LSBM303: Analyzing Hmlet's International Expansion & Challenges

This case study examines Hmlet's internationalization, focusing on the drivers, growth strategies, and potential challenges in Asian markets. The analysis covers factors such as Covid-19's impact, the importance of reliable financial resources, and the role of technology in managing international operations. The study critically assesses Hmlet's market development strategy in Singapore, Hong Kong, and Tokyo, highlighting its strengths in simplifying housing for relocating individuals but also noting its limitations in attracting new customer segments and preparing for unforeseen events like the Covid-19 pandemic. Furthermore, it discusses challenges such as currency fluctuations, economic impacts, cultural differences, and preferences for individual living, and proposes strategies for Hmlet to emerge as a strong player in the co-living space, including partnering with large organizations and providing affordable, high-quality co-living spaces. The report concludes by emphasizing the importance of these factors for sustaining and growing in the international market.

CRITICAL ISSUES IN
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Main drivers for the internationalisation for Hmlet..............................................................1
2. Critical analysis of Hmlet’s international growth strategy...................................................3
3. Discussion of possible challenges Hmlet could face in Asian markets going forward
including sustainability................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business management can be defined as a way of managing and coordinating business
activities in an appropriate manner (Wihlborg and Robson, 2018). This report will lay emphasis
upon case study of Hmlet and will further explain main drivers for the internationalisation,
international growth strategy of Hmlet, and possible challenges Hmlet could face in Asian
markets going forward including sustainability.
MAIN BODY
1. Main drivers for the internationalisation for Hmlet
Drivers of internationalization completely depends upon country to country and the
market in which one would enter. There are various kinds of key drivers of internationalization
for Hmlet that can be focused upon by the company have been explained below:
 Covid-19 wreaked havoc within current management situation of Hmlet because of which it
become extremely important for Hmlet to being required changes within business strategies
of organization. For internationalization, they need to focus upon considering global situation
of market, pricing strategy socio-economic situation of customers etc. Consideration of
market situation is one of the main drivers of internationalization this is because due to
Covid-19 pandemic various kinds of drastic changes within current market situation of
various industries globally and due to this, economic situation of customers has also been
impacted (Rahman and et. al., 2017). By considering current situation of customers and
market can directly help Hmlet in identifying important changes that are required to be
brought within their current business strategies. Such as current market condition in current
pandemic situation, not only this, current economic condition of people has also been
impacted due to pandemic situation. So, by adopting low pricing strategy, offering various
other kinds of services demanded and required by customers in current pandemic situation
can work as a driver for internationalization and can further help Hmlet in expanding
business and sustaining within global environment.
 Focusing upon identifying long term financial resources that are reliable and safe to be
focused upon so that further investments done by organization. It is an important driver for
Hmlet because it is was one of the main issue that was faced by Hmlet because in 2019 their
expansion was backed by large pool of financial resources. In additional to this Covid-19
pandemic created havoc for them. Due to long lasting of pandemic they had to exit from
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Australian market (Ranasinghe, 2019). So, identifying long lasting, safe and reliable source
of financial resources or investors who can invest within their business expansion projects
and can further provide financial support to the business can work as a driver for
internationalization. It will further motivate them to enter into international market and
further provide support to sustain within international market such as of Australia.
 Advancement in technology is another driver for internationalization for Hmlet because it
can directly help them in managing their workforce, remaining updated with any kind of
changes within market, use of technology so that required changes can be brought easily.
Technology advancement would further help Hmlet to manage their business, resources,
workforce etc. in an appropriate manner. Adoption of advance technology can make
provision of training to employees much easier. Not only this, analysis of international
market in which they operate can also become much easier as it can further help in providing
them brief overview of the market. adoption of advance technology can further help
organization to bring improvement within their research and development department (Liu,
Lee and Lee, 2020). This would further help them in gaining insight of the market in which
they operate. Not only this it would further help them in gaining insight of gaps within their
internal and external business processes so that improvement within those processes can be
brought in an appropriate manner.
 Analysis of market in which they operate is another driver for internationalization that can
directly help them in identifying current competition that they will face while operating in the
chosen market, change within perception of people etc. this will directly help them in
building a strong and rapid portfolio of living properties in different countries as per the
convenience and need of people, this will further help them in identifying several main
characteristics of properties preferred by people and retail options that customers would be
interested in. this would eventually help them in bringing required changes within current
business strategy that would provide them support in terms of expanding their business
internationally (Bussolo and et. al., 2018). It is one of the most important things which is
required to be focused upon by organizations because it will provide them support to recover
from rental market and sustain within international business. Not only this, this analysis of
market would further help them in providing opportunity for expanding them busies
internationally, help them identifying new supportive expansion strategies or option.
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2. Critical analysis of Hmlet’s international growth strategy
The international growth strategy of Hmlet for Singapore, Hong Kong and Tokyo can be
critically analysed as follows. The chosen organization adopted the strategy of market
development. The market development strategy is concerned with increasing the sales of existing
products and services in those markets which were still unexplored by the organization
(Castagna and et.al, 2020). This in other words is a strategy of market expansion whereby the
company analyses the ways in which the existing offer can be sold to new markets. It also
involves adopting ways in which the existing markets can be developed.
Hmlet expanded to the markets of Tokyo, Singapore and Hong Kong with the intention
of simplifying the housing for those people who are relocating. From this it can be analysed that
the company analysed the market appropriately and identified the gap. The people who relocated
faced a number of problems while securing a house for them (Corfe, 2019). They also needed
options which could be time as well as money saving. Hamlet identified both these needs of the
people and provided them with the suitable option. It provided the services which mainly
focused on enabling the people to live in a house by sharing it with members. Along with this, it
also provided them with the facility of having access to various monthly events such as
networking sessions, classes etc. Most importantly, it provided the people with an option using
which they can get access to affordable housing.
Therefore, the strategy of market development can be regarded as highly efficient in
enabling the organization to tap the available opportunity. It also enabled Hmlet to successfully
expand its business and attract more customers by provision of more convenience to them. The
organization focused on building a portfolio of co – living properties in the above mentioned
cities which can be regarded as another efficient strategy of it. These were the cities with high
rentals and were tactfully chosen by the company that provided it the required profit along with
market expansion.
In addition to it, the company also adopted a strategy whereby it focused on providing
properties that contained a number of characteristics. These included short term rental options
which proved to be useful for students and other people. Another characteristic was that these
rental options were provided at more flexible terms as compared to traditional rentals. From this
it can be analysed that he strategy of the company was tailored to the consumer behaviour
requirements. When people move to a new pace, they look for options which are flexible and
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hassle free (Cleaver and Frearson, 2021). Both these needs were efficiently met by the strategy
that Hmlet adopted.
However, it can be critically analysed that Hmlet did not focus upon designing service to
attract new customer segments other than the existing ones. It diversified the portfolio of its
service however did not target new segment of customers. This would have led to a more
rigorous expansion (Mitić and Rakita, 2020). Further, the company was not prepared to handle
situates such as Covid-19 pandemic which hit it hard. Therefore, it can be critically analysed that
the strategy was not efficient to meet the future needs of the company. It only catered to its
present needs of expansion.
3. Discussion of possible challenges Hmlet could face in Asian markets going forward
including sustainability
There are many different kinds of challenges that Hmlet can face in Asian market going
forward, some of them have been explained below:
 One of the main challenges that Hmlet would face in Asian market going forward is in terms
of currency rate fluctuation. Most of the Asian countries have complex regulatory
environment (Sanghani, 2020). Due to this complex currency rate fluctuation scenario
organizations like Hmlet might face difficulty in terms of profitability and sustaining within
Asian market that can further affect their growth. It is a challenge for them in terms of going
forward.
 Economic environment of most of the countries in Asian market has been impacted due to
Covid-19 outbreak which has impacted this, co-living market drastically and made affordable
housing availability a bit difficult. This is mostly because Asian market is currently facing
challenges in terns of attracting investors due to low rate of economic growth. Due to this,
sustainability within Asian market for Hmlet can be become a bit difficult.
 Business culture of Asian market is a bit distinct from western market. Due to this difference
sustaining within Asian market and growing forward can become a bit challenging for Hmlet
(Dastidar, Gupta and Raichandani, 2021). In Asian Market focus upon hierarchical structures
and group dynamics is much more as compared to western culture.
 In Asian market co living is less preferred by people as compared to individual living. Due
to this growing in this market can be a bit challenging for Hmlet. In order to enhance co
living in Asian market Hmlet need to focus more upon forming housing where co living is an
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acceptable form of interested form of housing and for this they need to pay more attention to
marketing of such kind of housing. There it is a bit challenging for organization to grow in
Asian market.
Factors that should be focused upon by Hmlet to emerge as a strong player in the co-
living space service market are as follows:
 Current pandemic situation of Covid-19 has made housing a bit costly for people in global
market because of which fulfilment of their needs in terms of living and housing has become
a bit more difficult (Pepper and Manji, 2019). This opportunity can be used by Hmlet for
emerging as a strong player in co living space service market and can use this as an
opportunity for growing and sustaining within market. Hmlet can focus upon providing high
quality co living space in affordable price to people as per their needs and requirement which
will directly help them in attracting a greater number of people and can eventually help them
in coming out as a strong player in this market.
 Hmlet can focus upon partnering with large organizations in terms of providing co living
space for their employees. It is one of the best ways with the help of which they can emerge
as a strong player in this market as it will directly help them in attracting large segment of
people (Pepper and Manji, 2019). It is an opportunity to emerge as a strong player because
today having an affordable housing for a single individual while working is a bit difficult and
this partnership can eventually help them in attracting large number of people as their target
customer segment.
CONCLUSION
From the above report it has further been concluded that there are various kinds of drivers
for internationalization that can be focused upon by organizations for entering and sustaining in
international market. in order to sustain within international market and grow exceptionally in
international market it is extremely important for organizations to adopt appropriate growth
strategy that can directly help them inter, grow and sustain within international market. It has
further been concluded that there are various kinds of challenges that can be faced by
organizations when they enter into international market that are required to be focused upon by
them so that they can work upon those challenges and emerge as a strong competitors and
sustain within chosen market.
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REFERENCES
Journals and Books
Bussolo, M., and et. al., 2018. Toward a new social contract: Taking on distributional tensions
in Europe and Central Asia. World Bank Publications.
Castagna, F and et.al, 2020. Assessing SMEs’ Internationalisation Strategies in Action. Applied
Sciences. 10(14). p.4743.
Cleaver, N. and Frearson, A., 2021. All Together Now: The co-working and co-living revolution.
Routledge.
Corfe, S., 2019. Co-living: A solution to the Housing crisis. The Social Market Foundation.
Dastidar, S.G., Gupta, N. and Raichandani, D., 2021. Zolostays: competing in Indian co-living
space. Emerald Emerging Markets Case Studies.
Liu, Y., Lee, J.M. and Lee, C., 2020. The challenges and opportunities of a global health crisis:
the management and business implications of COVID-19 from an Asian
perspective. Asian Business & Management, p.1.
Mitić, S. and Rakita, B., 2020. Marketing Capabilities of Early Internationalising
Firms. Management: Journal of Sustainable Business and Management Solutions in
Emerging Economies.
Pepper, S. and Manji, A., 2019. Co-living as an emerging market: an assessment of co-living's
long-term resiliency (Doctoral dissertation, Massachusetts Institute of Technology).
Rahman, M., and et. al., 2017. Drivers for internationalisation of SMEs: evidence from an
emerging country.
Ranasinghe, G., 2019. Barriers and drivers of SMEs’ internationalisation in emerging markets:
Study of Sri Lankan youth entrepreneurs. In International Entrepreneurship in
Emerging Markets: Nature, Drivers, Barriers and Determinants. Emerald Publishing
Limited.
Sanghani, R.H., 2020. CO-LIVING SPACES IN INDIA. International Journal of
Management, 11(10).
Wihlborg, M. and Robson, S., 2018. Internationalisation of higher education: Drivers, rationales,
priorities, values and impacts. European Journal of Higher Education, 8(1), pp.8-18.
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