Discuss about the Global Business in Western Australia Laboratories.
“Western Australia Laboratories” with the help of efficient modern medical technology has acquired a large section of the Australia pharmaceutical sector. After such a significant success in the local Australian Market, the organization has decided to expand its business operations in South Africa and China. South Africa and China are the two important members of the BRICS Nations. The organization has executed an in depth international market research analysis and based on the overall research plan, the company has decided to develop a proper expansion process in the two selected countries. The expansion plan in the international market will cover potential risks and opportunities of the overall market place and identification of the best entry mode, which includes the level of economic integration between the home and the host country. However, in the process of developing a proper there are certain important attributes, which will cover, environmental analysis, target customer profile and the product positioning strategy towards entering a new market.
Background of the Organization
“Western Australia Laboratories” is an Australian based organization, which is located at Sydney. It is a small business firm, which mainly operates its business operations all over the Australian Market. The objective of the organization is to discover new ways to make life better, for creating more possibilities for more people through the command of health. The organization is the merger and buyout of the two Australian successful pharmaceutical companies. After a remarkable success in the domestic market, the organization has decided to expand the overall business operations in the two selected BRIC Nations. BRICS nations provide different kinds of business opportunities for the companies. Different kinds of statistical reports and research process conclude that there is a substantial growth in the economic activities of the BRICS nations, which includes South Africa and China. This is one of the ideal factors supports different kinds of business operations and process (Cateora, Gilly and Graham 2013).
The company has done a remarkable job while operating its business procedures in some of the key cities of Australia, which includes Melbourne, Sydney, Perth and Brisbane. Due to the impact of globalization, different companies irrespective of the nature of the business get the opportunity to evaluate its business proceedings beyond the national boundary (Grewal and Levy 2013).
Background of the Product
In the overall pharmaceutical company, there are several products, which will execute the overall market operations. “Western Australia Laboratories’” plan is to concentrate in the overall development process of different kinds of pharmaceutical products. The organization concentrates on both traditional and modern medicines such as safe effective and good of quality. Western Australia Laboratories mainly focuses in different kinds of antibiotics. The modern era of this particular industry includes the process isolation and purification of compounds, chemical synthesis and computer aided design, which is considered as one of the significant aspects (Kurtz and Boone 2012).
There are different kinds of products, mainly antibiotics that this particular organization develops in the overall business proceedings in Australia. After completing a proper process in the research and development, the organization has decided to expand the business proceedings in the two-selected country by adopting certain marketing strategies. With the help of these strategies, the organization will be able to evaluate the common organizational goals and managerial objectives.
Country selected for expansion
The company has decided to expand the overall business policies in the two selected BRICS Nations, which includes South Africa and China. There is a demand for pharmaceutical products all overall the world. There are different kinds of health issues, which are identified in the remote places of both China and South Africa (Baggini 2012). With respect to business operations there are certain benefits, which Western Australia Laboratories will be benefited in the process of developing a proper business as well as expansion plans in the two selected countries. All the BRICS Nations are deemed to be at a similar stage, which includes the idea of newly advanced economic development. In modern economy, BRICS Nations is a good place to organize different kinds of business and various companies irrespective of the nature of the business selects these countries as an ideal place to organize the overall business as well as the expansion process (Burns 2012).
Before selecting the best nation among the five countries there are certain important factors, which need to analyze in a proper manner before developing a proper business plan. The primary factor is to conclude about the market requirements, which includes the demands and wants of the market. However, this particular industry is diversified across the world (Werhane 2012). There is a substantial economic development among all the BRICS nations, which includes proper growth in the GDP, employment system, increase in the currency values and many more. After developing a proper research as well as analysis procedure the company has decided to evaluate the expansion process in the above, two selected countries i.e. South Africa and China.
Figure 1: Expected Growth in African Pharmaceutical Sector
(Source: Pride 2012)
Figure 2: Expected Growth in China’s Pharmaceutical Sector
(Source: Kurtz and Boone 2012)
From the above figures, it can be concluded that there is a strong as well as substantial expected growth rate in both the Pharmaceutical Sector sectors of China and South Africa within the financial year 2020. It is one of the big opportunities for “Western Australia Laboratories” to evaluate a proper business plan in the two selected countries.
Market Entry mode for Western Australia Laboratories
With the view of expansion of the business plan in China and South Africa, Western Australia Laboratories, decided to use International Entry Mode. The idea of market entry strategy will explain Western Australia Laboratories, the planned methods of delivering goods and services to a proper target market towards establishing a proper business operation in the two selected nations (Cateora, Gilly and Graham 2013). However, some of the common issues, which a different organization faces in the expansion process, are marketing, sourcing, investment, and control. However, with the application of this particular entry mode, the organization will be able to lower the overall financial risk in the expansion procedures. Majority of the organization tries to minimize the risks in the business proceedings by adopting different kinds of strategies, as finance is one of the key parts as well as backbone of the organization.
The selected marketing entry mode will evaluate the level of economic integration between the home and the host country and about its business environment (Pride, Hughes and Kapoor 2012). As compared with Australia, there are certain differences in the process towards conducting as well as executing a proper business plan.
Environment Analysis for Western Australia Laboratories
Environmental analysis will cover all the crucial points in order to analyze the risks and opportunities of the selected business plan.
The demand for good and better pharmaceutical products is being increased globally.
Competitions from many Australian brands and other global brands limited the market share and growth of the selected organization. On the other hand, Western Australia Laboratories organized its overall business proceedings only in the local market and there is a limited presence of the organization in the emerging markets and in European Countries.
The organization can leverage the acquisitions in order to increase the growth. People are now becoming health conscious day by day (Cateora, Gilly and Graham 2013). Creating proper healthcare awareness all over the country will provide the organization a proper benefits as well as opportunity in the expansion process (Pride 2012).
There is a growing competition in this particular industry all overall the world. On the other hand, due to the increase in the competition, there is high price sensitivity among the customers. Developing a key as well as a good pricing strategy is one of the prime objectives.
Political factors contributes as the rules and regulations developed by the government. Political factor concludes the economic integration between the home country as well as the host country (Ellery and Hansen 2012). The political condition of Australia is more stable as compared with the political conditions of China and South Africa. It affects the business operations in a large manner.
The economic factor of Australia will differ with the economic factors of South Africa and Australia. Australia is a developed nation with a better standard of livings (Grewal and Levy, 2013). In order to evaluate a proper business activity in both of the nation, the organization needs to develop a proper pricing strategy, which will meet the requirements of the market.
Patient awareness all over the world is changing and it one of the major elements which will evaluate the social as well as the cultural factor. However, in China, there is a substantial increase in the age of population and growth in obesity.
There is a drastic technological advancement in the overall medical field across the world. Some of the important technological advancement includes customized treatment, direct to patient’s advertisement, which includes new digital opportunities by creating different kinds of E models.
By applying these two important marketing tools, Western Australia Laboratories will be able to determine the potential risks and opportunities in the overall analysis procedures. The business environment of both China and South Africa are dynamic i.e. it is changing at a frequent basis (Hood, 2013). As compared with Australian conditions, the business environment of the two selected nations is not much stable. In order to determine the all the evaluated risks and potential threats the company will execute all the important factors in a proper manner (McCormick and McVay 2012).
Market analysis for Western Australia Laboratories
Market Analysis will determine towards developing a proper target market, which will analyze the demographic conditions of the two-selected country. The demographic conditions of the China will differ with the demographic conditions of South Africa. Doctors, Hospitals and patients are the prime audience in the development process of a proper target market for both the countries (Kotler, 2012). This is based on providing services to the specialists in order to promote the products and services. However, customers in general will provide a broader aspect towards developing a proper target audience in the overall business plan (Malhotra 2013). On the other hand, in order to analyze the overall market analysis, the organization has decided to use the idea of Porters five forces. With the use of the porter’s five forces, the “Western Australia Laboratories” will be able to determine the five factors about its market structure.
There are certain barging powers of the buyers in both the countries, as the purchasing options of the buyers are diversified. Both in China and in South Africa there are no such barriers in the entry and exit of the market. There are certain possibilities of new entrants in the pharmaceutical market of both the country. The bargaining power of the supplier is somewhat less in South Africa as compared with China due to the impact of globalization. If the customer of the two selected nations gets the options of different kinds of alternatives, there is a possibility of threats of substitutes in the market. However, due to the impact of globalization, there is a substantial increase in the competitiveness among the BRICS Nations. There is the notion of competitions always remains high.
Target market is to focus on a selective group of customers with some specific demands and wants by analyzing all the crucial factors of the market. Presently, people all around the world are becoming more heath conscious. There is a broader scope for the different kind’s pharmaceutical company to expand the business operations.
Product Positioning for Western Australia Laboratories
While considering the product positioning aspects, Western Australia Laboratories need to evaluate on four important factors, which includes the application of product, price and promotion.
The company will enter in the South African and Chinese Market with its existing product and services, which contains different modern as well as advanced pharmaceutical services mainly antibiotics. However, the demand for this particular industry is high in China as there is a substantial increase in the age of population and growth in obesity as compared with South Africa.
Price is one of the most crucial factors, which mainly affects the purchasing decisions of the customers in any market structure. After completing an overall process of research and development, the organization has decided to follow two different pricing strategies for South Africa as well as for China (Kotler 2013). The pricing decision is adopted by the organization by analyzing all the economic factors in a proper manner.
In China, the organization decided to adopt the economic pricing strategy. The application of the economic pricing strategy will allow Western Australia Laboratories to minimize the production cost as well as the marketing cost in the business plan. On the other hand, in South Africa, the organization has decided to use the notion of market penetration pricing which will allow Western Australia Laboratories to develop a proper target market by lowering the price of the product initially.
Clinics, hospitals and medical stores are the three-selected place, which Western Australia Laboratories has decided implement its business strategies in the overall expansion process.
Promotion is one of the most crucial parts, which concludes in the process of developing a proper a proper communication channel with the buyers. Western Australia Laboratories decided to use both the traditional as well as modern mode of advisement and promotional procedures, In case of traditional mode of communication procedure the organization has decided to use newspaper, handbills journals and magazine (Kotler and Armstrong 2012). On the other hand, in case of modern mode of advertisement procedure, the organization has decided to use the application of the emails, social media tools and voice calls (Kurtz and Boone 2012).
The concluding part of the study will analyze all the important factors, which will emphasize in the process of developing a proper expansion procedure. The selected organization in the report is Western Australia Laboratories, which is one of the growing organizations in the pharmaceutical sector. In order to evaluate a proper expansion process, the company has selected two countries among the BRICS Nations i.e. China and South Africa. Developing a proper target market, a proper situation analysis procedure, market positioning and product positioning are some of the key factors, which are included in this particular business plan. With the use of this particular business plan, Western Australia Laboratories will be able to analyze all the significant factors, which will focus on a proper expansion procedure.
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