Case Study Summary: The Ultimate Goal For Australian Char

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PART A
Conclusion 1: Population
The ultimate goal for Australian Char is to be able to invest in the most lucrative market of the two available. One of the strongest indicator for an investor to consider is the population size, since the business would need to continue growing even in the wake of new competition. Chile has a very small population of only 17.8 million. In contrast, Mexico has well over six and a half times the population of Chile at 120 million. Mexico would be the preferred investment destination based on its large population size that provides an opportunity for the company to grow.
Conclusion 2: GDP per capital PPP
The GDP per capita PPP is selected as an important business indicator because it, “converts GDP to international …show more content…

A high inflation rate would influence the operating cost on a year-over-year basis. Similarly, a high inflation rate would mean that people are able to buy less for an equivalent dollar, which is bad for a business enterprise (Viorica, Jemna, Pintilescu, & Asandului, 2014). A lower inflation rate, on the other hand, would be a welcome outcome because the operating cost will be lower. Furthermore, consumers will have more money to spend buying additional products. It is apparent from the case study that Chile has a high inflation rate of 4.4% while Mexico has 2.8%. Thus, Mexico is a better investment destination of the two …show more content…

First, the company is able to capture the demand in the new market. Australian Char will be able to capture the barbeque market thereby gaining a competitive edge over new entrants into that market. Secondly, the firm will be able to build a strong sales volume by taking advantage of the experience curve to break even in the shortest time possible. The company can reduce the cost of operations that include expensive advertisement costs to increase sales. Thirdly, the company has the advantage of being able to build a strong brand name. Many customers will likely associate the products and services of Australian Char barbeque to the company (Hill, Cronk, & Wickramasekera, 2014). Any new market entrant seeking to gain a competitive edge over the first mover like Australian Char, will experience sharp resistance from

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