Ya Kun Kaya Toast Market Entry Strategy in Sydney Australia

Question: Discuss about theMarket Entry Strategy of Ya Kun Kaya Toast in Sydney and Australia. Answer: Introduction Eng (2015) has stated that when an organization has made a decision to take entry into the overseas market, there are a wide range of options open to it. All these options might vary with cost, risk and the degree of control that can be exercised over them. This particular research work would try to shed light on appropriate market entry strategy, as this Singapore based company has been planning to expand its business in Australian market. Mester (2016) has stated that a market entry strategy is the procedure in which a company takes entry into a new market. It can be stated that international expansion can be achieved through several ways of exporting, licensing, joint ventures, freelancing, distributorship and finally the entirely-owned subsidiary. The Singapore based coffee shop has been planning to take entry into the Australian market and thus they need to analyze that what market entry strategy would fit the situation. Introduction of the Company From the company profile, it can be found out that from its humble beginnings as a modest coffee stall in the 1940s, the brand name of Ya Kun has turned out to be identical with the unequaled kaya toast, charismatically aromatic coffee and tea that are enjoyed amidst a comfortable ambiance. Presently, the company Ya Kun has continued to delight their valuable fans and attract the tourists largely. Vision of this Singapore based coffee shop is to establish this name as a household name in not only Singapore but also in Asia through offering delectable kaya toast and other complementary traditional food along with beverages to one and all (yakun.com, 2016). If focus is shed on mission of Ya Kun, it can be found out that Ya Kun strives to: Conserve its exclusive and rich inheritance recognized since 1944 Complete its faith that a good toast can bind relationship, company and companionship Persist in attaining its twin objectives of affordability and accessibility of its products Follow fineness in its customer service Point itself at the vanguard of modernism for product expansion process (yakun.com, 2016) Challenges of International Entry It can be found out that the management of Ya Kun has been planning to open its new outlet in Australia and for that reason they are required to make a thorough market entry strategy that would ease their entry. After making a thorough investigation, it has been found that Australia is one of the favorable places where coffee business can be expanded, as the coffee shop industries has largely expanded over the last five years in Australia. Apart from that, it can be stated that the revenue of coffee industry is expected to expand by 8% by the end of 2017 (Murthy Naidu, 2012). However, there exist some challenges and these have been mentioned here in details here: Cultural Challenges Australians generally do not develop relationship before doing business with someone. Apart from that, it can be found out that those companies that try to oversell their brand by applying aggressive sales techniques, immediately fails.Moreover, the decision making procedure in Australia is very slow.Importantly, Australians do not prefer to discuss regarding religion, politics and sex (Neac?u B?rbulescu, 2015) Business Infrastructure Challenges It can be stated that business tax legislation in Australia is highly complex in nature. Business taxes in Australia are levied by both the federal and state government.Unemployment rate is comparatively low in Australia and keeping pace with this, wage pressure among the employees is very high in almost every business sector in Australia (Tayar Jack, 2013) Competitors Challenges Nestle Australia is the leading food and beverage corporation in Australia and thus it is challenging enough to point an organization in the stiff competition market.At present, Nestle Australia has more than 60% market share in the whole country .Besides Nestle, The Coffee Club is also present in the country. There are almost 400 stores throughout the country that are extremely famous. Therefore, it is understood that Ya Kun Kaya coffee shop would have to face tremendous competitor from Mecca, Bean Drinking, Campos Coffee and some others (Thompson et al., 2016) This part of the research work has tried to analyze the risks of ya Kun Kaya Toast at the time of expanding the business in Australia and it is necessary enough to provide some effective recommendations that might assist the company to deal with the addressed situation carefully. Recommendations Learning Cultural Dimensions of Australia Initially, the management of the company is required to learn about the cultural dimensions of Australia and based on that, they are required to take the marketing expansion decisions. Clear communication is necessary for effective functioning. The Australian clients need to be understood as they have their way of doing work. Cross-cultural training must be provided so that long-term relationships can be built or developed with the Australians (Williams, 2014). Hiring Local Employees It can be recommended that at the initial level, the management of the company is required to hire some local employees, as they are more aware of the cultural dimensions. They would definitely be helpful in dealing with the issues carefully. Taking Help from the Legal Advisors As there are challenges related to business tax legislations, professional lawyers and consultancies may be hired for getting professional help. At the initial stage of expanding the business, the company definitely needs to take legal advices from advisors and they would definitely help to deal with any legal issues in Australia at the time of expanding branch in Australia (Williams, 2014). Adoption of New Technologies Expansion of business in overseas market is enough costly and thus the company needs to reduce organizational costs. The management of Ya Kun Kaya Toast is required to adopt some new cost-effective technologies and these are expected to reduce the operational costs. This shall help in overcoming the identified infrastructural barriers (Williamson et al., 2014). Develop Brand Community With the increase in competition, the organization needs to apply effective investment and marketing strategies. The firm can organize a brand community which can help in gaining competitive advantage as Nestle Australia or the Coffee Club do not have a brand community. Entry Mode After analyzing different aspects of market entry mode, it can be said that franchising can be the most effective and useful strategy for Ya Kun Kaya Toasts. In this mode of market entry, the company would provide all necessary things for operating their markets. From the detailed information, it has been found that this organization has already operated many of franchise stores (Williams, 2014). Adopting franchise market entry mode, the company would face minimum political risks and most importantly, this would assist the organization to operate at comparatively low cost. 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