Internationalization Strategies for Hmlet in Asian Market

This report discusses the internationalization strategies for Hmlet, a co-living space service provider in Australia, Singapore, and Tokyo. It covers the main drivers for internationalization, growth strategies for different countries, and challenges faced by Hmlet in the Asian market. The report recommends solutions for Hmlet to overcome these challenges and emerge as a strong player in the coliving space service market.

Critical Issues in
Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY ..................................................................................................................................2
What are the main drivers for the internationalisation for Hmlet?.............................................2
International growth strategy for Singapore, Hong Kong and Tokyo for Hmlet.......................4
Challenges faced by Hmlet in Asian market and recommending to emerge as strong player in
co-living space service market. ..................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
International market defines any geographical region where a business organisation
conducts business which is outside the territorial boundaries of the business organisations home4
country. Hamlet is a provider of co-living space service intended to simplify housing for people
relocating or living in Australia, Singapore and Tokyo. The company's service mainly focuses on
offering rooms and full apartments for rent and letting members share flats and have access to
monthly events such as yoga classes, networking sessions, book clubs and cocktail evenings,
enabling users to get access to a safe and secured home for living at an affordable cost. In March
2021, Hmlet a Singapore-based coliving startup (www.hmlet.com), announced that its co-
founder and CEO Yoan Kamalski would step down and be replaced by Peter Kennedy a senior
advisor at Burda Capital Investments, an investor in Hmlet. Its CTO would also leave in June
202.This report will include the various topics such as main drivers of international for Hamlet,
international growth strategy for different countries such as Singapore, Hong Kong and Tokyo
and at last the possible challenges faced by the Hamlet in the Asian market.
MAIN BODY
What are the main drivers for the internationalisation for Hmlet?
Internationalization is the activity which includes the practice of to designing products or
services and the internal operation for the expansion within international market. There is a
transaction conducted within the corporation rather than in the open market. It is a important
strategy which will help in the sustainable development and requires the internationalization to
bridge a gap among the diverse cultures and different countries. Hmlet is based on drivers that
influence the process of how the company capabilities can be developed. Implementing
internationalisation into the business operations and functions is apt of investment which enable
the companies to enter the foreign market easily. It anticipates future issues such as reforming
and restructuring of layouts and also helps in identifying legal issues. It is very essential to
understand the drivers for Hmlet as it wants to expand its business in the new market and
countries here below the drivers are explained:
 Organisation structure- it is very important to decide whether the business organisation
will have the central headquarter or a decentralised organisation by the country. The best
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strategy will be the combination of the both for the business enterprise. It also declared
that their CEO Yoan Kamalski wiuld step down or will be replaced by the Peter
Kennedy, who was senior advisor in Bruda Capital Investment for the better leadership
management in the organisation (Andrews, Gal and Witheridge, 2018).
 Consideration of local situation- There are various alternates of the methods to work
together which are identified with the nation the business is being finished. Because each
country has their own and different financial qualities that should have been considered
of an organisation to have a boundary of competition in new commercial centre. In
context of Hmlet, it offer the long term and medium term housing to meet emerging need
of younger generation
 Financial resources- the business enterprises with the high equity capital are considered
more successful. A reliable and long term financial resources are very safe and these are
very important for the high investment and competitiveness. Additionally, it assists with
the more relieving competitiveness within the new nation. An business organizations with
the capital value is more fruitful around the world (Ashournia, 2018).
 Market relevant factors- To have a new market for the business organisation it is very
important that the marketers consider the customer analysis. This can be conducted using
the various tools such as marketing mix. A broad network of the partners can lead the
organisation to its success in the new market.
 Active management of risk- In this, the business organisation faces various issues in
the internationalization. The main issue is to mange the risk which might originate in new
country. the protection of intellectual property and lack of the compliance create many
difficulties during the internationalization. So it is very important to draw up the
corporate guidelines and have a detailed finance plan. In relation to the Hmlet, the Covid-
19 outbreak is the biggest hurdle in internationalization. Due to this, to mitigate these
risks the Hmlet laid off many workers ans received $6 million cash injection to regain
their share of the rental market.
 Personal resources- The main key factor here is the skilled and talented staff which is
required in the business organisations. In the foreign experiences, the language skills is
considered the most important. The knowledge about the fiscal, legal framework and
bureaucratic condition is indispensable.
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International growth strategy for Singapore, Hong Kong and Tokyo for Hmlet
The growth strategy for international business is highly beneficial for the growth of a
business within the new market. This comprises of market entry strategies that is depended upon
factors like size and scope of business, product or services being offered, availability of
resources, etc. The growth strategies are categorized on the foundation of organisation relying
upon the present or a latest product in the current market. In context of the company Hmlet, the
company's growth strategies are being discussed through an application of Ansoff Matrix.
 Market penetration: Under this growth strategy, a firm emphasis upon the sale of its
products as well as enhancing the same in present market. In context to Hmlet, it is safe
& less risky as there it does not requires the introduction of a new product. It could offer
its items through discounts or offers
 Product development: Within this, a firm introduces a new product into the existing
market which demands for the development of new skills so that can satisfy the
customer's need. With the assistance of innovation or research & development, a new
item can be launched with high ease. The present strategy is found to be little risky as
there is a chances of failure into the market. In relation to Hmlet, the company launches
an interior designing as well as property management within the region of Singapore
having an aim of generating greater profits (Fischer and Green, 2018).
 Market development: Under this, it involves a sale of current product into the new
market. In context to Hmlet, the company is having an opportunity of growing its
business at international level by catering to different geographical market as well as new
product for targeting new consumer's. Hmlet could also adopt different pricing strategies
to develop a new consumer segments. Hmlet would launch its item in the markets of
Tokyo, Singapore and Hong Kong (İpek and Bıçakcıoğlu-Peynirci, 2020).
 Diversification- The present strategy is considered by the business to introduce a fresh
product into the untouched market. In context to Hmlet, this is proved to be highly risky
as the business is having less experience & if they would expand their operations with
new product, then there is a higher chances of business failure. The firm adopts research
& development strategy to launch a new product for their business growth. Hmlet
launches a wide option of its products for its customers within Hong Kong & Tokyo like
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the subscription for furniture, interior designing as well as the property management. The
business also announced the management contracts for different properties within
Thailand & Malaysia (Lindahl, 2018).
Challenges faced by Hmlet in Asian market and recommending to emerge as strong player in co-
living space service market.
A firm needs to experience several challenges during the business expansion especially at
international level. There is an existence of different reasons due to that some challenges takes
place within the environment where the company is operating its activities. The business
environment performs a major role in encouraging business activities in international market.
The sustainability is needed by each firm which is a very significant element for companies. Asia
is a country where there is a limited resources and all the businesses works in a sustainable way
to protect their resources out form wastage. In context to Hmlet, this provides the service of
housing & rental that experiences numerous challenges towards the sustainability in Asia.
 In Asia, there is a huge scarcity of housing within the urban areas as due to the
overpopulation as well as the presence of limited space. Such challenge is faced by large
cities like Tokyo, Thailand & due to which the investments are considered to be large
because of an rising demand & fewer revenue.
 Housing sector is highly dependent upon the construction industry & there is an scarcity
of workforce due to that Hmlet faces labour challenges, as this is dependent upon the
infrastructure businesses (Sánchez-García, 2020).
 Hmlet along with above faces a problem of recruiting directors to manage company's
affairs, for which they are required to appoint less skilled managers.
 In order to run the business effectively within another nation this becomes highly
difficult, as they faces some restrictions as well as imposed political policies due to that,
Hmlet experiences several challenges.
The some possible solutions for Hmlet in order to overcome above analysed challenges
along with an achievement of their successful goals are mentioned below:
 Hmlet could reduce its investment expenses by utilizing those ways which are profitable
for the business in raising investment & working properly. The initial public offering
(IPO) could be launched by them for raising their funds or can go for a partnership with
other local business in same sector.
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 In order to have successful construction & the furnishing of house through some
innovative ideas, Hmlet could develop an investment in the field of artificial intelligence.
It could also inbuilt latest innovative machines which has an effective & efficient
performance ability (Velez-Calle, Sanchez-Henriquez, and Contractor, 2018).
Hmlet can also come sup with certain strategies which are beneficial to furnish a
competitive advantage in industry. The Hmlet company can also offer house rental services to
the working employee's & can establishes facility of ordering food for regional people. The
transportation facilities could be rendered to travellers which would help them in attaining high
competitive advantage at international market.
CONCLUSION
From the above report it can be conclude that globalization creates the various
opportunities for the business enterprises by shifting towards an interdependent and integrated
global economy. The business faces many difficulty during the planning to expand.
Internationalisation play vital role in streamlining internal processes fort the international market.
It is an integral part of the product development life cycle. This study is about the Hmlet, it is a
start-up from the Singapore that is offering their customers co-living space with the additional
services. In the first part some main factors are explained which helps their organisation in
expanding it internationally which were the financial resources, active management of risks, etc.
in the second part it is about the growth strategies that are used by the Hmlet with a purpose of
business growth by considering the Ansoff matrix. In the last part it looks at the challenges
Hmlet could face in terms of the sustainability as it expands their business in the Asian market.
An organisation should have some strategy to enter in to an international market or
internationalization.
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REFERENCES
Books and Journals
• Stallkamp M, Schotter APJ. Platforms without borders? The international strategies of
digital platform firms. Global Strategy Journal. 2021;11:58–80
• Case study on Hmlet (AIB, 2021)
• Proquest (Hmlet articles)
• Co-living brand Hmlet checks out of Australia, leaving debt and dismay (30/05/21)
• Hmlet bags US$6m injection from investors in a 'down round' for turnaround; exits
Australia (18/05/21)
• Hmlet to expand into Malaysia and Thailand, widens product offering (15/09/20)
• Start-up CEO: Buying a house is ‘completely crazy,’ so co-living will be the answer for
many (04/07/19)
• https://www.hmlet.com/en/about-us
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