Boost Juice Bar: International Strategy for Entering China and Brazil

Running head: INTERNATIONAL STRATEGY
International strategy
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1INTERNATIONAL STRATEGY
Introduction
In the current business scenario, business firms should have global presence in order to
gain competitiveness in terms of larger sales volumes and brand identity. This will also reduce
the risks for the firm from their home markets. Boost juice bar is one of the leading entities in
Australia, known for their juices and smoothies. They are already having their presence in
different countries but more foreign countries should be tapped to manage the global
competencies (Hohenthal, Johanson and Johanson 2015). In this case, China and Brazil are
recommended because both these countries are considered as the leading developing countries in
the recent time. Both these countries possess huge market opportunities, which will be beneficial
for Boost juice bar.
The major reason behind the selection of China as the target market is their size of
population. This is due to the reason that China is the largest country in the world in terms of
population. Thus, Boost juice bar will have favorable market opportunities. In addition, China is
also one of the leading counties in the world in terms of the economic growth. Thus, Boost juice
bar will have positive market conditions in terms of both social and economical factors (Dong, Li
and Tse 2013). On the other hand, the major reason behind the selection of Brazil is their
geographic location. This is due to the reason that Boost juice bar is still not having their
presence in the American regions. Hence, entering in the Brazilian markets will help Boost juice
bar in gaining the foothold in this region. Moreover, Brazil is also considered as a leading
country in the world and is included in BRIC group. In China, Beijing and Shanghai will be
considered for the Boost Juice Bar and in New Zealand, Wellington will be considered. These
cities are the key metropolitan areas of both the countries. Metropolitan or tier I cities will have

2INTERNATIONAL STRATEGY
the higher average income of the customers to avail the juice. Thus, the market potentiality for
Boost juice bar in doing business in Brazil will also be positive.
Identification of the risks
In doing business in China, one of the major risks for Boost juice bar will be the political
scenario. This is due to the reason that China is having communists style of government, which
is not so business friendly as the capitalistic government. Hence, Boost juice bar will face the
higher intervention of the government in their business operation in China. In addition, the
demographics of China are not favorable as the older aged population is increasing over the
younger aged people (Sun 2018). Thus, the demand for the products of Boost juice bar might get
reduced with this change in the demographics. On the other hand, the major risks identified in
doing business in Brazil are the political instability. This is due to the reason that Brazil is having
the history of military coup and destabilization of the government (Nytimes.com 2019). Thus,
the return on investment for Boost juice bar will be uncertain. Moreover, in the recent time, the
economic growth rate of Brazil is dwindling and negative growth rate is also evident (Malhotra,
Russow and Singh 2014). Thus, Boost juice bar might not find the favorable economic condition
in doing business in Brazil. This can be concluded that both Brazil and China poses a few threats
for the entering business organizations in the country.
Determination of the suitability of the countries
Factors China Brazil
Status of trade
agreements
China Australia free trade
agreement
No free trade agreements
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