MBA603 - New Venture: Cosmos Coffee's Market Entry Barrier Analysis

This presentation provides an analysis of market entry barriers for a hypothetical company named Cosmos, which aims to sell international coffees in Australia. It identifies market opportunities such as Australia's increasing GDP per capita and the growing coffee industry turnover, while also highlighting potential barriers like high fixed investment, legal compliance, and foreign exchange risk. The presentation suggests strategies to overcome these barriers, including joint ventures, hedge funding, and implementing international business models. It also emphasizes the importance of effective marketing, cyber security measures, and leveraging technology for advertising. The conclusion suggests that starting a new coffee business in Australia can be beneficial, particularly by utilizing online sales and cyber computing systems. The presentation references several academic sources to support its analysis and recommendations, and Desklib provides access to similar solved assignments and study resources for students.

New Markets: Barriers and Ways
to Overcome
Name of Business
[Student Name] – [Student Number]

Introduction
• The name of the Company would be
Cosmos.
• Business activities- It will sell all the
international coffees in Australia.
• It will be set up as independent private
company.

Conti…..
• It will require funding of approximately
AUD $ 1 million.
• Funds will be raised by using the Bank
loan and private funding of the
promoters.
• Joint venture will be established with the
local operators to meet the legal
compliance.

Conti…..
• It will core competency in selling
attractive and different coffees.
• The SEO engine, seminars and social
media will be used as promotional
activities.
• It will give high discounts to its first 200
clients to attract them.

Market Opportunity
• The GDP per capital of Australia has
increased to 49,927.82 USD (2016) which
reflects positive outlook to run business.
• Coffee business industry has shown 28%
increased in its overall industry turnover
since last five year.
• This industry has less competition in
Australia

Market barriers
• High fixed investment
• Legal compliance
• Loss of capital in the initial time period
• Blockage of high funds in Market
• Hard to deploy experts staff members
• High foreign exchange risk

Conti…..
• Migrating experts employees from other
countries.
• Raising loan at cheapest cost
• Implement international business model
to attract clients.
• Set corporate governance compliance
program.

Market Opportunity
• The people in Australia is less concerned
for the price and wants high quality
coffee.
• The increased GDP rate of country shows
positive indicator for the high turnover of
company.
• Installation of cyber computing
enterprises resources planning may
increase the cyber threat.

Market Opportunity/ Barriers
• Setting of international business model
• Establish effective marketing plan and
communication
• Threat of new substitutes and rivals due
to its high return of profit availability.

Market Opportunity/ Ways to overcome
• Entering into joint venture with the
existing business organization.
• Set legal compliance program.
• Use of hedge funding (Truman, et al.
2017).
• Sell of coffee to patients in hospital who
are having issue of low blood pressure.

Market opportunity (Industry growth)
• The industry turnover of coffee business
is around $ 10 billion.
• It shows consistent increased its growth
of the business by 25% since last five
years.

Market Opportunity #3
• The costing of the Raw material in
Coffee business is high.
• The below table reflects the costing and
expected gross profit per cup.