Entry Strategy and Organization: Endless Wave PTY LTD Business Plan (Research Paper Sample)
This paper discusses the entry strategy that Endless Wave will use in venturing in the South African market of Surfboards and Surfing accessories. The industry is on the rise in the country and the diversity in the market will ensure that the wide range of products that are offered by the company find enough customers. The competition in the industry is high and the competitors are mostly located in the coastline towns in the country. The paper brings the target country under review and provides strengths as well as weaknesses associated with this market. The paper finally provides the suggested ways of entering and operating in the target market.source..
ENTRTY STRATEGY AND ORGANIZATION: ENDLESS WAVE PTY LTD BUSINESS PLAN
By Studentâ€™s Name
This paper discusses the entry strategy that Endless Wave will use in venturing in the South African market of Surfboards and Surfing accessories. The industry is on the rise in the country and the diversity in the market will ensure that the wide range of products that are offered by the company find enough customers. The competition in the industry is high and the competitors are mostly located in the coastline towns in the country.
Endless mode can use its strengths and the market opportunities to venture in the market while at the same time manage their weaknesses and threats they are likely to face. It will enter the market as a fully owned subsidiary and employ personnel to help in the management of its activities. Through acquisitions and construction of new stores, the firm will avail its products to the customers and will aggressively undertake sales and promotion to help in building the brand. It will have a structure that will ensure activities are properly done and at the same time control costs to ensure profitability.
Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc389243214 \h 2Introduction PAGEREF _Toc389243215 \h 4Industry Analysis PAGEREF _Toc389243216 \h 5Market Analysis PAGEREF _Toc389243217 \h 7Competitor Analysis PAGEREF _Toc389243218 \h 8Endless Wave SWOT Analysis PAGEREF _Toc389243219 \h 9Strategy PAGEREF _Toc389243220 \h 11Entry Mode PAGEREF _Toc389243221 \h 13Structure PAGEREF _Toc389243222 \h 14Control PAGEREF _Toc389243223 \h 15Functional Strategies PAGEREF _Toc389243224 \h 16Forecast PAGEREF _Toc389243225 \h 17Recommendation and Conclusion PAGEREF _Toc389243226 \h 17References List PAGEREF _Toc389243227 \h 18
Entry to a new market is always a challenge to many organizations. Many firms have put in a lot of strategies in their operations that ensure they widen their profit margins and improve their levels of productivity within their given industries. At one point in its operations, a successful firm will need to venture in to new markets as a way of capturing more customers, improving their profit margins, utilizing more raw materials, and spreading their risks. The idea of venturing into new markets helps a firm to ensure sustainability and growth in the industry.
Even though entering new market environments provide the firms with the opportunity of growth, the process is quite challenging and demanding. A firm that blindly enters a new market may face various obstacles that have negative impacts on the business in the industry. Such an organization is likely to fail in its operations in the new environment. A firm has to undertake a lot of analysis in various factors that may affect its operations in the new market and come up with strategies that will be useful in overcoming the negative factors and utilizing the available opportunities to ensure the growth in the new market environment.
This paper looks at the entry strategy of Endless Wave into a new market in South Africa. It gives an introduction of the company and the industry where it operates, performs industry analysis, market analysis, competitor analysis, SWOT analysis, Entry Strategies, Forecast, and Recommendation and conclusion. In a broader perspective, the paper analyses the external environment that the firm tends to operate in and the factors that influence the operation of business in the environment, the internal abilities and weaknesses of the firm and finally designs the best strategies the firm can use to enter the given market.
Endless Wave is a company that was founded in 1980s in Australia. The company operates in the Surfboard and Surfing Apparel industry. It was founded by two brothers from Australia who shared the same interest and passion of producing surfing products of good quality. Currently the headquarters of the company is in St. Kilda, Victoria after the offices were moved from Torque, Victoria in 2000s. The products of the company include surfboards and accessories, board suits, bikinis, jeans, jackets, wet suits, bathers, wallets, belts and specialized surf products. The company has enjoyed success in the market and currently make of 25% profit in the sales turnover of more than $ 250 million every year. The success that the firm has seen internalization as a key strategy, and it is already operating in 20 countries within Europe and America,
The company currently seeks to venture into the African Market, with South Africa as a particular country where in wants to base its operation. South Africa is preferred has it has the highest GDP in the whole Africa and can provide a good market for the products of the company. The company thus has to carry analysis on the business environment of South Africa and link it to the internal capabilities of the firm in order to come up with the right entry strategies for the market.
Endless Wave operates in the surfboard, surfing apparel and related products industry. Surfing is a growing sport that is not common in any other county. In South Africa surfing is widespread and this has created the industry that deals in the supply of the products that are used in the sport. The industry entails the sale of the surfing boards, clothes used in surfing as well as all the other materials that one may require for the sport. It is an industry where quality matters a lot any faults of the equipment may lead to serious accidents that may as well claim the lives of the users. The users of the equipment take caution while making purchases to ensure that they are safe when surfing.
The coastline regions of South Africa has various points and bays where surfing takes place (Davies, 2013). These are the places that the industry in the region covers. The sport is on the rise in the country and various tourists travel to the country to take place in the sport. The locals are not left behind as they also record an improvement in interest in surfing. The industry continue expanding in the country due to the rise in surfing in the country and the continuous expansion of surfing points. There is a consistent rise in the demand of surfboards and surfing accessories.
In South Africa, the regions that are covered by the industry include Cape Town, East London, Kwanzulu Natal, Overberg, St Francis, Wild Coast, Durban, Garden Route, Port Alfred, and West Coast District (Davies, 2013). All these regions have good facilities that help in hosting tourists that travel to the country. The hotels in the regions are on the rise and statistics indicate that South Africa is the most preferred tourist destination in Africa. This indicates that the industry is on the rise as many tourists travel to South Africa to Surf. The demand for surfboards and surfing apparel is consistently rising in the country.
The industry in the region is portioned into to two major segment in South Africa. The targeted customers are of two different racial backgrounds. They include the international tourists that travel to the country mainly to surf and the locals in the country who are interested in surfing. The two groups have different tastes and preferences and the products have to be designed to take into account their differences. There are smaller segments of the industry that include surfboards segments, the clothing segment, and the segment of special surfing equipment.
The market that the company aims at reaching in South Africa includes the whole population that is interested in surfing. These are the tourists who travel to the country to surf and the local citizens of the country who take part in the sport. The surfboard and other surfing accessories are made to fit people from the age of seven to adults. There are accessories that are mea to help those who are learning to surf and those that are meant for the professionals. The market that is targeted thus consists of the professional surfers and trainees who have shown their interest in the sport.
The growth of the sport in South Africa means that a greater number of the population continue to get attracted to the surf fashion. Save for those who are taking part in the sport, it is believed that the whole South African population of 53 million people provides a potential market for the products of the company due to the consistent growth of surf fashion in the country (Charles, 2008). The market for the products thus exist in the whole country, though many customers come from the coastline regions where surfing takes place.
The market provided by the citizens of the country provides a lot of diversity by itself. The country faces a lot of diversity in its population as it is occupied by people of different tribes, ethnic backgrounds and race (Charles, 2008). These people have differences in taste and preferences when it comes to fashion. The consistent growth of the surf culture in the country implies that among the 53 million potential customers, the products of the surf fashion should always be designed with special modifications to suit the preferences of the diverse population. Gender is also an issue of consideration as the sport is becoming acceptable by both the females and males, with the men occupying a slightly larger market portion. The products should always be designed to suit children, the youth and adults of both gender. The youth form the largest part of the market as the sport is increasingly attractive to them. This is followed by the children who have the passion to take part in the sport and always have the desire to be associated with the surf culture. The adults form the smallest portion of the market with their little interest in the sport, its culture and fashion.
The tourists who travel to the country also provide a large market for...
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