International Business Case Study: Grants of Australia in Thailand

This case study analyzes the potential for Grants of Australia, a producer of natural toothpaste, to enter the Thailand market. It examines the firm's competitive advantages, particularly in the niche organic and health-conscious market, and identifies key issues in international business such as political, workforce, and legal considerations. The analysis focuses on the benefits of entering the Thailand market, including its import-driven economy and ethical business environment, while also addressing risks related to culture and business procedures. The study proposes exporting as the optimal market entry mode, outlining a five-step strategy for implementation, including market research, competition analysis, mode selection, financial planning, and strategy document development. References from various academic sources support the analysis.

Marketing
Student
Institution

ISSUES IN INTERNATIONAL
BUSINESS
 Political issues
 Workforce issues
 Legal political issues
 Business location permits and taxes
policies

Does the firm have competitive
advantage in its products?
 In Thailand there is no good company to produce
tooth paste like in Australia so there will be
competitive advantages.
 The government in Thailand is always supportive
to any pioneering and progressive body which
encourages development of socio-economic
advancement actively (Johnson, 2011).
 In Thailand there is workforce which is adaptable,
available, cost efficient and eligible.
 The region has convenient transportation and
businesses costs which are affordable.

The choice of which country
they should enter
 The best country for ‘Grants of Australia’
to start exporting its products is
Thailand (Brouthers, 2017).

Reason for Entering Thailand
 Thailand market has so many opportunities
for new market growth.
 Economy of Thailand is mainly supported by
the imports (Ashton, 2005, p. 29).
 With good business relationship, new
businesses in Thailand trends more easily.
 Ethical and Social Influences- Thailand
provides a ethical environment for global
business. The social norms of the Thailand
market are also friendly.

Other Reasons for Entering
Thailand
 Also in Thailand there is a legal professional
accountant for prior advice before setting up
your business.
 Even though foreign entities can never own
more than gouty nine percent of that
countries entity but they exist some
industries that are granted some of the
country projects which are approved mainly
by Thai Board of Investments (Aydalot,
2018).

Information about the
destination country
 Political situation
 Economic situation
 Human rights information

Political situation
 In Thailand there is restrictions on some
freedom speech and political assembly
which affect the commercial and economic
activities negatively (Johnson, 2011).
 Been careful not to make any political
statements and speech in public will make
one to be comfortable when in Thailand to
avoid allegations in that country (Johnson,
2011).

Economic situation
 due to low inflation, strong accounts,
low debts and healthy reserves
internationally, the unemployment is
very low and shortage of skilled labor is
at high level in Thailand (Johnson,
2011).
 Investing more to create job
opportunities and training more
individuals on sectors those need
employees will be the best thing to do
(Johnson, 2011).

Business and human
rights
 in Thailand, trade unions are legal but
inactive even though the workers are right of
striking but there are few exercises of the
rights to do so (Johnson , 2011, p. 238).
 The migrants are treated poorly in Thailand.
Providing favorable work place for every
body and all the laws pertaining human
rights to be followed strictly and who fails to
do to face the law may be the best option
(Johnson , 2011, p. 232).

Major risks identified in the target
country and your solutions to them
 Culture- Thailand is mixed of so many cultures which
lead to complex thinking. Therefore groups are
needed to replace those individuals and also indirect
communication is allowed. This can contradict a new
business starter. The solution towards this is to make
sure that all communications are direct (Johnson ,
2011, p. 230).
 Starting a new business in Thailand is very time
consuming and costly. There are four procedures to be
followed before the company starts. The solution
towards this is making sure that all procedure s are
simple to use (Ashton, 2005).

The proposed mode of entry into the
destination market
 The best market entry mode is
exporting as it is the easiest way to
enter into any international market
(Ashton, 2005).
 Also most of companies, firms and
organizations start their international
expansion by use of this market entry
method.

Reasons for this mode choice
 The reasons for choosing this mode of market
entry is that it is a very fast entry, low cost is
needed and also it has minimal costs.
 The companies avoid many expenses for
operation in new country(Johnson, 2011).
 Also the firm or the company chooses the
best way which is suitable for them to
distribution products to the market in the new
country which is done though contractual
agreements with distributors or local country.

The top 5 steps
 Setting clear goals and research the
market
 Study the competition
 Choose the mode of entry
 Figuring financial needs
 Development of strategy document

The top 5 steps that the firm will take to
implement its strategy of entry mode
 Setting clear goals and research the market- the company is supposed to be specific on
what to achieve in the new market. It is successful when the research doing through
research. The research can be online, in person, in trend shows, in competition and also
in business contracts.
 Study the competition- when there is a detailed competition analysis on the research
and visitation of the target market will help mostly when making the decisions (Aydalot,
2018, p. 100). For example, when modification is needed in the production or in any
service for the market customization one must study the competition first.
 Choose the mode of entry- Company has many ways to enter into a new market. One
has to choose any agent or distributor who is located in the new market (Aydalot, 2018,
p. 100). One may became franchisee or he or she may acquire a business which is in
existence, or construct entirely a new brick-and-mortar facility (Brouthers & E, 2017, p.
50).
 Figuring financial needs- another step is to figure financial needs. This will help in finding
out if you need any support for export venture. Also the insurance is needed to protect
the company against any loss when customer fails to pay (Brouthers & E, 2017, p. 48).
 Development of strategy document- once all the strategies are in place, documents will
provide blueprints showing going forward, with detailed goals, findings of the research,
budgets, contracts, how to monitor and evaluate the business success.

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 Johnson, G. W., & A, D. (2011). Exploring strategy. Financial times prentice
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