Strategic analysis for Flocast Australia Limited to enter the Vietnamese market

Many companies today must think about the internationalization for their business if they are to be successful and competitive. There are various ways to enter international markets and this research is about formulating strategies for an Australian company to enter the Vietnamese market. Flocast Limited is an Australian company, which has manufactured and exported bronze and iron since 1962. Vietnam has a predictable political environment, a high steady rate of economic growth. The Vietnamese government has relatively effective macro-economic policies. However, the country remains a difficult market and a complex business operation. In order to formulate strategies for Flocast to enter the Vietnamese market, the internal environment of the company and external environment in Vietnam were analyzed using standard analytical frameworks such as PAST and PEST analyses in order to disclose Flocast’s strengths and weaknesses and investigate Vietnam’s potential as a market. Appropriate strategies were formulated by using TOWS and Grand Strategy matrixes. The research utilizes both primary and secondary data to help in these environmental assessments. Primary research involved interviews with Flocast’s managing director and another director as well as staff surveys. Secondary data collected from various sources such as industry reports, country reports, working papers and other publications. The study found that Flocast currently has strong competitive advantage in Australia and in the markets where it participates. It has no major weaknesses that would prevent it expanding into Vietnam and the current product range is suitable. There is not sufficient finance for Flocast, however, to expand into Europe, where a new product ranges would be needed. Three appropriate strategies were formulated for Flocast as well as three implementation plans and one 'supportive strategy' to enable the company to be successful. The recommended strategy for Flocast is to export existing products, supported by a strategy of utilizing Flocast’s strong adaptability. It is believed that these strategies will not only exploit opportunities that are presented to Flocast but also help to minimize the company’s minors internal weaknesses and potential external threats.