipe box
which offers consumers Australian cuisine designed to boost the health of the consumers. It will
also be sustainable.
The company has opportunity to expand smoothly in the country because of strong UK and
Australia political relationship while there is threat from Australia China trade war. The
blooming meal kit industry in Australia provides growth opportunity to Gousto while the
economic damage caused by pandemic is threat to long-term survival of the firm.
The company faces a threat and opportunity in growing meal kit industry in Australia as
there are several competitors in the market. The rise in online shopping offers Gousto
opportunity for quick international expansion while the complicate data protection laws of
Australia are threat.
The rise in environmental awareness provides the respective firm an opportunity by
offering sustainable products while there is threat of low profitability. Successful expansion can
be completed by following legislations in Australia while there is threat if delayed decision
making.
Forming strategic alliance with fitness company is the most effective method for entering
Australia as it will lower the risk of international expansion of Gousto in Australia.
Differentiation focus is the suitable strategy for Gousto to gain success in Australia. It will help
the company offer unique products for target audience of business professionals in Australia. The
firm will be able to build unique brand image and distinguish itself in the meal kit industry of
Australia.

Table of Contents
EXECUTIVE SUMMARRY...........................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTEL..................................................................................................................................1
Market Entry Options.............................................................................................................5
Market Segmentation..............................................................................................................6
Porter's Generic Strategies......................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International expansion helps business firms gain strong position in their industry by
increasing their consumer base and lowering reliance on local business cycle (Abdinazarovna,
2019). The business firms selected for this report is the UK based meal kit service provider
Gousto. The company was founded in the year and retails meal kit products in UK. This report
recommends a specific product which need to be launched by the company in an international
market. PESTEL analysis of the country is provided in this report along with explanation of
market entry options which can be sued by Gousto. The market segmentation for Gousto is also
provided in this report with justification for potential target consumers of the company. Porter's
generic strategies are explained in this report along with recommendation of specific strategy for
Gousto and critical analysis of the best suited strategy.
MAIN BODY
PESTEL
The country suggested for Gousto to expand intentionally is Australia and the service
which will be offered by the company to Australian consumer base is fit and sustainable meal kit
delivery service. This meal kit will be specifically designed according to taste of Australian
consumers keeping in mind different flavours of traditional Australian cuisine. Consumers will
get 30 options for recipe boxes which will rotate each week. The recipe boxes will be provided in
sustainable packaging and consumers will be able to trace each fresh ingredient of the recipe box
to ensure that it is sourced sustainably and ethically. In context of the fitness aspect of the service
every recipe box option will be created to help consumers improve their health by including
recipes which help consumers attain specific fitness goals, improve health deficiencies or battle
specific illnesses such as diabetes. Australia is a suitable country for international expansion of
Gousto because the market size for the prepared meal industry in the country is $1 billion
Australian Dollars (Prepared Meals Production in Australia- Market Research Report, 2021).
The respective company will be able to exploit the high potential available in the Australian meal
kit industry and make international progress (Bell, Bryman and Harley, 2018). The various treats
and opportunities present in Australia for Gousto can be determined by conducting a country
specific PESTEL analysis of Australia. PESTEL analysis of Australia is provided below:
1