Report on Product Opportunity Analysis in Austria [Year]

This report provides a comprehensive analysis of a product opportunity in Austria, focusing on the potential for Select Harvest, an Australian almond producer, to enter the Austrian market. The report begins with an introduction to Austria's economic environment and its demand for dried fruits and nuts, particularly almonds. It then presents a situation analysis, examining the business environment, market analysis, competitive landscape, and organizational analysis of Select Harvest. The business environment section highlights Austria's strong economy, political stability, and favorable conditions for international trade. The market analysis reveals a growing demand for almonds in Austria, driven by consumers' preference for healthy foods and the country's limited local production of nuts. Competitive analysis identifies key players in the Austrian market, such as Germany, the EU, Turkey, and the United States. The report also includes a SWOT analysis, outlining the strengths, weaknesses, opportunities, and threats associated with Select Harvest's potential entry into the Austrian market. The analysis highlights the company's strengths in almond production and the opportunities presented by increasing demand and reduced competition from the United States due to drought. The report concludes by summarizing the key findings and implications for Select Harvest's strategic decision-making.

Table of Contents
INTRODUCTION 3
SITUATION ANALYSIS 4
BUSINESS ENVIRONMENT 5
MARKET ANALYSIS 6
COMPETITIVE ANALYSIS 7
ORGANIZATIONAL ANALYSIS 9
SWOT ANALYSIS…………………………………………………………………………………………………………………………………….10
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INTRODUCTION
Austria located in the continent of Europe is one of the most prosperous country. Amongst the 14
richest countries, it is 114th largest nation in the world. Austria’s economy is well developed with
trained labor force, a huge service sector and viable manufacturing. Food and luxury
commodities, mechanical engineering and steel construction, chemicals, and vehicle
manufacturing are the most significant companies. The Austrian economic system is a liberated
market economy contributing its investors principle conditions (globaltenders.com. 2016). It is
naturally rich in iron ore, non-ferrous metals, important minerals and earths and is one of the
largest provider of hydroelectric power. It is strongly united with other EU countries specially
Germany. Austria’s major imports includes machinery and equipment, moods, motor vehicles,
chemicals, metal goods, oil and oil products and foodstuffs (Austria.org. 2017).
Since World War II, there has been a significant decline in the agricultural share in Austrian
economy. There is an inadequacy in production of dry food and nuts as they are restricted to
locally grown products like apples, pears and walnuts. The EU, Germany, Turkey and the United
States are amongst the major exporters of nuts in Austria. However, there is a continuous
increase in demand of nuts particularly almonds by Austrian customers. During the year 2015,
dried fruits and nuts imported from The United States were worth USD22.4 million, thereby
proving that there is a favorable market opportunity for other countries in this field. Nuts mainly
almonds are popular as a snack and are used in the production of breakfast cereal and by other
food processing companies. Being the world’s second largest producer of almonds, Australian
almond industry is the leader in horticultural export industry. With favorable weather conditions,
Australia has huge almond orchards. Production is more efficient due to automated harvest
systems which reduces labor input. There has been a constant increase in the production of
almonds in Australia. With free trade agreements and almonds being the largest nut crop in
Australia, country is expanding its exports worldwide (Farell 2015). The United States which is
one of the major supplier of nuts in Austria has been badly hit due to constant drought in
California. There has been an automatic increase in the pricing, hence beneficial for Australia to
explore Austria’s nut market.
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Source: (http://selectharvests.com.au/australian-market/)
The above graph shows that there has been 740% growth in almond production in Australia.
Thereby, the country has the opportunity to grow globally.
Select Harvests is one of the largest producer and seller of wide variety of nuts and related
products in Australia. It is the biggest almond grower and exporter worldwide. It has expanded
its horizons in rapid growing markets of India, China, Asia, Europe and the Middle East. With
270 permanent employees, company is continuously expanding its exports of almonds, muesli
and health food, thereby looking for new market opportunities in other countries. As discussed
above, there is a constant rise in demand of natural foods and nuts especially almonds and with
California’s drought stricken condition, Select harvest will have a favorable market for its
almonds and other related products in Austria.
SITUATION ANALYSIS
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Situation Analysis is the base of a marketing plan. It takes into consideration both internal as
well as external environmental factors to build an overview of the organization. In the present an
analysis of the situation comprising of the business environment, analysis of the market of
Austria, the competition to be faced by the company Select Harvest and the analysis of the
organization, Select Harvest is being done for better understanding of the decision of Select
Harvest as to why it prefers to invest in Austria.
BUSINESS ENVIRONMENT
Business environment comprises of all the external and internal factors that affects the
functioning of a company. Macro and micro are the two kinds of external marketing
environment. Macro environmental factors includes demographic, legal, political, technological
changes and natural forces. However, micro environmental factors includes the suppliers,
resellers, customers, competitors, and the general public. Being a democratic republic, Austria is
a safe country with low political risk. It is one of the member of European Union. Hence,
political scenario will be sanguine for Select Harvest to import its products. Economically,
Austria is very strong. Despite of suffering from recession, it has a well developed economy with
trade being its crucial part (Singh 2016). Again, providing a favorable economical condition for
Select Harvest to enter its market. Socially, people in Austria has high standard of living and the
same is understandable and proved as according to World Competitiveness Yearbook 2009, it
has been ranked as number 1 in quality of life. Select Harvest who is presently managing
country’s largest almond orchards, would cater Austrian consumers ever increasing demand for
high quality natural products. The country is very much advanced in technology. Legally, labor
organizations play an important part in overall business in Austria and further to this Select
Harvest would be profitable as Austria has business-friendly tax system as well.
Apart from the above when it comes to assessing the environment of Austria, it is found that post
the World War, the country has been extensively engaged into the work of erecting and
sustaining the development and upliftment of the industries. Thereby since Select Harvest plans
to invest and start its business dealings with the said country, it will have to ensure to take into
considerations the various environmental laws formulated since various laws have been spelt out
to ensure that the environment is kept under pollution control if not free in all aspects.
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MARKET ANALYSIS
In today’s scenario, consumers are adopting healthier lifestyle and opting for low calorie foods.
During the last few years, there has been a rapid increase in food and beverage expenditure.
Austria is self-contained for several commodities in organic production. Good market prospects
exists for the commodities which are not locally produced. as Austria is mostly mountainous,
only plain areas of eastern Austria and some portions of western and northern Austria are
suitable for the production of crops. Also due to non favorable weather conditions, Austria is
deficient in dried fruits and nuts. As of 2011, estimated total imports of dried fruits and nuts is
$150 million which was $130 million in the year 2009.Thereby, showing that there has been a
tremendous rise in its demand. Almonds being the major commodity within this category. The
forecast for Austrian consumer expenditures on food and beverages (non-alcoholic and alcoholic
including tobacco) in 2015 is at USD 3,112 per capita, which is 13.3% of total consumer
expenditures. The share of food and beverage expenditures is fairly stable (export.gov.2016).
Globally, in the year 2013, Australia has been ranked as number 2 in almond production. With
its shares listed on the Australian stock exchange, Select Harvest is the leading Australian nut
and health food company. Almonds which are rich in fibre and protein offers a healthy snack and
is also used as an important ingredient in many dishes worldwide, particularly in cereals and
bakery items. Select harvest provides world class organic products majorly almonds which
specifically seems to be best suited for the people of Austria due to their preference for a high
standard of living. It has a perfect business market opportunity in Austria which would meet the
constantly growing demand of its consumers (International Business Publication 2017). The total
market size of dried fruits and nuts as estimated in 2011 is $126 million which was $108 million
in 2009, thereby providing an insight of the Austrian market condition and an attraction for
Select Harvest to look into Austria as an attractive location for expanding its existing business.
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Source- (http://selectharvests.com.au/global-market/)
The graph above clearly shows European Union as the major consumer of almonds. Hence,
Select Harvest can expand its business and can make a foray in Austrian market.
COMPETITIVE ANALYSIS
The biggest supplier of dried fruits and nuts to Austria are Germany, The European Union and
Turkey. The United States is fourth in supplying nuts. Out of estimated $150 million imports in
the year 2011, the United States accounts for $15million which was $13 million in the year 2009,
increased to $22.4 in 2015. Austria imported USD 120 million worth of U.S. agricultural, fishery
and forestry products in 2015. Official import numbers do not include significant and steadily
growing transshipments of U.S. products from other EU countries.(Source: Global Trade
Atlas/Statistic Austria). Hence, real import values are way higher.
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Source: (http://selectharvests.com.au/global-market/)
The above graph evidently states United States as the major competitor for Select Harvest
dominating the market with 79% of almond production globally. It has a huge competitive
advantage over other countries when it comes to its production and exports. The European
Union being the second. Commercially, almonds are grown in California, North America.
However, with the constant drought condition in the state, it has resulted in lowering of export
volumes, thereby increasing the prices. Australia with 8% of global almond production, can
expand its industry worldwide. Select Harvest will have a huge potential in Austria for its
almonds.
Currently, the company is one of the major exporter trading across the world. It aims at
increasing its geographical diversity. Sales of the company has already risen manifolds. With
constant expansion plans and high quality products Select harvest can successfully sustain and
earn profits in Austria (export.gov. 2016).
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ORGANISATIONAL ANALYSIS
Select Harvest, one of the Australia’s leading almond producing company was established in the
year 1983 with its headquarters in Melbourne. It has huge orchards stretched over New South
Wales, Victoria and South Australia. The company excels in horticulture, orchard management,
processing, sales and marketing. It not only offers nut based products but also has a huge market
for other healthy products like muesli and dried fruits(Selectharvest.com.au. 2017). During the
soaring season, it has a competence of processing 22,000 tones of almonds. Lucky, Sunsol, Nu-
Vit, Meriram, Soland, Allinga Farms and Renshaw are its primary brands. There has been 175%
rise in 2014’s $21.6 million profit after tax audit of AUD $59.4 million, as per company’s
financial report ending 30th June 2015 ((Australian Food News. 2015).With Paul Thompson as
the managing director, the company has expanded globally.
Source: (http://selectharvests.com.au/australian-market/)
The graph above evidently shows a growth of 285% of Australian almond exports. Select
Harvest , leading manufacturer and exporter is a major contributor in this figure. Hence, Select
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Harvest has competitive advantage over other countries by having geographically diversified
almond orchards, free trade agreements, increased consumer requirement for almonds due to
health awareness and reduction in exports from America due to continuous drought.
SWOT ANALYSIS
SWOT as the name suggests covers strength, weaknesses, opportunities and threats associated
with the company. It helps the company in making strategic decisions as it takes into account
both internal and external factors. With regards to product opportunity i.e. almonds by Select
Harvest, an Australian company entering Austrian market, SWOT Analysis provides an insight
to the company to make significant decisions in this ever changing environment. The strength of
Select Harvest company is that it is a leader in almond grower with its own huge orchards. There
has been a continuous increase in growth of almonds and its exports. It has a huge share in
domestic as well as international market.
However, weaknesses of the company is that it has to pay taxes and has relatively small business
unit as compared to the companies in United States who are the major supplier in Austria. The
opportunities that the company has is the ever increase in demand of almonds by Austrian
consumers. In Austria, with the increase in income, consumers are more inclined towards
healthy lifestyle. Thereby, the opportunities that the company has is the ever increase in demand
of almonds by Austrian consumers. It has a diversified product base and is not limited in
producing almonds. The company is spreading its base by expanding its almonds orchards, hence
can easily meet the demands. Also, it is well established globally. Thus, will not face many
challenges while entering Austrian market. Lastly, government regulations is the possible threat
for the company (advisorgate.com. 2016). Also, despite having drought conditions, United States
continues to be major exporter of almonds in Austria. Hence, to sustain and be profitable Select
Harvest has to ensure high quality products.
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REFERENCES:
Advisorgate.com. (2016). Select Harvest – SWOT analysis, Strength, Weakness, Opportunities
and Threats for over 40000+ companies and industries. Retrieved from
http://swot.advisorgate.com/swot-s/34113-swot-analysis-select-harvest.html
Austria.org. (2017). Economy. Retrieved from http://www.austria.org/economy/
Australian Food News. (2015). Australia’s amazing nut industries are global players. Retrieved
form http://www.ausfoodnews.com.au/2015/10/05/australias-amazing-nut-industries-are-
global-players.html
Export.gov. (2016). Austria- Agriculture. Retrieved from https://www.export.gov/article?
id=Austria-Agriculture
Farell,R. (2015). Australia: Almonds Booming Downunder. Retrieved from
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Almonds%20Booming
%20DownUnder_Canberra_Australia_8-21-2015.pdf
Globaltenders.com. (2016). Economy and Business Opportunities from Austria. Retrieved from
http://www.globaltenders.com/economy-of-austria.php
International Business Publication. (2017). Austria- Export-Import, Trade and Business
Directory. Austria
Selectharvest.com.au. (2017). About Select Harvest. Retrieved from
http://selectharvests.com.au/our-company/
Singh,R. (2016). PESTLE analysis in Austria. Retrieved from
https://www.scribd.com/doc/55796405/Pestle-Austria
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