International Business Strategy for Halfbrick Studios

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INTERNATIONAL BUSINESS STRATEGY
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Table of Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................4
Country choice and product choice.................................................................................................5
Useful theories and concept in strategy design................................................................................7
International business strategy choice.............................................................................................9
Strategic implications of the choice...............................................................................................11
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................13
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Introduction
International business strategy plans which guide the commercial transactions take between
entities in various types of Countries. It uses systematic methods or actions of private companies
rather than governments. In this report, it describes the concept of international business
strategies. By using these strategies, organizations increase market sizes by achieving expansion,
gain the advantages of location. In this report, it defines that Halfbrick studios organization,
which is a video game developer in Australia. The report also explains the Australian country
and its product choice. It demonstrates useful theories and helps to clear the concept of strategy
design. It also explains potential market entry options and relevant risks.
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Background
This report describes the international business strategy, which is a plan and provides directions
to the organization to increase market sizes. It also explains the organization and its products.
The selected firm is based in Australia, which is a private limited name half-brick studio. This
organization is developer and provides online video games in Australia. It is based in Brisbane,
Australia. It is founded in 2001, 18 years ago. Its products are fruit ninja and jetpack joyride.
There are 100 employee’s works in this organization. The company wants to expand its business
in the international market. It is investigated that there is high competition increase in the
Australian market, which creates challenges for the company.
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Country choice and product choice
The chosen country is Australia; it is investigated that the retail sales of the games industries
were analysis, and it is approx. $2.46 billion in the year of 2014 which shows that there is a 20%
increase in the year of 2013. It is investigated that 15 years ago, people use only simple video
games, and in the current period, the ratio is increased and boom in the Australian market.
Australian audience begins in the year of 2005, which shows the proportion of households with
the games is increase and grown from 7 in 10 to 9 in 10. It is investigated that the average ages
of the game players are the mid-30s and increase day by day. The purposes of the gaming
industries grown are to engage with people and entertain.
The aims of the chosen country are: Australia is one of the longest and biggest hubs of the game
audience, which is investigated that it leads as compared to the other countries. According to the
analysis, it is investigated that there is around 67% of Australians play video games, and the ratio
is increasing day by day (Akter, et. al., 2016).
There are approximately 775 players play online games, which are under the age of 18 years ago.
It is investigated that there is around 76% games business in Australia provide benefits to the
economy. There are 20% digital sales in the games business in Australia are grown. The digital
sales are increasing day by day, and it shows that the customers of playing online games involve
their interest. It is noticed that the domestic industries of video games developer minimize in
Australia. It shows that it is required for the domestic industries to grow the business to expand
the business (Rogmans & Abaza., 2019)
Specific product: It is online video games which are played by many users under the age of '30s.
Interest if the customers are increasing and it creates competition in the gaming market of
Australia. It is investigated that there is around 35% of people play video games to pass their
time, and approximate 3% of people play games for their exercises. The reason for chosen the
product is the ratio of the gaming sectors increase day by day, and it creates a boom in the
market place. The competition of the video games industries is increased in the Australian
markets.
Uses of video games:
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 There are around 89% of users play video games to enhancing their thinking abilities, and
79% of customers play for coordination and dexterity.
 Many people play video games for emotional wellbeing and engage with each other
(Fojcik, 2015).
 Small and medium-sized enterprises in Australia make approx. 98% of Australian
business and it also operates one-third of the overall GDP of Australian country.
 SME's shows that there are 90% of exporters are goods and approx. 60% are whole
services exporters. SME's are little different as compare to the large sizes business
because it has fewer employees, which are around 200 employees in the industry.
There are various types of bias and problems are coming when SME's enter in the
international market to expanding their business. It is challenging for it to face the
competition and make the position with the existing companies.
The Australian Bureau of statistics problems is updated in December 2016 and shows that there
is around 6 million wireless connections are entered out of 13.5 million connections in internet
activities. Many people give positive views and opinions and said that it develops creativity and
help to the people to explore virtual life. Video games help to the people to connect with each
other and share the interest (Perchard, et. al., 2017).
The reason for choosing the country Australia is various types of ideas, and it shows positive
impacts on the digital business of the nations. This condition indicates that the boom of the
gaming market. Digital Australia games are an empirical study in Australian households with
the concentrate on demographics, attitudes and behaviours. There are many competitors of the
half-brick studio's video games industry such as; electronic arts, promineo, ubisoft and rovio
gaming industries in the Australian market. It is investigated that all these companies have grown
in the Australian market place and increase day by day. It is analysis that the halfbrick's make
efforts to take the reputed position and got the 9th position out of 10 competitors.
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Useful theories and concept in strategy design
Theories and strategies help to design the business structure. These theories also provide
directions to the SME have to grow the business and build a position in the market place. The
purpose of SME’s enter into the new market place and expand the business for spreading the
risks, maintain and managing the oligopolistic competition and for international scale advantages
and gain the opportunities for expanding the business.
There are various types of parameters which emphasis to the half-brick studios gaming
organization to start its business and grow in the foreign locations such as; exporting,
international manufacturing, joint venture structure and whole owned subsidiaries. There are
various types of theories which help to the organization to enter in the new marketplace such as;
electric theory, bargaining power of market enter mode theory, transaction cost theory and
behaviour theory (McCall, 2018).
Electric theory: This theory suggests that the SME’s is to internationalize the business and gain
the advantages for able to compete with the competitors effectively. There are three factors
under in this theory, and that is ownership. It allows to the company to compete with the
competitors and make efforts to make the positions which are based on either its production or
marketing based. This theory suggested for the SME’s to entry strategy and gave directions to
the enterprises to collaborate and make efforts to increase the market knowledge. It focuses on
tries to analysis the firm decisions to invest within the market by ownerships and locations (Yoel,
2016).
Bargaining power theory: This theory is suggested for the SME’s because it gives directions to
the organization to overcome the effects and control the enterprises and its effects. It shows that
firm and government face struggle and this theory suggested the guidelines for the firm and the
government to over the results. This theory is the extension of the electric theory, which is the
internalization theory. In these situations, it is suggested to the SME’s to apply this theory into its
strategic designing (Chang & Hsieh., 2018).
Transaction theory: This theory focus on minimizes the costs. It suggests that the tasks could
outsource which could be internalized. It is recommended that the company to focus on reduces
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the costs of exchanging the resources within the environment. This theory is given by the Ronald
Coase 1937. Ronald argues that markets methods have not cost-free it involves the transactions
costs, and it also includes time and money, which is helpful for sellers and buyers. By using this
theory organization take the directions to reduce the cost and make balanced between the price
and the products. This theory provides instructions to the organization to reduce the transaction
cost and should focus on higher productivity under the teamwork. It gives chances to the
organization to gain the opportunities for expand the business in the new marketplace and
spreads the company enterprises to make the position with the competitors (Gribbon, et. al.,
2015).
Behavioural theory approach: This theory discusses on market entry mode. It is unique and
different in various types of manner. It analysis that the market entry methods; this theory
address that market entry commitment of organization is based on corporate information and
knowledge of the market. It is essential for SME’s organization to states market knowledge. This
theory focused on making the proportion within resources which is committed and information
and understanding of the firm and make definite proportion about the market that is entering.
So in these situations, it is advised to the organization to apply this theory in its strategic design
because it provides the directions to address the information and knowledge for the entering
market and make a plan according to it (Drummond, et. al., 2014).
It is investigated that the United Kingdom is the most and suitable country for the firm to enter in
its market. It is the preferable country for expansion of the gaming development organization. It
is investigated that the United Kingdom is the boom of adopting the new trends, technologies
and digital technologies for expanding the business. All the theories help to the organization to
apply to its business plans and apply in its strategic designing when entering into the new
market.
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International business strategy choice
The selected potential market entry alternative, which is chosen is the Joint venture concept. By
using the joint venture, the organization will be entered into the new market by joining with the
two or more business entities for a specific project and expand the business. Joint ventures are
the way which provides support to the small and medium sizes enterprises and small company
business for jointed with the existing companies and start a business with them. It gives
directions to enter new markets by partnerships of financial resources. It is investigated that these
entry options provide supports for the new business on those areas and zones where restricted the
investment, so it gives the advantages for achieving the market access.
Strategic joint ventures provide the companies to pursue higher opportunities for gaining the
chance of expanding the business and increase the profits. It gives advantages for the companies
for new insights and expertise. It provides directions to the company that see the market in a
more comfortable form. It offers better facilities and resources; the company can quickly assess
the resources and find out the best alternatives for its business. It also helps because it makes a
flexible environment for both the parties so they will reduce the risk of conflicts, and cover the
only fraction what is essential for the organizations.
It gives directions to share the risks and profits between both the parties. It defines that if the
joint projects are fails, then both parties bear the failure conditions. Joint ventures provide
directions to both the parties to share the profits if they gain the costs. These conditions show
that it creates a balance between both the parties and share the expenses. Both parties take the
responsibilities to handle the losses if its business fails. Joint ventures build relationships with
the other companies and help to spread the business and networks. Partnerships of the parties set
specific goals, and it enables to both parties to create long term business relationships. The
chances of the business succeed is increase because it provides the advantages for a new
company to do work with those company who is already rid with renowned brand.
The business model which help to the
Value creation model; this model help to the company business by creating values for the
customers and supports to sell the products and services while built profits for shareholders in
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the structure of maximizes the stock process and ensure the future availability of investment. It
provides directions to the organization to see who are the ventures users and customers, what
products and services it will offer to the customers. This model helps to the business to find out
the target customers and provide that will be built to differentiate the values for them.
Differentiation is necessary for customers to attract them and make profits. Having suitable
products and services solve the specific problems and make customer segment is right, but only
this factor is not sufficient. The Australian companies business needs to use active and go to
market strategies. These strategies help to the companies businesses to getting the digital video
games products and services to market, acquire the customers, safe the revenues and market
traction. It also supports to the country to grow the market. SME’s companies in Australia can
use go to market strategies.
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Strategic implications of the choice
There are various types of resources which are chosen for the international business strategy and
its possible risks are:
Resources:
Organizational resources: For implementing the global business strategy; organizational
structure of the SME’s support. It provides directions to find out the capabilities of its business
its strengths, weakness. Company internal employees, partners and workers help to the company
by providing support to it. These people offer ideas to companies and make the target easier for
strategy.
Financial resources: Company manage financial resources to implement the strategy and can
take advice by the help of experts. It will use the theories to implement the strategy when
entering into international business.
Marketing resources: These types of resources help to the company to make plans for effective
marketing.
Leadership resources: Company require making effective methods for its leadership and
providing a command for its leaders, managers to implement the international business strategy.
Risks are:
There are various types of risks, which are:
 Company internal risks
 Financial risks
 Technological risks
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Conclusion
It is concluded that this report describes the concept of international business strategy, which is
applied by the half-brick studio's organization. It is the video gaming developer company and
makes plans to enter in the new market. The chosen country is Australia, which is the hub of
digital technologies. In this report, it describes beneficial theories and method for SME's. It also
explains the potential market entry alternative, which is joint ventures. At its last tasks, it
represents some required resources to implement the international business strategy, and some
also shown some risks.
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