Feasibility of Jinli's Expansion in the Mobile Phone Market of Australia

International Business

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Contents
INTRODUCTION.................................................................................................................................2
Mobile phone market in Australia.........................................................................................................2
Advantage and disadvantage for Jinli....................................................................................................2
Environment analysis............................................................................................................................4
Porter’s National Competitive advantage theory...................................................................................5
Recommendations regarding the entry..................................................................................................6
Conclusion.............................................................................................................................................7
REFERENCES......................................................................................................................................8

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INTRODUCTION
In all around the world there are many new companies that have adopted internationalisation
as their prime strategies for the growth of their business. In the process it is always essential
that company understand the nature of the market as well as its potential to establish their
market base in the new nation (Haverila, 2011). They had to face many types of challenges in
the process like economic instability, competition etc. Mobile manufacturers have expanded
their business at tremendous pace. Jinli is one another company that is known for making and
selling of mobile phones of high performance at lowest of prices. In china they are the tenth
largest seller. Apart from this they also have their markets in South Africa, Thailand and
India. This company plans for its further expansion in Australia. This report analyses the
capability of the company as well as the external environment that is present in Brazil so as to
make expansion. It also explains about the advantages and disadvantages for Jinli if they
enter into Australia.
Mobile phone market in Australia
Australia has been one of the best countries for the expansion of mobile phone producers.
Australia being a developed nation provides a huge amount of opportunity for the new
companies to expand into it. The number of mobile phone users in Australia is going to
become approx. 3 billion by 2020 (Soo and Doolan, 2014). There are very less mobile phone
manufacturing companies that are operational in Australia. 75% of Australian users are going
to use smartphones by 2022, this act as a global attraction for companies like Jinli to invest.
Major part of the market is captured by big competitors like Apple. But with the changing
dynamics of the market, the people are also demanding for lower cost products with high
performance.
Advantage and disadvantage for Jinli
Jinli is a growing firm and hence in the process of Internationalisation, Australia can be an
excellent market. This company aims to just sell its products in the country with the help of
retailing business. This is because of the fact that Australia is a costly market especially for
the process of establishing manufacturing units in the country. In order to gain high profits,
retail is the best option (Paladino and Ng, 2013). There are certain advantages and
disadvantages of entering into Australia. They are as follows:
Advantages