Global Strategy of Oasis Horticulture

Contents Executive summary 1 Introduction 3 Overview of company 3 Agribusiness sector (Australian Horticulture) 4 International opportunities for Oasis Horticulture 5 International strategies 6 Global strategy 6 Multi-domestic strategy 6 Transnational strategy 7 Mode of market entry 7 Most appropriate mode- Joint venture 7 Most inappropriate mode- Exporting 8 Recommendations 10 Conclusion 11 References 12 Introduction In the present competitive world, the strategic management is considered as the formulation as well as the implementation of the different vital initiative that are taken by upper level management majorly on behalf of high

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6/23/2019
Oasis Horticulture

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Executive summary
The purpose of report is to determine as well as apply different strategies of selected business
that is Oasis Horticulture. The company strategy opportunity as well as international strategy has
been determined in the report. Further, the mode of entry for the business in worldwide business
is discussed. The findings show the business has opportunity in New Zealand market where they
can expand business. In order to expand the business company has different international
strategies that can be adopted by company. In the findings, this is clear that Joint venture is
appropriate mode for Oasis horticulture and they should not follow exporting mode of entry. In
the end, it is recommended to Oasis Company to promote the products, expand the corporate and
should maintain competitive advantage within the market.

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Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Overview of company..................................................................................................................3
Agribusiness sector (Australian Horticulture).................................................................................4
International opportunities for Oasis Horticulture...........................................................................5
International strategies.....................................................................................................................6
Global strategy.............................................................................................................................6
Multi-domestic strategy...............................................................................................................6
Transnational strategy..................................................................................................................7
Mode of market entry......................................................................................................................7
Most appropriate mode- Joint venture.........................................................................................7
Most inappropriate mode- Exporting...........................................................................................8
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
In the present competitive world, the strategic management is considered as the formulation as
well as the implementation of the different vital initiative that are taken by upper level
management majorly on behalf of high-level of management. Oasis Horticulture company has
been selected for this assessment which include the detailed analyses of agribusiness sector.
Further, it includes the different opportunities that are present with the company in the
international market. Thus, this will make the company to select the diverse international policies
that are suitable for business. Moreover, the strategic management concepts also makes the
company to consider most inappropriate and appropriate method of entry with the help of which
they can enter into the international market in related to the Oasis Horticulture. In addition, the
report reflects the different future strategic direction as recommendations to Oasis horticulture
agribusiness in the market.
Overview of company
Oasis Horticulture is considered as the highly motivated company that offers Australian
horticulturists and landscapers with quality, advanced products majorly for the healthier, happier
as well as the sustainable future. The company is considered as the largest producers as well as
supplier of the bedding plants majorly in Australia with a assortment of more than 600 varieties
of vegetables, flowers as well as other finest genetics across the world (Oasis Horticulture,
2019). The company offers the wide range of products full-grown from maximum values and
obtained from very optimum local as well as the international plant breeders.

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Agribusiness sector (Australian Horticulture)
Presently, the farmers present in the Australian market are renowned for their own ability so that
they can adapt their production system in order to grow safe as well as the premium products that
offer the high level of satisfaction. The horticulture industry of Australia performs their business
in the highly competitive market not only domestically but also internationally (Williams, 2017).
Thus, this is the reason it is considered as Australia’s third largest agricultural sector. This has
been witnessed that in the year 2015-16, the gross value of the production was equal to $9.8
billion. In addition, over than 85% of the manufacture is traded into the national market. It has
been found horticulture industry provide the employment to more than 63,000 people (Australian
Government, 2019). Further, the government of Australia is driving more resilient, profitable as
well as the sustainable horticulture by: -
 Provide funds through rural R&D for profit program for project to improve the
productivity as well as profitability that include more than $3.4 million. This majorly
support mango, avocado and macadamia farmers that majorly predict for the quality of
the products that include fruit as well as yield and to monitor health of their trees with use
of latest tools (Australian Government, 2019).
 Offering dollar-for-dollar identical assets of approx. $49.5 million in the year 2016-17
with backing already capitalised by the segment through charges majorly for the research
and expansion to develop horticulture sector.
 The government has taken the step to improve the farmer access to the seasonal workers
by declining the tax rate to 15% for those who are majorly on the working holidays.
 In Australia, the horticulture sector is made up of approx. 16% of the farm industry with
the gross value in the year 2015-16.

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International opportunities for Oasis Horticulture
The company is aim to be leader of market in high quality, capacity green life goods that are
formed with the focus client as well as formed through profitable and efficient procedures that
offer the value to clients with the motive to enhance the shareholders returns as well as achieving
the environment at work with more sustainable future. Oasis Horticulture Pty Ltd is
confidentially established by Consolo Limited and due to which it has an extended record of the
achievement as well as progress in the market of Horticulture industry (Oasis Horticulture,
2019). The company has the production facility near to the Cranbourne majorly in Victory and
Springwood present in NSW along with the strong partnership with different wholesale growers
across the nation. The company has vast opportunities not only in domestic market but also in
international market.
Oasis young plants works together with the individual network owned by the wholesale nurseries
across different Australia territories and states which ensure that plants are manufactured close to
local retail outlets. The varieties of plant are majorly sourced from Europe, Japan, South Africa,
and many others with our joint venture with plant breeding company. Bonza Botanicals
progresses new blossoming plants right here in market of Sydney. This reflects that company has
wide range of opportunities in international market.
Oasis Horticulture company has chance in market for New Zealand market where business can
increase their business operations. In year 2016, value of New Zealand horticulture products that
is exceeded $8 billion that is further expected to grow. The growth will take place because of the
efficient production system, new cultivators, strong marketing, and branding that all contribute to
the success of industry. The major fruit grown in New Zealand are Kiwifruit, apples, berry fruit,

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summer fruit, and avocados (Environment Guide, 2019). Thus, Oasis Horticulture Company has
wide range of the opportunities in the market of New Zealand.
International strategies
International strategies are essential to be adopted by the company in relation to the Oasis
Agriculture. In present competitive world, there are diverse businesses that effectively use of
various policies for their business (Grünig and Morschett, 2017). The different international
strategies are discussed below –
Global strategy
The global strategy is considered as one of majorly effective international strategy that major
reflects way company established towards the evolution of target outside borders. The global
strategy is majorly tracked by different companies so that they can improve the products and
services in the present market (Holmes Jr, Hoskisson, Kim, Wan and Holcomb, 2018). Presently,
the company is offering the services in the Australian market only but this is to highlight that
they developed or manufactured different plants from different areas of world. The company has
wide range of opportunities in the market due to which they can easily adopt this strategy to
expand their market range.
Multi-domestic strategy
The strategy of the multi-domestic is one of the major strategies used by business to reach the
extreme local receptiveness so that it can be modified so they can match all the required
conditions linked with nation (Rothaermel, 2015). Oasis horticulture provides their brand
considering the dynamic requirements of the people present in the market. For instance, Oasis

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Company offers garden centres within the Australian market demand for the flowers of different
types so that they can enhance the variety as well as encounter growing desires of the customers
in the market. The company has obvious to provide the products that are demanded by the
company across the different areas.
Transnational strategy
In the international strategies, one of the majorly strategy is transnational strategy in which
organisational offer the products across the different areas of world (Hitt, 2016). According to
this strategy, companies need to focus on the local requirements of clients as they majorly
emphasis on their primary products. It has been found that company has acquisitions that help
them to offer the same sort of services in every market as this will form the standard brand value
as well as to form the quality plants that is possible with the production of products (Wheelen,
Hunger, Hoffman and Bamford, 2017). Thus, this reflects that company is able to source plants
of different varieties majorly from countries like United States, Europe, Japan and South Africa
Mode of market entry
Mode of entry in the market is considered as essential step that business has taken to develop
their business in different areas across borders. In the present era, there are diverse kinds of the
market entry mode that can be selected by business that comprise licensing, franchising, Joint
venture, exporting, licensing and many others (Shen, Puig and Paul, 2017). Considering all the
mode of entry, it is essential to determine the most appropriate as well as unsuitable mode of
entry for the Oasis Horticulture in world-wide market.

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Most appropriate mode- Joint venture
Joint venture is considered as one of most common mode of entry that is adopted by business in
which two or more firms together connect in order to form the corporate object that is measured
as one of major mode of entry that is particular by business to go in into the market (Stoian,
Rialp and Dimitratos, 2017). This mode of entry is considered as suitable mode of entry because
it offers the benefit in terms of expanding the products in the market with the less amount of
capital. Oasis Company follows this mode of entry for their expansion in market. It has been
witnessed that the company has join venture with Bonza Botanicals which is one of the plant-
breeding company that helps the company to form the new flowering plants right here in =
market of Sydney.
According to this mode of entry, business needs to deal with less risk of failure in the market that
is equality distributed among the partners. This mode of entry helps companies to share skills of
each other that is consist of technical, technology, skills of human, marketing as well as
expertise. Oasis Company effectively makes use of these skills in offering maximum plants and
other products in the market in order to meet the needs of customers (Yan and Luo, 2016). The
efforts of both the companies combine which further converts into improving the market value
and generating the awareness about the services that are offered by the company in market.
While expanding the business in the New Zealand market Oasis company can use this mode of
entry for which they can form the joint venture with any of the company in New Zealand market.
Most inappropriate mode- Exporting
In this mode of entry, business enters into market by selling their products in overseas market for
the consumption. This is measured as one of major unsuitable mode of entry because the
company deals their business in plants, flower, and other products that get affected if they are

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expected. The exporting is most unsuitable mode of entry as it leads to rise in the
misunderstanding among the party with whom dealing has been done (Collinson, 2015). Further,
the company need to pay high amount and they will not be able to meet their vision because
products that they will offer will not remain fresh.

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Recommendations
 Expansion of business: - It is recommended to Oasis Horticulture business to expand
their business processes in the international market in which they can select New Zealand
where they have wide range of options as well as this contribute in meeting the
objectives.
 Competitive advantage: - In the near future, the company will deal with tough
competition within the overseas market where the companies need to take the right steps
in the market where they are expanding and from the market where they are sourcing the
products. Thus, the company needs to form the competitive advantage comparing it with
their competitors that are present in the market.
 Mode of entry: - It is recommended to the company to form the joint venture for
increasing the business in different market in near future.
 Promotion: - The company should also promote their products in both domestic as well
as the international market so that they can get maximum number of customers attracted
towards them through which they can meet the need of customers.

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Conclusion
In the end of the report, this is concluded that the industry of horticulture is growing across the
world due to which the companies who are performing the operations in Australian market have
options in overseas market. The report shows the growth and competition that has been
registered in the agribusiness sector of Australia. Further, the international opportunities for
Oasis Horticulture Company have been identified so that company can grab the same and bring
the improvement in their market reach. In addition, the different international strategies have
been highlighted which are majorly used by the company. Considering the business, it has been
found that the most appropriate mode of entry is Joint venture and inappropriate mode is
Exporting. In the end, the recommendations have been provided to the company for the future
operations.

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References
Australian Government (2019) Horticulture [Online]. Available from:
http://www.agriculture.gov.au/about/commitment/portfolio-facts/horticulture [Accessed on 23rd
June 2019]
Collinson, S. (2015) Foreign Market Entry Analysis. Wiley Encyclopedia of Management, pp.1-
1.
Environment Guide (2019) Description of the activity [Online]. Available from:
http://www.environmentguide.org.nz/ [Accessed on 23rd June 2019]
Grünig, R. and Morschett, D. (2017) Developing international strategies. New York: Springer
Berlin Heidelberg.
Hitt, M.A. (2016) International strategy and institutional environments. Cross Cultural &
Strategic Management, 23(2), pp.206-215.
Holmes Jr, R.M., Hoskisson, R.E., Kim, H., Wan, W.P. and Holcomb, T.R. (2018) International
strategy and business groups: A review and future research agenda. Journal of world
business, 53(2), pp.134-150.
Oasis Horticulture (2019) Product Range [Online]. Available from:
https://www.oasishorticulture.com.au/product_range [Accessed on 23rd June 2019]
Oasis Horticulture (2019) Strategic Vision and Corporate Profile [Online]. Available from:
https://www.oasishorticulture.com.au/corporate_profile [Accessed on 23rd June 2019]
Rothaermel, F.T. (2015) Strategic management. New York: McGraw-Hill Education.

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Shen, Z., Puig, F. and Paul, J. (2017) Foreign market entry mode research: A review and
research agenda. The International Trade Journal, 31(5), pp.429-456.
Stoian, M.C., Rialp, J. and Dimitratos, P. (2017) SME networks and international performance:
Unveiling the significance of foreign market entry mode. Journal of Small Business
Management, 55(1), pp.128-148.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E. (2017) Strategic management
and business policy. pearson.
Williams, G. (2017) Sustaining Australia's food and agribusiness sector. Food Australia, 69(4),
p.20.
Yan, A. and Luo, Y. (2016) International Joint Ventures: Theory and Practice: Theory and
Practice. New York: Routledge.