Plastic Pack Is Provided Various Companiesâ€Myassignmenthelp.Com

Question: Discuss About The Plastic Pack Is Provided Various Companies? Answer: Introduction The basic business activity performed by Amcor Limited is the packaging of unique types of goods. From flexible to the inflexible plastic packaging is provided to various companies in order to provide them sustainable management of the companies products. Its headquarters is situated in Australia and for the growth and expansion purpose; they are planning for the expansion of the business. For the same purpose, Mexico is selected and in relevance, to the market situation of the Mexico, appropriate measures will be analyzed before adopting this place for the expansion. Under this report, all the realistic market entry options available in Mexico will be discussed in order to attain organizational goals and objectives. Apart from this, advantages and the disadvantages will also be discussed in relevance to select an adequate market entry option with a view of long run survival in the Mexico. As Amcor Limited is involved in the packaging field hence; the most appropriate way to reach th e success in the new market conditions will be setting up their business outlet nearby to the industrial area of the chosen market. This will help the industrialists to reach to Amcor Limited easily and the chances of getting contracts of packaging from the new market will be more. The activities performed by the Amcor Limited helps them to fall down in the B2B type of business market. Amcor Limited helps the other organizations, generally manufacturing organizations in packaging their finished goods through various types of packaging as required by the product or the organization. Summaries from Assignment In the first part of this assignment, market factors and the opportunities available in the Mexico were discussed in order to set up a unique position in the business environment of the particular place. Adequate risks and the opportunities were discussed with the help of competitive analysis, market analysis, and the organizational environmental analysis. This was performed with a view to understanding the organizational position adequately in the Mexico (Fletcher Crawford, 2013). Apart from these factors, Amcor Limited's strengths, weaknesses, opportunities, and the threat factors were discussed with various methodologies such as Porter's five forces, BCG matrix, and value chain analysis and through the SWOT analysis. While evaluating all these factors in relation with the Amcor Limited, it was analyzed that the legal system of rest world except the Mexico differs a lot (Kaufmann, Czinkota Zakrzewski, 2015). Various rules and regulations come along in the path while establishing their effective position in the Mexican market with a view to getting involved in the B2B type of organization. Apart from this, it was analyzed while developing the path to enter into Mexican market for performing the business functionalities; Mexico has the most attractive market across the globe in terms of expanding the business with a view to increasing the profitability of the organization. Along with these factors, management of the Amcor Limited performs the marketing mix functionality in order to attain maximized profits. While developing the international marketing plan for the Amcor Limited, it was analyzed that their number of organizations are available which are involved in the same process as Amcor is involved. In this industry, the main success motive is providing adequate qualitative packing. This assures the manufacturers in relevance to their products' safety. Price is a great factor which influences the customers. Hence, Amcor Limited has also analyzed the factor s relating to the price to set the price of their products as minimum as possible in order to attract a high number of consumers (Knight, 2015). Screening of Market Selection Screening of market selection involves the procedure to adapt the most appropriate and effective market for the Amcor Limited for achieving better results (Marchi, et. al., 2014). The basic motive for the expansion for Amcor Limited is to increase their profitability as well as to separate their unique identity in the global market. Below discussed aspects are the parts of the market selection process: Stages of Selection Process Global Marketing Objectives: This is the basic route to analyze an adequate way to reach to destination for expansion in the abroad countries. Evaluation of the marketing objectives allows the organization to evaluate the certain methods to enter into the country and in their market. Through performing this methodology, an organization is able to determine all the positive as well as negative resources which could benefit the organization or which could harm the organizational performance. The market needs to be selected after determining all marketing factors such as macro as well as micro environmental factors of the particular market. For instance, if Mexico does not believe in the production activities and they only believe in the export of goods than the demand of packaging material and the packaging organizations will be less. Hence, this could be a negative factor for the organization and this will impact organizational motive of expansion (Katsikeas, 2014). Factors of market selection: Before selecting the appropriate mode of entry or the appropriate market for performing the business activities for achieving the organizational objectives, it is necessary to set the parameters so that comparison could be done easily. The basic elements which are included in the selection process of market entry are internal and external factors of the business, macro as well as micro environmental factors, competition, legal parameters, resources available with the firm, etc. This helps the organization to determine the most appropriate market entry mode to for setting up the firms position in the international market as well as to determine the success factors involved in the selected market. Technology, Culture, Free markets, peace, economy, market demand, etc. are some of the aspects which should be included in the selection process in order to attain the adequate growth (Schu Morschett, 2017). Initial Screening: This action is performed at the time of selecting the potential markets for developing the adequate image in the market. Non-potential markets are disqualified at the initial step only in order to save the time of the organization. This eases the organizational process to select the adequate market to perform their functionalities. For performing this step, appropriate methods need to adopt such as measures for performing the screening needs to remain unchanged for every market. Markets could be measured on the basis of a size of the particular area, a population of that area, average income group people in that area, infrastructure of the area, political considerations, etc. All these factors become the part of the screening process (Armstrong, et. al., 2015). Shortlisting of a market: After performing the step of screening, the remaining markets needs to be evaluated again on the advanced measures in order to determine the benefits of the markets. These functionalities play very crucial role while selecting a market for the organization. While performing the screening process, advanced aspects will opt in order to achieve the expected growth rate for the organization (Majaro, 2013). Assessment and Selection: After shortlisting the available markets, the further assessment process will be conducted for selecting one of the best markets with an assumption of long run survival, from the growth perceptive, etc. Generally, this step is performed while organization launches any new product but this step is also feasible in the launching the new business or the existing business in the new market. As per this scenario, markets are assessed for Amcor Limited to expand its business functionalities in an international market and for now, Mexico is chosen as the preferred country to operate its business (Choi Yeniyurt, 2015). Reason to choose country There are a number of reasons available in the Mexican market which is responsible for the selection of the country: The market condition, as well as the size of the Mexican market, is quite favorable for businesses like Amcor Limited. Rules and the regulations in the Mexican market in relevance with the commercial operations as they are quite efficient in relation to other countries regulations. The quality of the packaging provided by the Amcor Limited helps them to stay unique from its competitors. The current population of the Mexico is equivalent to the 1.73% of the total population of the world and along with this figure of a population, they have a satisfactory GDP which provides the Mexican public the adequate power of purchase. Hence, chances of antimicrobial product packaging will be high in Mexico. Apart from the market barriers such as the unique legal system, numerous market drivers are present in the Mexico which helps the investors and the marketers to perform their business activities in the Mexico (Oh Contractor, 2014). Objectives Amcor Limited is involved in the packaging of the various products. For determination of risks and the opportunities in the international market, Amcor Limited has decided to move towards the Mexico in order to attain adequate objective and the goals for the organization. Expansion of the organization is conducted on the expectation of achieving growth and to set up its international image in the global market. Following are the objectives set up by the Amcor Limited in order to attain their target for setting up business in the international market: The product provided by Amcor Limited is the antimicrobial packaging. They provide this packaging for every type of products manufactured such as household items, perishable and non-perishable goods, etc. Apart from this, the specialty of their packaging is that it is chemical resistant and coating with the alcohol pads builds the packaging strong and reliable. In order to attain the adequate position in the Mexican market, the price of the antimicrobial packaging is set to the cheapest one. This will help them to gain the number of consumers and their objectives will also get fulfilled (Czinkota Czinkota, 2013). They have adopted various techniques to spread awareness in the Mexican market in relevance with their products. They have adopted the strategy of promotion and advertisement such as sponsorship, digital media platforms as well as the print media platforms (Sekaran Bougie, 2016). Development or adaptation of adequate competitive strategies is very necessary for Amcor Limited in order to develop a unique image in the competitive business environment. Visy Industries, Pact Group, and Sealed Air Australia are the primary competitors of the Amcor Limited through which consumers needs to perform various steps while choosing the adequate product for them (Demangeot, Broderick Craig, 2015). Amcor Limited uses the environmentally friendly material to produce their products, this becomes the major reason through which Amcor Limited's products become the bit costly in relevance to its competitor products. Despite being costly, Amcor Limiteds packaging provides the assurance of safety of products. SMART objectives of Amcor Limited The first aspect of SMART objective is the specific and significant goals, these goals help the organization to attain an effective position in the global market. Amcor Limiteds specific goals are to deliver adequate packaging to the manufacturers of Mexico in order to expand their business in the global market (Atzori, Iera Morabito, 2014). Amcor Limited has gained an adequate position in Australia and with this effect; they have decided to move towards the global market. Hence, their products are marked as global standard. The products provided by Amcor Limited have the enough capability to attain the effective market image in the global market and as per the analysis was done on the purchasing power of customers, and the market size of the Mexico helps the Amcor to attain the adequate position in global market (Eteokleous, Leonidou Katsikeas, 2016). The packaging provided by Amcor Limited is highly qualitative for preserving various types of products. Despite being the harsh market of Mexico in terms of rules and regulations, Amcor Limited has assumed the high demand for their products and this is due to the attainability of its products. The goals developed by the Amcor Limited are capable enough to create a distinctive image in the Mexican market. The major source through which the goals developed could be turned into the reality is the timely production of the packaging as well as the timely delivery of those products to the Mexican industries to provide them the great experience. This will develop the trust on the Amcor Limited by Mexican industrialists. Alternative Market entry strategy There are a number of market entry options available in the business. Market entry options for entering into a domestic market and in international market differ from each other. As per this scenario, Amcor Limited is traveling to Mexico with the view to expand its business and to increase its profitability. For entering the Mexican market, they need to evaluate all the available market entry options such as joint venture, partnership, direct exporting, etc. Following is the description of relevance with the market entry options available in the Mexican market for Amcor Limited: Alternative target market selection, positioning Direct Exporting: This is the source which is invented by the organization only through its own sources. Own sources may be contacts with friends, relatives, etc. in order to deal in the particular country through their help. In the scenario of Amcor Limited, they do not have any contacts in Mexico; hence this option will not be preferred one for them (Ang, Benischke Doh, 2015). Licensing: This is included in the foreign entry modes and this is a preferable option for most of the organization. Under this, an agreement is signed by the host country as well as the organization who is interested in performing the business activities in the particular country. The organization gets the right to secure their intangible assets such as patents, trademarks, techniques, etc. This is the official entry mode while expanding the business in the global market. The license is provided for a certain period of time and for executing their operations after that period, renewal of the license is must in order to avoid the glitch in the operations of the organization (Bond Saggi, 2014). Franchising: This type of business is quite famous in the food chain industry. Under this type of business, parent company (franchiser) provides their trademarks to the interested organization, who wants to operate their activities (franchisees) in return for royalties, or fees. For instance, Mc Donalds is an American fast food chain and they have various outlets across the globe and all they are operated on the basis of goodwill. This type of business is beneficial to the firm which has goodwill in the domestic as well as international market. The fees paid by the franchisees to the franchisor are for the goodwill only (Burton Cross, 2015). Amongst the available foreign entry modes, Amcor Limited should choose the licensing as their preferred option for entering into Mexican market for the purpose of trading. Apart from this, franchising type of business requires goodwill and brand image in the international market, whereas they have their goodwill in the Australia only. Hence, the best option for Amcor Limited will be the licensing and through this, they will get the rights to secure their trademarks, patents, etc. and along with these options, organization will get the certain period in order to set up their goodwill and to perform their business functions in order to achieve adequate goals and the objectives. Market Selection Process Under this method, an adequate market will be selected in order to conceive the factors of the organization. Mexico is selected amongst the number of countries available for the business expansion across the globe (Andersson Xiao, 2016). Alternative entry modes The most suitable market entry for the Amcor Limited in Mexico will be licensing whereas there are other market entry modes are also available such as direct exporting, franchising, joint venture, partnership, indirect exports, etc. Amongst them, the next suitable entry mode will be the joint venture and the partnership type of business. Whereas joint venture type of business will be operated for a certain period of time or say for a contract only while, partnership type of business could be operated till the time all the partners show their consent. Hence, Amcor Limited could choose the partnership type of business with the local organization of the Mexican market. This will help the Amcor to gain the goodwill on behalf of the local organization and apart from this, less investment, sharing of losses and risks will also be beard by both the partners. While conducting business activities through the sole proprietorship, all the losses, risks, etc. will be beard by single owner only (Johanson Mattsson, 2015). Positioning Strategy Positioning strategies are used to establish the product's or business' image in the new market conditions. As per the current scenario, Amcor Limited which provides unique packaging facilities to almost all types of industries has decided to expand their business in Mexico. Amongst the seven approaches of positioning strategies, products characteristics will be the most beneficial for Amcor Limited. Under this approach, products characteristics will be promoted in the new market conditions to establish their brand value. Along with the product characteristics, Amcor Limited could also choose the price-quality approach for the developing unique identity in the Mexican market (Solomon, 2014). Alternative Generic Strategies Generic strategies were invented by Michael Porter in 1985 and there are the three approaches for these strategies through which organization could gain some competitive advantage while setting up the business in international market. These approaches could be fitted in all types of industries irrelevant with the size of the business. Cost Leadership, Focus, and the Differentiation are the three approaches of generic strategies and the focus approach has been segregated in two parts i.e. cost focus as well as differentiation focus (Greckhamer Gur, 2015). Cost Leadership Strategy: Under this technique, an organization has two options i.e. increasing sales through reducing costs and increasing profits by reducing the selling price of the products and work at the reasonable rate of profit. These both options will provide the competitive advantage to the organization. Amcor Limited could adopt one of the strategies to compete with its competitors in the new market conditions as well as to build the market image. Adaptation of these approaches will help the organization to become the leader of the cost because with the changes in the price of the products done by one organization would influence the competitors to adopt the same change ( Banker, Mashruwala Tripathy, 2014). Differentiation Strategy: This approach requires amendments in the products or the services provided by the organization in order to make it different or unique from its competitors. As per the scenario of Amcor Limited, they can adopt this strategy in their workplace with the view to update or make the product unique from its competitors available in Mexico. This will help them to gain the competitive advantage as well as it will also help the organization to build the trust amongst the consumers towards the organization (Zehir, Can Karaboga, 2015). Focus Strategy: As per this strategy, an organization needs to concentrate on the specialty of the product, concentrating on the unique needs of the customers are also included in the focus strategy. As per the Michael Porter (1985), the adaptation of the focus strategy will help the manufacturer to build the customer oriented products which could fulfill their demands, as well as adequate satisfaction, could be obtained from the utilization of that product. In other words, the Amcor Limited needs to raise the packaging standard in order to fulfill the demands of the customers as well as the products provided to them needs to be valuable as per the price of the product (Angeloska-Dichovska Mirchevska, 2017). Market entry mode As per the scenario, it has been recommended that Amcor Limited needs to choose the licensing type of entry mode in terms of moving towards the international market. As per the market research analysis, Mexico has been finalized in terms of the expansion of their business hence; adaptation of the appropriate techniques is necessary in order to gain the adequate place in the Mexican market. Target Market The country has been chosen in order to expand the Amcor Limiteds business in international market. The major reason for choosing the market of Mexico is the attractive purchasing power of the consumers and the rapid increase in the GDP of Mexico enhance the chances for expanding the business for Amcor Limited. The main concern of Amcor Limited will be the manufacturing industries as they will be the major utilization of packaging offered by the Amcor Limited. Hence, it is recommended that Amcor Limited needs to consider towards the manufacturing industries. Positioning Strategy As per the scenario of Amcor Limited, they are seeking for the expansion of the business in the international market and for the same; it has been recommended to Amcor Limited that amongst the seven approaches of positioning strategy, utilising products characteristics and the pricing strategy will be most successful for them to establish the market position in the Mexico. Generic Strategy As per the situation of Amcor Limited and the generic strategies provided by Michael Porter (1985), the adaptation of the generic strategy will be done on the basis of SWOT analysis because it has three approaches i.e. focus, differentiation and the cost leadership. Till the time, an organization would not be able to gain the adequate knowledge in relevance with the strengths, weaknesses, opportunities and the threats of the organization, adaptation of the appropriate strategy for making the unique identity of the organization will be the bit difficult task. Conclusion From the above analysis, it has been concluded that for the expansion in the international market, adequate marketing plan needs to be developed. This part is the addition to the assessment one and under this report, appropriate market entry option is evaluated in order to enter into the Mexican for the business expansion in the international market. 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