Liddells Dairy Products: Singapore Market Expansion Analysis

This case study analyzes the potential for Liddells Dairy Products, an Australian lactose-free dairy producer, to expand into the Singapore market. It provides an executive summary highlighting the focus on Singapore and the slow growth of the dairy industry in the country, where milk consumption is not a dietary staple. The report delves into a detailed environmental analysis of Singapore, covering economic and financial aspects, political and legal frameworks, social and cultural factors, and technological advancements. The analysis identifies opportunities such as Singapore's open trade policies and technological infrastructure, as well as threats including the consumption habits of the population and competition within the industry. The study concludes with recommendations for Liddells, considering the challenges and opportunities present in the Singapore market and the need for effective marketing strategies to change consumer perceptions and boost dairy product consumption.

International Market
Analysis
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[Year]
A Case study of Liddells dairy products
student details
[Company name] | [Company address]

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Executive Summary
Liddells Dairy Product is a subsidiary of Saputo Dairy, Australia. The organisation is
focusing on expanding its business operations in the international market. Singapore is the
choice of the market of the international market expansion of Liddells. Liddells deal in
production of lactose-free milk products. The dairy products industry of Singapore shows a
slow growth as the Singapore society does not consider milk and its products as an essential
element of the daily diet and avoid the consumption of dairy products. Analysis of Singapore
business environment shows that the nation has adopted free and open trade policies and
regulations to promote international trade within the nation.
The country economy depends majorly on the export of products and service, being a
developed country. Singapore government focus on technological development within the
nation and invest a substantial development in the development of IT infrastructure within the
nation. Singapore is a nation that has a positive influence on the development of tech-firms.
But for the expansion of dairy products firm, the Singapore industry requires effective
strategies that would be able to change the consumption pattern of the society and lead
towards the growth of the industry within the nation.

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Table of Contents
1. Introduction............................................................................................................................3
1.1 Industry Background and Company Introduction................................................................3
2. Environmental Analysis of Singapore...................................................................................4
2.1 Economic and Financial Environment Analysis..............................................................4
2.2 Political and legal environment analysis..........................................................................4
2.3 Social and cultural environment analysis.........................................................................5
2.4 Technological environment analysis................................................................................6
2.5 Impact on International Marketing Campaign.................................................................7
3. Export Opportunities or Threats.............................................................................................7
4. Conclusion and Recommendations........................................................................................8
5. References............................................................................................................................10

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1. Introduction
International expansion of an organisation requires the effective analysis of the
business environment within the nation and identifying the opportunities and threat that the
organisation might face while operating within the industry. The economic, political,
technological, and cultural factors within a nation influence the business operations within
the industry. Therefore, it is required that the organisation effectively analyse such
environments before entering the industry and develop strategies through which it will be
able to effectively enter the industry and operate business operations. The report is focused
on analysing the Singapore market for the international expansion of the Liddells Dairy
Product, an Australia based dairy firm.
1.1 Industry Background and Company Introduction
The dairy products industry has slow growth in the Singapore market. The state has
experienced population growth but the growth of the dairy product market is marginally
slower. The population of Singapore believes that milk is not required to be the essential
elements of the daily diet, they can get the required nutrition from the consumption of other
milk products or different food sources (Bhaskaran, 2018). The industry within Singapore is
more focused on exporting activities rather than focusing on internal marketing and sale of its
products. The demand for dairy products within the market is influenced by the choice of
young adults who prefer western foods such as pasta and pizza that contains cheese as an
ingredient (Ministry of Trade and Industry, 2018).
Liddells Dairy is an Australia based dairy firm focused on producing lactose-free
dairy products since 1996. They produce a variety of dairy products and ensure the nutrition
level within the products so that the consumer can get the required nutrition from the

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consumption of products of Liddells Dairy. The product range at Liddells Dairy includes
Milk and other milk products such as cheese and yoghurt. Liddells Dairy products are
FODMAP certified, due to which people following a low FODMAP diet can also consume
the products of Liddells, without having any issue (Liddells, 2019).
2. Environmental Analysis of Singapore
2.1 Economic and Financial Environment Analysis
Singapore economy is highly characterised by finances and openness, the nation’s
financial status is dependent mostly on the international trade as the nation promotes
business-friendly regulatory systems, exports and focus on increasing the demand for
domestic products and service. Singapore has the highest per capita income within the region,
also has an average 2% unemployment rate within the nation which is among the nations
having the lowest unemployment rate. The industry related to electronics, finance,
petrochemicals, and business services contributes to a major part in the GDP of the nation
(Ministry of Trade and Industry, 2018).
The Singapore market has a freedom score of 89.4 which makes the economy 2nd in
the list of word free economies for trade-in 2019 (Heritage.org, 2019). The development of
the Singapore economy is mainly due to its openness to international trade and towards
global investment. As the Singapore economy is highly developed and urbanised, therefore
there is a limited focus on the production of agricultural and dairy products, and mainly the
economy is dependent on the export of such products (Export.Gov, 2019).
2.2 Political and legal environment analysis
The political environment of Singapore is quite safe far business organisations as
there are limited trade regulations and less political risk within the nation. The government

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supports the development of international trade within the nation and focuses on developing
legal rules and regulations that ensure free trade within the nation (Woo, 2016). The political
system of Singapore experiences a monopoly of People’s Action Party, as they have won
every single election since 1959, within the nation, as the country follows a democratic
pattern, therefore, the public interest is ensured before forming any legal policy and
regulations (Lee, 2010).
The government of Singapore works to protect the interest of the domestic
organisations and firms by providing them with subsidizes so that they can compete with the
international organisations that are entering the Singapore economy. Singapore has
established various political alliances with China, India, Australia and Japan to promote free
international trade. Singapore has set up legal rules and regulations to protect the interest of
citizens and the business owners working within the nation, also Singapore is considered as
among the world’s least corrupt nations, and has legal guidelines to deal with situations
where such activities are discovered (To & Hooi, 2011).
2.3 Social and cultural environment analysis
The social and cultural environment of Singapore follows traditional values and
respects them. The literacy level within the society is high and the citizens within the nation
are focusing on working hard to earn a living which contributes towards successful
development of the nation. The government of Singapore also focus on contributing to the
development of society through various social welfare development programs. The society
includes equal opportunities for women within the nation, also women have equal legal rights
in key areas such as employment, education and business opportunities. The society of
Singapore promotes its cultural values and beliefs and act accordingly (National Integration
Council, 2019).

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The Singapore government has identified basic shared values followed by the
societies as the symbol for the nation including, mentioning family as a basic unit within the
society, respecting individual and communities within the society, keeping the nation and
society above the community and self-interest. The society has high cultural enrichment and
the people within the nation are of the long-term mindset, they focus on achieving long term
goals along with the ensuring the short-term achievements (IOR, 2019).
2.4 Technological environment analysis
Singapore is a technologically advanced nation; it focusses on the development of IT
infrastructure within the nation. The internet has played a major role in the development of
the Singapore economy. Singapore is the most “Digitally Competitive” places within the
world. The digital competitiveness of a nation reflects the economy’s capabilities to learn and
adapt new and advanced technological changes within the nation and its readiness for future
technological developments (Today Business, 2017). The technological development within
Singapore is much advanced also the nation is much more focused on investing in technology
development and various training and education activities.
Due to the technological advancements within the nation, 80 among the world’s top
100 tech firms are currently operating their business in Singapore. The organisations apart
from tech firms planning to set up their business within the Singapore nations boundary have
the advantage of the development of technological advancements within their business
process and to improve organisational efficiency (Capri, 2018). Also being a technologically
developed nation, Singapore is highly focusing on the development of e-commerce within the
nation. Also, various legal rules and regulations have been formed by the government that
supports the promotion of technological developments and e-commerce within the nation.

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2.5 Impact on International Marketing Campaign
Liddells Dairy products deal in Dairy products and are looking to expand its business
operations in Singapore. As analysed the Singapore Society promotes international trade and
supports the international organisations operating their business within the nation. Therefore,
the Liddells will not have to face difficulties in establishing and operating its business within
the nation. The society practices cultural and religious beliefs and values also the political
stability within the nation will provide the organisation with a positive business environment.
The organisation will also have a benefit of adopting new technological changes within the
organisation which will enhance business effectiveness.
3. Export Opportunities or Threats
The focus of Liddells to expand its business operations within Singapore will provide
them with various business opportunities. The market for dairy products within the nation
lacks growth within the industry. Therefore, Liddells can expand the business within the
nation by ensuring effective promotion and marketing strategies and can lead to being the
market leader within the industry. Availability of technological advancement within the
nation is also an opportunity for the organisation. As the government is focused on
technological advancement within the nation, such advancements will have an impact on the
process within the organisation, therefore improving the effectiveness of the organisation.
Singapore’s government free trade policy provides an opportunity for business
organisations to effectively and easily set up their organisation within the nation and conduct
their business activities. Operating within Singapore will also expand within the nearby Asian
Pacific Economies (Pang, 2011). The import of dairy products within the Singapore economy
is tax-free, therefore Liddells also can set up distributors within the nation and export the
products to the distributors within the nation. Also, the population of Singapore is educated

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and developed and are focused on maintaining their physical health and consumption of food
products that do not impact their physical wellbeing. Therefore, the Liddells can promote its
products as a healthy food component with a high level of nutrition elements and can
influence the industry to sell its products (Paul, 2010).
Apart from the mentioned market opportunities, entering the Singapore industry will
also possess certain threats for the dairy product manufacturer. The main threat for Liddells is
the consumption habit of Singapore society and the slow growth rate of the industry. As there
are already market players within the industry that are focusing on increasing their product
sale by marketing and promotion of their products but still the market is underperforming.
Therefore, it is a threat to Liddells before entering the industry as promoting products and
influencing people perception for dairy products within the industry will be a challenging
task for the organisation.
The economy of Singapore is mainly dependent on the export of goods and service,
therefore any fluctuation within the international market has its direct influence on the
Singapore economy and affect the working of the business within the nation (Coface, 2019).
Also, due to its open and free trade policies and agreements with various developed
economies increases the level of competition within the nation, as the companies from the
international market can easily enter the Singapore industry and can sell their products within
the nation, thus increasing the level of competition within the nation. Therefore, Liddells will
have to deal in a competitive industry and will also have to focus to influence consumers to
adopt dairy products as a part of their daily diet.
4. Conclusion and Recommendations
Liddells Dairy products a brand name used by Saputo Dairy, Australia, is achieving
the business effectiveness within Australia and is focused on expanding its business

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operations in the international market. Singapore economy has a slow growth for the dairy
products, as the customers within the nation does not expect dairy products to contains high
nutritious value also, the industry has existing market players within the industry, focused
towards increasing the market share for the dairy products, therefore the consumption pattern
is a threat for the industry within the nation. The Singapore economy promotes free and open
trade policies also the economy has a stable political environment that is focused towards
maintaining the Singapore cultural and regional values and development of the nation.
Along with the growing economy and stable political environment, the economy also
promotes technological development within the nation. Therefore, any organisation operating
within the nation can implement new and advanced technologies within the business process
and can contribute towards effective business development. Singapore economy is highly
developed and the customers within the nation are health conscious and avoid consumption
of products having an impact on their well-being. Therefore, Liddells can promote its product
quality within the nation and can influence the customers to consume its products.
Based on the environment analysis and the opportunities and threats within the
organisation environment, the organisation can follow following recommendation for its
international expansion in Singapore.
 The organisation can focus upon the technological advancements while operating its
business within the nation.
 Liddells can effectively expand its business operations within the nation by
implementing effective marketing strategies and can be a market leader within the
industry.
 The marketing strategies developed by Liddells should be focused on the nutrition
content of its product as the citizens within the nation are health conscious and focus
on consuming foods having high nutritional value.

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5. References
Bhaskaran, K. (2018, March 28). Milk Consumption Trends in Singapore. Retrieved January
04, 2020, from http://scifedpublishers.com/fulltext/milk-consumption-trends-in-
singapore/22008#top
Capri, A. (2018). 5 Reasons Why The World's Tech Firms Are Moving To Singapore.
Retrieved January 04, 2020, from
https://www.forbes.com/sites/alexcapri/2018/09/21/5-reasons-why-the-worlds-tech-
firms-are-moving-to-singapore/#316fb8ab2aa0
Coface. (2019). Singapore. Retrieved January 04, 2020, from
https://www.coface.com/Economic-Studies-and-Country-Risks/Singapore
Export.Gov. (2019). Singapore - Agricultural Sectors. Retrieved January 04, 2020, from
https://www.export.gov/article?id=Singapore-Agricultural-Sectors
Heritage.org. (2019). 2019 Index of Economic Freedom. Retrieved January 04, 2020, from
https://www.heritage.org/index/country/singapore
IOR. (2019). Singapore. Retrieved January 04, 2020, from
https://www.iorworld.com/resources/singapore/
Lee, T. (2010). The Media, Cultural Control and Government in Singapore. New York:
Routledge.
Liddells. (2019). Delicious Dairy. Retrieved January 04, 2020, from
https://www.liddells.com.au/
Ministry of Trade and Industry. (2018). Economic Survey of Singapore. Singapore: Ministry
of Trade and Industry, Republic of Singapore.