Discuss about the International Marketing for Australian Trade Commission.
It is observed that exporting could help to make the business more advantageous by launching the products and services to new customers. It helps the organization to increase the ability to compete in the domestic environment with the experience gained in the foreign market. Tasmanian organizations that have proven their readiness of exporting could be able to derive assistance from Tasmanian Government as well as Australian Trade Commission to minimize the time, cost and risks associated with enhancing the export markets. However, the exporting industries in the recent time have faced some challenges due to regulations, the demand and supply of products and economies and other marketing elements. This report effectively discusses those changes the exporting practices and the issues that organizations in exporting sector face. The report critically analyses the present business performance and the ability of Tasmania’s export. The effectiveness of Tasmania’s international marketing has been discussed with influential factors.
Context and issues
Evaluating the current business performance and capability of Tasmania’s exports
As put forward by Day 2(011), a thriving sector is central to ensure a developed a strong economic future. Due to the favorable nature of exporting in Tasmania, many organizations have been successful in their business. The business performance of the sector has certainly increased compared to the performance recorded in the previous years. For example, the manufacturing sector in Tasmania consists of incredibly diverse series of business such as small, large and other range of subsector. Nevertheless, it is identified that manufacturing sector involvement indicates that advanced manufacturing remains as the small subset of total manufacturing sector. The total number of manufacturing business in 2013 was about 449 and in the period of 2014-2015, the sector presented nearly 7.5% of states’ Gross value added (Chavan 2012). The year 2016 presents almost 7.7% of employment (Thompson and Penm 2011). Furthermore, it is observed that there is a high extent of adaption within Tasmanian advanced manufacturing sector. Several organizations have changed what they manufacture to respond to the dynamic market economic environment.
Exporting capability of Tasmania
The exporting capability of Tasmania remains high due to particular factors like climate advantages, brand advantage, sustainable water supply, diary and agriculture base, stable, flexible as well as innovative workforce. It has been identified that Tasmania has temperature maritime climate, which is prevailed by westerlies off Southern Ocean and provides regular rainfall and conditions that are usually free from extremes in temperature (Eversole 2013).
Present situation comparing the years
Evaluating the effectiveness of Tasmania’s international marketing or positioning
As Tasmania has effective and favorable environmental for exporting, the nation as a whole has strengthened its position in the global market in terms of exporting. The nation has a strong position in the global market due to the increasing number of nations that import from Tasmania. According to Australia Bureau of Statistics, China is the largest importer of Tasmania goods in 2017, which accounts for 24.4% of State’s overall nominal value of exports (Au-Yeung, Keys and Fischer 2012). Likewise, Hong Kong and China together acquire 29% of Tasmanian exports (Frawley and Howden 2016). However, it is also observed that nominal value of exports to China reduced by $182 million, which is nearly 18.5% compared to the percentage of previous years. Likewise, the exports to USA is also reduced by $47 million (Halpin et al. 2014). On the other side, exports to Taiwan, which is the third largest export destination ix reduced by 11.3%; this is because of the decreased exports of metallic ores as well as the metal scraps (Harrison 2015). On the other side, the exports to India increased by $40 million, which is nearly 48.2% because of the exports of non-ferrous metals, paper and paperboard. The export to another Asian nation –Indonesia is increased by $37 million. Based on this performance, it can be mentioned that even though exports to Asian nations have been effective but Tasmania has lost the market share in some popular market like USA, Taiwan and some other European emerging markets.
Conducting an evaluation of specific international markets that Tasmania has exported to
According to Australian Bureau of Statistics, the nominal value of Tasmania’s merchandise exports was around $2.853 billion (Chavan 2012). This certainly represents an increase of 12.3% compared to previous year when the value of exports was accounted to be around $2.524 billion (Thompson and Penm 2011). While focusing on USA, it has been identified that exports to United State has not been effective because the export value of ores and concentrates is widely determined by international commodity prices. The deduction in the value of dairy exports is primary driven by a largest supply of dairy products that are released into international market by different export nations throughout the last year. However, a large percentage of agriculture products are sent exported to USA. In fact, almost 41% of agriculture products were imported from Tasmania only.
Reporting on networking and professional development undertaken by Government and private associations
For the internal growth of the nation, government of Tasmania has developed trade mission to some particular nations. This strategic trade mission certainly boosts the growth of the nation and this enlarges trade networking. For example, the trade mission to India, Indonesia, Sri-Lanka and Singapore could increase the export opportunities for Tasmania with some world largest and fastest growing economies (Bishop and Chung 2015). As the focus and purpose of trade mission, energy, tourism as well as the hospitality sector will be considered. Moreover, the purpose of the trade mission is to create new opportunities for Tasmania in world’s developing economies.
Highlighting the trade mission
As the scope of exports in Tasmania is larger than any other global nations, several South Asian nations rely on the goods exported by Tasmania. It has been observed that trade mission of Tasmania’s government has been an overwhelming success and the initiative provided some significant opportunities for Tasmania in the field of manufacturing, education and skills renewable energy development, tourism and fishery management. The government of Tasmania recently has signed a tripartite agreement between UTAS, “Lembage Pengeelola Dana Penddikan” and “University Gadjah Mada” that provides funding for Indonesian students to pursue nursing programs to the University of Tasmania (Bishop and Chung 2015)
In conclusion, it can be mentioned that Tasmania in coming future will observe significant business opportunities as the emerging and large market China is largely depended on Tasmania’s goods. In addition to this, even though the profits from the seventh largest export market USA has not been effective, many Asian nations have started importing goods from Tasmania.
Technological development- According to the data provided by Australian Bureau of Statistics, the manufacturing industry in Tasmania deals with the challenge from the overseas competitors. Thus, the nation needs to pay attention to the adoption of new technology to retain the markets.
Collaboration- To deal with the competitiveness, the nation could rely on the collaboration. The practice of sharing resource and gaining knowledge of what resource can be used in partnering new developments could help to build the sector as a whole.
References and Bibliography
Au-Yeung, W., Keys, A. and Fischer, P., 2012. Australia-China: not just 40 years. Economic Round-up, (4), p.7.
Barrett, D., 2011. Diary. Australian Commodities: Forecasts and Issues, 18(1), p.83.
Bishop, A. and Chung, K., 2015. Export to Asia and the world-a forum TAS div. Agricultural Science, 27(2), p.12.
Chavan, M., 2012. The Global financial crisis and Australia’s international trade position.
Day, C., 2011. China's Fiscal Stimulus and the Recession Australia Never Had: is a growth slowdown now inevitable?. Agenda: A Journal of Policy Analysis and Reform, pp.23-34.
Duncan, A. and Leong, K., 2015. Tiger, Tiger, Burning Bright? WA’s trade and economic development with Asia.
Eversole, R., 2013. Social enterprises as local development actors: Insights from Tasmania. Local Economy, 28(6), pp.567-579.
Frawley, N. and Howden, M., 2016. Economic overview. Agricultural Commodities, 6(3), p.4.
Halpin, J.A., Jensen, T., McGoldrick, P., Meffre, S., Berry, R.F., Everard, J.L., Calver, C.R., Thompson, J., Goemann, K. and Whittaker, J.M., 2014. Authigenic monazite and detrital zircon dating from the Proterozoic Rocky Cape Group, Tasmania: Links to the Belt-Purcell Supergroup, North America. Precambrian Research, 250, pp.50-67.
Harrison, M., 2015. Taiwan forgotten in Australia’s rush of successes on free trade agreements.
Thompson, N. and Penm, J., 2011. Economic overview. Australian Commodities: Forecasts and Issues, 18(1), p.5.
Zhang, Y., 2015. International arrivals to Australia: Determinants and the role of air transport policy. Journal of Air Transport Management, 44, pp.21-24.