International Business Strategy for Checkout.com in Australia

This report analyzes Checkout.com's readiness for internationalization, focusing on its entry into the Australian market. It begins with an overview of Checkout.com, a payment processing company, and its services. The report then critically evaluates the impact of the Australian macro-enviro...Read More

International Business- IB

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Provide a brief overview of the chosen organisation and it product or service readiness for
internationalisation......................................................................................................................1
Critically evaluate the impact the host country conditions covering the macro environment
factors and its national competitiveness......................................................................................2
Analyse the host country's culture and its impact on the internationalisation process of the
company......................................................................................................................................3
Recommend the most appropriate entry strategy and the internationalisation strategy for this
company in its internationalisation process. Justify your recommendation...............................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
An international business is based on goods trading, technology, services and knowledge
all across international boarders as at transactional goods. It basically include cross-cultural
transaction as in between goods and services and also known as globalisation. It usually involve
gaining of suitable understanding about culture, language, political ability, socio-economic
factors that having direct influence on business operation and practices (Beugelsdijk, 2020). The
following report is based on Checkout.com that works with proprietary technology and manage
payment processing for its customers. The company was founded in 2012 by Guillaume Pousaz
and have gain highest revenue and profit on continuous basis along with this its employee base
is increases to 90% and Australia is a host country of the business. The report consist of usage of
environmental scanning techniques, analysis of host country, entry mode strategies and
internationalisation strategy.
MAIN BODY
Provide a brief overview of the chosen organisation and it product or service readiness for
internationalisation.
Checkout.com is a business that has been working on to provide special service to
customer and that is related to easiest online payment processing. The business has been
bootstrapped the start-up to an international market as they have processed their working with
billion of payment every year. The Checkout.com has put its services into “payment service
provider” and deliver flexible services that support to make sufficient control to customers and
merchant. In this superior product has been offered that support and stand-out with crowd. In this
business has remain committed towards fulfilling of need and demand of customers and for that
they have operate its business globally and create better advantage from e-commerce competitive
environment (Buckley and Casson, 2019). Checkout.com offer full stack technology to its clients
so that easy access of payment is accessed so that all the risk and fraud is monitored along with
this payment processing also get acquired through unified payment systems. The company super-
connects with the advance technologies as it is used to provide reliable transaction by which
better insight and flexibility is achieved on continuous basis. Checkout.com has an ability to
acquire global network so that its speed and reliability is advances, next level innovation in terms
of data empower is granulated.
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Checkout.com believes that technology changes everything and make everything easy
and comfort as well. For this company provides streamline platform payment method so that
unified artificial intelligence is involved by which effective respond is attained. The company is
having an ability to cover global payment method so that 150+currencies has been covered. The
host country of Checkout.com is Australia and at there company provide radial and transparent
view of payment data's and instant that generate positive and favourable changes (Buckley,
2018). The card services of Checkout.com is much flexible, responsive and also delivers
excellent services to its customers. The ACE money transfer helps an individual to send and
receive money more safely, quickly and reliably as company has 1 million customers on its
platform. It basically enhances the working potential and capabilities so that productive outcome
is conceived in systematic format.
Critically evaluate the impact the host country conditions covering the macro environment
factors and its national competitiveness.
The macro-environment factors are those that has direct impact over the productivity and
performance rating of business. The Pestle analysis of Australia include different factors that has
direct influence over business economies of sale and affects its day-to-day activities as well and
it is as illustrate below as:
Political: Australia is a constitutional monarchy and connected with several organisation
such as world trade organisation, Commonwealth of nations, OECD, G20 and also having close
relationship with US as well. It is a country that is always be criticised by its its supportive
countries such as UN and New Zealand due to its deportation laws (de Vasconcellos, 2019). The
political situation of Australia is quite stable thus in this Checkout.com easily make an
investment over there. The government rules and regulations are more transparent thus it attract
more of investors and it generates favourable condition for Checkout.com.
Economical: It defines economic stability of business and Australia is having 13th largest
economy across all nations. The expected growth rate of country is quite less as per expectation
as it is 2.4% in 2017 and 3% in 2018. In today's scenario it has been decreased on continuous
basis as due to the pandemic attack of COVID. The household income and business investment
has moderate level of changes that is in favoured of Checkout.com. In this optimal changes is
addressed by which greater profit is earned in sustained basis. Australia is also be low-cost
location business and it provide suitable consequences for business.
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Social: It is a factor that describe about living lifestyle change of public and Australia is a
country of having smallest population as compared to other countries. The average expectancy of
life of men and women is abut 80 and 84 years. The host country of Checkout.com is having
multiracial and multicultural and it is also be best among all as in terms of wealth, health, quality
life and education. In this Checkout.com has easily spread more market awareness about its
offered payment service and attain potential benefits in adequate mode (Di Giovanni, 2018). The
public is used to spend more on time sparing so that it aid to generate favourable situations in
timely basis.
Technological: It state level of technological advancement that is induced by Australia in
order to become higher techno-friendly. The country is being witnessed higher growth so that
local companies also attain more growth while making suitable investments. The growing
demand of customers in terms of artificial intelligence drives more success. In addition
Checkout.com make more innovation and designing in its applications so that moderate services
is provided in ordinate mode (Zhao, Zhang and Kwon, 2018).
Environmental: It define environment factors and Australia is the most beautiful nation
and maintain equilibrium towards biodiversity. The change in climate develop diverse range of
effect on national security in terms of environmental protection. In this Checkout.com is in
favoured mode as they have provide an online system of payment through which living standard
of an individual is getting advances along with this there is no loss of environment dealings.
Legal: It state a legal landscape of Australia and in this Checkout.com has to manage and
operate its business in terms of fair trading laws, consumer law and competition laws
(Dörrenbächer and Gammelgaard, 2019). In addition to this fair work act 2009 is the primary
legislation that is required to follow so that adequate privacy is managed. In Checkout.com must
have ensure that customer personnel detailing only be used for informatory purpose or only
while taking its permission.
Analyse the host country's culture and its impact on the internationalisation process of the
company.
Australia is the western country and it offers a market for the notable considering its
growing youth population and the customer base for which they are willing to opt the variety of
payment methods like debit card, credit card and various applications that offer online
transaction. In regard of this, checkout.com is the payment provider which is super connected
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technology in terms of making payment seamless and faster considering the reliable transactions.
For this, respective company internationalise itself in Australia considering the culture and
preference of Australian people in terms of earning significant profitability and enhance sales.
For this, the culture of country that undertake prominent factors are mentioned as:
Customer demand for great personalisation: Checkout.com offer personalised services
to their customers regarding the payment as they tends to include the advent of digital, social
media and mobile that has integrated finance into the daily life of individuals in an effective
manner (Hamilton and Webster, 2018). For this, Australian people does not support traditional
payments undertaking the customer persona in terms of offering fastest payment services and
personalised experience from the banking services. Checkout.com offer payment services on just
one click that tends to save time of people and it is also more convenient and the people of
Australia tends to save their time more than cost because they think that time is quite precious.
Along with this, Checkout.com also tends to provide strong privacy and data security that leads
to protect people from being victimised as the digital identity tends to increase the concern for
both the customer and regulators.
Technology advancements: It depicts that the Australian people are techno-friendly as
most of the people use internet in their hands and due to easy internet access it become quite
convenient for people to make payment on time. For this, Checkout.com tends to offer
significant advancement in terms of discrete payment by just one click which is the single step
for each and everything in terms of spending money by analysing each and every factor. It tends
to save time and additional cost of customers and also more convenient as it offer various
services and additional benefits which is helpful in terms of paying new and effective payment.
Respective company offer its services with the help of effective internet services which is useful
in order to attract customers towards it (Hannibal and Knight, 2018).
Therefore, both the factors are helpful for Checkout.com in terms of offering its services
in Australia and barrier free expansion. In terms of this, company also need to conduct effective
research regarding the needs and preferences of customers and also identify that they are quite
techno-friendly in terms of surviving within the new market. For this, Checkout.com undertake
the cultural factors, trends and so on of the host country by which they can prominently offer
effective services to people. Along with this, Checkout.com also tends to take care of the privacy
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and personal details to people which is useful in order to developing trust and making them more
effective for their survival.
Recommend the most appropriate entry strategy and the internationalisation strategy for this
company in its internationalisation process. Justify your recommendation.
The internationalisation entry strategies are those one that is used while working entering
in foreign market. In this adequate measurement is being managed by the business so that
production and manufacturing is being managed and controlled in sufficient basis (Iammarino,
2018). Some of the strategy that is used by Checkout.com while entering in internationalisation
process is as explained below as:
Direct exporting: It is a strategy that is used to make direct selling within the market
which is directly based on its own resources and affordability. In this Checkout.com must have
develop sales program as with the support of distributors and agents by which market
representatives is managed. In this sustained interest is developed through which effective profit
is attained within stipulated period of instance.
Licensing: In this strategy appropriate and relative arrangements is developed from
which suitable transferring of right about the usage of product and services is attained. It is quite
successful strategy if Checkout.com as if its purchaser has relative larger market share then it is
easy to perform marketing and production.
Franchising: It is quite typical strategy for internationalisation as it used to make rapid
growth is market expansion along with this traction is also being gained in repeatable mode. In
this Checkout.com must have considerate two caveats so that unique and recognised
modification within brand enhancement is processed (Peterson, Arregle and Martin, 2020). It is
used to make effective utilisation of resource as by creating future competition.
Partnering: It is necessary aspect that is used while entering in international market as in
this co-marketing is being performed under which strategic alliance is manufactured by which
market knowledge and its utilisation both get enhanced.
Checkout.com must have uses partnering strategy in terms of internationalisation process
as through which sustain growth within competitive marketplace is attained. The company is
having an ability to achieve more growth and for this if they get a balanced support then its
working effectiveness is developed in constrained manner (Wieland, 2020).
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CONCLUSION
It has been concluded from above report international business define cumulative
strategies that is used in order to advance and enhance working standards. In this business has
expands its working through different nations in appropriate manner and it is performed to attain
highest profit and revenue. In addition different impact of macro-environmental factors has been
analysed so that national competitiveness is increases. Moreover, host country's culture and its
impact on internationalisation process is analysed that assist to manage operation and functioning
in easiest mode. Furthermore, suitable entry strategy is being used by company in order to
advance internationalisation process.
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REFERENCES
Books and Journals
Beugelsdijk, S. and et. al., 2020. Conceptualizing and measuring distance in international
business research: Recurring questions and best practice guidelines. In Research
methods in international business (pp. 449-498). Palgrave Macmillan, Cham.
Buckley, P. and Casson, M., 2019. Decision-making in international business. Journal of
International Business Studies. 50(8). pp.1424-1439.
Buckley, P.J. and et. al., 2018. International business. Oxford University Press.
de Vasconcellos, S.L and et. al., 2019. Organizational creativity as a crucial resource for building
international business competence. International Business Review. 28(3). pp.438-449.
Di Giovanni, J. and et. al, 2018. The micro origins of international business-cycle comovement.
American Economic Review. 108(1). pp.82-108.
Dörrenbächer, C. and Gammelgaard, J., 2019. Critical and mainstream international business
research. critical perspectives on international business.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hannibal, M. and Knight, G., 2018. Additive manufacturing and the global factory: Disruptive
technologies and the location of international business. International Business Review.
27(6). pp.1116-1127.
Iammarino, S. and et. al., 2018. International business, cities and competitiveness: recent trends
and future challenges. Competitiveness Review: An International Business Journal.
Peterson, M.F., Arregle, J.L. and Martin, X., 2020. Multilevel models in international business
research. In Research Methods in International Business (pp. 417-432). Palgrave
Macmillan, Cham.
Wieland, A. and et. al., 2020. Overcoming blind spots in global sourcing research: Exploiting the
cross-sections between supply chain management and international business. Journal of
International Management. 26(1). p.100709.
Zhao, H., Zhang, F. and Kwon, J., 2018. Corporate social responsibility research in international
business journals: An author co-citation analysis. International Business Review. 27(2).
pp.389-400.
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