International Business Report: Delicata's Expansion in New Zealand

This report presents an analysis of Emmanuel Delicata's potential for international business expansion into New Zealand. It begins with an executive summary and table of contents, followed by an introduction outlining the company's background and the rationale for choosing New Zealand as a target market. The core of the report comprises a detailed discussion of the market environment, employing PESTEL, SWOT, Porter's Diamond Model, and risk analysis techniques. The PESTEL analysis examines the political, economic, social, technological, environmental, and legal factors influencing Delicata's market entry. The SWOT analysis assesses the company's strengths, weaknesses, opportunities, and threats in the New Zealand context. The Porter's Diamond Model evaluates the competitive landscape and the factors contributing to the industry's competitiveness. Risk analysis identifies potential challenges and uncertainties associated with entering the New Zealand market. The report concludes with recommendations for Delicata's market entry strategy, emphasizing the Greenfield strategy based on the environmental analysis, opportunities, and threats. The report is meticulously referenced and provides a comprehensive overview of the strategic considerations for Delicata's international expansion.

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student
Name of the University
Author Note

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Executive Summary
In this global era, businesses are required to take some essential step to maintain their
position in the market. Business expansion is one of the strategies through which a business
will be able to reach new customers and increase their profits. Successful leaders know the
need for development and the ways through which the company can proceed to build their
strategy to capture a new market. The report tends to examine the environment of ‘New
Zealand’ to ‘Emmanuel Delicata’ for its business expansion. It has critically analysed the
market place through different analytical techniques, which includes Pestle, Swot, Porter’s
Diamond and Risk analysis that helped to analyse the strategy for market entry for effective
market development by the business. The recommendation for entering that market of New
Zealand is based on the environmental analysis, opportunities and threats analysis. This will
help the company to analyse their strength and weaknesses while developing their strategy as
for global market expansion with an appropriate mode of entering the market of New
Zealand.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
PESTEL Analysis...................................................................................................................4
SWOT Analysis.....................................................................................................................5
Porter’s Diamond Model........................................................................................................7
Risk Analysis.........................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
In this competitive era, business is required to have complete hold in its local market,
profits and then an appropriate strategy to develop their business to enhance their earnings.
The expansion of the business by entering a new international market can be one of those
strategies for which it has to analyse different advantages and risks associated with the global
marketplace (Lupton et al. 2018). The company chosen here for preparing this report is
‘Delicata’, and the global market place is selected for its expansion is ‘New Zealand’.
Emmanuel Delicata is a wine-producing company that is established in Malta in the year
1907 (Delicata.com 2020). The project ‘Vines for Wines’ has been an excellent approach to
grow quality grapes for the creation of wine that is continuing its operation flawlessly. The
experts included for the winery has implemented the best methods that will be helpful to have
an efficient production in the new market place like New Zealand where conditions and
climate are suitable for grapes and other essential products for the winery. The Greenfield
strategy is chosen at the end for the company Delicata for entering the market of New
Zealand. The selection is based on the proper analysis of its environment, risks and
opportunities with the help of different analytical techniques such as PESTEL, and SWOT
analysis.
Discussion
Before moving to an entirely new market, the company is necessary to analyse the
market environment that will be suitable or not for expanding its business there. PESTEL
analysis of New Zealand will help the company to analyse the external factors that can affect
or be favourable for the company’s expansion. The SWOT analysis will help in
demonstrating the internal and external strategic considerations related to the market for the
winery (Wu 2020). The Michael Porter’s Diamond Model helps to analyse the

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competitiveness of the company and based on all these analyses; risks can be identified that is
associated with the new market place for choosing an appropriate market entry strategy.
PESTEL Analysis
The Political factor of New Zealand is quite normal as it runs with a parliamentary
democracy and has a constitutional monarchy. The Asia-Power Index has also determined it
within the world’s top 25 powerful countries. Apart from the mess that is created with the
terrorist attack in March 2019, New Zealand is still considered politically as a small, stable
and peaceful country with low corruption level (KC and Mather 2017). This is a decisive
factor for Delicata, where it can introduce its product as a powerful foreign influence.
The Economic situation of New Zealand is wealthier, where agriculture is its largest
industry. The expertise of Delicata has the advantage to be supported by this factor. The other
economy is responded highly through tourism, forestry, food and beverages. The simple tax
system and strong sponsor of free trade in New Zealand are one of the plus points for the
expansion of the business into this country (Arora and Gourdie 2017).
The Social environment of New Zealand consists of two main languages that are
English and Maori, millions of peoples with different religions (major Christianity), races and
cultures. The people residing in New Zealand are quite happy to live in a culturally diverse
nation. However, New Zealand has to improve in some social challenges such as household
income earnings, the incidence of long working hours, some gap amongst the rich and the
poor, and so on.
New Zealand has an advanced technology sector that contributes to maintaining the
wealth of the nation. The country appreciates and admires both local and international talent
that opens a gate to enter with advanced expertise that can benefit both the company as well
as local government.

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The Environmental factor of New Zealand is much healthier as its climate is perfect
for agriculture. It has consistency in rainfall every year that does not create a situation of
drought. It is considered as one of the world’s top holiday destination that attracts more
tourists and supports the businesses in many ways. The country is quite concerned with
environmental issues like air pollution, deforestation, and soil erosion.
‘Delicata for good’ initiatives are doing its best with food or shelter to research
concerned with the environmental restoration, disease prevention, water conservatism,
reducing illiteracy and so on that benefits the environment and society as well (Delicata.com
2020). The company is capable of entering the market of New Zealand with such initiatives
that have already been implemented successfully.
The legal environment of the country for the company Delicata can be dealt with
specific scopes. New Zealand is amongst the less corrupt nations, and it greatly supports in
doing businesses (Islam and Mamun 2017). The justice system of New Zealand is
independent that is respected all over the world. New Zealand generally welcomes Foreign
Direct Investment where every employer must pay not less than $17.70.
SWOT Analysis
Strength- Delicata has a skilled workforce and expertise over the production of
grapes. This will help the company to have an efficient production in the supportive climatic
condition of New Zealand. It has additional Advertising and Marketing Executives that will
help them to make recognise their brand image and create its position in the international
market (Diliberto 2018). The company is socially responsible that takes the initiative to
contribute towards environment and awarded in the global wine competition for four wines
out of five. This weights its brand image and quality product to enter into an international
market to raise profit.

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Weaknesses- It is possible for the company that at the initial stage, it is less or no
recognisable by all of the people who are the consumers of wine or the industry who uses
wine product. The company has to understand a new government and taxations rules, market
place, community and people. It may take time for the acceptance of the product6 in a new
marketplace.
Opportunities- the Company has already won more than 100 international medals
and awards that gives weightage to their name and quality product and an opportunity to tie
up with different sectors like tourism industry and hospitality to increase their sales. It has an
ample opportunity to expand its agricultural part with growing grapes in very suitable
climatic conditions. Tourism is one of the most significant opportunities that can be utilised
to increase its sells and profits (Baird, Hall and Castka 2018).
Threats- One of the threats for Delicata will be its existing competitors who are well
established themselves with their name and products. The support of the government is
necessary, but as New Zealand always gives support to FDI and businesses so, it will be the
less threat for the company (Daneberg 2019). However, any changes in the governmental and
tax policy that is not suitable will be a threat to the company.
DELICATA’S SWOT FOR NEWZEALAND MARKET
STRENGTH
 Skilled Workforce and Expertise
 Product’s Variety
 Socially Responsible and Awarded
 Market Efficiency with Quality
Product
WEAKNESSES
 New Market Place and Community
 Unknown or Less recognisable at
the initial stage
 New tax and government rules
 Product’s Acceptability

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OPPORTUNITIES
 Tie up with different industries
 To Grow in other places with a
supportive climate
 Increase the sale of products with
positive tourism factor
 Recognise its brand at a global level
THREATS
 Existing Wine Producers as
Competitors
 Support of the Government
 Changes in Government Policy
 Interest or taxation Rates
Porter’s Diamond Model
The company can use this model to understand its position and an ability to transform
its national benefit into international advantages. The Chance of the Delicata to establish
itself in New Zealand is quite stable. As the country has fewer terrorism records and natural
disasters, so it will meet a peaceful environmental condition. The firm’s Strategy, Structure
and Rivalry have to be effective. Many competitors already exist in those market conditions
successfully. As of right brand image, the company has to establish an effective managerial
system that can communicate and connect with any organisation or people effectively (Pan
2019). There will be a competition at the initial stage. Still, when its quality product and
brand name are advertised properly, it will become well recognisable in the winery by every
individual. The quality products of the company will be its strength to beat its rivals (Bargain,
et al.2018). The Factor Conditions for the company is quite good as the new market place
has availability of natural resources that is necessary for the production of wines (Olejar et al.
2019).
Further, it has well experts and employees that can establish and run the business
successfully. Demand conditions for Delicata in New Zealand are highly favourable as it is
the best spot for the tourists and highly being used in the other sectors. The demand for this

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product is quite favourable in New Zealand that will help the company to sell their products
and make earnings at a higher level. Related and Supporting Industries at the domestic
level are low but Delicata itself has made a big name at a global scale and can compete in the
new marketplace with much efficiency. Government at Malta is supportive of the company
that gives a view as a well responsible and supportable brand of Malta. It is expected to get
warm support in the place like New Zealand where there is less tax charged and gives
freedom to do business in its country comfortably.
Risk Analysis
Emmanuel Delicata is in more favourable conditions where it can comfortably think
top enter in the new market place at a global level. The Operational Risk is not high as it has
a positive chance to place themselves in New Zealand by maintaining all the regulations and
processes. However, things can be problematic when there in any intervention of government
or rivalries. The company has no risk for operating its business effectively as it has a well-
knowledgeable workforce that is already beaten several countries with its quality product.
The Hazard Risk is low as it has favourable climate conditions where it has not met
something hazardous in last many years. Company is highly concerned with the safety of the
environment and has to prepare themselves to meet any unpredicted situation in future if any.
The Financial Risk is low as Delicata is with substantial capital and financing conditions
(Cradock-Henry and Fountain 2019). The company’s reputation can ease the market risk and
bank and surety support to the business. Delicata has a stable financial position that helps
them to establish themselves in any good or bad situation. However, the Strategic Risk can
be moderate as it is a new brand and its rivalry has already been existing in that market. The
growth strategy of the country must be avoiding any debt position and creating brand value
through appropriate advertising in the new country. Effective communication must be made

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to establish an effective relation with the government and the community at a new place of
setting up of the company.
The analysis of the company over the place New Zealand reflects that the company is
in an excellent situation to enter the new market. There are different modes of entering into a
new market such as exporting, licensing and franchising, turnkey projects and Foreign Direct
Investment. The decisional factors such as ownership, location, internationalisation, resource
availability and global strategy are necessary to be considered while selecting the mode of
entry at an international level (Bianchi 2015). The company can choose franchising that will
have low financial risks and can have knowledge of the local market. Nevertheless, it has to
be depended on the franchisee for earnings that can raise potential conflicts.
Conclusion
The discussion can conclude that the company Emmanuel Delicata is in a favorable
condition to enter a global market place like New Zealand. However, the company has a good
option for its survival in New Zealand where it can be easily acceptable. It has favourable
decisional factors element like location, resources, financial capability, ownership and brand
image that can help to choose Foreign Direct investment to enter into a new global
marketplace. The company can take the Greenfield strategy as a mod of entry as it is
financially stable and capable as well as have a potential international mage. The company
can choose Greenfield strategy as a mode of entry to a new market as it has a positive brand
image, quality products, international fame, supportive government and favourable working
conditions. This can be the best as it will make them able to have effective control over its
name, its strategic processes and earnings.

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in New Zealand.
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International Wine Trade. Journal of Wine Economics, 13(4), pp.442-450.
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