Integrated Business Management: Market Entry Essay

Question:

Discuss about the Integrated Business Management for Market Entry.

Answer:

Introduction

Mayrah, the fashion brand by Australia’s Julie Shaw, targets young females who are working or are fashion conscious. Because of Julie’s indigenous background, the brand also reflects an essence of the Australian indigenous culture. They have identified offshore manufacturing as the best option for their products. They mostly focus on in-house sales and online e-boutique (Mayrah.com.au 2016). However, currently they are looking to expand in Asian markets due the vast un-explored populace in the region, and myriads of opportunities not taken advantage of.

Country to Target for Market Entry

Singapore is known for being open to high-end fashion brands, and people in the country are open-minded about spending money on products that are worth it. Thus, Singapore as a market was chosen among other Asia-Pacific countries to increase sales and profit for Mayrah. The consumption size of the fashion brand market in Singapore is booming and Mayrah has the financial resources, proficiency and experience to enter that market. Singapore is the market for a vast range of global and local companies, and the standard of living is quite high. Moreover, the Australian market is crowded with domestic companies, and it does not provide much opportunity for growth to the retail companies. Singapore’s strategic location near the major seaports has turned it into a busy point of transaction. In addition, its close proximity with other developed Asian countries has turned it into a gateway, with few natural disasters (Coe and Bok 2014).

Business Environment

Singapore is known for its cultural diversity, and business practices are influenced by that. Mayrah has to indentify the significance of all those practices before entering the market. The power distance factor in the businesses are quite prominent, and employers take control in all situations, making the communication between them indirect and carefully measured. Mayrah needs to pay attention and modify their own open business interactions while entering the business market. Mayrah has the practice of clearly communicating corporate expectations to all the employees, along with a specific code of conduct for successful teamwork (Ko 2013).

Communication Issues and Problems

The culture of Singapore is different to that of Australia, and that can influence consumer behavior. The society is segmented into subcultures dealing with nationality, religion, language and demographics, making it an ethnically diverse country. English is one of their four national languages, so communication wise there is not much of a language barrier. However, local dealers and wholesalers mostly converse in Chinese or Malay or Mandarin, which could be an issue for the managers. In addition, the multicultural environment can pose a problem in loss of focus on the target market. Furthermore, the existent presence of vast number of domestic and foreign brands in the market can divert the consumer preference away from Mayrah, as it is not a locally recognized brand yet and has no brand loyalty working for them in the Singapore market. To handle these issues Mayrah should beforehand carry out their market segmentation properly and try to understand which subculture and belief they need to give special attention to. In addition, its affordability and good quality would slowly capture the attention of the buyers, who are already ready to spend on something new and exclusive (Paliwoda and Thomas 2013).

Legal and Compliance Issues

Singapore already has a well-established legal and political system, along with government stability. It has a stable government, almost zero issues between political parties, and good foreign relations. However, doing business there is not without some challenges. Prior registration has to be done with their Accounting and Corporate Regulatory Authority, which could take time to be completed. Registering property is a complicated issue, especially in the context of payable fees. Mayrah has to make sure they plan things and properly prepare all the documents required for these processes (Cavusgil, Knight and Riesenberger 2013).

Conclusion

In conclusion, it has been indentified that Singapore’s political solidity, strong fiscal position and an optimistic governmental attitude supports Mayrah’s market penetration plan for Singapore. Nevertheless, it is vital for Mayrah to consider the cultural and political barriers, along with consumer preferences while doing so. Mayrah’s distinctive essence can become its competitive advantage.

References

Cavusgil, S.T., Knight, G.A. and Riesenberger, J.R., 2013. A framework for international business. Pearson.

Coe, N.M. and Bok, R., 2014. Retail transitions in Southeast Asia. The International Review of Retail, Distribution and Consumer Research, 24(5), pp.479-499.

Mayrah.com.au. (2016). MAYRAH. [online] Available at:

Paliwoda, S. and Thomas, M., 2013. International marketing. Routledge.

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