Meat and Livestock Australia: International Expansion Analysis

This report analyzes the international expansion conditions of Meat and Livestock Australia and identifies the most profitable country for business expansion. The analysis suggests that expanding in Japan will provide a competitive advantage. The report also discusses the entry model and the potential benefits and challenges.

Running head: MEAT AND LIVESTOCK AUSTRALIA
Meat and Livestock Australia
Name of the Student
Name of the University
Author Note

1MEAT AND LIVESTOCK AUSTRALIA
Executive Summary
The purpose of the report is to analyze the international expansion conditions of the
company Meat and Livestock Australia. The company sells meat nationally and in the global
markets. The threats and opportunities of two countries will help in determining in which
country the business expansion will be profitable for the company. The analysis lead to the
solution that Meat and Livestock Australia if expands its business in Japan, it will gain
competitive advantage. The direct export method will leverage the market share and revenue
generation of the company.

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Company and Product Background.......................................................................................2
Expansion in the markets of Japan.........................................................................................5
Expansion in the market of Philippines.................................................................................6
Entry Model...........................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................8

3MEAT AND LIVESTOCK AUSTRALIA
Introduction
The aim of the assignment is to discuss about the overall condition of the meat
company Meat and Livestock Australia. The international market expansion of the company
in the markets of Japan and Philippines are also discussed. The possible opportunities
provided by both the countries are discussed. This gives a clear idea of where the company
will gain profitability in expanding its business.
Discussion
Company and Product Background
Meat & Livestock Australia (MLA) is an Australian meat company. The company has
been started 220 years ago. The purpose of the company is to foster prosperity of red meat
and livestock industry of Australia. They try to enhance the demand for red meat globally and
in Australia. They are delivering development and research that is contributing to the
sustainability, profitability and competitiveness in the global market. Their source of funding
is from the sales of livestock, industry partners, voluntary contributions and government of
Australia (Austrade, Australian Government - Austrade, 2019). The strategic plan of the
company has been made in collaboration with the stockholders of the industry and the
government. Six pillars of strategy forms the base of the strategic plan of MLA. Every pillar
of the strategic plan has an outcome declaration statement, which indicates the assumed result
after the delivery and implementation of the plan. The strategic plan forms the foundation of
the Annual Investment plan of MLA for each financial year until 2020 (Export Markets -
Countries - Information for Australian exporters - Austrade, 2019). They have certain values
of customer centricity, accountability through transparency and outcomes that create a
difference. The company has a total value of 15.8 billion dollar and has become the largest

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exporters of livestock and meat around the world. 3,50,000 people are engaged in supply
chain and services of the business. 1,20,000 properties carry goats, sheep and beef cattle and
covers a land mass of 60% of the entire Australia. The company has employed 191,800
people. The main competitor of Meat and Livestock Australia is US as they have high value
in the market and due to the strong presence in the markets of Japan and Korea. Australia has
overlapped with the export destinations of India and Brazil. However, this situation is
evolving as India has already started exporting meat to Indonesia. The company is well aware
of the value of the organization in order to plan. They know the objectives and goals of the
company to fill the gaps if any. Meat and Livestock Australia is expanding in the
international markets and allocating resources to the main program areas of global market
and its insights. It has expanded its business in Japan, Korea, North America, Greater China,
Europe, Russia, Middle East, Northern Africa and Southern Asia. The company has loyal
customers locally. The human resource team understands that it is necessary to maintain a
basic quality and hygiene of the products (University, 2019). They recruit employees who are
well versed and have in depth knowledge about the meat industry and exports. The company
is continuing its business for more than 220 years and has immense knowledge of the export
and the meat industry (Serving red meat and livestock producers, 2019).
Expansion in the markets of Japan
The external factors that affect the businesses in Japan are-
 Demography: 80-96 percent of the Japanese preach Buddhism. Only 1 percent of the
population is Christian. Most of the population speaks in Japanese. The local and
national governments in Japan provide the health care.
 Economy: Japan is the one of the developed nations of the world. They have the lraget
national economy. The country has a large industrial capacity. The country has a very

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low unemployment rate. The main exports of the country are motor vehicles,
chemicals, machinery and electronic (Edgington 2018).
 Technology: Japan has high productivity in robotics and possesses half of the
industrial robots of the world. The space agency of Japan conducts planetary aviation
and space development and research of satellites and rockets. Thus, high support of
technologies helps MLA to continue business with Japan (Edgington 2018).
 Politics: Japan has constitutional monarchy in which the Emperor’s power is limited.
The Prime Minister has the maximum power.
 Environment: Japan is the market leader in maintaining new environment and is the
20Th best country of the world (Edgington 2018).
The internal factors affecting the business of Japan are
 Market and product analysis: Japan ranks second in foreign direct investment
contributor to United States. The GDP of Japan is 4.87 lakh crores USD. The
major channels of marketing in Japan are the social media platforms, Television
ad, newspaper ad and hoardings.
 Competitive analysis: The competition in Japan is distinctive in various ways. The
main factors are the corporate goals, internal diversification, rapid imitation and
entry and exit barriers. However the competitions prevailing in Japan is due to the
internationally unsuccessful industries in Japan.
 Buyers’ analysis: People of all age groups, caste, creed and religion are the buyers
of the country. The people with more income have an increasing buying graph.
They indulge in excess shopping during festivals. Meat is used in most of the
houses on a regular basis.

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Expansion in the market of Philippines
The expansion in the market of Philippines are affected by many factors-
 Economic growth: The economic growth of Philippines has increased over the last
few years. The GDP growth rate of the company was from 6% to 7% in the year
2016.
 Political environment: Philippines have enormous political capital. The programs of
CCT have given freedom to the poor voters from getting influenced by local and elites
of the society. Government has various rules and regulations to enable foreign
investments (Itani and Mason 2014).
 Environmental: Philippines is on the process of creating a new environment for the
citizens and for the business to prevail in the country.
The internal factors affecting the business in Philippines are-
 Market analysis: The economic growth of the country is decreasing regularly.
Although, the country has successfully penetrated into the oil and gas industry, road
network industry and petrochemical industry.
 Competitive analysis: Competition is increasing in the country year after year.
Philippines are improving the business strategies in order to restrict its competitors
(Itani and Mason 2014).
The various strengths and opportunities of Japan and Philippines have helped Meat and
Livestock Australia to expand its business in these countries. Government of Japan and
Philippines has introduced various advantageous laws for the companies for import and
export business. The growth rate and economic growth of Philippines is much lower than
that of Japan. Thus, it acts as a threat to Meat and Livestock Australia to continue and

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expand its business in Philippines. Japan, on the other hand will serve as the best platform
for its export business of meat. The culture of Japan also encourages this business model.
Entry Model
In today’s market condition, expanding businesses to various other countries is a
necessity for the companies. Direct exporting is the best way of Meat and Livestock
Australia to expand its business in foreign markets through distributors, sales
representatives and foreign retailers. They can also sell the products directly to the end
users. This kind of exporting is feasible as the size and marketing ability of the company
is outstanding (Chung 2013). This kind of export strategy will eliminate the export
companies and the intermediaries, which helps in direct marketing and in gaining
maximum profits. Direct export provides more protection and control in foreign markets.
Direct exporting avoids the confusion and minimizes the cost. It helps in better control
over sales. It helps in direct interaction with the clients. In this case, because the
intermediaries are eliminated the potential profit is more. Greater control over every
transaction is availed. Meat and Livestock Australia can know their customers better
through this entry model. Customers get a sense of security in doing business with that
organization further. Business trips will help in directly interacting with the customers
who have bought the products. Customers provide direct and faster feedback about the
product’s performance in marketplace. Meat and Livestock Australia get protection for
the copyrights, patents and trademarks. Organizations can increase flexibility in order to
improve the marketing strategies. These strategies will help Meat and Livestock Australia
to expand its business and penetrate into various markets around the world. On the other
hand, Meat and Livestock Australia should be careful about the disadvantages this model
has. The company should invest more money and time for its success. It would need more
people power in order to strengthen the customer base. Responsibility will increase in

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servicing the business of Meat and Livestock Australia. There will not be any buffer zone
for the business. Local agents can respond to communications with the customers much
faster and easier than Meat and Livestock Australia. The company should handle all the
logistics carefully.
Conclusion
Thus, it can be concluded that Meat and Livestock Australia can expand its business
in the Japanese market. This entry in the Japanese market would increase the revenue
generation and profitability of the company. The company can also increase its customer base
and expand its export to become the global leader of meat (Serving red meat and livestock
producers, 2019).
References
Austrade, Australian Government - Austrade (2019). Austrade, Australian Government -
Austrade. [online] Austrade.gov.au. Available at: http://www.austrade.gov.au [Accessed 23
May 2019].
Chung, C.K., 2013. Exploratory study on emerging market entry strategy: System thinking
approach. In International Conference of the System Dynamics Society, Cambridge, MA.
Edgington, D.W., 2018. Japanese business down under: Patterns of Japanese investment in
Australia. Routledge.
Export Markets - Countries - Information for Australian exporters - Austrade (2019). Export
Markets - Countries - Information for Australian exporters - Austrade. [online]

9MEAT AND LIVESTOCK AUSTRALIA
Austrade.gov.au. Available at: http://www.austrade.gov.au/Australian/Export/Export-
markets/Countries [Accessed 23 May 2019].
Itani, N. and Mason, K., 2014. A macro-environment approach to civil aviation strategic
planning. Transport Policy, 33, pp.125-135.
Serving red meat and livestock producers (2019). Serving red meat and livestock producers.
[online] Mla.com.au. Available at: https://www.mla.com.au/ [Accessed 23 May 2019].
University, L. (2019). Library. [online] Latrobe.edu.au. Available at:
http://www.latrobe.edu.au/library [Accessed 23 May 2019].