Potentiality of the Horticulture Sector in Australia for Landmark Horticulture

Running head: STRATEGIC MANAGEMENT
Strategic management
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1STRATEGIC MANAGEMENT
Executive summary
The aim of this report is to discuss about the potentiality of the horticulture sector of Australia in
the international market. This report discussed about the opportunities that can be gained by
Landmark Horticulture in doing business in the international market. In addition, the
international business strategies that can be initiated by them are also discussed and evaluated.
The appropriate and inappropriate mode of entries available for Landmark Horticulture is also
discussed and it is recommended that foreign direct investment and joint venture should be
initiated. This report recommended that they should follow cost leadership and market
penetration strategy in their long term business operation.

2STRATEGIC MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
Identification of the international opportunities..............................................................................4
Identification of the international strategies....................................................................................5
Determination of the appropriate modes of entry............................................................................6
Determination of the inappropriate modes of entry.........................................................................7
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

3STRATEGIC MANAGEMENT
Introduction
In the current business scenario in Australia, horticulture sector is one of the potential and
emerging business sectors due to the recent growth witnessed by them. It is reported that as of
2016, the total value of the Australian horticulture sector is $9.8 billion and is projected to grow
at the rate of 4.5 percent till 2020. In terms of the employment, it is identified that more than
57000 employees in Australia are employed in this sector. These data sets are proving that
horticulture is one of the most promising business sectors in the Australian region. However, on
the other hand, it should also be noted that with the increase in the opportunities in this sector,
competition is also increasing with the entry of new competitors (Molla and Peszynski 2013). In
this case, it is important for the existing players to review their competiveness in dealing with the
newer challenges. Apart from the challenges in the form of emerging competition, another major
factor is the global trends. This is due to the reason that in the current era of globalization, local
horticulture companies of Australia are vulnerable to the global challenges with the continuous
inflow of the global brands. On the other hand, this is also posing opportunities for the domestic
horticulture companies as they can also tap the international market (Dixon and Aldous 2014).
As of now, it is reported that only 15 percent of total horticulture production in Australia is
getting exported to the foreign markets. Thus, there are huge opportunities available for the
domestic horticulture companies in tapping the international markets.
Among all the horticulture companies operating in the Australian region, Landmark is the
biggest distributer of farming supplies and fertilizers. It is reported that they are their presence in
more than 200 locations with having 1600 farming experts managing the business. One of the
major advantages of Landmark horticulture in the Australian business is their integrated
approach. This is due to the reason that they are offering insurance, finance and merchandise