Case Study Analysis: Grants Toothpaste International Expansion

This presentation provides a comprehensive case study analysis of Grants, an Australian toothpaste brand, and its strategic approach to international expansion, particularly focusing on the Malaysian market. The analysis includes an assessment of Grants' competitive advantages within the niche organic and health-conscious market, highlighting the limitations of its current market reach in Australia and the potential for growth abroad. The presentation details the economic and political factors influencing market entry, identifies major risks such as bribery, corruption, and terrorism, and proposes a strategic alliance entry mode. It emphasizes the importance of product differentiation, innovation, and social media marketing. The case study also outlines a five-step implementation plan for the entry mode and concludes by emphasizing the importance of market research and strategic alliances for managing risks and achieving successful international expansion. References are provided to support the analysis.

ISSUES IN INTERNATIONAL
BUSINESS: A CASE STUDY OF
GRANT

This presentation enhances the awareness
of the readers regarding the strategic
approach of Grants, a toothpaste brand,
towards international expansion
(Buyorganicsonline.com.au 2019). The
typical components of this presentations
are competitive advantage and the host
country to which it can penetrate.
Assessment of the risks in this penetration
is crucial for mapping the obstacles, which
can stall the productivity. Apart from this,
the external challenges are discussed in
the form of examining the role of political
and economic factors.
 INTRODUCTION

Placing the focus on Niche organics and health
conscious market helps Grant to achieve
competitive advantage over the contemporary
brands (Buyorganicsonline.com.au 2019).
Sale in the supermarket outlets have failed to meet
the needs of the customers.
Market research denotes accomplishment of the
services for the target market, indicating the need
of conducting long term goals
(Buyorganicsonline.com.au 2019).
 COMPETITVE ADVANTAGE

CONTD…
 The differentiators can be of great help in
terms of developing long term goals in terms
of accumulating greater market share
through high sales revenue and profit
margin (Fernández-Reyes, Hermosillo-Valadez
and Montes-y-Gómez 2018).

• Malaysia can be an effective option for
expansion. This is because as per the report of
World Bank, the GDP is 31,450.03 crores USD
(2017). Penetrating into the Malaysian market
would be prospective for Grants to increase
their sales revenue and profit margin.
As private consumption is more in case of the
drivers of GDP, therefore, investments
through start-ups would be a productive option
for Grants . Suppliers and distributors are
skilled and qualified, which would be
assistance in manufacturing high quality
toothpastes (Hitt, Li and Xu 2016). However,
prior to the expansion plans, Grants need to
take permission from the Board of Directors.
This needs to be in the form of meetings, which
would help in undertaking beneficial decisions
regarding the expansion. In this, involving the
statutory body of law would be important in
terms of averting the illegal instances
(Malaysia.gov.my 2019).
 WHICH COUNTRY THEY SHOULD ENTER

CONTD…
 Social media marketing would help Grants
to enhance the fame and glory of the
services to the customers of the Malaysia
(Hitt, Li and Xu 2016).
 Pricing of the toothpaste can be premium
for attracting the customers. This is one of
an efficient means for identifying the target
audience, who can increase the sales
revenue and profit margin (Gillespie and
Riddle 2015).

In the Malaysian market, brands
like Amway, Atomy, Dentiste,
Colgate, Red Seal operates.
Advent of the Grants would add
to the source of income for the
Malaysian economy (Lynch and
Jin 2016).
 Malaysia

• POLITICAL INSTABILITIES
BRIBERY AND CORRUPTION
TERRORISM
CRIMES
FRAUDS- the risk is high in
case of threats of substitutes,
false promises and others
depriving the customers from
getting quality products (Noe
et al. 2017).
 MAJOR RISKS IN MALAYSIA

Product differentiation and selling them in
the export processing zone would help
Grants in catering to the needs, demands
and requirements of the Malaysian
customers (Malaysia.gov.my 2019).
Strategic alliance with the Malaysian
toothpaste brands through contracts would
expand the scope and arena of the
business. Licensing the import and export
activities from the legislative bodies and
the Board of Directors is vital for averting
the risks, which can stall the productivity
(Malaysia.gov.my 2019). Along with this, it
would also be beneficial for handling the
tax legislations in the import and export
activities.
 PROPOSED MODE OF ENTRY

Differentiation and innovation in the
products would influence the
purchasing power and decision of the
customers (Tsang and Yamanoi 2016).
Along with this, it would increase the
sales revenue. Strategic alliance
would expand the business horizons
of Grants.
 REASONS FOR THIS MODE OF ENTRY

CONTD…
 Contracts can one of the ways for
gaining an insight into the nature of the
clients towards deals, trades and
transactions (Cuervo-Cazurra 2016).

CONTD…
 Acquisition would expand the scope and
arena of the Grants. Foreign direct
investment requires high financial flexibility,
which is not possible with only the
supermarket outlet sales (Denicolai, et al.
2016).