International Business Strategy for Target Australia Ltd.

MGT611/MGMT6015
International Business
Strategy

Executive Summary
The report has covered the different strategy of which help the company in entering the new
market for their expansion purpose. The report has further involved the various factors such as
political, economic, legal and social dimension of the target market and analyse this factor for
selecting the most appropriate and best new emerging market for expansion. The report has been
concluding that for Target Australia Company of the Australia, the Indonesian market is best
because that market has large population as well as high demand of fashionable and beauty
products. The report has also recommended the company with exportation strategy for entering
the new markets because it involves low cost, less risk of losing market. For this the report has
also advised the company that they have to equally pay attention in the home country and home
customers even after expansion.
Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Country and Product Market Attractiveness................................................................................4
Foreign Market Entry Strategy....................................................................................................5
Resources Required to Implement International Business Strategies.........................................7
Risk and Strategic Implication.....................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
The most significant transformation in the recent years has been the emergence of the
international organisation that have operations worldwide. Globalisation have brought the
structural changes in the business environment (Buckley and et.al, 2018). International
businesses have restructured and transform its operations and activities to expand its operations
in the maximum locations around the world. With strategic placement of the businesses the
international organisations have created a network in which they exchange goods and services
between two or more countries independently.
For the purpose of understanding an Australian company named Target Australia Ltd. is
chosen for the analysis. The company operates from the Melbourne, Australia and was
established in the year 1926 as a retailer of wide range of clothing, cosmetics, homeware,
electronics and books etc. The products of the company are sold under mid-price departmental
store owned by Kmart groups and also through various online distribution channel. The products
are successful in the markets of Australia with 284 stores throughout Australia in which 191 is
Target stores and 93 is Target country stores. The company revenue is 2.68 billion dollars in year
2020 and have a base of around 13000 employees. The company is known for its research and
development in the area of retail sectors (Cherunilam, 2020). The company’s mission is to
provide best products and services to its customers in order to satisfy their needs. Target
Australia Ltd offer its customers a huge range of quality products in order to capture large
market share. The target of the company is the overseas market. The company is seeking entry in
the Indonesian market, and the company generally took the route of e-commerce as potential
route to exploit the market. Major competitors are Walmart, Costco, Amazon, Sam’s club etc.
The emerging market for the company is Indonesia.
The report represents the entry strategy of the company in the Indonesian market and the
dimension of the economic, political and legal environment. A justification for the selection of
Indonesia is highlighted and the reason for the selection of the product. Theories of the foreign
market entry and its strategies and how these strategies are fit with the Target Australia Ltd.
business model with the operating environment of the Indonesia is provided (Castellani and et.al,
2018). Also, strategic implications of resources required in the international business and
potential risks. At the end the organisational, financial, marketing, leadership and human
resources with its considerations are discuss in the report.

MAIN BODY
Country and Product Market Attractiveness
For the purpose of expanding the business in the Indonesian market, the Target Australia Ltd. of
the Australia decided to sell the daily use Faison able, homeware, electronic and beauty products
that they offer to the customers of home country. The reason behind the company for selecting
the respective country is that there is a high demand of such products including the electronic
products i.e., VCD and DVD players, LCD monitors, speaker components and many others
(David, 2018). By entering the Indonesian market, the company will easily make their position in
the new market and also make increment in their customer base and sales. Besides this there are
also various factors that need to be considered before selecting the Indonesian market as
company emerging market. This factors include, economic, political, social and legal culture
dimension.
 Political Factor: Because of the political stability in the target country and no restriction
in the trade the company can easily explore the strength and weakness of the market.
Along with that they can also analyse the demand of the market and the needs and
preferences of the customers. The foreign trade policy of the Indonesia is flexible that
why most of the companies shift their business here to gain advantage. But because high
government intervention, it is important for the company that they should follow all the
rules and regulation set by them.
 Economic Factor: In Indonesia, the market growth rate of the retail industry has been
increasing by 9.9% every year this indicate that entering the market is beneficial for the
company’s personal growth (Ruiz and et.al., 2020). The consumers of the target country
prefer more online purchase rather than offline which need to be considered by the
company in order to attract more and more customers. Due to the pandemic, the
unemployment rate of the target country is increased to 4.84% and in order to provide
jobs to the citizen of the Indonesia, expanding the business to this country is best suitable
for the company.