International-marketing.docx

Daily industry council 2016 62 thailand summary

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Daily Industry council 2016) 6.2 Thailand – summary Traditionally, cheese in Thailand was casually consumed, however with the development of New trends for cheese, consumption levels are expected to continue. For instance, hype in the Thailand market for an increased demand for cheese tarts, baked cheese goods and such. This is expected to increase consumer familiarity with the product (cheese) thereby providing an added advantage for Bega cheese to enter the market. (Euromonitor 2017)
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However, it is notable that the current economic and political instability of the Thailand market is expected to negatively affect the cheese industry and in turn any company that is to initiate operations. According to Euromonitor (2017) it is noted that products with cheese are viewed as added value goods in the market and consumers are less willing to spend on indulgence brands. This could be viewed unfavourable for a new entrant like Bega cheese. 6.3 Country selection and Justification Subsequently, taking into consideration the detailed macro environmental analysis on the two countries Japan and Thailand, it would be advised for Bega Cheese Ltd to invest in the Japanese market. Due to the facts that Japan appears have a stronger stability on the economical and political aspects in comparison to Thailand. With justification to the facts mentioned in the analysis, For instance Japan is proven to be the third largest economy in the world and is increasingly performing economic strategies to increase foreign investment within the country. This would be viewed favourable for Bega Cheese as a new entrant to initiate business operations in Japan. Consumers in the Japanese market have a larger purchasing power in comparison to that of Thailand. Due to the instability of the economy in Thailand consumers are more reluctant in purchasing expensive products therefore it would be unfavourable for the company to invest in Thailand (Euromonitor 2017) Additionally, Japan also appears to be more technologically advanced than Thailand. Increased advancements in dairy farming technology will be advantageous to meet the elastic nature of the Japanese market. In comparison to Thailand, it is stated that Thailand has acquired most of their technology from Japan itself ( Marketline 2014)
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According to Euromonitor ( 2017) The current trends assessed in both markets it is evident that the cheese market in japan appears to have a stronger consumer demand. For instance, internationalization of the Asian cuisine, consumption of cheese with wine, shortage in domestic milk (a key ingredient of cheese production) that has compelled the Japanese economy to acquire the product from other foreign markets. Cheese accounts for 30.1% of the total dairy market in Japan and also Imports 70% of it’s cheese (Marketline 2017) Also the existence of Trade agreements like the Trans- pacific partnership and the Japan-Australia free trade agreement and the reduction in tariffs and trade barriers would provide the company a competitive advantage over
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