Jaycar Electronics: Market Entry Strategy in India, Business Plan

This report outlines Jaycar Electronics, an Australian-based retail company, planning to expand its market into India. It begins with a background of both Jaycar and the Indian market, followed by an analysis of competitive strategies such as cost focus, differentiation, and cost leadership, recommending a differentiation strategy for Jaycar. The report emphasizes a customer-centric approach to attract customers and discusses various market entry options, recommending a joint venture as the most beneficial. It also addresses international HRM issues like cultural diversity, highlighting the importance of employee satisfaction and adherence to local regulations. The analysis incorporates insights from a SWOT analysis, identifies opportunities for growth, and acknowledges threats from competitors, ultimately aiming to provide a comprehensive strategy for Jaycar's successful entry into the Indian market, focusing on product innovation, customer preferences, and sustainable growth.

International Business Plan
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Executive Summary
This report is based on the aspect that a firm name Jay-car electronic Australian based Retail Company is
planning to expand its market at international level in Asian country name India.
In order to carry out this report first brief background of selected firm and selected international Asian
country is being explained. After this different competitive strategy analysis techniques have also being
discussed such as cost focus, differentiation, cost leadership etc. It was being recommended that for Jay-
car firm differentiation strategy would term to be best.
In addition to all this certain additional analysis were also done which specified that firm should focus on
implementing customer centric focused approach so as to attract more customers. Beside this different
types of market entry option like contracting, joint venture, licensing, franchising etc. were also discussed
in this report. After discussion of types of market entry option it was recommended that for Jay-car firm
joint venture entry technique will prove to be beneficial. Lastly certain international HRM issues were also
being explained such as cultural diversity etc.
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Table of Contents
Executive Summary.........................................................................................................................2
Table of Contents.............................................................................................................................3
Introduction to the report.................................................................................................................4
Main body........................................................................................................................................4
Brief background of the company and selected international country...........................4
Conclusion of SWOT analysis from Assessment 2............................................................6
Additional analysis reflecting further country analysis....................................................7
Competitive strategy analysis (products and services).....................................................7
Market entry option analysis and preferred option recommendation............................9
Marketing and R&D consideration (including competitive strategy)...........................11
Recommendation regarding production..........................................................................11
International HRM issues and considerations.................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Introduction to the report
In order to achieve a sustainable growth and to remain for long time period in market it is very much
essential for every business organisation to carry out certain different types of analysis such as market
analysis, competitive analysis, which entry option would be more suitable to enter in international market
etc. Therefore in this report to a brief explanation is being given regarding the selected company
background name Jaycar Electronics. This firm is planning to expand its business plan at an international
level in a selected Asian country name India. In addition to this short conclusion of SWOT analysis which
was done in assessment two is also being explained as well as some additional analysis reflecting further
country analysis is also being done. Beside this most important of all competitive strategy analysis will
also be analysed along with the analysis of different market entry option and certain recommendation will
also being given in respect of best suitable market entry option for Jaycar company to enter in international
market in India. Furthermore, recommendation regarding production improvement will also be examined
as well as explanation about certain international HRM issues and consideration will also be done in this
given below report.
Main body
Brief background of the company and selected international country
Background of Jaycar Company: Jaycar is one of the electronic Australian based retail companies which
is generally related to products of electronics enthusiasts (Neelankavil, 2015). Basically this firm was
founded by Gary Johnston in 1981. Nearly it has around more than 200 authorised agents and stockist as
well as around 100 stores in all over New Zealand and Australia which carry out its products from Jaycar
Electus Distribution wholesale division. In addition to this there works near about 1000 number of
employees who give their best to an organisation so as to achieve the target goals and objectives on time
that is to render best and high quality products and services to its target customers. In addition to all this
Gary Johnston who is the founder of Jay-car electronics was a former employee of Dick Smith electronics
who had made purchase of John Carr & Co Pty Ltd. Additionally, this company even has its own
subsidiary name Electronics Distributors which is situated in Australia and New Zealand. In order to make
customers aware about its presence in market it has its own attractive websites that is www.jaycar.com.in.
Countries in which Jay-car has its presence are (Neelankavil, 2015):
 United Kingdom
 Australia
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 New Zealand
 Canada
 United states of America
Different types of products and services it deals with are given below:
 Gadgets
 Cable connection
 Security and Surveillance
 Tools and Test Equipment
 Computing
 Components and electro technical
 Semiconductors
 Batteries and chargers
 Power supplies
 Alarm system
 Solar & Lighting
 Bluetooth audio
 Car cameras
 IT accessories
After carrying outs its business in the above mentioned country the firm showed a huge success in the form
of increment in its revenue and profit margin (Marella, 2014). Thus, this success has urged the Jay-car
company to expand its business at an international level in Asia country name India. Beside this there exist
many other Asian countries like Canada. Japan, Indonesia etc. But for Jay-car organisation Indian Asian
market would prove to be beneficial and would helpful in achieving and capturing more of market share
profit. This is so because India is considered to be one of the largest economics in all over the world.
Indian electronics market is known for its innovative ideas. Beside this as per IBEF report Indian market
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will reach over US$ 48.37 billion by 2022. Additionally, it is also being estimated that as per IBEF report
there will be approx. 9% cumulative annual growth by the end of 2022 which is said to be equal to US$
48.37 billion (Tounés, Lassas-Clerc & Fayolle, 2014). Thus, it can be said that Indian market will result in
tremendous growth for Jay-car Australian Electronics Company.
Conclusion of SWOT analysis from Assessment 2
As in assessment two SWOT analysis of Jay-car organisation were done so as to identify the firm strength,
weakness, opportunities and threats. This technique is said to be one of the best analysis technique with the
help of which company can easily get to know what all are their strength and what all are their main
weakness, so that weakness can be converted into major strength of firm on right time. Beside this firm can
also easily get to know what all are the opportunities which a firm can avail to exist in market for long
period of time and to achieve competitive advantage in marketplace (Pretorius & Rosslyn, 2014). Most
important of all an organisation can also acknowledge about the major threats which can hamper the firm
profitability margin, so that on time effective strategies can be made and implemented to overcome threats.
Therefore in assessment two it can be concluded that SWOT analysis were done by the management of
Jay-car firm and was founded that a firm is considered to be one of the strongest and most trustful
electronics brand in all over Australia and even it is well known for its diversified product line which is
considered to be the major strengths of firm. This major strength of organisation has urged the firm to
expand its business in India as well. Secondly firm has also identified it major weakness which has limited
its market share that is it lack in manufacturing mobile phones which are more demandable now a days.
Thirdly as an opportunity it was being founded that company can even start manufacturing mobiles phone
with new innovative ideas and apps in phones (Gabler, et. al., 2017). This will help firm to capture larger
part of market share in all over the world. Whereas major threat which were identified by management of
Jay-car firm is that customers preferences keeps on changing which can result in down fall of profit
margin. So firm should focus on making continuous investment in its customer research so that changes in
customers preferences can be acknowledge from time to time and will automatically help in overcoming
the threat even. Beside all this other opportunities like firm can adopt the practice of inculcating and
implementation of innovative ideas in marketplace from to time as well as can come up with latest
upgraded technology which can result firm to come up with superior and latest quality products in
marketplace as per customers preferences. Additionally firm also faces from other major threat that there
exist large number of Jay-car firm competitors in market place such as Panasonic, L.G. Philips etc. So firm
should also ensure that their strategies and policies are better than its competitors as this will help firm to
achieve its highest level of sustainable growth in marketplace.
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Additional analysis reflecting further country analysis
It was being founded that in India for every organisation employees are considered to be the backbone of
firm as they help firm to achieve their target goals by rendering their hard work for firm. So it is very much
crucial for Jay-car firm to keep employees satisfied by rendering them promotion for best performance,
rendering them appreciation from time to time, compensation, bonus, incentives etc. if the firm wants to
expand their business in India. Beside this it was also being analysed that firm should also follows certain
legal rules and regulation like should not make use of those technology which can result in more of
pollution. In addition to this management of Jay-car should also use customer centric focus approach so as
to keep customers preferences at first not just simply on production process (Bossman, et. al., 2014). This
is so because in modern world most organisation take customer preferences into consideration before
starting its production process because in case if the firm will not produce product as per customer choices
than it would result in downfall of profitability margin ratio, as no customer would like to make purchase
of those products which are not as per customer preferences. For example now a days in India mostly
customer prefer those solar system which will reduce electricity bills and would result in low maintenance
cost, so if the firm will take customers preferences into consideration while producing solar electric
product then it would result in increment in the profitability margin of firm as customer will make more of
purchase of such products which are made as per their preferences. Thus, adoption of customer centric
focused approach will help management of Jay-car to achieve its larger part of market share in India as
well as compared to its competitors.
Competitive strategy analysis (products and services)
In order to achieve a sustainable growth it is very much essential for the management of Jay-car firm to
analyse which types of competitive strategy would prove to be beneficial for firm while expanding its
business at an international level in one of the Asian country name India. As per Porter’s competitive
strategy analysis there exist four different types o strategy which a firm can adopt and they are namely cost
leadership strategy, differentiation strategy, cost focus strategy and differentiation focus strategy (Demil,
et. al., 2015).
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Figure 1Porter's competitive strategy analysis
Source: Porter’s competitive strategic analysis, 2019
Cost leadership strategy: It is a type of strategy which is being used by firm when the firm wants to
target broad market and larger demands by offering lowest possible price. In this case there exist two
options for firm and they are first either the firm will keep cost as low as possible or it will possess larger
market share with average prices. Thus, in both cases an organisation cost will term to be low as possible
and this strategy is being applied when a firm have enough of investment capital at their disposal and
efficient logistics.
Differentiation strategy: It is a strategy which is being used by those organisations when they target
broad market and high demand by coming up with some kind of uniqueness in its products and services as
compared to its competitors. Implementation of this strategy will require efficient and good research and
development practice, innovation and the ability to render good and superior quality products and services.
Costs focus strategy: It is another competitive strategy analysis techniques which is being used by firm to
target niche market segment by offering lowest possible prices.
Differentiation focuses strategy: As per this strategy an organisation target for niche market segment by
ensuring that its product and services are term to be unique in marketplace. This is so because this strategy
involves strong brand loyalty among customers. So it is very much crucial for firm using this strategy to
ensure that the product and services it render consist of unique features as it will help firm to stay ahead of
possible competition.
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Recommendation:
Thus, after identifying the types of competitive strategy analysis’ it can be recommended that the
management of Jay-car Australian Electronics Company must adopt the differentiation strategy while
expanding its market in Asian country name India. This is so because in India mostly customers prefer to
make purchase of those products which possess certain unique features and are of superior quality as
compared to other products in market. Thus, it will help firm to attract more customer and which will
indirectly result in capturing of larger market share of India (Bhagavatula, 2015).
Market entry option analysis and preferred option recommendation
Market entry option is defined as the techniques with the help of which firm can easily capture large
market share at an international level also. There exist different types of market entry option like joint
venture; contracting, licensing, franchising, direct export; indirect export; manufacturing abroad etc. and
each of them are being explained below (Gopal, Smith & Steinbach, 2014):
Figure 2Market entry option
Source: Market entry option, 2019
Direct export: As per this strategy a firm produces their products in their home country itself and after
that sell it to overseas customers.
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Indirect export: As per this strategy a firm sell out their final products to third parties who then sell it
within its foreign market.
Licensing: It is one of the market entry option which is considered to be less risky. This is so because here
the licensor render permission or it can be said license to a firm in foreign market to produce products by
using it brand name so that in return the firm can get royalty payment.
Franchising: It is the other form of licensing. As per this entry option a firm put together the entire
ingredient which has helped firm to be successful in its home country and after that franchise its package
to successful investors in overseas.
Joint venture: It is the a types of market entry option where two or more companies comes together so as
to operate in host country and to share the market entry risk as well in foreign market. Beside this the two
companies commonly share expertise knowledge, skill, technology, capital, labour etc so as to capture
larger market share and will also commonly share profit and loss equally as per the ratio of investment
done by each one of the party.
Contracting: It is the another form of market entry option which consist of exchange of ideas from one
organisation to another through contracting so that product can be produced on the behalf of manufacturer
of the product. Thus this method help firm to reduce cost of exporting from foreign market.
Manufacturing abroad: It is a type of entry mode where an organisation plan to establish its
manufacturing plant in its host country because government of host country render some kind of tax
advantage because they even wish to attract inward investment so as to generate employment opportunities
for their economy.
Recommendation
After analysing the different types of market entry option it can be recommended that management of Jay-
car Australian Electronic Company must take joint venture entry option into consideration so as to enter in
Asian international market that is in India (Morgan, 2015). This is so because this option is considered to
be one of the best option as it will reduce the burden which could have taken place if the firm alone would
have enter in international market. As with the help of joint venture both the firm will equally liable for
profit, loss, eradicates the risk of discrimination, sharing of capital, labour, modern technology, updated
skills, knowledge etc.
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Marketing and R&D consideration (including competitive strategy)
Marketing is considered to be one of the crucial foundations for every business organisations. This is so
because it is said to be the set of process and institutions which are used for creating, communicating,
delivering and exchanging offering best valuable services, products to customers (Hair Jr, et. al., 2015). In
return the seller gets money which the customers render for making purchase of product which renders
them satisfactory level of value. In simple term it can be said that it is a techniques which is being used by
firm in order to attract and influence large number of target customers to make purchase of their products
and services like by advertising through banners, pamphlets, TV, radio, books, journals, magazines etc.
It’s only because of effective marketing strategies small and medium enterprises are turning global now a
day’s within a short period of time. Once the management of Jay-car gets a palpable picture of marketing
then the firm should focus on research and development activities which is being carries out by firm either
to innovate new process in business or to investigate the strategies, polices and techniques used by
competitors as well as to analysis the changes taking place in customer’s preferences. In addition to this in
order to analyse and identify the best competitive strategy technique also firm have to make investment in
research and development activities, as through research and development itself firm can get to know what
types of product the customer demand for, what type of cost should the firm implement upon its products
by analysing the competitors pricing strategy etc. For example, after research and development analysis it
was being identified by management of Jay-car firm that its competitors Panasonic electric firm uses
offline method of marketing such as books, magazines, newspaper etc. and adopts skimming pricing
strategy (high price of products) to attract customer of high class people. So by acknowledging this aspect
management of Jay-car organisation can adopts the penetration pricing strategy and can used both offline
and online methods of marketing such as social media like Facebook, instagram, twitter etc. so as to stay
competitive in such a competitive business environment. It can be said the both marketing and research
and development aspect must be considered appropriately before coming up with final product and
services in market. Thus, it can be concluded that it will help firm to achieve sustainable competitive
advantage in marketplace.
Recommendation regarding production
The term production is defined as the process which starts right from purchase of raw materials and end up
with delivering of final product to customers. Therefore in order to stay competitive in market place
certain recommendations are being given below to Jay-car firm in respect of production process (Simón-
Moya & Revuelto-Taboada, 2016).
 So firstly, it can be recommended that during production process management of Jay-car firm must
ensure that employees make optimum utilization of its resources so that cost of production process
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gets minimized. This is so because in case if the production cost gets increased then it will lead in
the increase in the product price as production cost will be charges from customers. Thus, high
price product will be less purchased by customers, which will result in downfall of profitability
margin.
 Secondly it can be recommended that management of Jay-car must ensure that they make use of
modern technology in order to produce best and superior quality products as used of old technology
can result in downfall of the quality of product which will result in decrease in the profitability
margin level.
International HRM issues and considerations
While operating business at international level in India it is very much crucial for management of Jay-car
firm to understand and take into consideration several issues which a firm might face and some of them are
mentioned below (Burns, 2016):
Cultural diversity: Every nation has their own cultural aspects in respect of tradition, religion, etc. as it
varies country to country, so it is very much crucial for management of Jay-car firm to hire Indian
employees within their organisation so that it becomes easy for firm o understand different perspective and
preferences of customers.
Benefits and compensation: As this two aspect are considered to be the backbone of HR strategy but at
global level in order o focus on work life balance of employees it is very much crucial to understand the
preferences required by employees in respect of benefits and compensation so that each one can equally
balance their personal and professional lives. It is one of the international HRM issues which Jay-car firm
might face so it is very much crucial for firm to keep their employees satisfied both ate professional and
personal level. This is so because most of the multinational firms have implemented programs such a
extended holiday, paternity leave, flexible working time period etc.
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Conclusion
From the above report overall it can be concluded that this report is based on the expansion of business at
international level. As per this report Jay-car Australian electrical company is planning to expand up its
business in Asian country name India. So in this report competitive strategy analysis has being done as
well as different types of market entry modes have been discussed and certain best recommendation has
also being given to firm so that firm can achieve greater advantage at internal level. Lastly two major
internal HRM issue are being discussed and they are namely cultural diversity, befits and compensation
etc.
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Online
Market entry option. (2019). [Online]. Available Through: < https://www.learnmarketing.net/international
%20marketing%20entry.htm >.
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