Axis Investment: Acquiring Sealink Travel Group - Market Report

This report, prepared for Axis Investments, analyzes the potential acquisition of Sealink Travel Group within the context of the Australian tourism market. The executive summary highlights the increasing importance of the tourism sector for Australia's economy and the declining returns on investment i...Read More

Running head: MARKET ACQUISITION
Market Acquisition
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Author Note

1MARKET ACQUISITION
Executive Summary:
The modern market is immensely congested with high number of market competitors in the
usual business plans and the return on investment in those plans are largely decreasing. The
time has come for the introduction of a new idea into the system of investment and one of the
major field in which the return on investment is incredibly high is the tourism sector. The
tourism industry is significantly evolving in the country Australia and is going to be a major
source of revenue for the government in near future (Pham et al. 2013). The tourism sector is
having a growth rate which is increasing over six percent of the same in the previous year and
the tourism department of the country is grabbing the growth with the entries of new concepts
in the tourists’ satisfaction. The number of advantages starting from employment generation
to considerable growth, education and the upgrade in the style of living for the people of the
country is strongly visible to the government of the Australia. The government prioritized the
tourism sector with prime focus on those factors and that is significantly visible with the
infrastructural development of the country. With the significant updates in the facility of the
airports and the roads for travelling and the construction of the new roads to link the tourism
centres, the Australian government is putting their best foot forward to capture the global
market of tourism. It is high time for an organization like Axis Investments to enter the
tourism market with the possible acquisition of the Sealink Travel Group.
Sealink Travel Group is known be a private organization which operates in the
tourism sector with high level appreciation from its customers. It generally provides the
tourist and travel services and is widely known for its excellence in the service. The
organization is a public company and was founded in 1989 and it is currently having its
headquarters in the Adelaide, Australia (Sealinktravelgroup.com.au, 2018). The Business
took place with the purchase of Kangaroo Island Sealink in the year 1989 and was greatly
boosted with several other buys like Subritzky Ferrries in 2004. The organization is serving

2MARKET ACQUISITION
several territories of the country including Queensland, South Australia, Western Australia,
Northern Territory, and New South Wales with an approximation of 69 vessels to be
operating. The business of the organization observed a high when the organization purchased
the business of Captain Cook Cruises, Murray River Cruises and the Sunferries Townsville.
The organization was not satisfied to this much extent as they went on to buy several
specialist companies in the travelling sector to manage the Adelaide central bus station, to
operate the Adelaide airport shuttle service. This clearly states the diversification of the
business in Sealink Travel Group. The organization went on to introduce a ferry operation in
Darwin as well. The organization observed itself in the Australian Stock Exchange in the year
2013 (Asx.com.au, 2018). The organization was in a perfect position to introduce new
business ideas so that the market monopoly in the Australian market does not get established
and with a prime focus on the tourism sector the organization went on to acquire the
operation of the transit systems marine operations which gave them the authority to conduct
business in the city of Brisbane with the Bay Islands transit ferry operation along with the
Stradbroke ferries operation. The list also included the Gladstone ferries and in 2016 the
Captain Cook Cruises Western Australia is also purchased by the organization. As a result the
organization managed by Jeff Ellison has gained a market revenue of 111.3 million US
dollars in 2015 with a net income of 9.3 million US dollar in the same financial year
(Finance.gov.au, 2018).
As mentioned above the country is having a genuine rise in the growth of the
economy owing to the significant increment ion the revenue generation of the tourism sector.
The water sports and ferry service is significantly pleasant in the mentioned parts of the
Australia and the service of the concerned organization is seemed to be appreciated by almost
everyone. The support of the Australian government is playing a pivotal role in making sure
that the rise in the tourism business only keeps increasing with every passing year and the

3MARKET ACQUISITION
tourism sector gets converted into one of the major revenue generating source of it. The
support from the government in this regard will help any new company in establishing their
business in the Australian market and with the plan to acquire such an important player of the
Australian tourism market in the form of Sealink Travel Group, the struggle of the Axis
Investment will only get minimized. Considering the organization to be a significant
profitable one according to the business information of it, visible in the Australian Stock
Exchange, Axis Investment must follow certain recommendations so that the organization
gets the much needed ease in conducting the business. The recommendations are as follows:
Increment in the diversification:
Sealink was good in managing new ideas of the business to capture the tourism sector
in the Australian market but the organization lacked in making sure that it covers all the
aspects of the tourism. The organization must get involved in providing the ultimate beach
sport experience to its customers and it must introduce new ideas in the certain sector relating
to it.
Sydney ferries:
Sealink was not able to dominate the service in the city of Sydney. Sydney ferries
captured the market in that region and had an immense impact in the Australian economy
resulting from the ferry operation. The Axis investment must concentrate on that part to make
sure that the business of the new organization does not face the same old limitations in
expanding the business in Sydney.
Trade Expansion:
The new organization must search for the required scope to introduce a certain
expansion of the trade. The new organization can increase their part in the revenue by
increasing their bandwidth in the concerned sector and in the road transportation as well. As

4MARKET ACQUISITION
the country has a major source of business in that particular part of transportation, the new
organization will significantly do well in the new dimension of their business.
References:
Sealinktravelgroup.com.au. (2018). Home - SeaLink Travel Group. [online] Available at:
https://www.sealinktravelgroup.com.au/
Asx.com.au. (2018). Home - Australian Securities Exchange - ASX. [online] Available at:
https://www.asx.com.au/
Pham, T.D., Bailey, G., Marshall, J., Spurr, R. and Dwyer, L., 2013. The economic impact of
the current mining boom on the Australian tourism industry. Canberra: Tourism Research
Australia.
Finance.gov.au. (2018). Department of Finance |. [online] Available at:
https://www.finance.gov.au/