Feasibility Study for Sheng Siong's International Expansion to Australia

The business plan is based on the company Sheng Siong (Luo, 2019), which is established in Australia. It is the supermarket chains and is one of the largest under its brand name. They approximately have 54 stores and has an employment human force of around 2324 and more. However they are originally based in Singapore and therefore, want to expand their options and in order to generate more sales and revenues and diversifying the business and in order to reduce cost and acquire new talent, the company is looking forward to start their new destined venture.

Australia being the country with the well-developed economy. The net adjusted per capita income is nearby $33138. There are many resources like ore, gold, iron as well as the agricultural products gets exported by the country. The Australian franchising are dealt with the Franchising code of conduct. There are around more than 79000 franchise companies that are successfully running in the country and out of which nearly 28% of them are from the international companies. Therefore Australia is a great country that ensures that there are perfect business opportunities for the foreign businesses. Almost 60% of the Australian GDP is comprised of the household consumption (Supermarket market share, 2020). The economic benefit of the supermarket does not pertinent to the revenues and the generation of the employment opportunities. However, the value that the supermarket adds up lies in the servicing industry of the entire supply chain (Teng et al., 2019).

The nature of the Sheng Siong startup in Australia is franchise. However, it is the safe option for the expansion of their already existing Singapore super market empire. Since whoever wants to expand their market shares with lowest risks and in a low-cost way then franchising is one of the best option (Watson et al., 2019). It is one of the popular method for the startup of the business, especially if the start-up is in the competitive market. The franchisor is the original name of the company that already exists and which let its name or in another word they sell their names and let the other company or franchisee to sell their products under their trademark. One of the biggest advantages of the franchisee business is that they get an established name of the brand. Australia being the developed country, which is full of opportunities can enable the Sheng Siong to flourish well. Since it is one of the settled brand in the other country. Therefore it can definitely have the opportunity to flourish well in Australia (Yakimova, Owens & Sydow, 2019).

Watson, A., Dada, O., Wright, O., & Perrigot, R. (2019). Entrepreneurial orientation rhetoric in franchise organizations: The impact of national culture. Entrepreneurship Theory and Practice, 43(4), 751-772.

Yakimova, R., Owens, M., & Sydow, J. (2019). Formal control influence on franchisee trust and brand-supportive behavior within franchise networks. Industrial Marketing Management, 76, 123-135.

Luo, M. (2019). Redefining risk in prospect theory: how goal framing and efficacy difference interact to promote elderly Singaporeans’ influenza vaccination (Doctoral dissertation).

Teng, P., Montesclaros, J. M. L., Hulme, R., & Powell, A. (2019). The Evolving Singapore Agrifood Ecosystem.

Supermarket market share. (2020). Retrieved 22 January 2020, from https://www.abc.net.au/news/2019-05-03/supermarket-market-share-roy-morgan-single-source/11073926

(2020). Retrieved 22 January 2020, from https://www.trade.gov/topmarkets/pdf/Franchising_Australia.pdf