Product Market Attractiveness - Tassal Limited Company in Australia - Case Study Example

Comparative Country and Product Market Attractiveness Student’s Name Subject Professor Date Comparative Country and product market attractiveness Tassal Limited Company in Australia In this report we will focus on the Australia seafood company (Tassal Limited) and compare it with other market environments in Taiwan and Singapore. Tassal limited is the largest salmon producer in Australia and serves consumers in Australia, New Zealand and Asia among others. Tassal is a public company and is listed in the Australia Securities Exchange (ASX). The main products of the company include traditional fresh salmon products, smoked salmon, frozen, canned as well as other salmon related products. The main competitors for the company in the country are Huon Aquaculture and Petunia Seafood. (Hayward 2012) Taiwan macro environment assessment Political environment Taiwan is a free democratic country which has experienced stability overtime. It has been ranked among those countries that have efficient and effective governance and quality laws and regulations. The country ensures security to its citizens both businesswise and individually. The democratization in Taiwan economy has led to development of non-governmental organizations which have enhanced the country’s growth. (Yue, 2009) Foreign relations/trade Taiwan is a member of World Trade Organisation. The non-governmental organizations have also extended their connections to international borders. Through this international relations Taiwan has been a member of the international community playing important parts via regional alliance, humanitarian support and organizational exchanges. Social and cultural environment The Taiwanese culture is made up of a mixture of cultures such as the Han Chinese culture and Chinese Buddhism among others. However, the country has been able to preserve the Chinese culture, for example the Chinese writing system. Economic strength Taiwan has been dependant on the United States economy over a great extent till recently where it has successfully been able to diversify its trade markets thus reducing its exports to USA. These exports have been replaced by mainland China and Southeast Asia regions where Taiwan has sort to expand its products market to. Moreover, the country has extended its foreign investments which were initially contained just within Asia to such regions as the mainland China. In terms of stability the country first invested in land reforms where it ensured that the country composed of landowners who had their own capital to invest with. When the dynasty that used to cause chaos and differences left the country the state of stability was attained. (ZHANG & HUAN 2008) Technological Over the recent past, technology in Taiwan has almost been inexistent; however the great input from the government to elevate the sector have led to major transformations in the country, especially in the electronics industry. The country invested its limited industrial resources as well as the product management skills and experience working closely with big international suppliers to graduate to a development and research hub of the Asia-Pacific region. Recently, the country launched the e-Taiwan project which is aimed at improving the communication and information infrastructure. This will enhance major developments in business, transport, broadband as well as the government operations. Moreover the program will raise the country’s competitiveness in marketing of various products globally and locally. (Lee & Lee 2008) Agricultural Since 1945 the country has had a long term strategy to develop agriculture through industry in all perspectives in order to improve economic growth through commerce. According to reliable sources agriculture in Taiwan accounted for about 43% of the total industry production in the country with fishing and livestock taking the bigger portions of 26% and 30% respectively. (Edquist & Hommen 2008) Taiwan being a member of World Trade Organisation and other trade liberalization it has put in place new policies in regard to agriculture improvement. This is so as to enable the country’s main agricultural products such as fish to develop into a more modernized and competitive green industry. The country has been able to be in the lead of exporting such products as frozen pork, fish, aquaculture and sea products as well as crops such as rice. However, agricultural growth in Taiwan has been a bit slow due to small sizes of farms as well as poor tools and techniques of production. Singapore macro environment assessment Political environment Singapore is classified among the multiparty parliamentary system of government. It is ruled by a democratic president who is voted in by the citizens of the country. Politically the country has experienced a state of stability since after independence. This has continually been encouraged in the country thus ensuring economic growth too. (Ho et al. 2009) Foreign relations/trade Singapore has been able to attract foreign direct investment as well as technological transfers from its neighbouring countries and other developed nations such as United States and Japan. The most attractive aspect of the country to the foreign investors is the taxation system and other government initiatives. Singapore charges the same corporate tax to both resident and non-resident companies. These benefits to foreign investors continue to strengthen the country’s foreign relations. (Thangavelu, 2008) Economic strength Singapore economy has all through been encouraging a free-market as well as an export-oriented system so as to maintain a steady economic growth. Moreover the country has created a free trade zone within the South East and Asian Nations. This has strengthened the country’s economy through and through. Social and cultural environment Singapore culture has been dominated by citizens being very materialistic even the young people. For instance everyone strives to own a car, credit card, condo and a country club. This has ended up creating a lot of pressure to the society. However the country is well known for its stable political climate. Family and the country’s rule of law are very critical components in the country and are highly respected. Technological Singapore is privilege to have quite a large population that is literate and advanced technologically. It also has the leading technocrats who have been able to take into account various technological trends enabling the country to utilize the globalization benefits. The internet in the country is provided in affordable rates to the residents thus easing the connectivity and the e-commerce. Agricultural Agriculture in Singapore mostly takes place in the countryside where there lands that allow farming practices. Agriculture accounts for a substantial amount of the country’s economy. The main crops produced in the country include food crops such as durians and mangosteens among others. Fish is also grown in the country as aquarium and as food item to some citizens. The major fishery company is the Qian Hu Corporation Limited that exports and imports some species of fish. Comparison between the above countries and Australia in the salmon market Similarities Just like in Taiwan and Singapore Australia has experienced a state of political stability as well as high levels of security. This enhances a conducive environment for the marketing of various products in the country. Australia has also been in the front line to encourage international relations through being a member of various free trade organizations such as the World Trade Organization. This has enabled trade through ease importation and exportation of goods and services. Australia is also has a high accessibility to improved technology and e-market services. The country uses advanced equipment in its production for example in the fishing industry. (McManus 2013) Differences Both Taiwan and Singapore are classified as low income earners depending on their level of economic growth while Australia is classified as among the largest capitalist economies operating at a budget of about US$1trillion. Australia is also dominated by a large portion of service sector coupled by its well and steadily growing technological dynasty unlike in Taiwan and Singapore. Both Taiwan and Singapore are still in the hustles of importing most of their service sector equipment, while exporting most of the raw materials due to lack of processing machines. (Wise, Thyil & Al-Odat 2010) Product market attractiveness In this section we will discuss Tassal Company in Australia. This is the largest aquaculture company in the country that covers the largest market share in the country’s economy. Being a public company its market has extended to the neighbouring countries as well as the global market. The market for fish has continuously been growing and is expected to reach to all corners of the world. According to the company CEO the company has been importing some seafood and fish from the neighbouring countries so as to be able to satisfy its market/consumers. The main competitors to the country include the Petunia and the Huon aquaculture seafood. These competitors provide almost similar products as Tassal Company. Moreover the competitors normally operate from small retail shops which are distributed to various locations in the country. However the positioning and differentiating factors of the company include the ability to produce seafood that is packaged in a manner that is not similar to that of other processors. (Hayward 2012) Tassal company’s competitive advantage is mainly based on the fact that it has a quite large domestic market support. About 70% of the country’s market share in the salmon industry is controlled by Tassal Company. Another competitive advantage is that the company has been able to harmonize its product costs thus winning its consumers preferences. Buyer analysis The buying trends of salmon in Australia have of late been affected by community backlash and bush fires. The company has had a very high demand for its product however, once the situation was corrected. Moreover the stock fell by about 12% in the months of May and June due to heavy rain, insect damage and the hot weather. Tassal Company harvests about 5 million salmon that is well consumed by its demanders enabling it to make a substantial profit margin. References Edquist, C, & Hommen, L, Eds, 2008: Small country innovation systems: globalization, change and policy in Asia and Europe Edward Elgar Publishing. Hayward, H, 2012: Sea change: Fiona Ewing rural'Woman of the Year' 40 [degrees] South, vol. 66, pg. 15. Ho, Y, P, Wong, P, K, & Toh, M, H, 2009: The impact of R&D on the Singapore economy: an empirical evaluation The Singapore Economic Review, vol. 5401, pg. 1-20. Lee, D, H, & Lee, D, J, 2008: Hydrogen economy in Taiwan and biohydrogen International Journal of Hydrogen Energy, vol. 335, pg. 1607-1618. McManus, G, 2013: One that almost got away Management Today, May 2013, pg. 26. Thangavelu, S, M, 2008: Global financial crisis: Impact on Singapore and Asean No 21958 East Asian Bureau of Economic Research. Thangavelu, S, M, Haoming, L, Cheolsung, P, Heng, A B, & Wong, J, 2011: The determinants of training participation in Singapore Applied Economics, vol. 4329, pg. 4641-4649. Wise, V, Thyil, V, & Al-Odat, A, 2010: Regulatory challenges in the move to a low-carbon environment Interdisciplinary environmental review, vol. 114, pg. 283-292 Yue, L, I, 2009: The Formation of Lewis's Turning Point in Taiwan's Economy Development and Coping Strategy [J] Taiwan Research Quarterly, vol. 1, pg. 008. ZHANG, X, Q, & HUAN, Z, J, 2008: THE STUDY OF FUJIAN AND TAIWAN ECONOMY COOPERATION [J] Economic Geography, vol. 6, pg. 012. Read More