Internationalization and Growth Strategy for Hmlet in Asian Market

This report discusses the internationalization process of Hmlet, a provider of co-living space service for people living in Australia, Singapore and Tokyo. It explains the main drivers of internationalization, analyses the international growth strategy of Hmlet and discusses the challenges faced by Hmlet in Asian markets. The report also recommends solutions for Hmlet to emerge as a strong player in the co-living space service market.

International studies

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Main drivers of internationalization for HMLET ......................................................................1
Analysing international growth strategy for Singapore, Hong Kong and Tokyo for Hmlet......3
Discussing challenges faced by Hmlet in Asian market and recommending to emerge as
strong player in co-living space service market. ........................................................................4
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6

INTRODUCTION
In all over the world different nations are experiencing an significant change in the way
of delivering & marketing of several items, goods and services. The international business is the
concept of doing business activities involving technology, capital, or knowledge comprises of
buying and marketing of commodities, goods and outside services in its national borders. Every
organisation is trying of business expansion from domestic market to global market in economy
by scattering the products to international customers (Ansoff, H.I. And et. al., 2019). The
international business consists of cross-border transactions among the countries. The
internationalization of the business improves the company profits by distributing products to the
nations where cost is high and enhances their development prospects. The report is based on case
study of Hmlet founded in 2016 which is a provider of co-living space service for people living
in Australia, Singapore and Tokyo. It focuses on offering rooms and furnished apartments for
rent. In recent it built his portfolio of co-living properties in Singapore, Hong Kong, Sydney and
Tokyo. The report discusses main drivers of internationalization, international growth strategy of
Hmlet and challenges are discussed face in Asian markets.
MAIN BODY
Main drivers of internationalization for HMLET
Internationalization is the procedure of up surging involvement of enterprises in
international market. It is an significant strategy for the sustainable development that requires
internationalization to bridge the gap among diverse cultures and countries. For
internationalization business the entrepreneur is required to have the ability of thinking globally
and understanding on international cultures (Blau, B.M., 2017). The internationalization of
Hmlet is based on drivers which influence process of how company capabilities can be
developed. It is essential to understand the drivers for Hmlet as it wants to expand its business in
new market and countries.
 Organisation structure- The company needs to decide whether there headquarter will
be central or decentralised organisation by country. The organisation can have flexibility
by having combination of both. In the country every companies different organisation
structure where the work flows in proper manner. For the Hmlet it will organise its
structure in accordance to the countries rule so that work can be performed smoothly. To
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make the effective management it is gone through expansion of its team and included
senior vice-president Michael Hogg. In March 2021, Hmlet announced that their then
CEO Yoan Kamalski would step down and will be replaced by Peter Kennedy, who is a
senior advisor at Bruda Capital Investements for better leadership and management.
 Active management of risk- The organisation face many problems in
internationalization, but the greatest difficulty is managing risks that might originate in
the new country. There is Compliance with local laws and intellectual property protection
are important for any company moving to a new country (Dikova, D., Panibratov, A. and
Veselova, A., 2019.). As a result, company guidelines and a detailed financial plan must
be drawn up to manage such risks. In the case of Hmlet, the greatest threat to
internationalization has been the global Covid-19 outbreak. To mitigate the risks, Hmlet
laid off many of its employees and received a $ 6 million cash injection in 2021 to regain
its share of the rental market.
 Monetary Resources: An organization is needed to approach of long - term and
dependable economic sources which would assist them with relieving chances that might
emerge in the new market and country. It additionally assists with relieving
competitiveness in the new country. Organizations with value capital are more fruitful
around the world. In Covid-19 time, numerous huge developers and financial investors
were coming to Hmlet with a decent money related investments and to examine business
opportunities. The element that assisted in the expansion of 48 million dollar which is a
huge fund which was raised in 2018 and 2019 by the investors from Bruda Capital,
Mitsubishi Estate company and Sequoia India.
 Consideration of Local Market: This implies that variation of new methods of working
together that are identified with the country the business is being finished. Each nation
have their own financial qualities which should have been considered for the business to
have a competitive boundary in the new commercial centre. In case of Hmlet, to meet the
emerging needs of the younger generation, the organization has offered more long and
medium – term housing (Exposito, A. and Sanchis-Llopis, J.A., 2018). As local people
were more delicate about the elements like cost and area, the administration changed its
item offering and offered extra types of assistance like clothing, week by week cleaning
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and different conveniences. And furthermore enlarged its item proposing to acquire a
more noteworthy piece of the pie of private housing market.
Analysing international growth strategy for Singapore, Hong Kong and Tokyo for Hmlet
The international growth strategy helps the company in finding right opportunities for the
growth into new market (Ansoff, H.I. and et. al., 2019). It involves market entry strategy
involving choices of resource allocation, product and service value, brand positioning etc. the
growth strategy is categorised on the basis of company relying on existing or new product in
present or new market. In context to Hmlet Ansoff matrix is used for analysing growth strategy.
The Ansoff matrix helps the marketers in identifying opportunities for growth in market
which gives them insight on available methods.
 Market penetration strategy- It is an growth strategy where business focuses on selling
of existing product in the same market. In the context to Hmlet it is less risky strategy as
no new product is introduced in a new market. To attract customers it can provides offer,
discounts, for increasing the sales.
 Product development strategy- This is a strategy of introducing new product into
current market which needs the development of new competencies and needs to modify
products to have appeal in existing market. The new product can be introduced by having
research & development, innovation etc. This strategy has little risk as there are chances
of product failure to meet demand. In Singapore, it introduced the interior designing,
property management in the aim of gaining market share (Exposito, A. and Sanchis-
Llopis, J.A., 2018).
 Market development strategy- It is a strategy of selling current product into new
market. In context to Hmlet it will have international growth by approaching to new
geographical market, new product6 dimensions to attract new customers. It can also
adopt different pricing policies for creating new customer segments (Will, M., 2020). In
context to Hmlet there is risk as competition exists which is not known yet and there are
possibilities of down fall in present. This strategy was adopted by Hmlet to cover new
market Hong Kong and Tokyo where it will introduce its existing services those are, co-
living houses in the markets of Hong Kong and Tokyo.
 Diversification- in such strategy the companies take their business in new market with
new products. In context to Hmelt is a more risky strategy as it will expand its business
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into new market by having little experience. The business are indulged in extensive R&D
strategy for bring new product and makes market research for starting their business. The
Hmlet introduced the wide range of products for its customer in Tokyo and Hong Kong
such as property management, interior designing, furniture subscription. It also
announced management contracts for several properties in Malaysia and Thailand (Foss,
N.J., Mudambi, R. and Murtinu, S., 2019.).
Discussing challenges faced by Hmlet in Asian market and recommending to emerge as
strong player in co-living space service market.
While expanding the business internationally the company has to face several challenges
in its lifetime. The challenges may occur due to several of reasons in the environment in which it
its operating its functioning. The business environment has the major role influencing the
working of business in the international market. Every organisation requires sustainability which
is crucial factor many investors and customers (Holt, A.G., 2019). The Asia is a continent with
the limited resources where every organisation works in sustainable manner so that resources are
not waste. In context to Hmlet it works in rental and housing industry which faces several
challenges towards the sustainability in Asia-
 In some countries to run business foreign ownership is allowed and certain restrictions
are imposed by the countries which is an challenge for Hmlet facing.
 The minimum capital requirement is imposed by certain jurisdictions which is an
challenge for Hmlet to start a business (Marques, J. and Pinho, M., 2021).
 The Hmlet will face the problem of appointing director for handling company
obligations. The foreign or local director can be appointed.
 Rising energy costs and poverty are widespread in the Asian continent, this will make it
more difficult for customers to pay rent and Hmlet will reduce the cost of living.
 In the Asian continent, there is a housing shortage in urban areas due to overpopulation
and limited space. This problem is faced Big cities like Tokyo, Thailand and investments
are made too bid due to increasing demand and makes revenue too low (Khojastehpour,
M. and Shams, S.R., 2020).
 The housing industry is instantly dependent on the construction industry and the
increasing labour shortage in the forthcoming poses a actual threat to Hmlet as it is
dependent on infrastructure companies.
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The Hmlet faced the above challenges in rental and housing industry in Asia. The
sustainable practices were adopted to reduce to the impact of these challenges and gaining
competitive advantage in market. The following are the possible solutions for Hmlet to emerges
as leading player in the service market.
 The solution to the challenge discussed above is that Hmlet must discover ways to cut
down rising energy costs and jeopardize revenues. To reduce costs, Hmlet should use
sustainable practices as the use of solar energy in its activities will outcomes in lower
costs and more income. In front of a company's stakeholders a good image is also created
(Rehman, A.U. and Anwar, M., 2019).
 The investment cost can be reduced by looking on the ways by which funds can be raised
and efficient working can be done by Hmlet. The new public offerings can be made for
raising funds or indulge in partnership with other business of same industry.
 The Hmlet can make investment in artificial intelligence for having effective construction
and furnishing of houses with innovative ideas. It can hire the innovative machines which
have effective and efficient working (Voeth, M., Poelzl, J. and Eidhoff, A.T., 2018).
The Hmelt, come with the strategies that will provide a competitive advantage in the co-
living space market. The needs of customers and market wants are critically analysed. The Hmlet
offers renting house to working people and establishes food order facility to the people who want
service. The transportation service can also be rendered to customers which will help in gaining
competitive advantage to Hmlet in international market.
CONCLUSION
It is being concluded from the above report that international business is described as
study of internationalization process of multinational enterprises which has an broad approach of
marketing, production and operations in various countries. The globalization creates the greater
opportunities for global business by shifting towards the interdependent and integrated global
economy. The company faces many problems when planning to expand. Hence, it is important to
talk about the critical questions when developing business strategies. The study is about Hmlet, a
start-up from Singapore that is busy offering its customers co-living space with additional
services. In first part main factors is explained that helps the company in expanding
internationally which were financial resources, active management of risks, etc. Second part is
about the growth strategies that hmlet has used for the business growth by considering Ansoff
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matrix. The last part looks at the challenges Hmlet could face in terms of sustainability as it
expands in the Asian market. And it also talks about the solutions to these challenges.
References:
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