New Zealand's A2 Milk Company: International Market Analysis

This report examines the international market analysis and expansion strategies of the A2 Milk Company, a New Zealand-based firm. It focuses on understanding global markets, cultural environments, and identifying favorable foreign markets for expansion. The report considers four emerging markets where the company can potentially increase revenues and profits. It explores market selection decisions, analyzing various entry strategies such as simultaneous entry, diversified and concentrated market approaches. The report emphasizes the importance of screening markets based on characteristics like business climate, competition, distribution logistics, and trade barriers. The paper also analyzes the company's background, the benefits of A1 protein-free milk, and market distribution across various regions, including the UK, US, Australia, and China. The analysis aims to provide insights into effective business development in international markets, considering market structures and competitive conditions.

Running head: INTERNATIONAL MARKET
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Purpose
New Zealand is a highly developed free market economy, which ranks among the 53rd
greatest economies in terms of purchasing power. The economy has grown over the years due its
improved service and manufacturing sectors that drives huge amount of goods and services. It
has a well-established export market that is driven by technological capabilities. New Zealand
wants to expand its market in several sectors that is crucial for its growth and development due
to increased efficiency and performance.
The paper tries to focus on the understanding of the global markets and cultural
environment that is effective for business development with respect to global market
opportunities. This is done by choosing a favorable foreign market that is effective for
expansion. For this, four emerging markets are considered New Zealand can effective expand its
revenues and extract super normal profits. The impacts can be either positive or negative.
Therefore, it becomes important to understand and compare the business opportunities in
different countries where New Zealand can effectively operate and extract huge revenues.
Background
The background of the paper gives the setting of the paper with respect to the
organization that will expand its business in other markets. The chosen company is The A2 Milk
Company which is a part of ASX 200 public listed company. The company was also known as
A2 Corporation which deals in the commercialization of intellectual property that is related with
A1 protein-free milk. The products produced by the company are sold under the a2 and a2 milk
brands. The company also makes infant formula that provides huge revenues. It has an annual
revenue of 337.3 million dollars. The firm does not need much labor as goods are produced by

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capital intensive techniques. It operated with an asset value of about 210.15 million that is
crucial for business and organizational development.
The A2 Milk Company is followed by A2 Corporation that was established in 2000. The
impacts of A1 beta-casein has been researched by Dr Corran McLachlan. The company
undertook a genetic test to denote whether cows are able to produce milk with a1 protein. The
goal of the A2 Corporation was to make dairy products that is free of A1 protein milk. The
company organized several dairy farm breeding programs to establish the goals. However, the
launch of such products were delayed due to operational objectives and it was not made. Instead,
A2 products were made in the market. The company made huge profits with a year of its
establishment with the creation of effective policies and maximized output.
Gallons of milk has been produced by the company that is encouraged the firm in
generation of huge revenues. About 40 liters of free milk were produced by the company in 2010
and extracted huge revenues and marginal proficiency. A1 protein free milk and yoghurt were
supplied to Queensland. By 2012, the company came under the New Zealand Stock Exchange
that created a brand name for the company. The A2 corporate created infant formula and sold it
to several market. It increased its milk business over United Kingdom and United States that
enabled huge sales. Thus, it can be seen that it follows a diversified market strategy due to
expansion of businesses over wider area. The name of company has been hanged in 2015 after
the firm started marking huge profits by expanding its business ventures in the developed
countries. However, businesses are now flexible in emerging markets where foreign firms started
shifting their business in a place that is abundant in resources. This has enabled to firms to
produce goods at a much lower cost the increases their sales and profit percentage. The firm has
a sustainable market as it delivers milk that is enrich in protein. A1 proteins are termed as

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harmful and so milk produced by the company is free from A1 protein. Market distribution
hugely increased in several regions such as UK, US, Australia, Hong-Kong, America and China.
Topic 1: A market selection decision, based on a shortlist of four (4) markets and relevant
criteria.
The decision to expand a business in international markets over other countries is to
understand the impact on the profitability of the chosen firm with respect to several market
strategies. Exploring and accessing the international markets involves the comparison of several
markets with respect to their performance, opportunity, growth, revenue, sales and profit
margins. Data needs to be collected from several authentic sources that can be either qualitative
or data. Collection of this data is not easy because the data is different in each country with
respect to several outcomes. The strategy of structural approach is applied to understand the
changes in several markets by screening the core effective policies for the organizational
development with respect to several outcomes that is crucial for the business development.
Exploring a new market is based on the selection process that is reflected from the way
firms enter in the foreign market. This is judged in terms of incremental basis strategy which is
related to the decisions taken by the investors on an incremental basis. The change in the value of
balance sheets or income statements are important to understand the financial condition of the
economy. Firms take decisions on the basis of their experience on the performance of
international markets in a number of ways. This is effective for the firm to maintain the output by
using lowering resources and involving less risk in terms of exposure. However, this approach
contributes to a greater risk value and leads to a greater competitive risk from the competitors.
This is because firms can effectively analyze the performance of its rival firms and move to other
regions where companies earn huge profits.

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Another strategy that is effectively used in businesses is the simultaneous entry approach.
This strategy works on the principle of diverseness where a firm tries to enter as many markets
as possible within a shorter time span. The strategy needs a strong understanding of the markets
and marketing activities due to difficulties of operating in simultaneous markets where the
market has several successful entries. When there is a successful market entry, there occurs an
entry barriers for the other followers as the successful firm has already dominated the industry
which is known as the first mover advantage. Entry into several market normally increases the
volume f sales which helps in utilizing the capacity of each firm. Firms are able to achieve
economies of scale in production while operating in the international market. As a result,
companies use its natural resources fully that s effective for the organizational development a per
the core attributes. Simultaneous entry approach is foreseen as a resource intensive strategy that
can bring about higher operating risk. Moreover, firms has to adequately maintain its target and
use more competitrivge techniques of production and deliver products at proper time. Firms
needs to resort to several marketing strategies that can effectively improve the performance of
The A2 Milk Company in the global market.
Studying the market structure is effective before entering the market and sell the goods.
The third strategy is to see which approach will be effective, diversified or concentrated. A
concentrated market strategy is the strategy where the sale of the products are targeted towards
one set of audience or a specific segment of the consumer population that operates in a limited
markets. This strategy is effective for small business to sell products with limited financial
resources and dominate the market with their targeted audience. This enables the firm in the
creation of a distinct market niche for a particular commodity. Diversification is the opposite of

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concentrated market approach. Diversification is the process by which firms enter into new
markets by launching new products that is not focused on one set of target audience.
When firms decide to operate in a concentrated market they need to give more focus
towards the sourcing of the products in such small markets for a smaller set of audience. The
firms get benefit from exploiting the information and acquire a competitive experience. They are
able to facilitate competitive advantage by providing goods at low costs and raise its optimum
level of output that enhances producer surplus. This is because when firms can produce gods by
using less resources it lowers the production costs. Low production costs enable firms to sell the
goods at low price and attract more their targeted set of customers which raises their productivity
level. This is effective for the business ventures to communicate and extract huge revenues that
will help them get the return on the invested amount. However, they face the risk of attracting
potential customers. Since, these firms depend on only a small range of customers or operate
over a smaller geographic area, their sales might get hampered if they are unable to attract their
targeted customers. This makes the firm ignorant to the rest of the population even though the
firm has acquired fir global expansion. Thus is crucial for the business to operate in a diversified
market approach that is intended to attract several customers.
The effectiveness of such policies are dealt in the way goods area being produced and
delivered in several markets as it diversifies the risk opportunity in several market strategies. The
approach of diversification markets offers greater strategic flexibility because the diversification
strategy can be approached in several ways (Alon et al., 2016). It enables the firm to extract huge
revenues to by creating products that is innovative and efficient as per the geographical area.
Among the four strategies, the most effective strategy is the screening approach which analyzes
the markets with respect to cost effective outcomes and technologies. Screening is done on the

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basis of company’s portfolio to attract international customers and increase their area of
operation. The competitiveness of the firm is measured by understanding the core characteristics
of the market in which they operate the markets in which they are willing to expand their
ventures.
Screening is done in two methods such as analyzing the market characteristics and
competitive conditions. Under the topic of market characteristic, firms needs to focus on the
climate, competition, distribution logistics and trade barriers. The market in each country is
differentiated in terms of their market characteristics that is effective for the long run business
development (Lester et al., 2019). The business climate of a country is important for analyzing
the way businesses perform in that market. It is influenced by factors that is effective for long
term businesses that is crucial for business operation such as external and internal factors,
political stability, consumer choice or preference, regulations and market affairs with respect to
policies that is crucial for the long-term business development (Piercy, 2016). The distribution
and logistics serves as an important factor for market analysis because the production and market
logistics needs to be linked for effective business operation. Manufacturing, modelling,
distribution, transportation, fleet management, efficient handling of materials, proper
management techniques, warehouse management and managing of inventory is enlisted under
logistics distribution. Competition in the market is measured by observing the behavior of rival
firms and their market domination.
In a competitive market structure, firms cannot influence the markets due to availability
of infinite buyers and sellers (Iyer et al., 2016). Prices are generally low or similar to that given
by the other rival firms and no one can extract huge sales until the good is highly demanded in
the market. Similarly, in monopolies there is a single firm who provides a unique product that is

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not produced by other firms and extract huge revenues and sales. This enables the firm to
influence market prices due to unavailability of other substituites products in the market.
However, provision of such products is not easy because it needs several regulations from the
government and market outcomes. Firms basically follow an oligopolistic market structure where
the products are differentiated in terms of price, design, quality, quantity and advertisements.
Firms try to follow a cartel system or try to outsource each other due to the provision of similar
goods (Yang et al., 2015. Barriers to trade serves as an important factors if there are trade
barriers then firms will not be able to trade goods in that country and extract huge sales. The
operating sales are due to a changing outcome that can lead to business development. The overall
impact can fall on the company if they are unable to supply goods due to imposition of tariffs
that raise the price of goods.
Trade barriers like tariffs or import quotas are imposed that raise the price of imported
goods that refrains people from buying the foreign products and lower the level of sales in the
market. The effective outcome can be dealt in the way goods are served and traded in the market
with respect to effective policies and outcomes (Catarino et al., 2015). The A2 Milk Company
can expand its business in four emerging markets like China, Malaysia, Thailand and India.
Emerging markets are those that has few characteristics of developed markets where goods and
services extract huge sales that raise the level of profits. However, it cannot match with all the
standards in a developed economy. The performance of these economies has effectively
improved in the past years and companies are trying to shift their business in the emerging
markets to extract huge sales and revenues. Malaysia, China, India and Thailand are known as
the biggest emerging markets where businesses have retained positive profits. The business

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environment has flourished in these economies such that they are able to extract pure economic
profits.
China is known as one of the fastest growing countries in the world due to its GDP, rise
in per capita income, revenues and improvement of service sectors. The A2 Milk Company has
already exported goods to China in 2013. The company’s famous infant formula that was made
of a2 Platinum is exported to China that has derived export led growth and income for the
company. The A2 Milk Company extracts profits from China through exports and so opening a
firm may not be profitable because the company is already deriving quality sales and profits
from the sale of the product in China (Watson et al. 2015). This country imports a great deal of
dairy products from The A2 Milk Company that is further used for production of other dairy
goods. Thus, China deals in the export and import of milk products and thus opening an unit of
The A2 Milk Company will not be very profitable. Moreover, the resources for providing milk or
other dairy products is deficient in China which will eventually increase the production cost and
raise the overall price that will lead to a sharp fall in profit margins.
India is a developing economy that has served as one of the most effective hubs for
business development though quality sales, provision of resources, export earnings, businesses
and foreign direct investment and export laid growth (Thiele et al., 2015). India is self-sufficient
in milk resources or dairy products. India is known as one of the biggest exporter of milk and
related products. Consumers are self-satisfied with dairy products that is provided at low prices.
Thus, India is self-sufficient in the provision of dairy products and related goods with the
attainment of efficiency in production capability, resource capability, human and financial
resources. This efficiency is important for the development of huge sales for India with the
exportation of dairy products. Thus, it can be concluded that dairy firms in India have successful

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businesses and there is no need for opening new dairy units (Li et al., 2018). Thailand is another
successful emerging market who growth is structured through an effective trade market that can
deliver quality sales at an optimum cost and profit percentage. However, this revenue is mostly
generated from the service and tertiary sectors that has developed in the economy. Thailand does
not have a good dairy industry and consumer demand is not high enough to expand business
relating to dairy in Thailand (Saebi & Foss, 2015). Thus, it be not be profitable to open a milk
business in China that serves milk free of A1 protein.
Malaysia is renowned as the center of all businesses and is known as the business hub of
Asia. The country serves as one the most effective business environment for the word class
brands. Global brands have encountered a high rate of sales and profitability by owing business
in Malaysia. The import of dairy products in Malaysia has significantly increased in the past few
years owing to a sharp increase in the demand for dairy products. Malaysia has resources to
serve the dairy products, yet dairy products are imported in subsequent proportion in Malaysia
due to the provision of the good at low price and larger amounts which is derived from the
provision of goods at lesser time frame (Meyer et al., 2018). This is effective for the firms to
extract huge revenues from the operating a dairy firm that provides dairy and other related
products. The sale of the product lies in the provision of goods at an affordable price, quality and
output that is effective for business development with respect to optimum outputs and profit
levels. Moreover, Malaysia has skilled labors and modern technologies that will enhance the
production level at lesser time. Financial resources and capability is effective in Malaysia
(Endrullat, et al., 2016).
The country does not face much of trade barriers and extension of business is flexible for
long run growth and extraction of profits. The most effective costs lies in the extraction of super

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normal profits with respect to market effective inputs and technologies that can be attained in
Malaysia (Meyer et al., 2018). The market structure for the dairy industry is pure oligopolistic
where four firms influence the market and operate at an effective price and output level. They
form a cartel while operating in the market or provide goods at similar such that each firm can
attain the same level of profit and output.
The company will be able to extract huge sales by providing the good at a price that is
effective fir quality development due to technical efficiency which is helpful for deriving the
supernormal profits with respect to effective outcomes. The firms will be able to extract huge
sales that is effective for the business outcomes in the long run due to generation of huge profits
and revenues (Mignani et al., 2016). The overall effect can be change in the quality parameters
with respect to optimum outcomes.
Topic Two: A description of the specific nature of the opportunity identified, focusing on
market size/demand estimation, competition and consumer tastes or preferences.
The demand for the dairy product was low in the Southeast Asian countries in
comparison with the developed markets. As a result, the consumption of the dairy product
remained low in Malaysia as well. The consumption of the dairy product was lower than 20kg
per capita each year in Southeast Asia. Whereas, the consumption of the dairy product was
nearly 300kg per capita per year in developed markets (Kotler et al., 2018). However, according
to the estimation, the demand for dairy products will increase in the Southeast Asia until 2020 by
3%. Therefore, the region will become the market of the largest dairy consumers worldwide. The
a2 Milk Company planned to expand its business of dairy products in Malaysian market. Hence,
the selection of the Southeast Asian emerging market such as Malaysia would help the company
to expand its business and achieve success (Klochkov, Papic, & Butkevich, 2017).

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There are various health benefits of the milk products. The awareness about the heath
benefits of the milk and its related products was less in the Southeast Asian countries. It lowered
the consumption level of milk and dairy products in the Malaysian market (Vellas, 2016).
However in recent years, the consumption of the dairy products increased by more than the
world average of 2% in Southeast Asia due to growing incomes, increasing regional awareness
and rapid urbanization. In addition, the awareness about the A2 milk also rose. Firstly, it was
only popular in the New Zealand, Australia, India, United States and China. Later, it expanded to
the rest of the countries of the world. Along with growing demand for the milk and dairy
products, the demand for the A2 milk also boosted in the Malaysia (Ghimeray et al., 2019).
The variety of A2 milk was first launched by the company a2 Milk, it also helped to
increase the awareness about the health benefits of the A2 milk in comparison with A1 milk
products. There exists some harmful proteins in A1 milk. The company mainly focused its
business on A2 milk. The people of the emerging market also shifted their preference towards
the company produced A2 milk and milk products. The market value of the A2 milk would reach
to 19324 million US dollars by 2024 (Goldfarb, A., & Tucker, 2015). As the emerging market
such as Malaysia offers huge customer base for the A2 milk. Currently, the market is also
dominated by the few players. Other than the A2 Milk Company, there are few market players
such as Pura, Jersey Diary and Dairy Farmers. Thus, it would be helpful for the company to tap
the emerging market like Malaysia. The A2 milk company is one of the largest market leader in
the field of A2 Milk Company. In addition, continuous research and development of the
company also helped it to lead the market. Though, there are many players in the Malaysian
dairy market. The market of A2 milk is dominated by the A2 milk company (Li, Cui, & Lu,

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2018). Therefore, operating in the Malaysian market would be beneficial for the company. Even
the competition of the market may not create hinder for the company.
The existing competition in the Malaysian market can be checked milk with the help of
screening approach, it would help the A2 milk Company to understand the level of competitors
in the market. The competition of the existing market plays a vital role in business expansion.
Therefore, the screening approach would play an important role in the expansion of the market.
The structure of the population in the Malaysia would work in favor of the A2 milk business.
There exists gradual population growth in the Malaysia. In addition, the number of young
population is also higher in Malaysia. Therefore, the opportunity of growth in the emerging
market like Malaysia is higher (Ariff, Sharifah & Hafidz, 2015). The government also took
various measures in order to boost the dairy consumption of this region. Thus, it also boosted the
demand for the milk products in the region.
Though, various research in the field of milk and milk products found that there are
several merits and demerits of milk consumption in both varieties such as A1 milk and A2 milk.
The growing initiates of the A2 milk company in the field of A2 milk contributed largely in
increasing the demand for the products worldwide (Charter, & Polonsky, 2017). Here, presence
of the coffee and fast food chain also contributed significantly in growth of the milk and milk
products. The major coffee and fast food chain of the West include McDonalds and Starbucks,
which played a vital role in the growing consumption of the milk and milk products. More
customers of the emerging market have inclined to coffee and fast food chains. The business of
these big brands largely depends on the milk and milk products. Milk and cheese are essential
part of their business.

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Therefore, it would be beneficial for A2 Milk Company to target those brands to sell their
products. Here, the tastes and preferences also plays an important role. As consumers are more
interested in A2 milk and milk products (Bong et al., 2017). The use of the A2 milk and milk
products by these western brands based in Malaysia would be advantageous for both of western
coffee and fast food chains and A2 Milk Company. Another factor that influenced the taste and
preferences of the consumer include lactose intolerance (Westera et al., 2017). Many consumers
are lactose intolerant, which creates a problem for them to consume milk and milk products. As a
result, they avoid the consumption of the milk and milk products. However, lactose intolerant
people may consume A2 milk as it is able to prevent the stomach disorder such as bloating, gas
and diarrhea (Ghimeray, et al., 2019). According to the research result, consumption of A2 milk
may not harm the lactose intolerants. A2 milk is an also a rich source of omega-3 fatty acids. The
growth and development of human body is significantly depends on the omegay-3 fatty acids.
Therefore, consumption of the A2 milk would provide various health benefits, which shifts the
focus of the consumers towards A2 milk.
It stimulated the market of the A2 milk worldwide. Therefore, increasing awareness
about the A2 milk would also attract more consumers from the Malaysia in the market of A2
milk. The consumers also prefers varied dairy products, which are offered by the company. In
order to cater diverse tastes and preferences of the consumers, A2 Milk Company launched
various milk products (Potočnik, 2015). There are several A2 milk products such as baby foods,
cheese, infant formula and yogurt. Therefore, it would be easier for the company to expand
business in the Malaysian market with a wide variety of products. The company would be able to
cater different types of consumers with its variety products. Therefore, the A2 Milk Company

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may expands its business in Malaysia. However, there are some limitations, which should be
checked in order to sustain the business in the Malaysian market.
Topic Three: Selection of an appropriate entry strategy for a preferred overseas country
for the chosen New Zealand business.
The screening approach is one of the most popular approach to be used in business that is
crucial for the organizational development with respect to cost effective techniques and
technologies. Firms can effectively enter into different markets by choosing an appropriate
strategy that is effective for long run growth. There are several entry strategies this as widely
used by businesses while entering into new firms. They are composed of licensing, franchising,
partnering, joint ventures, piggy banking, direct exporting, green field investments and buying a
company.
Franchising is a process that is popular in North America where distribution of services
or products for the entrepreneurs or owners are attained through affiliated dealers. Franchising
works as a license for the dealers to operate the business by distributing the services from the
owners under the name of the brand (Kadam et al., 2018). The firm needs to have two
efficiencies such that either the business model of the transferring has to be unique or the
company has huge brand value to extract marginal revenues. Licensing acts as relatively
soothing business strategy for entering the market where the legal right of a firm is transmitted to
other firms. However, this model is effective for aim who follows the repetitive business model.
It works effectively only when purchaser of the license has huge market shares to operate the
business.

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Partnering is another form of entry strategy where firms can operate on a partnership
basis. Partnership is beneficial on the grounds that the risk factor gets equally dissipated within
the two sectors. While entering a new market, it is difficult to under a market analysis because in
a new place a company needs to select its customers effectively as they do not have the
knowledge of their targeted customers (Demirel, & Bahattin, 2017). This policy is helpful when
the business environment, cultural background, ethics and social structure of the market is totally
different from the ones where the firm is currently operating.
The effectiveness of such policies lies in the provision of goods at cost effective output
that is crucial for the business development. Joint venture is a market structure where two or
more companies pool their resources for the accomplishment of a specified task. Companies set
for a new entity to arrange for their mutual benefit scheme. It involves options like sharing
resources such as personnel, facilities, capital, intellectual property and physical amenities.
Products are produced by an effective model that is a culmination of two regulated markets.
Direct exporting is the easiest process of extracting huge sales through the provision of goods at
cost effective outcomes and technologies. Companies effectively turn their agents into a market
structure that is used for extracting huge sales and revenues. Agents and distributors work with
each other in order to gather sales with respect to their interests.
Piggy banking is an effective entry strategy that is newly used by firms to grow in an
innovative manner. It is new entry method where products are included in the inventory of the
internal market and observe its demand (Duarte-Vázquez et al., 2017). Cost and risk gets
minimized as businesses does not need to enter into the market and enhance quality sales. Firms
will enter in the market only when its inventory for the business goes up in the newly acquired
market. Buying a company works as beneficial strategy as firms when the foreign country has

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substantial market share in the home country or if the company is a direct competitor. It is
impossible to determine the value of a firm in a foreign market if proper business outcomes are
not known (Kassim, 2017). The core outcomes can effectively change the way goods are sourced
between one or more firms for effective policies and outcomes that sis effective for businesses
development.
Malaysian businesses effectively follows the strategy of franchising to get over the
markets. It is undergone by local distributor who are engaged in the task of handling the deals,
market clearance in correspondence with the retailers, wholesalers and marketers. Firms in
Malaysia also undergo for the process of joint venture that lowers the risk factor for such
company and enable explicable sales. It has been heard that the licensing policy in Malaysia is
very complex and avoided by new businesses (Parashar & Saini, 2015). As the market for the
goods are changing, firms must follow the trend of Malaysian businesses and enter in the way of
franchising. It creates a strong image in the minds of the customers that helps in getting more
customers and extracting huge sales in comparison to the competitors who have been operating
in the market for a long time. This is effective for the development of quality sales for the
products with respect to brand identification, successful methods of doing businesses and proper
distribution systems. The A2 Milk Company can invest the firm assets in a way to make use of
the brand name and operating support. It becomes a joint commitment of the franchises to target
their newly acquired customers.
Topic Four: A discussion of the global and strategic marketing approach the New Zealand
business should use in the chosen market.
A good marketing strategy is competent in the way of obtaining maximized level of
output. This can effectively change the way goods are sold in several markets. Undergoing

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international businesses will expand the business several markets and maximize their customer
base by effective global marketing policies (De Mooij, 2018). Firms in Malaysia structure itself
under the provision of customization and standardization approaches. Standardization is the way
of attaining uniform characteristics from the sale of the product in the market and extract
marginal revenues. This is crucial for international businesses to rapidly increase their market
share and help in the business of life. It is undergone to help the small firms to manage control,
extract huge profits, generate employee motivation, reduce the frequency of mistakes and
minimize deviation among employees. Customization act as a marketing mix for businesses
where the goods are produced and delivered in the way customers have asked for (Parashar &
Saini, 2015). The services offered by forms are judged in terms of functional and technical
efficiency that is offered by critical performance of the firms in such markets. In terms of quality
services, standardization is far most impactful than customization,
Customization acts as an effective manufacturing technique that is availed by several
sectors to produce goods at lower unit costs. Among the two strategies standardization will work
more effectively because it a hypothetical approach that takes into account the operation of the
binds into a single market (Hannan et al., 2018). Moreover, the A2 milk company produces its
products with the usage of capital intensive techniques that required huge number of potential
outcomes for extracting profits. Dairy firms use the policy of standardized approach where the
intensity of milk, with respect to fats, sweet content and other ingredients are properly checked.
The business structure are mandated by such approach that becomes compatible with the
effective policies of the product and cost effective technologies, goods are bale to encounter
huge sales when the quality of the product gets improved in the market as per the business status.
The effectiveness of the standardized approach lies in the provision of dairy products by using

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most effective techniques (Parashar & Saini, 2015). The strategy target a larger set of approach
and outcomes. However, in few cases application of customized effect is applied as it has been
more beneficial. This is because by using effective standardized technologies, firm can change
sugar or other content as per customer preferences with respect to market demand. However, for
dairy companies it is important to check the standardized level with respect to other necessities.
Conclusion
Therefore it can be concluded that The A2 Milk Company can effectively operate in an
emerging economy like Malaysia that is able to extract huge revenues. The paper is effective in
the study of market strategies and how will the businesses operate in a chosen market with clear
indication for qualitative analysis. The future prospects of international businesses are to be
expanded in global regions as the firms are able to generate huge revenues and sales. The chosen
New Zealand business can expand its business in several forms (Sim & Suntharalin, 2015).
While entering into a new market, several strategies are tested and analyzed to attain effective
outcomes. The A2 Milk Company is a well-established business in New Zealand that is engaged
in the process of provision of quality sales that will extract huge revenues and profit margins as
per the needs of the market. Several market approaches are tested such as simultaneous business
approach, screening and searching the appropriate market effective, diversification or
concentration (Ibrahim & Mahyuddin, 2017). The core policies deals in the effective sourcing of
goods at lower price and maximized output levels. The strategy of screening has been chosen for
the paper as it can enable to understand the effectiveness of market competition and the portfolio
assets of the company. For doing this, four countries were selected like India, china, Thailand
and Malaysia. Operation in Malaysia will be very effective for a company like the A2 Milk
Company.

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The demand for milk products or A2 milk has successfully increased in Malaysia. Import
of dairy products has increased with respect to effective policy and outcomes. Firms will gather
huge sales when markets are performing efficiently. Similarly, the dairy markets in Malaysia
work effectively due to huge demand that leads to a growth of provisioning goods at low price
and output. The franchising strategy is the selected strategy for the A2 Milk Company which is
able to extract profits by providing products that is delivered by other ordinances. Malaysian
businesses widely follow the strategy of standardization when it comes to provision of
manufactured goods with respect to effective technologies that minimizes the production cost
and enables firm to attain an efficiency in production. In several cases, the policy of
customization works effectively for dairy companies when they target customers by properly
changing the products with respect to local market alternatives. This can adequately help by firm
with the increment of annual revenue or profit. Moreover, operating via distributors helps to
extract positive profits by effectively increasing the consumer demand. This cannot be delayed
with the change in market effective policies and outcomes. The rising demand and availability of
resources will encourage huge sales in the market. Thus, the A2 Milk Company has huge
demand to expand in other countries and extract huge sales by opening market in Malaysia.

20INTERNATIONAL MARKET
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