Hmlet's Internationalization: A Case Study on Growth and Challenges

This case study report analyzes Hmlet's internationalization strategies, focusing on its expansion into the Asian market. It identifies key drivers such as limited growth in native countries, the potential of international markets, technological advancements, and fluctuating property rates. The report explores Hmlet's market development strategies, including attracting tourists, competitive pricing, market research, and infrastructure development. It also addresses challenges like local licensing, cultural differences, economic issues, and sustainability. The report concludes by suggesting strategies for Hmlet to strengthen its market position, such as investing in marketing, enhancing customer satisfaction, increasing investment, building robust infrastructure, and implementing effective pricing models. The analysis highlights the importance of strategic planning and adaptation for successful internationalization in the co-living space service market, especially in light of challenges like Covid-19 and market competition. Desklib offers similar solved assignments for students.

Critical Issues in Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key drivers of the internationalisation for the Hmlet's .........................................................3
International growth strategy of Hmlet..................................................................................5
Challenges that are faced by the organisation in Asian market and strategies of organisation to
cover service market...............................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business organisation are commercial enterprise that operates different activities within
in an organisation. Within an organisation the company come across various critical issues that
creates a chances of internationalisation within an organisation. With the growing competition,
changing technology, market trends etc. the businesses fro their growth and expansion enter into
a new international market (Braidford, Drummond and Stone, 2017). Internationalization is the
complex process of developing a existing or new product in new country to meet the needs of the
customers in new market. In terms of economics, internationalisation is growth strategy by
which company captures the new market by keeping footprint outside of its domicile country.
The present report is the case study based report on the Hmlet's- the company is the Singapore-
based company that offers a co-living space service which is the simplified version of housing
for people in the countries like Australia, Singapore and Tokyo. The company has also built a
portfolio of co-living properties in the Hong-Kong, Sydney and Tokyo. The company has also
planned to expand in the Malaysia and Thailand but due to Covid-19 their was harmful impact
on the Hmlet's properties as this clinched the management contracts of several properties. The
present report will discuss the main drivers of the internationalisation for the Hmlet's. Further
international growth strategy for the market of Singapore, Hong- Kong and Tokyo are
highlighted. At he end the company has possible issue s the company has faced in Asian markets.
MAIN BODY
Key drivers of the internationalisation for the Hmlet's
Internationalisation is the huge strategy for the growth and productivity of the
organisation. Organisations like Hmlet's are internationally active therefore are more effective,
risk taking and competitively viable to enter in any market to gain the opportunities existing in
that market (Criado-Gomis, Cervera-Taulet and Iniesta-Bonillo, 2017). When there are the
changes in the external environment of the countries then there is development of some key
drivers that force the company's like Hmlet's to expand into new market. Some of the Key
drivers of the internationalisation for the Hmlet's are discussed underneath:
Low scope of growth in domicile countries: the three native country of the Hmlet's is the
Singapore, Australia and Tokyo. Among which company has stopped all its operations in

Australian market because it faced the voluntary liquidation and also walking out of the head
leases and leaved the Australians in the unpaid debts of $508,000. All this implied that the
company has very low scope of growth in the domicile countries making it difficult for the
organisation to sustain and maintain its competitive position (Criado-Gomis, Iniesta-Bonillo and
Cervera-Taulet, 2018). With the emergence of Covid-19 pandemic the company also has faced
the wreaked havoc on the demand of its properties which acted as the driver for the company to
enter into expansion mode an enter the international markets. Also in the native country the
financial resources were down and due to which the occupancy rate was decreased which forced
the Hmlet's to enter the new market.
More growth prospects international markets: the Hmlet's is planning to expand in the
markets like Malaysia and Thailand which is known highly for its guest, tourists and visitors all
over the year. Also when in the Hmlet's ambition to expand after analysing the opportunities in
international market the company was backed by the large size financial pool of US$48 million
from the investors like Burda Capital Sequoia India and Mitsubishi Estate company (Galea,
2017). This driver was highly impactful in letting company to expand in new market place where
there is huge demand of co-living space which have short term rental options, furnished rooms or
apartments. Thus this has major advantage for the Hmlet's to increase its revenue by entering into
the market where there is need of co- living space services and has huge property lands in cheap
rates.
Technology: the technology is growing at fast pace and is also a great medium to innovate new
features and qualities in the models and designs of the co-living space rooms and apartments.
Technology also come up with new features which is increasing the standards of such rental co-
living space offered by the Hmlet's. This factor is therefore become a reason of
internationalization as in some countries there is fast emergence of latest technology which will
help the company to stay competitive and leverage the technology to bring sustainability in their
operations.
Increased property rates: due to the high rise in the property rates of the countries like
Singapore, Tokyo and Australia the company has low growth and occupancy rates (Liguori and
Pittz, 2020). This reason become a driver for the Hmlet to enter the new market where their low
property rates and high demand of such services that provide the flexible traditional rentals and
lease houses, rooms, also that has utilities an services and common areas like Kitchen and

Lounges. Thus this driver is very crucial as this will help the Hmlet to enter in such market
where the profit margin can remain high as the property rates are low.
International growth strategy of Hmlet
International growth strategy refers to the business strategies that are developed by the managers
of the company in order to effectively compete in the global market. The company requires these
strategies so that they can decide the framework on which the business needs to work upon.
These strategy helps the business in differing from other business operating on the international
level, Hmlet has adopted to the Market development strategy tin the market of Thailand
Malaysia, Hong Kong, Singapore and Tokyo:
Hmlet has on going operations in Australia where they deal in the co-housing industry ,
the company is making loss in Australia and is thinking of diversifying their operations into
several countries (Locke and Samel, 2018). There are several aspects that the company needs to
consider while expanding their operations in the new countries The company is thus applying
various market development strategy in the business in order to effectively sustain in this market. Attracting the tourists: The company has come up with the strategy to attract the tourists
who are looking for a longer stay in the country. Hmlet can run campaigns in which they
offer exciting offers for the people who are visiting that country. Advertising in a global
market is the first thing that will help the business in accomplishing the objective of
attracting new people in the business. Giving competitive pricing- The rental service should be able to offer a pricing that is
flexible and reasonable. This will attract more people as the current market players are
offering high prices due to less competition in the country. Proper research of the market- Housing services are highly influenced by the way
people of that country prefer living in. The company needs to see the culture and habits
of the people residing in that country and should make up their facilities accordingly. Good quality of the infrastructure and services- In the industry of rental houses, this is
one of the most important factor on which the customer's decide their organisation. They
need to buy properties in a good location with all the essential facilities. The
infrastructure of the place should be attractive enough to acquire customers.

Challenges that are faced by the organisation in Asian market and strategies of organisation to
cover service market
The process of globalisation and expansion could be hectic and full of challenges. These
issues and challenges needs to be addressed as they impact the performance of the company in a
direct or indirect manner. Few of the challenges that Hmlet is facing in the global market are
discussed below: Local licensing and laws: Rental services require licensing from the local government of
the country. The licensing part is time taking and requires money, this wastes a lot of
time of the business and decreases the efficiency of the business. Various laws associated
with the renting and labour impact the operation as the business needs to develop
property by the labour workforce. Organisation is obliged to follow all the rules and laws
implemented by the local government of the country. Unique business and social culture: Ability of the company to easily adapt to the
business and social culture is quite difficult for the businesses. They face a total change in
the behaviour and values of the people that are associated with the business organisation.
The company is looking for various ways in which they can easily blend with the culture
of the other organisation. Domestic economic issues: The company is exposed to the economic conditions of that
country. Like in recent case Covid-19, majority of the economies faced crisis which
resulted in loss of Hmlet (Shad and et. al., 2019) . The economies are struggling which
directly impacts the operations of business. Asian countries struggle in terms of economy
which effects the ways in which business operate. Sustainability: The companies faces high competition in the global market and thus faces
challenge in sustaining in the business for longer period of time. The companies need to
come up with strategies in order to sustain in the industry with good market players.
Strategies Hmlet can adopt in order to emerge as a strong market player in the co-living space
service market:
Strategies adopted by the Hmlet organisation to become a strong player in the market is
discussed below:

 Invest in marketing: Organisation uses various campaigns to market their product in the
industry. Hmlet has decided to increase its budget in marketing as this will assist the
business in making a good position in the industry. Satisfy customers: Satisfied customers are key to successful business, the organisation
should develop strategies that revolve around the customers and their need and wants.
Hmlet provides good renting services to the customers which satisfy their needs. Enhances investment- Hmlet is increasing their investment in the business as they are
expanding in various countries. They are required to increase it as they need to purchase
property for their rental program in the new country (Zuhdi and et. al., 2019). They
received $6 million which helped them in enhancing their operations in the new country. Building of good infrastructure-Infrastructure is a major component in the industry and
Hmlet need to consider good quality of infrastructure in their properties. This can help
the business in majorly dominating the other market players of the industry. Good
infrastructure drives good customers who are looking for a premium experience of
staying.
 Effective pricing- The company should have a market structure in which they offer a
wide range of pricing, they should have facilities for every kind of customer that they
may encounter during the course of business (Poczter, 2018). Hmlet can easily dominate
the other market players in the industry if they offer a reasonable pricing as compared to
other rental spaces in the environment.
CONCLUSION
It is concluded from the above report that for the countries to expand in the international
market the company has to effectively plan and analyse the factors that would lead to successful
internationalization. For the company's potential growth, low scope in native market, competitors
are some key drivers that push company's to opt for internationalization to grow their business.
Also it is concluded that the for the company to have growth in new markets the market
development strategies are essential as they provide proper direction to the company to grow in
new market. Also for the company Covid-19, sustainability, clinched contract of management
internationalisation has been remained as the key issues for the effective internationalisation. In
order to remain the strong player in the market of co- living space the company must include

extra services in its co- living space, work on its interior designs and also include the food and
other services and most importantly make it reasonable.

REFERENCES
Books and Journals
Braidford, P., Drummond, I. and Stone, I., 2017. The impact of personal attitudes on the growth
ambitions of small business owners. Journal of Small Business and Enterprise
Development.
Criado-Gomis, A., Cervera-Taulet, A. and Iniesta-Bonillo, M.A., 2017. Sustainable
entrepreneurial orientation: A business strategic approach for sustainable development.
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Criado-Gomis, A., Iniesta-Bonillo, M.Á. and Cervera-Taulet, A., 2018. Sustainable
entrepreneurial orientation within an intrapreneurial context: effects on business
performance. International Entrepreneurship and Management Journal. 14(2). pp.295-
308.
Galea, C., 2017. Teaching Business Sustainability: Volume 2: Cases, Simulations and
Experiential Approaches. Routledge.
Liguori, E.W. and Pittz, T.G., 2020. Strategies for small business: Surviving and thriving in the
era of COVID-19. Journal of the International Council for Small Business. 1(2). pp.106-
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Locke, R.M. and Samel, H., 2018. Beyond the workplace:“Upstream” business practices and
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Shad, M.K., and et. al., 2019. Integrating sustainability reporting into enterprise risk management
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Cleaner production. 208. pp.415-425.
Zuhdi, S., and et. al., 2019. Role of Social Media Marketing in the Successful Implementation of
Business Management. International Journal of Recent Technology and Engineering. 8.