Grants of Australia: Market Entry Mode into Thailand - MAN304

This case study analyzes Grants of Australia's market entry strategy into Thailand. The analysis begins by highlighting Grants of Australia's competitive advantage in the health-conscious market, particularly its vegan toothpaste. It then assesses Thailand as a suitable market, considering its economic, environmental, legal, and political factors. The study identifies potential risks, such as political uncertainty, and recommends a joint venture as the mode of entry. Justification for this choice is provided, emphasizing risk sharing and access to new markets. The implementation steps include reviewing business strategies, assessing potential partners, and establishing the terms of the joint venture. The analysis utilizes SWOT analysis, stakeholder analysis, value chain, and Porter’s Five Forces to determine the future vision and strategy. The assignment is based on the provided assignment brief, which requires an analysis of the firm's market entry mode. The references used in the assignment are also listed.

Grant of Australia
Name
Institutional Affiliation

1. Competitive Advantage
• Grants of Australia (GoA) has a competitive advantage in its
products over its rivals in the consumer health-conscious market.
• The GoA has already focused on the niche organics and health-
conscious market and has moved a notch higher to produce vegan
toothpaste (Giap, Mulya & Nursyahida, 2017).
• Having been in this industry since 1985, GoA understands what the
health-conscious consumers want in the market.
• This is GoA has been producing natural alternatives to dental care
alongside health supplements and still sell at affordable price.

1. Competitive Advantage
Cont.
• The toothpaste looks, feels and taste like traditional
toothpaste but it creates a distinction and an edge by
ensuring the toothpaste stays free from SLS’s fluoride
alongside gluten free and also Vegan and never tested on
animal.
• This has made the GoA products to be loved by children
and adults.

1. Competitive Advantage
Cont.
• Moreover, the products contain healing benefits of
certified organic aloe vera alongside natural herbs thus
ensuring gentle oral care and fresh breath.
• GoA has unique set of differentiators that will make it
more competitve and hence develop new markets
overseas (Kanchoochat & Hewison, 2016).

2. Country
• GoA has a strong market position and strategy that can
help it succeed in the expanding health-conscious segment
in Asia, specifically Thailand.
• GoA will fit Thailand market since only health-conscious
have a room to thrive in this Country.
• Thai consumers have increasingly become health-
conscious and GoA has already required experience in
dealing with this group of consumers (Scheela, 2016).

2. Country Cont.
• Thus, GoA will provide the answer to Thai consumers who
are increasingly looking for ways of fulfilling their desired
to better themselves.
• They want brands that keep things natural as this backs
their resolve for healthier lifestyle.
• Healthy products to Thai consumer imply brands using
natural ingredients and GoA has already achieved this
description (Srivastava, 2016).

3. Thailand Information
• Economic: Thailand remains one of the greatest
development success stories because of its economic
policies making it an upper middle income economy and
increasingly making progress towards meeting MDGs.
GDP is expected to be around 5777.84 USD by end of
quarter with a long run per capita projected to trend
around 6365.75USD in 2020.

3. Thailand Information Cont.
• It has made desired progress in poverty reduction and currently at 11
percent of its population.
• Thailand enjoys optimal business environment and World Bank ranks
Thai 26th in its ranking of economies where it is easy to do the business.
• Thai’s economy is diverse and has inexpensive, skilled and diversified
workforce.
• It is located in the heat of Asia and this makes it a gateway to Southeast
Asia alongside Greater Mekong Basin region where novel emerging
markets have greatest economic potential (Vogiatzoglou, 2016).

3. Thailand Information Cont.
• Environmental: Thailand stays committed to goal of
environmental safeguard and sustainable development.
• Thai has a strong environmental policies and legislative
framework and established environmental institutions
focusing on implementation of policies that address Thai’s
environmental alongside energy concerns at provincial
and national levels (Yiming & Chun, 2016).

3. Thailand Information Cont.
• Legal: Thai’s government has liberal attitude towards
international trade and business.
• It is WTO member and ASEAN organizations which
commits it to reduction and ultimate tariff, non-tariff
barriers and duties to trade in the agreed on timeframe.

3. Thailand Information Cont.
• Political: There is political uncertainty due to the 2014
military coup of 2014.
• The policies of government is in favor of investment as
well as encourage free trade.
• For instance, no restrictions in manufacturing sector and
export conditions and many agencies of government help
foreign and domestic investors.

4. Major Risks
• The major risks in Thai that will affect the business
of GoA include political uncertainty following the 2014
military coup and lack strong collusion between political
and economic circles alongside conflict of interest.