National Australian Bank International Expansion Report

As the society continues to become globalized, banking industries are also trying to draw their attention to how to expand markets and increase revenues. Although the reason for global expansion varies across companies, most firms pursue internalization due to the need to grow their business and enjoy the diverse opportunities available in the new bazaars. However, most companies attempt to use different entry mode, such as acquisitions and partnership among others to enter the new markets. Despite this strategic approaches, most of the marketers fail to analyze the attractiveness of the markets or factors that can enable them to succeed in a particular environment. As a result, this paper attempts to assess the attractiveness of Brazil, France, and Korea market. Assessment of Market Attractiveness of Brazil, Korea, and France The banking industry is becoming highly competitive in the contemporary foreign markets.

However, the expansion of banking services into the global world may pose challenges due to the different factors affecting business overseas. Research studies show that global markets differ in terms of market attractiveness due to diverse economic, cultural, political, social, legal issues, growth rates, receptiveness, and other factors (Cavusgil, Tunga and Sengun 607). Due to these factors, companies expanding into the global market face the challenges of evaluating foreign marketplaces. However, understanding these factors can help marketers using global or internalization strategy to achieve success in the distant markets. Nonetheless, when talking about Korea, most study concentrates on South Korea, a market economy that is increasing at an alarming rate in the global world. It is one of the most digital-connected with advanced technologies and a high nominal GDP value of about 2 trillion as per the year 2016 (Economy Watch para 4).

The South Korea market structure model of tax incentives and financing system encourages the international competitiveness of firms. Besides, moderate inflation, export surplus, and the low unemployment rate, as well as fair income distribution make it a perfect place for business expansion. France is an attractive and a free market economy, open to the global business world. However, companies entering this market should have to rethink the effective business models that would enable them to grow their profit margins (Doole and Robin 124). The reason for rethinking the strategy is because the Brazilian consumers are extremely diverse and their consumption behaviors are changing. South Korea also is also a developed market that presents the greater opportunity for companies trying to expand their business in this region.

The research statistic indicates that overall size of the retail market is estimated to be over $5. 91 billion by the end of the year 2018 (Central Intelligence Agency 2018). There is a growing need for the productive and skilled workforces. Presently, there is the shortage of skilled workforces in some branches. Besides, labor cost is also higher in Brazil than other emerging economies and this will impact effective performance and overall strategic partnership of the firms. Cultural Aspects Impacting Entry of Each Market A big influence on internal organization culture is the external setting. Cultures can vary widely across the markets. Juniors should also wait for the seniors to offer their hand for greeting first. Body language, such as a slight bow is a sign of respect and receiving anything with two hands indicates politeness.

Lastly, France is another state with unique cultures. The French people prefer formality and they address some using their surname then followed by the first name. An individual should make moderate eye contact. S after China. However, despite the increase in value, Brazil became the seventh destination for foreign direct investment (FDI) in 2016 (Export. gov. para. The economy has been affected by numerous corruption scandals involving government official and private firms; hence contributing to sanctions and legal issues. Although the country is not competitive just like the Korea and Brazil, it benefits from the rather positive image in terms of attractiveness. France is being the largest economy in the European market with the big domestic market; thus locals enjoy high spending power.

Analysis of Future Developments Both France, Brazil, and Korea have made considerable efforts in implementing strategic policies and making future investment plans. For example, the French government is putting in place the great investment plan of about 5 years. The government is planning to put aside worth €57 billion for supporting structural reforms to help meet the future challenges of France (France Diplomatie para. The government has made efforts of implementing the financial investment and capital market regulations that facilitate specialization among these companies and lower entry barriers in the financial industry. However, this is likely to accelerate completion among banking industries and creating the tendency towards consolidation and convergence among the key players in the financial firms (Economy Watch para. Besides this, Korea is now focusing on creating fertile breeding grounds for an innovative society.

It is also planning to create a transformative mindset through the education program and create a culture of innovation. Recommendations From the above market analysis, it is recommendable for NAB to select Brazilian market because this economy is shifting to a superpower nation. Despite the product, a brand is much more powerful because it not only encompasses the corporate values but also incorporates their goals. The brand will exist in the mind of customers when it is established well in the marketplace. In the current competitive environment where products/services look homogenous, strong and unique brand is the only way to differentiate a firm from its rivals (Daft 172). Brazil market is becoming highly competitive; thus, strong brand is the key to realizing success in this foreign market.

Brazil is a fast-growing economy and it ranked as the 10th largest export market for commodities importing over the U. Brazilian people have cultural values that are different from Australians. Therefore, the style of management by the power holders may be authoritarian that is the high power-distance. Conversely, the low-power distance cultures may value competence over superiority and the management style may be highly consultative (De Toni 123). In this case, the communication process may be formal and status may be more or less attainable. Culture can at the time become the source of conflict. Works Cited Business France. France Attractiveness Scoreboard, 2017. https://www. businessfrance. fr/Media/Default/PROCOM/M%C3%A9diath%C3%A8que/BF_Tableau_de_bord_2017_UK. Economy-overview.