International Business: Boost Juice Australia Expansion in Japan and UAE

This paper analyzes the factors of Japan and UAE for the foreign expansion of Boost Juice Australia and concludes that Japan is more favorable for expansion.

Running head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Overview of the company......................................................................................................3
Analysis of the country, Japan................................................................................................3
Analysis of the country, UAE................................................................................................4
Favorable country for expansion of Boost juice Australia.....................................................5
Conclusion..................................................................................................................................6

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Introduction
Business expansion has become a requirement due to the wave of globalization in the
21st century. Expansion f business on an international level is important for every
organization to showcase their products to people all over the globe and mark their growth.
The chosen product this paper talks about is the smoothies by Boost Juice Australia and it is
going to analyze two countries Japan and UAE. This paper is going to assess the factors of
the country and provide details of why and which country is more suitable for the foreign
expansion of the product.
Discussion
Overview of the company
Boost Juice Bars in Australia are juice bars that sell fruit juices and smoothies. The
company was founded in March 2000 by Janine Allis. The headquarters of the company is
situated in Chadstone, Melbourne, Australia. The first ever store of the company was located
in Adelaide, South Australia (Boostjuice, 2019). The company is currently operating in 500
stores in 13 countries. The revenue of the company is $2.5 million. The price if the juices and
smoothies depend on the quantity. The estimated prices of juices are about $7.10, the
smoothies are estimated at $7.60 and the protein drinks at about $9.20. The products include
smoothies, juices and protein shakes (Boostjuice, 2019).The company has already expanded
in many countries and trying to expand in other countries with their famous products.
Analysis of the country, Japan
Japan is considered to be the world’s second largest developed country in terms of
their economy. Japan has a market orientated economy (Lockwood 2015). The average
annual GDP growth rate of the country has averaged at a 0.30% (Tradingeconomics, 2019).

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The GDP growth of Japan per capita is 48556.93 USD (Tradingeconomics, 2019). This
shows that the amount of products is increasing day by day and the consumers are using it.
The standard of living is high in Japan and people are spending more here. The interest rate in
Japan is steady and the forecast of inflation has been cut down (CNBC, 2019).This states that
the interest rates are less thus the cost of products are not very expensive and it becomes
affordable for people living there (Auerbaach and Gorodnichenko 2017).The employment
rate of men is 85.7% and the employment rate of women is 68.4%. The employment rate is
high which indicates that people here are well educated and there are job opportunities for
people (Kambayashi and Kato 2017). The literacy level of Japan is very high that paves way
for the employment level of the people there (Kadoya and Khan 2016). The labor force of
Japan was moderate thus paving for foreign workers in the country. This suggests that there is
no dearth of workers as there are people who come from outside in search of work (Song
2015). About 1.23 million foreign workers work in Japan (Oecd.org, 2019). The current
value of the Japanese Yen to $US dollar is 111.72. This suggests that companies here are
making more profit because of the current value of the currency. The income per capita of
Japan is USD 45,470 PPP dollars. This shows that people here are earning a decent amount of
money where they are spendthrift that helps companies in generating profit.
Analysis of the country, UAE
The United Arab Emirates often known as Emirates is a country in the Middle East.
The GDP of UAE is $382.58 billion that shows the increase in the products and the spending
nature of the population (Sbia, Shahbaz and Ozturk 2017). The GDP per capita of UAE is
41197.17 USD (Tradingeconomics, 2019) This shows that the people here earn well and the
standard of living is pretty high and the expense of the people here are more. The average
annual GDP growth is 1.70%. The interest rate of UAE was averaged at a 1.40%
(Tradingeconomics, 2019). This shows that the products available here are expensive

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(Zarrouk, El Ghak and Abu Al Haija 2017). The inflation rate in UAE is averaged at 2.19% ,
this states that the cost of the resources are high and workers may demand a hike in their
salary due to the cost of living. The employment level in UAE is about 77% that indicates
that there is a fair amount of jobs for people but not in abundance (De Bel-Air 2015). The
literacy rate in UAE is close to 95%. This shows that most people here know how to read and
write that helps in the development of a country. The participation of the labor force rate was
91% among men and 42% among women (Daleure 2017). This shows that there are more
working men in comparison to women but still the labor force is high (Young 2017). The
current value of the United Arab Emirates dirham to US dollars is 3.67. The value shows that
the worth of the UAE dirham is less than the US dollar that may affect a business if operating
globally. The income per capita of UAE is 74,410 PPP dollars, this shows that the income of
the people are high thus resulting in the high cost of living (UNICEF, 2019).
Favorable country for expansion of Boost juice Australia
Japan and UAE both have a high economy. After the findings about both the countries
it can be seen that Japan is the favorable country for Boost Juice Australia to promote and sell
their smoothies here. Japan is open to foreign market more when compared to UAE. The
GDP rate is high and the interest rate is low that will Boost Juice Australia as they do not
have to pay huge interest on loans that they might take for the expansion in Japan. The
literacy level is high that will help the company in getting efficient people to look after the
business there. It has been that there is a high level of employment due to the job
opportunities and many foreign workers come to Japan for work that will help the company
in hiring employees. The standard of living is high and the people here earn well thus they
can spend on smoothies. Japan has four distinct weathers where the summers are very hot,
this can help in the sales of smoothies due to the hot climate. The people of Japan are
becoming health conscious thus the sales of the smoothies are going to rise as they have

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smoothies of different fruits that are healthy. People will spend on smoothies more in
comparison to soda’s and other aerated drinks. The current currency value of Japan is high
that will help the company in generating good revenue paving way for profits. The price of
the smoothies can make profits because of the high currency value. These are the factors that
suggest the growth of the smoothies of Boost juice Australia to expand in Japan.
Conclusion
This paper concludes by stating Japan is more favorable than UAE and Boost Juice
Australia should focus on expanding their business in Japan due to all the favorable factors
that will help in making profits. Expanding in Japan will get Boost juice a strong foothold in
the market and help in generating good revenues for the company.

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