Introduction
Nowadays, the idea of spreading international business and international trade, in particular, seems to be something ordinary and even obligatory for many companies around the whole world. It is not enough for the company to be locally famous. Many companies strive to gain popularity on a global level. Therefore, the concept of international retailing has already grown considerably (Alexander & Doherty, 2009). Australia has already demonstrated the successful results of cooperating with such countries like Great Britain, the USA, New Zealand, Italy, Germany, etc. (Nations Encyclopedia 2015).
The main exports of the country are cotton, machinery, coal, gold, iron, meat, etc. Though the country is a powerful source of different natural minerals, not many business relations with other countries are based on the pearl industry. Pearling in Australia began during the times of the Aborigines. The long history of this industry proves how beneficial pearling can be for the country. Paspaley is one of the brightest examples of how pearling operations can enrich society.
Company’s Overview
Paspaley is the country with a long history and a famous brand name in Australia. Even if people are not able to get access to the products offered by Paspaley, they have certainly heard something about the company. The social, economic, and political conditions influenced the promotion of the pearl industry considerably. Since it was officially introduced in Australia in the middle of the 1800s (Szczecinski 2011) and survived a number of bans, pearling remains to be a crucial part of the business life of the country. Paspaley is one of the most successful Australian retail chains that support the promotion of pearling among people. No person in the world, who has seen a true pearl at least once, can forget its simplicity and beauty. This is why it is always favorable to be in the pearling industry and offer a variety of pearls to people keeping in mind their uniqueness and human intentions to possess this kind of beauty.
Paspaley is the company with a strong philosophy and the desire to protect oceans and keep them pristine and natural because the environment where the pearls can be found has to be appropriate. It has been proved that all techniques used by Paspaley for the development of the products are environmentally friendly (Paspaley 2015a). The company has already shown how to influence it can be on the local market. Paspaley takes the leading positions in the Australian retail jewelry market. It is high time to change the location and try to develop relations with the BRIC countries at the beginning.
BRIC’s Evaluation
Brazil, Russia, India, and China are the countries that demonstrate the ability to be economically developed in the fastest possible ways using their political systems in order to support the idea of global capitalism and encourage many other countries to start business affairs (Trost 2013). Cooperation with BRIC is one of the possible options to enter the international marketplace and try the company’s opportunities on a global level. BRIC is the union that supports and, at the same time, creates a number of challenges to check the validity and possibilities of an organization. These four developed countries have a chance to improve the financial and economic conditions of developing countries in case the climate change is dramatic indeed (Tian & Whalley 2010).
Though Australia is not the country under an economic or financial threat, it has to develop relations with the countries mentioned above. This is why the ways of how Paspaley, as one of the leading jewelry retailing companies, have to be identified and discussed in regards to the risks and opportunities in BRIC countries and the most appropriate marketing strategies.
Risk and Opportunities of Paspaley in Different Countries
There are four main types of risks of international business: cross-cultural, commercial, country, and financial. Paspaley may face some of them while entering the international marketplace and starting the development of business relations with some of the BRIC countries. Each country introduces its own risk and opportunities for the company, and it is very important to analyze all possible opportunities and risks to identify the company’s abilities and the countries’ potential in regards to the chosen Australian retail chain. Economic prosperity is an important factor of economic growth as it depends on the level of human capital and the financial opportunities of Australia as the country to cooperate with (Foong & Lim 2015). Therefore, financial and even political risks are more evident for Paspaley to face.
Brazil
Business relations between Paspaley and Brazil may be characterized by the following risks. The cross-cultural type is all about the possible cultural differences like various languages and lifestyles, attitudes to religion and faith in general (the Brazilians seem to be more religiously involved than the Australians). It is possible for the Paspaley Company to underline the respect to the Brazilian traditions and explain their sincere intentions in regard to the possible cooperation.
The political relations between Brazil and Australia are successful indeed because of these two countries’ trade policies and the possibility to regulate their trade relations by means of the World Trade Organization’s principles (Australian Government 2015a). Political risks, as well as financial risks, are minimized for the company under analysis due to the reforms offered by the financial institutions (the World Bank or IMF).
The only evident risks are connected with the commercial sphere because Paspaley may introduce a poor marketing strategy, spend much time entering the Brazilian market, face some unpredictable operational problems, or even choose a weak partner because of poor searching skills.
At the same time, a number of opportunities for Paspaley may be identified on the basis of the Australian-Brazilian relations. For example, it is possible to gain powerful transportation access and benefit from the water resources available in Brazil. Paspaley may get a chance to use Brazilian renewable energy. The only requirement is to hire a professional team of international managers, predict, and overcome the challenges of cooperation.
Russia
The cooperation with the Russian Federation may be rather beneficial because of several reasons: (1) it is the largest country in the world with the largest population rates that presuppose the possibility to find more potential customers; (2) Russia is the country with rich natural resources that can be used by Paspaley, and (3) Australia-Russia business relations have been already proved by the time. These opportunities seem to be a good chance for Paspaley to introduce its products to the rich people of the Russian Federation.
Though poverty is a problem of this country, and not all citizens can allow themselves to buy expensive stuff, some groups of people demonstrate rather good intentions in regards to the possibilities to buy pearls. This is based on the cultural peculiarities of the country. Cross-cultural and commercial risks are not too high for the company. However, financial and political risks are too high because of the current world situation and the conflict with Ukraine (Australian Government 2015d). Australia is one of the countries that ban cooperation with Russia, and Australian retailers do not have access to Russian opportunities nowadays.
India
Though India is not the largest Australian partner on a global level, Paspaley has all chances to enter its marketplace and win from cooperation with the country. The cultural risks, such as diverse languages and religions, various attitudes to family and work obligations, may turn into the opportunities in a short period of time (Australian Government 2015c).
As soon as Paspaley introduces its pearl products as a possibility to improve family relations and consider the cultural aspects of jewelry, it gets good access to the possible potential customers. Though foreign taxation and inflation may become the risks for Paspaley to be overcome, the poor level of competitiveness and entry demands can facilitate the beginning of these business relations.
China
The business relations between China and Australia are probably the longest and the deepest. On the one hand, the presence of certain risk is evident: different cultures, histories, and political systems create a number of challenges for Paspaley. To continue business affairs, the countries spend much time on solving the problems and elaborating on some alternatives. This is why in spite of a low level of commercial risks, the expansion of Paspaley’s business and entrance to the global marketplace for the first time can be challenged by definite country, cross-cultural, and political risks.
On the other hand, the opportunity to get access to a number of nations because of the already developed contacts in China and the technological and informative innovations inherent to China attracts a lot (Australian Government 2015b). Paspaley may offer to amaze the Chinese with beauty to the natural world and ask for some technological progress in return.
Best Option for Paspaley
Taking into consideration the analysis of possible risks and opportunities for Paspaley, it is possible to suggest Brazil as the most attractive country to cooperate with. The relations between Brazil and Australia are successful, indeed. In addition, Brazil’s economy is still considered to be one of the most promising in the world. The presence of commercial risks may be improved and changed by properly chosen marketing steps and ideas. Paspaley is a retail company with a rich history and a number of traditions. The legend of how Nicholas Paspaley crossed the world and discovered unbelievable natural resources to begin his business may attract many representatives of the Brazilian trade market (Paspaley 2015b).
The Brazilians may be fascinated by the history of the company as well as with the products offered. Pearls are not an ordinary type of goods that can be found everywhere and cultivated properly. Paspaley offers a number of interesting technological approaches that are not harmful to the environment and the ocean. Brazil is famous due to its unbelievable water resources and rich places for tourists. It seems to be rather interesting for many Brazilian companies to get access to the Paspaley’s pearls and offer them to the native citizens and tourists. Though Brazil is the country that may cultivate its own pearls and develop the pearl industry around the whole world, not many attempts have been identified lately. This is why Paspaley may offer a number of powerful grounds and opportunities for the country and prove that the pearl industry is worth recognition and costs that may be spent on its promotion.
Market Entry Strategy
In spite of the fact that many companies are eager to join the Brazilian market, the entry to this country does not actually require much research and thoughtful planning. The general decisions that have to be made are all about the possible financial and strategic impact of the risks’ implementation and the possible influence of competitors (this factor does not depend on Brazil directly). In addition, the evaluation of Brazil’s economic, political, and environmental factors helps to define the most successful market entry strategy.
Economic evaluation: GDP is about $27 billion, the ability to settle any kind of private and public debt, a considerable decrease of poverty rates, and a considerable improvement of mining, manufacturing, and public service areas.
Environmental evaluation: a huge amount of natural resources, the availability to the local resources, successful human resources and abilities to “melt” different countries, and quality transportation means.
Political and social evaluation: a number of properly developed relations with different countries and the future FIFA World Cup promote a massive development of investments in different infrastructures.
The Australian pearl industry may become an attractive opportunity for Brazil to share the richness of the ocean. The following entry market moves may be taken:
- Direct import: Paspaley uses its own marketplace to distribute the goods in Brazil;
- Partnership: Paspaley chooses several market players in two regions of Brazil (to underline the uniqueness of the services and goods offered, and Rio has to be in the list anyway);
- Foreign investments have to be directed to avoid the development of any possible financial risks;
- Distant and online services have to be offered: the customers should realize their possibilities and choices.
The differences between the host and home countries are based on culture, religion, and social attitude to jewelry as a means to demonstrate social status, the loyalty to the natural resources, or an excellent taste in accessories.
Marketing Strategies in the Host Country
Any marketing strategy is a combination of different activities with the help of which a company becomes competitive and successful. Among the existing diversity of strategies, it is necessary to choose two or three that are more convenient for Paspaley in Brazil.
The first marketing strategy is a possibility of cooperation with different influencers. Paspaley may gain the attention of a new audience using the possibilities of the already approved companies. It is possible to cooperate with one of the football promoting companies to combine the Brazilians’ passion for football and the beauty of pearls that underline the uniqueness of choice.
The second strategy is the explanation of how pearls and associated goods and services can solve human problems. It is possible to touch upon work and family: if a husband wants to please his wife and demonstrates his attitude, he can buy a pearl and present it in the most romantic way (on a football field, for example). Respect for a leader can also be demonstrated by means of pearls, etc.
The final strategy available to Paspaley in Brazil is the implementation of fun in the distributing process. Though pearls are always associated with serious intentions and order, Paspaley may create a game for the potential customers to participate in. It is easy to organize a life quiz within the frames of which the Brazilians can learn more about Paspaley and its history, spend some money playing, and get access to the desirable pearl. The main goal of such a strategy is to introduce good and services of Paspaley and make them more in the “Brazilian” style.
Conclusion
In general, Paspaley has all the chances to enter the global marketplace within a short period of time using the uniqueness of its goods and opportunities. Among the four countries mentioned in the report (Russia, China, Brazil, and India), the Brazilian opportunities seem to be the most interesting. Of course, Paspaley is under a threat of certain risks while entering the host market. Still, the company has all the chances to analyze the country’s economic, political, etc. factors and choose the less risky ways. Though Paspaley is the company that used to work in Australia only, it is never too late to try something new and get a chance to succeed on a global level. The pearl industry is not frequent. Many people cannot get access to these natural riches; this is why Paspaley may become a guide that can open the world of pearls to people around the whole globe. And Brazil can become the country, to begin with, and spend several efforts.
References
Alexander, N & Doherty, AM 2009, International retailing, Oxford University Press, Oxford. Web.
Australian Government 2015a, Brazil country brief. Web.
Australian Government 2015b, China country brief. Web.
Australian Government 2015c, India country brief. Web.
Australian Government 2015d, Russia country brief. Web.
Foong, A & Lim, T 2015, ‘Asia connect: Understanding people risks in BRIC’, AON. Web.
Nations Encyclopedia 2015, Australia – International trade. Web.
Paspaley 2015a, Living in a harmony with nature, Web.
Paspaley 2015b, The legend, Web.
Szszecinski, S 2011, Australian history series: Australia as a nation, Ready-Ed Publications, Sydney. Web.
Tian, H & Whalley, J 2010, ‘Trade sanctions, financial transfers and BRIC participation in global climate change negotiations’, Journal of Policy Modeling, vol. 32, no. 1, pp. 47-63. Web.
Trost, E 2013, Social media marketing in BRIC countries, LIT Verlag Munster, Berlin. Web.