Project Outline: Globe International - Market Entry in Japan/NZ

This project outline analyzes the market entry strategies for Globe International, an Australian retail corporation, focusing on the introduction of its Dot Boards brand in Japan and New Zealand. The report examines the company's current market presence and the challenges of entering develope...Read More

Project Outline 1
PROJECT OUTLINE
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Contents
1. Introduction.........................................................................................................................3
2. Market Entry.......................................................................................................................4
3. Conclusion..........................................................................................................................5
References..................................................................................................................................6

Introduction
The trend of globalisation and capitalism has allowed multiple companies to enter
international markets. This includes the companies that have been operating in the goods or
services sector or being a manufacturer of products. Once the companies enter a market
through any mode and establish the business there, it is challenging for them to introduce
their products in a new market where the consumer demand and supply both have to be
monitored. On such is Globe International Ltd., which is an Australian retail corporation for
boots, shoes, and skateboarding. It was created by three Australian brothers in the year 1985.
The primary market of Globe International is split into proprietary labels, approved products,
and shared marks. The global headquarters of the organisation is based in, Australia, the
USA, France, UK. And China. This shows that for the company, the leading markets have
been North America, Australia, and Europe. The company, however, has been listed on the
Australian Stock Exchange (Globe International, 2020).
The company has several products and proprietary brands that it has introduced in the
market, and one such is the Dot Boards. Dot Boards feature a revolutionary modular
architecture of dot electric skateboards that opens a variety of customer choices while
providing a secure and enjoyable alternative for daily transportation needs. Globe
International has recently launched this proprietary brand in the year 2019 and thus can
introduce it in the markets of Japan and New Zealand (Globe International, 2020). Therefore,
this report emphasises the market entry mode of one of the Australian based international
companies, Globe International. The company has been introduced in multiple markets.
However, there is a need to introduce the company in developed economies such as Japan
and New Zealand. The report highlights that how can the company enter New Zealand and
Japan, the two developed economies of the World.

Market Entry
The market entry approach is a designed system for the sale and supply to a specific
target audience of products or services. It applies to the development, formation, and
managing of agreements in a different country during the import and export of commodities.
Several organisations can work effectively in a small sector without ever spreading to other
countries. Some of the very profitable market entry approaches are, specifically setting up a
business agency, actively exporting goods, indirectly exporting through a retailer, dealer, or
distribution outsourcing, and assembling items on the target audience (Schellenberg et al.
2018).
On the other hand, it can be precisely explained as licensing, franchising,
management agreement or joint venture as well as a subsidiary branch of the company. In this
regard, the company may create a choice for implementing the control in the new market
such as reputational risk control, to get familiarity with the local market and even to have a
sharing of the profits and to minimise the risks or losses in the business(Schellenberg, 2018).
As far as the market entry of Globe International is concerned in the Japanese and New
Zealand market, it is essential to know which mode of entry is more feasible and profitable
for the company in the two economies.
New Zealand has one of the most globalised markets, and it is a highly advanced free-
market system. It is the globe's 53rd highest state economy. It is highly focused on foreign
exchange, with Australia, the European Union, the United States, China, South Korea, Japan,
and Canada in particular. When the economy of a country is strong, the risk of business loss
is smaller. That is because there will be little improvement in the rules and legislation in a
limited time. There is a strong chance of running a company in Auckland. That is how New
Zealand's current legislation can introduce laws and policies to favour a company every three
years (Crick and Lindsay, 2015). Keeping this in view, Dot Boards can enter New Zealand as

a subsidiary brand of Globe International to get the shares in the market as the consumer of
New Zealand can be introduced with electric stake boards that are manufactured by Australia.
About the market conditions in Japan, the country is known to have a technologically
advanced free-market system. Japan is the World's third-biggest by nominal GDP and the
fourth-highest by Purchasing Power Parity (PPP) as well as the second-largest developing
economies in the World. Even though Japan is recognised as an exporting nation, internal
investment in manufacturing sectors accounts for just 5 percent of all expenditure. As the
Japanese culture is highly complexed and unique in terms of the market, the new brands,
especially Western brands have to make a lot of struggle to introduce the product in the
market (Бондарик, 2019). As Dor Boards is an electric motor product, the company can be
introduced in the market by franchising the brand in Tokyo's market. This would help the
company to grow market shares eventually in increasing profits in the market through
Japanese franchisers.
Conclusion
The market conditions in both New Zealand and Japan are stable. However, the mode
of entry in the market is entirely different. It is important to note that Globe International has
an extensive network in the European and American market. Still, the Asian market is quite
different, and Japan being technologically advanced may provide a tough time to the
company than New Zealand.

References
Crick, D. and Lindsay, V., 2015. Service and service-intensive New Zealand
internationalising SMEs. Marketing Intelligence & Planning.
Globe International, 2020. Proprietary Brands. [Online] Available at
https://globecorporate.com/proprietary-brands/ Accessed on 16 March 2020.
Schellenberg, M., Harker, M.J. and Jafari, A., 2018. International market entry mode–a
systematic literature review. Journal of Strategic Marketing, Vol. 26(7), pp.601-627.
Бондарик, С.А., 2019. Japanese business culture Retrieved from
https://rep.bntu.by/handle/data/55811 [16 March 2020]