Analysis of Export Markets for Trenton Estate's Global Business Report

This report analyzes the potential for Trenton Estate, a winery specializing in premium wine, to expand its business globally by exporting to either Japan or South Korea. The report, written from the perspective of a marketing consultant, assesses both countries' suitability as export markets. It examines the economic conditions, market trends, and trade agreements relevant to the wine industry in each country. The analysis considers factors such as GDP, inflation, employment rates, and the consumption of premium wines. The report also discusses the competitive landscape, cultural aspects, and trade barriers. Based on the research, the report recommends Japan as a more attractive export market due to its established trade relationships, high consumption of premium wine, and fewer trade barriers compared to South Korea. The report concludes by summarizing the key findings and emphasizing the opportunities for Trenton Estate to succeed in the global market, particularly within the wine industry.

Running head: GLOBAL BUSINESS
Global business
Name of student
Name of University
Author note

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Table of Contents
Introduction..............................................................................................................................3
Discussion..................................................................................................................................3
Conclusion.................................................................................................................................6
References.................................................................................................................................6

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Introduction
The report has been prepared to discuss about the various aspects of managing global
business considering the business organisation named Trenton Estate within the winery
industry in Australia. Trenton Estate is a special vineyard within the winery industry that has
been specialised in the production of good quality and premium wine. The wines are
produced from the plants cropped at the Trenton Estate vineyard such as grapes and other
fruits as well (Peng, 2016). The raw juices of the fruits have been extracted and later
processed at the vineyard’s factory with the use of machines and other instruments so as to
make that consumable as liquor or wine for the customers. The company wants to expand its
business operations and thus has been concerned about choosing between two countries and
select the most attractive export market between Japan and South Korea. Considering the real
world situation, I have been appointed as the marketing consultant to conduct the analysis of
both the countries and allow Trenton Estate to decide, which one of the two countries, i.e.,
Japan or South Korea, will be more suitable for exporting into the market from Australia
(Meyer, 2014). The company also needs to understand that the premium wine that should be
targeted at the global clients must be different from those that have been provided locally and
all over Australia. Thus, the market research for the two countries will be done to assess,
which one of the two will be the most suitable for exporting the product and why is it so, for
Trenton Estate in Australia (Wirtz, Tuzovic & Ehret, 2015).
Discussion
The purpose of the assignment has been to help and support the Trenton Estate to
select the export market that would be more attractive and ensure expansion of business
globally outside Australia. It has been found that international trade has contributed a large
portion to the growth in economy of Japan as well as South Korea, and thus with the exports

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that contribute to a good percentage of the entire GDP, Australian Trenton Estate’s major
export destination could be both the countries (Lasserre, 2017).
Though Japan’s main imports include mineral fuels, machineries, food items, the
estate market has also been prominent and has been growing with a number of exports of
estate services and premium wine. The economy of Japan is a free market economy, because
of which, it is a good place for the management of export trade activities. The employment
rate has improved for the past few years, which also enhances the scope for international
foreign trade matters (Fitrianti, 2017). During the recent years, it has been found that with the
heavy earthquake and tsunami in Japan, the economy of the nation has fallen to a large
extent, thus affected the energy infrastructure and economic structure too. The company’s
Government has aimed at managing various economic and security reforms to bolster the
economic growth and at the same time, foster the ability of the country to improve its global
business management activities largely too (Jung, 2015). The Coronavirus has further taken a
poll with its root in Japan, the export trade activities have been affected largely too. In terms
of USD, the GDP for the country per capital has been 39, 305, with exports falling well
below 3.5. The inflation rate seemed to be good last year, but the coronavirus has again led to
its fall below 0.5.
It has been found from the market research that the consumption of premium wine gas
risen, thus, making the market increased by 3.6 percent in the past few years and with near
about 1000 million litres sold on an annual basis, the premium wine selling could be a great
deal for Trenton Estate to expand its business. The company could also partner with the small
retail and mass merchandise stores and also the specialty wine shops to gain growth in sales
imported from Australia and even result in economic growth for both Australia and Japan in
the near future (Katz, 2015). The wines are somewhat different produced by Trenton Estate,
because these are premium and differ from the needs of those people, who look out for

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cheaper liquor products in the market. The price ranges of the Australian wine are quite high,
which is higher than the other wines imported to Japan from Spain and Chile. Already, the
percentage of premium wine sale in Japan accounts for more than 75 percent of the wine
sales, which could also be relevant to the fact Trenton Estate could successful enter the
foreign market (Suzuki, 2017). The Australian exporters would be able to maintain shelf
space in all the convenience stores, supermarkets and in winery shops of Japan, thus, could
ensure keeping up with the latest trends in the Japanese wine market too related to new world
wine (George, 2014).
It could also be noted that with the market research, Trenton Estate would also find
that the premium wines prepared for the special occasions could be supported well by the
established reputation, awards, positive ratings, feedbacks, etc. It could help the distribution
of these products exported by Trenton Estate through wine outlets, ecommerce website and
also at the major five star rated hotels and restaurants too. Furthermore, with the Japan-
Australia Economic Partnership Agreement, it would be much easier and convenient for
Trenton Estate to export the premium wine to Japan and ensure stable growth and expansion
globally (Fertő & Balogh, 2016).
On the contrary, the Korea Australia Free Trade agreement or DAFTA has also
facilitated the Australian exports to South Korea. It has removed a significant tariff portion of
16 percent on the premium wine delivered by Australia, thus increased the value of exported
wine by Australia to near about $15 m, as recorded in the year 2017. The GDP of the country
has been made up mostly by the services industry, which include car manufacturing and
production along with electronics too (Omura, Ebihara & Sakurai, 2016). The growth in
economy has been around 3 percent, which has also increased the rate of employment all
over, thus doubled the hike in minimum wages of people as well. The inflation rate has
speedily acquired a new range of 2 percent, though the present surplus of account has

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remained much above the GDP rate. South Korea has also been considered as a great place
for doing business, as per ranked according to the World Bank’s ease of doing business,
which could create a great and significant opportunity for Trenton Estate to establish its
business in South Korea (Morrison & Rabellotti, 2017). The increase in employment rate and
minimum wages further could be a boon for the wine industry to make more premium wines
available, that have been imported from outside, thus raise the overall growth in economy of
the country too.
The market initiative of Australian Wine Grand Tasting (AGT) has further facilitate
trade relations and activities related to the export of premium wine by Australia to South
Korea. This could be a part of the market research conducted by Trenton Estate to assess the
market condition and trade reactions, before setting up in the country. The Australian wine
styles and acceptance of the wine within the South Korean market have to be analysed, to
ensure that the consumers; behaviours are influenced (Mariani et al., 2014). The Korean
clients are health conscious, thus they prefer less alcohol content alcoholic beverages and the
premium red wines could be a great product that could be publicised in the market. Though
the wine market is at the stage of development in South Korea, there is solid growth potential
because of the increase in size of the alcoh9l beverage consumption. In spite of these factors,
the wines imported could be quite high and most of the competitors have been export
oriented, which might create difficulty for Trenton Estate to become successful in its global
business operations (Mariani et al., 2014).
Because of the greater deal of operations in Japan and good partnership between
Australia and Japan, I would like to consider Japan as a more attractive export market for
Trenton Estate in Australia. It is also to be noted that not only the good trade relationships
and Government laws, but also the high consumption rate of premium wine and good
reputation of Australian wine imported, Trenton Estate would find it more easy and

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convenient to establish its global presence in Japan, rather than in South Korea (Bonn, Cho &
Um, 2018). The labelling and food safety standards in Japan does not change frequently,
while the reasonable prices and good employment rate could make people purchase the fresh
and high quality Australian wine more frequently delivered by Trenton Estate from Australia.
Conclusion
The analysis of the two countries including Japan and South Korea had been done to
determine, which of these, seemed to be the most attractive one among the two to be
considered as the suitable export market for Trenton Estate. The good partnerships between
Japan and Australia good reputation for Australian wine, lesser trade barriers and great value
for the products exported from Australia, seemed to favour the fact that Trenton Estate would
find more success in Japan, rather than in South Korea. It would create more scopes and
opportunities for the business to flourish within the wine industry as well as manage global
business successfully too.

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References
Bonn, M. A., Cho, M., & Um, H. (2018). The evolution of wine research. International
Journal of Contemporary Hospitality Management.
Fertő, I., & Balogh, J. M. (2016). Are the major European wine exporters able to price
discriminate across their EU extra wine export destinations? (No. MT-DP-2016/24).
IEHAS Discussion Papers.
Fitrianti, S. (2017). The exchange rate volatility and export performance: the case of
Indonesia's exports to Japan and the US. Buletin Ekonomi Moneter dan
Perbankan, 20(1), 49-70.
George, R., Chell, A., Chen, B., Undery, R., & Ahmed, H. (2014). Dental erosion and
dentinal sensitivity amongst professional wine tasters in South East Queensland,
Australia. The Scientific World Journal, 2014.
Jung, K. C. (2015). Changes in the export competitiveness of China, Japan, and Korea. KDI
Feature Article, 1-12.
Katz, R. (2015). Japan, the system that soured. Routledge.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher Education.
Mariani, A., Napoletano, F., Pomarici, E., & Vecchio, R. (2014). Tariff and non-tariff
barriers to wine exports and initiatives to reduce their effects. Agricultural Economics
Review, 15(389-2016-23499), 5-24.
Mariani, A., Napoletano, F., Vecchio, R., & Pomarici, E. (2014). European wine exports: the
key role of trade policy. EuroChoices, 13(3), 46-53.

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Meyer, E. (2014). The culture map: Breaking through the invisible boundaries of global
business. Public Affairs.
Morrison, A., & Rabellotti, R. (2017). Gradual catch up and enduring leadership in the global
wine industry. Research Policy, 46(2), 417-430.
Omura, M., Ebihara, K., & Sakurai, Y. (2016). An analysis of wine consumption trends and
food-related expenditures in Japan. International Journal of Business and
Globalisation, 17(1), 1-32.
Peng, M. W. (2016). Global business. Cengage learning.
Suzuki, H. (2017). The new politics of trade: EU-Japan. Journal of European
Integration, 39(7), 875-889.
Wirtz, J., Tuzovic, S., & Ehret, M. (2015). Global business services. Journal of Service
Management, 26(4), 565-587.

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In spite of the benefits of selecting Japan as a good export market, few of the drawbacks
could be the trade barriers resulting from the cultural barriers and also due to the languages
used. The country is known to check for high standards of quality and customers’ services
and thus relationship issues might also be prominent among the distributors of products in the
export market of Japan. There are licensing requirements that have been strict whereas the
regulatory barrier and restricted certifications or goods and services exported to the country
have been considered as other issues that might make Trenton Estate not to consider Japan as
a suitable and attractive export market.
Conclusion