International Business Plan for Ultra Tune

This paper discusses the international business plan for Ultra Tune, a leading organization in the servicing and repairing industry of Australia. It explores the background of Ultra Tune, the country in which it needs to expand its operations, and provides recommendations for market entry and competitive strategies.

Running head: INTERNATIONAL BUSINESS PLAN
Ultra Tech
International Business Plan
5/28/2019

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Executive Summary
The intent of this paper is to discuss about the international business plan for Ultra
Tune, the leading organization in the servicing and repairing industry of Australia. The report
has discussed the background of Ultra Tune and the country in which it needs to expand its
operations. The summary of the conclusion of the SWOT analysis of Ultra Tune has been
presented. From the analysis of these aspects, it has been identified that Ultra Tune presently
operates its business across Australia with the use of advanced technologies. The on-going
US-China trade war is not just impacting both countries GDP but also have a major influence
on the Australian economic environment. With time, the trade war impact will be seen on the
revenue of Ultra Tune Company. Hence, in order to overcome these aspects, the company is
suggested to enter in the Indian Automotive Industry. The report has recommended India as
the market to take an entry, because the automotive industry of the country is presently
growing at a fast pace which is offering increased advantages, as well as opportunities to
International, has taken entry in the market and that are planning to enter. The report has also
suggested that a company must adopt the strategy of cost leadership and differentiation in
order to attain a competitive advantage in comparison to other players in the industry. To take
entry in the market, the business can adopt Greenfield Investment strategy such that the
company can have a total profit of the market which will not be possible in the Joint Venture
Strategy. Furthermore, the promotional strategies that are an advertisement and public
relation strategy will be adopted by the company to promote its services among people in the
Indian market.

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Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Background of Company and Selected Country....................................................................3
Conclusion of SWOT Analysis..............................................................................................5
Strength of Ultra Tune.......................................................................................................5
Weaknesses of Ultra Tune.................................................................................................5
Opportunities for Ultra Tune..............................................................................................6
Threats for Ultra Tune........................................................................................................6
Market Opportunities.............................................................................................................6
Competitive Strategy Analysis...............................................................................................7
Market Entry Strategy............................................................................................................8
Marketing and R&D Consideration.....................................................................................10
Recommendations Regarding Production............................................................................11
International HRM Issues and Considerations.....................................................................11
Retaining Talent...............................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
Planning is the most important function performed by the management of the
business. Before entering into international markets businesses have to draft a plan for the
international business to set their goals efficiently assign their resources and define the
opportunities offered by the selected country for their product (Neelankavil, 2015). Besides
this, it helps in reaching to the target audience and how to provide competitive offers in the
market. The key motive of the international business plan is to prepare the organization to
take entry in the international market or to properly organize their existing international
activities of the business. The international business plan works similarly like any other
business plan works in the solidified vision and reflects that the business has attained the
business goals. The business plan supports in communicating the sales pitch to the investors
such that they can understand how the business will generate profit (Hisrich, 2010). It also
comprises strategy for understanding the international market, operations in the foreign
location, legal requirements and the required parameters in order to make the business work
at the selected location. The aim of this paper is to discuss the market entry strategies and
other competitive strategies that could be adopted by Ultra Tune in the Indian market. The
strategies are being suggested by analyzing the discussing presented in the previous market
selection assignment. In addition to this, the report is recommending some changes that could
be adopted by the company in its production procedure in the Indian market, according to the
market conditions.
Background of Company and Selected Country
Ultra Tune is the company of roadside assistance and automotive servicing. It is an
Australian owned franchised company with over 275 centers. Ultra Tune is the largest
independent company of repairing and car servicing of the Australian market. Ultra Tune

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commenced its business operation in 1979 with a store in Victoria and quickly expanding
operations all over the country (Ultra Tune, 2019a). In the year 2010, the company expanded
operations in the Kingdom of Bahrain. Since last twenty years, Ultra Tune is known in the
market for its controversial and censoriously acclaimed advertisement on television, Ultra
Tune has always exert efforts to remain unique from the competition by promoting its
services that are entertaining and engaging.
Ultra Tune presently operates its business across Australia and making its origin as
strong as possible to give competition to other players. However, because of the increasing
force of the US-China trade war both the countries have to deal with huge losses and it can
also result in decreasing global GDP by 3.5% (Wallace, 2019). It ultimately conflict
Australia, and will majorly affect the economic and financial state of the nation. Because of
the trade war, Australia has to decline in the GDP for a longer time duration which is
anticipated to be around AUD$423bn, and household income loss will be AUD$522 (BBC
News, 2019). As per the evaluation of KPMG Australia, the financial market can encounter a
decline in forthcoming economic growth and the inflationary effect of the on-going trade war.
The total effect of the trade war on the Australian market is strengthened by the collapse of
the financial market that will be severe. Hence, the major effect of the trade war on Australia
so as to the businesses operating in the country. This is the main reasons why Ultra Tune
needs to expand its activities in the Asian market considering the increasing economic growth
and opportunities offered by the countries in the market. Moreover, expanding business
operations in the Asian market will provision company in bearing the damages due to a trade
war.
Ultra Tune can plan to expand business in India one of the most promising and
developing countries. India is the country which covers a major part of South Asia. The
country is comprised of 29 states and has a significant level of control over all the issues that

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take place in the country (World Bank Group, 2019). In the entire world, India is famous for
its archaeological evidence that it has a highly advanced culture that is the Indus civilization.
Considering the market condition of the Indian automotive industry, there is fast development
and growth in the industry. The key strength of the industry is its strong supply chain which
is opening new growth opportunities for the engineering and manufacturing firms. Due to
this, there are a number of international players who have entered the market or are planning
to take entry to gain market opportunities for growth (Pollard, 2012).
Conclusion of SWOT Analysis
From the analysis conducted in the previous part, it has been analyzed that the
company possesses a number of strengths which is being used by the management of the
company to overcome the threats. In details the analyzed strength, weakness, opportunities,
and threats of the Ultra Tune are:
Strength of Ultra Tune
Ultra Tune holds the leading position in the automobile market of Australia with 275
centers. The company has attained this position due to its advanced and smart competencies
used to provide services to the customers (Ultra Tune, 2019b). In addition to this, the
company has advanced technologies which are developed by the company through
comprehensive research and development process. These technologies and equipment support
company in providing best services all time due to which it the most preferred business.
Weaknesses of Ultra Tune
One of the weaknesses of Ultra Tune Company is that its operations are restricted to
limited location. The above discussion has been analyzed that the organization operates its
business just in the Australian market. But the main reason behind this is to strengthen its
position in a single region (Collective Shout, 2019). However, due to the Trade War, the

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decision of operating business in a single country can result in huge losses, which raise the
point that the company must think about expansion in different nations.
Opportunities for Ultra Tune
The major opportunity for Ultra Tune that is present to Ultra Tune is the extension of
operations in the international market. By expanding business operations in foreign market,
company could increase its share in the market and base of the customer which will support it
in growing revenue. The increased revenue will then support the company in the setting of all
the losses it will experience due to a trade war.
Considering the growth opportunities offered by the Indian market, Ultra Tune must
expand its business in the Indian Automotive Industry.
Threats for Ultra Tune
The key threat for Ultra Tune in the Indian industry of automobile is intense
competition from the existing domestic and international firms like Force, Volkswagen,
Volvo, Honda, Volvo, etc. These companies are offer repairing the service facilities to the
customer through a separate servicing showroom under the same brand name (Saranga,
2019). In order to overcome the threat, the company has to frame an attractive marketing mix.
Market Opportunities
India is considered as the worldwide leader in the automotive sector, as it is backed by
the production capacity of the domestic market, market size, and exports. With the increasing
growth of the automotive sector, servicing the repair segment of the industry is also growing.
There are numerous initiatives taken by the Indian Government along with the increasing
number of automobile players are anticipated to take the Indian market to the leading position
by 2020 (Banerjee, 2017). Resultantly, the business of car servicing is growing at a faster rate
to encounter the cumulative car population demand. According to the market research, there

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are only one third of the car owner who visit dealer workshop for repairing or servicing post
warranty and remaining of the entire population visit local multi-brand garages that can
provide cost-effective and reliable services with closer home advantage. In order to encounter
this increasing demand, the multi-brand service stations are offering high quality and cost-
effective repairs and it is also the future of this industry in India. This data highlight that Ultra
Tune, can cover the Indian repairing and servicing market of the automotive industry, in
order to grow and increase its market share (Your Story Media, 2017).
Competitive Strategy Analysis
Porter generic strategies explain how a business attains a competitive advantage in the
market. The GCS is a methodology created to offer businesses a strategic plan to compete in
the industry and gain competitive advantage (Porter, 2011). As stated by Porter, a business
can make use of its strengths to be positioned in the competition. There are three genetic
strategies formed by Porter are the focus, cost leadership, and differentiation. Companies can
make use of any of the one or combination of two policies to attain the competitive advantage
(Martin, 2014).
To attain the leading position in the market of India, Ultra Tune can adopt the
combination of two strategies that is Focus and Cost leadership.
Differentiation Strategy – Business differentiates their products in a way to compete
in the market successfully. With the availability of the numerous brands in the industry and
variety of services with advertisement noise, it becomes very tough but eventually very
essential to differentiate the brand from the competitors (Bhasin, 2018). Thus, the strategy of
Differentiation is utilized by businesses for their products. Ultra Tune can adopt
differentiation strategy to place itself in the market as the leading brand.

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Under differentiation, the strategy that Ultra Tune can adopt is product-level
differentiation. Indian automotive industry is breaking all the records and becoming the
biggest producer of tractors, the second largest producer of two-wheeler, and the second
largest producer of the bus (India Brand Equity Foundation, 2019). According to this data,
Company can adopt product-level differentiation strategy and can offer to repair and to
service for the tractor as it will support the company in covering the rural market of India too.
Besides this, the company can make use of environmentally friendly products for car and
tractor servicing which will reduce the environmental effect of the business. Along with this,
the company can also use water free servicing products such that it can support the
government in saving water.
Cost Leadership – This strategy helps the company in winning the share in the
market by targeting price-sensitive consumers. This is attained by the company by setting
lower prices for the services. In order to attain the success in offering products and services at
low prices while attaining the profitability and increased return on investment, the business
should be capable enough to run the business at lower prices in comparison to the
competition (Valipour, Birjandi & Honarbakhsh, 2012). As it is known that Ultra Tune is the
leading organization in the repairing and servicing industry of Australia and possess strong
financial stability in the market, the company can successfully operate its business in the
market at lower prices. The customers in the Indian market are price sensitive, by accepting
cost leadership strategy company will be able to serve those customer segment and will
support company in giving strong competition to the local car and vehicle repairing shops,
organized-multi brand service providers, and services centers of different car brands.
Market Entry Strategy
There are several ways through which a company can take entry in the international
market. Market entry strategy is an organized delivery and distribution technique of goods to

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a new target market. In the delivery services, it is the creation, introduction, establishment,
and management of the contracts in an international market. Establishing a strategy of market
entry comprised of comprehensive analysis of the rivals and consumers (Moore, Doherty &
Doyle, 2010). The available options that could be selected by Ultra Tune to take entry in the
international market are Greenfield investment and Joint Venture.
A Greenfield investment is the type of FDI where an organization establishes its
operations in the international market. In this type of investment, the business creates new
facilities such as manufacturing, sales, etc. in the international market. It is a type of market
entry strategy that is used by a company when it attains the highest level of knowledge and
information about foreign activities (Corporate Finance Institute, 2019).
Joint Venture is a specific type of partnership that comprises the formation of the third
individually managed organization. It is generally said to be the 1+1=3 procedure. Two
organizations decide to operate a business together in a precise market either product or
geographic and form a third organization in order to undertake this. Profits and risk are
generally shared in the equal proportion between both the organizations (Beamish, 2013).
The market entry strategy that will be adopted by Ultra Tune to enter in the Indian
market is Greenfield Investment.
Ultra Tune can take market entry in the Indian market through Greenfield Investment.
Greenfield Investment is the strategy that demands high investment in order to operate the
activities. It is a kind of investment under which the company need to buy land and organize
different facilities such as infrastructure, amenities, etc., to operate the business (Qiu &
Wang, 2011). The foremost position of Ultra Tune in the Australian market highlights its
strong financial position and resources which can be used by the company to invest in the
Indian industry.

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Furthermore, if Ultra Tech will select Joint Venture as the market entry strategy, then
it has to share its profit with other organization, which is not a feasible solution in terms of
company's strategic objective. As it has been discussed above that the company is focused on
offering its business in the Australian market only because of its desire to dominate the
market and attain the leading position. If a company will get involved in the Joint Venture
then it will not be able to it separately it has to share its profit with the partnering company.
Marketing and R&D Consideration
In order to market the services and products, Ultra Tune will make use of different
promotional techniques such that it can reach to a maximum number of customers.
Advertisement – It is the paid promotion of the services and products done through an
identified sponsor in the mass media (Rafique & Zafar, 2012). Ultra Tune will make use of
television, radio, porters, and banners as the means of promotion to increase customer
awareness regarding the company.
Public Relation – Under this Ultra Tune will organize the press release and provide
the description of the services it is going to offer in the Indian market. The company will also
promote the use of environment-friendly products it is going to use for the servicing and
repairing of car and tractors at low rates. In addition to this, the company will target the
market by highlighting that company is concerned about the water scarcity in the rural area of
India and therefore it will avoid the use of water for servicing of the vehicle and saving the
environment. This will result in encouraging people to avoid washing cars at home which
results in wastage of water and visiting Ultra Tune for their clean car.
The company will perform the market research in order to identify the number of
players offering low-cost car servicing facility to the customers and what products they make

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use for providing services. This will support the company in planning its strategies to deal
with the competition and designing strategies to attract customers.
Recommendations Regarding Production
As Ultra Tune is presently offerings services in the Australian market by using a
different type of products and the companies that are available in the Indian market has yet
not made use of environment-friendly products for the vehicle services which is majorly
impacting the environment. Considering the increasing environmental issues in the Indian
market due to increasing industrialization and urbanization, the company will include
environmentally friendly products for car and tractor servicing (Govindan, Kaliyan, Kannan
& Haq, 2014). Some of the products that can be used by Ultra Tune in the Indian market are
White vinegar, President’s Choice Green Fragrance-Free All-Purpose Cleaner, Eco Touch
Car Wash Shampoo, Steam cleaning, Nature’s Green Magic Premium Interior Cleaner, and
Eco Touch Waterless Car Wash.
In addition to this, the company will offer water-free car washing services to the
customers in order to encourage the justifiable use of water and reduce water pollution. This
will support the company in attracting customers and encouraging them to save water.
International HRM Issues and Considerations
Retaining Talent
Retaining is perhaps the major human resource challenge that the business experience
in the Indian market. Retaining millennial is the most Colossal task for the present human
resource department. Talent poaching and increasing cut-throat competition have motivated
people to ask for high remuneration by the deserving candidate (Majumder, 2016). This can
have an impact on the budget of the human resource department of the company as to hire

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skilled employee it has to pay more and deal with increased competition to retain the
workforce.
Conclusion
The above report is the continuation paper of international business strategy and plan
of Ultra Tune. This report has provided a brief overview of the analysis presented in the
previous assignment regarding the company. It can be observed from the analysis presented
above that Ultra tune is presently functioning and focusing its servicing and repairing
business in the Australian market in order maintains its leading position. However, the
increasing threat of the US-China Trade war is highly impacting the GDP of Australia as well
as Ultra tune business. In order to overcome the effect, the company must expand its
operations in the Indian Automotive industry. The Automotive industry of Indian is presently
growing at a fast pace and offering increasing growth opportunities to the domestic as well as
international firms. This report has suggested the Greenfield investment as the market entry
strategy for Ultra Tune such that it can have a total stake in the business and can gain a
leading position. In addition to this, the competitive strategy that can be adopted by the
company to survive in the Indian market is differentiation through environmentally friendly
products and waterless car and tractor washing services and cost leadership strategy by
offering cost-effective services. Furthermore, a marketing company will adopt advertisement
and public relation strategies to increase the awareness regarding the services of the Ultra
Tune and attracting customers to avail the unique services.

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