ANZ expansion
Case1. ANZ expansion
Ansoff product –market matrix classification:
Big 4 banks believe that it has limited opportunities to develop further within Australia due to the Australian Government legislative policy, consequently, they choose to take its existing products and services into other countries to grow..
Expanding into new geographic mkts:
An organization is also likely to have strategic reasons for seeking out new mkt which including
Maket-related factors : the size and growth of the local mkt is limited.
Efficiency –seeking factors – labour and other factors of production can be sourced at lower cost
Quality of the business environment –govent are offering incentive for locating in specific area or
The political and legal landscape is more stable.
Strategic objective of Mkt entry:
Successful entering and operating in a foreign mket require the right decision with regard to the following:
Selection of mkt---identifying the mkt to enter that is the most promising
Entry objective—why entry ,what is hope to achieve:
Timing is crucial and having first –mover advantage may be attractive (ANZ). However, it is less risky to follow other company whn the pitfall are well known (Westpac).
Scare of entry—what level of investment to make to max opportunity and min risk
Model of entry- what operation is most feasible and will provide the best platform for lasting success
The model of entry most employed are: Licensing
Franchising
Joint ventures (Eg CBA in china ); detail pp4.48 Strategic alliances Foreign direct investment in wholly foreign –owned enterprise: Open branch in China.
Please see: Q 4.6 advantage and disadvantage of modes into new Market
Successful development of New mkwt depends on several common factors by Dunning (1981):
1. the location – specific advantage of vrseas mkt must provide the requisite motivation for company to invest there : Big 4 banks target biggest cities in china: Hanghai. Beijing etc.
2. the
Ansoff product –market matrix classification:
Big 4 banks believe that it has limited opportunities to develop further within Australia due to the Australian Government legislative policy, consequently, they choose to take its existing products and services into other countries to grow..
Expanding into new geographic mkts:
An organization is also likely to have strategic reasons for seeking out new mkt which including
Maket-related factors : the size and growth of the local mkt is limited.
Efficiency –seeking factors – labour and other factors of production can be sourced at lower cost
Quality of the business environment –govent are offering incentive for locating in specific area or
The political and legal landscape is more stable.
Strategic objective of Mkt entry:
Successful entering and operating in a foreign mket require the right decision with regard to the following:
Selection of mkt---identifying the mkt to enter that is the most promising
Entry objective—why entry ,what is hope to achieve:
Timing is crucial and having first –mover advantage may be attractive (ANZ). However, it is less risky to follow other company whn the pitfall are well known (Westpac).
Scare of entry—what level of investment to make to max opportunity and min risk
Model of entry- what operation is most feasible and will provide the best platform for lasting success
The model of entry most employed are: Licensing
Franchising
Joint ventures (Eg CBA in china ); detail pp4.48 Strategic alliances Foreign direct investment in wholly foreign –owned enterprise: Open branch in China.
Please see: Q 4.6 advantage and disadvantage of modes into new Market
Successful development of New mkwt depends on several common factors by Dunning (1981):
1. the location – specific advantage of vrseas mkt must provide the requisite motivation for company to invest there : Big 4 banks target biggest cities in china: Hanghai. Beijing etc.
2. the