International Business Strategy for NZ FTA Markets

Instructions

You are the “Development and New Initiatives Manager” of a New Zealand-based organisation planning an international expansion. A preliminary global review has indicated that a New Zealand Free Trade Agreement (FTA) country offers opportunities. (The New Zealand FTA country to be assigned by your lecturer)

Assignment Requirements

1. Introduction: 10%

a. Briefly describe the selected New Zealand-based organisation, and assess the company and product readiness for global business.

b. Assess the importance of global business in the context of the chosen organisation.

2. Literature Review: 40%

a. Assess market and sales potential of your organisation’s product in the assigned NZ-FTA country and researching on international trading opportunities, overseas investment through the FDI route, and sourcing skilled labour for recruitment.

b. Summarise the findings and discuss their relevance to the selected organisation.

3. Analysis and Evaluation: 40%

a. Suggest an international market entry strategy based on your analysis and evaluation of appropriate criteria.

b. Suggest an international business strategy considering suitability, feasibility, and acceptability for your organisation.

4. Conclusion: 10%

a. Summarise the key findings of your analysis.

b. Reflect on the importance of FTA provisions to offer global expansion opportunities for NZ organisations.

Experts Answer on Above Questions on International Business

Introduction

Organisation and product readiness

The organisation selected for the analysis in the given international expansion decision is Fisher and Paykel Healthcare, and it is expanding to South Korea which is a country covered under the New Zealand Korea free trade agreement.
An analysis of Fisher and Paykel Healthcare indicates that it is one of the leading manufacturers of respiratory care, sleep apnoea and acute care medical devices in New Zealand. The company already has significant presence across 120 + countries and it has strong research capability, and a globally recognised brand.
Importance of Global Business – it is highly important for Fisher & Paykel to perform International expansion in order to diversify its revenue, expand its customer base, and reduce dependence on the New Zealand market.

Literature review

An analysis of the South Korean market indicates that it has significant potential and demand for respiratory and hospital care equipment because of its aging population and advanced health care system. Because of the New Zealand Korea FTA, there is significant reduction in the tariff and it makes exports more competitive. The FDI opportunities include establishing regional distribution centres, and technical support facilities. The company has skilled biomedical engineers and Healthcare professionals and it can also recruit in the South Korean market because of the availability of expert minds. It is therefore an attractive destination for Fisher & Paykel to perform its expansion into the South Korean market to trap the opportunities available.

Analysis and evaluation

International market entry strategy

The best suitable entries strategy is to enter into a strategic partnership with an established South Korean medical device distributor. It will benefit significantly in terms of reduction in the investment risk, provide immediate market access, help in complying with regulatory requirements and with leveraging existing hospital networks.

International business strategy

Fisher & Paykel should consider a differentiation strategy aimed at providing premium medical technologies supported by local technical training, after-sales service and continuous product innovation. This strategy is highly effective and financially feasible and aligns properly with the reputation of the company in terms of quality and innovation.

Conclusion

The market of South Korea offers significant opportunities to Fisher & Paykel to perform expansion into the market. There is significant growth in the healthcare products and the South Korean market offers advantages in terms of skilled workforce availability, and favourable investment conditions. In addition to this, the New Zealand- Korea FTA also favours this expansion, as there are lower trade barriers, improved accessibility to market, and better potential to the New Zealand organisation in achieving growth and success.

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