Comprehensive Report: Business Environment in New Zealand

This report provides a detailed analysis of the business environment in New Zealand. It begins with an introduction highlighting New Zealand's appeal as a business hub due to its natural resources. The report analyzes current business trends such as AI, biodegradable plastics, and mobile applications. It then conducts a micro-environment analysis using Porter's Five Forces, assessing the bargaining power of suppliers and customers, threats of substitutes and new entrants, and competitive rivalry. A macro-environment analysis is performed using the PEST framework, examining political, economic, social, and technological factors. The report also identifies key legislation impacting businesses in New Zealand, including the Fair Trading Act and the Accident Compensation Act. The conclusion summarizes that New Zealand offers a favorable business environment, although competitive rivalry remains a constant factor. References are provided for all sources cited.

Running head: BUSINESS ENVIRONMENT IN NEW ZEALAND
BUSINESS ENVIRONMENT IN NEW ZEALAND
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1BUSINESS ENVIRONMENT IN NEW ZEALAND
Introduction
New Zealand is a robust country with lots of natural resources making it a new business
haven for the global markets. This report shall elaborate on discussing about the current business
environment in New Zealand. The aim of the report is to analyze New Zealand’s business
environment, the current business trends and assess the factors that impact the business market of
the country.
Discussion
a) Current business trends for businesses in New Zealand
 With the progress in AI, machine learning, natural language processing and deep learning
are setting new benchmark for the data driven computing and automation in New Zealand.
 The biodegradable and plat-based plastics are making mark in the year 2019 with the rise
in ethical consumerism and anti-plastic sentiments among the New Zealanders (Chang,
2012). The main challenge with the bio-plastic understands the new material options.
 Mobile applications are redefining the service industries. They are booming in the
business market of New Zealand right from the taxi industry to agricultural and mining
sectors.
b) Micro Environment Analysis
Porter’s five forces
 Bargaining power of suppliers
Suppliers put a great pressure on the New Zealand companies by means of raising their
prices while lowering their product quality and lessening the product availability.

2BUSINESS ENVIRONMENT IN NEW ZEALAND
 Bargaining power of customers
The modern customers are very health and environment conscious. The bargaining power of
the customers put the businesses in getting them to provide quality products and goods with
better customer service and low prices.
 Threat of substitute
Competitive structure of the businesses in New Zealand is threatened due to the substitute
products that are available in the market. They produce reasonably close benefits match at better
price to attract more customers.
 Threat of new entrants
New competitors always pose threat to the existing competitors within the different industries
in New Zealand. For this reason the profitable industries in the country are attracting more
competitors to achieve the profits.
 Competitive Rivalry
There is a high level of competition among the existing businesses like that of apparel, shoes,
hotel, IT etc. in New Zealand. They are limiting profits and are leading to some competitive
moves including pricing cutting.
c) Macro Environment Analysis
PEST Analysis
 Political- New Zealand has some of the most progressive and stable political governance on
the world which has enabled other countries to invest in this country. According to the stock

3BUSINESS ENVIRONMENT IN NEW ZEALAND
market report of New Zealand, the stock market had risen by 22% in 2017 which shows that
the economy is likely to rise in the coming years (Newzealandnow.govt.nz, 2020).
 Economic- Newzealandnow.govt.nz (2020) state that the free market principle has promoted
an open economy for the country which has been extremely beneficial for it. According to
the World Bank report, New Zealand is a very export driven competitive market with an
export of 30% GDP. They have a low inflation environment that promotes a suitable market
to attract foreign trades (Newzealandnow.govt.nz, 2020).
 Social- Biodegradable plastics are making mark in the year 2019 with the rise in ethical
consumerism and anti-plastic sentiments among the New Zealanders. The performance of the
country in terms of employment, air quality, social support and life satisfaction is good (Tsui
et al., 2018).
 Technological- New Zealand is not considered to be s sought after destination for many of
the global technology talents. New Zealand government needs to address this area
effectively.
d) Key Legislation that impact the New Zealand
 Fair Trading Act
 Illegal Contracts Act
 Fair Pay Act
 Accident Compensation Act
 Anti-Discrimination Act
 11 days public leave and 5 sick leaves an year (Omisakin, 2018)
Conclusion

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From the above analysis it is to conclude that New Zealand is one of the best countries
that have the best economy for market and business. The current business environment of New
Zealand is suitable for every industry to flourish in the market but the threat of competitive
rivalry will remain constant.

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References:
Chang, C. T. (2012). Are guilt appeals a panacea in green advertising? The right formula of issue
proximity and environmental consciousness. International Journal of Advertising, 31(4),
741-771. Retrieved from:
https://www.researchgate.net/profile/Chun_Tuan_Chang/publication/277512672_Are_gu
ilt_appeals_a_panacea_in_green_advertising_The_right_formula_of_issue_proximity_an
d_environmental_consciousness/links/57446df208ae298602f5b6af.pdf
Newzealandnow.govt.nz. (2020). Economic Overview | Invest in New Zealand | NZ Now.
Newzealandnow.govt.nz. Retrieved 29 February 2020, Retrieved from
https://www.newzealandnow.govt.nz/investing-in-nz/economic-overview.
Omisakin, O. M. (2018). New Zealand trade agreements and their economic and societal
impacts: A Review. International Business and Management, 16(2), 52-62. Doi
https://journals.sagepub.com/doi/abs/10.1177/1354816617731387
Tsui, W. H. K., Balli, F., Tan, D. T. W., Lau, O., & Hasan, M. (2018). New Zealand business
tourism: exploring the impact of economic policy uncertainties. Tourism Economics,
24(4), 386-417. Doi https://journals.sagepub.com/doi/abs/10.1177/1354816617731387