Key Strategy Elements of German Bionic’s Entry into Australia
Assume that German Bionic has decided to go ahead with its expansion into Australia. The second assignment/report asks you to analyse the key elements of German Bionic’s host country strategy. The questions to be addressed are:
- Introduction (150)
- Section 1: What entry mode should German Bionic adopt and why? (1000)
- Early stage: Contractual agreements
- Later stage: WOS
- Section 2: What value chain activities should occur in Australia? What should German Bionic’s offering(s) be in Australia? And how might the company’s Australian activities and offering(s) differ from those in other host countries? (1000)
- Product offerings
- Value chain activities
- Primary activities
- Support activities
- Section 3: How would these strategy choices (your answers to points 1, and 2) address the risks /challenges you identified in your first report? (700)
- Conclusion (150)
Requirements:
- You might also be issuing dynamic recommendations (e.g. with Assignment 2 you may be recommending the firm initially adopt entry mode X before progressing to entry mode Y within a couple of years, provided certain milestones are met). In short, in your conclusions/recommendations, you can be as nuanced as warranted by your analysis.
Given the consulting-style challenge of both reports/assignments, specific recommendations (for the benefit of German Bionic’s senior management) are desirable. However, do not take your recommendations to a level of specificity that isn’t warranted by the data you identified and your analysis thereof. For instance, let’s assume in your Assignment 2 that you conclude that a strategic alliance with a local partner is the preferred entry mode. If you can credibly support the specific recommendation that German Bionic should team up with local Firm X then by all means make that argument. But if the available data and your analysis do not warrant such specific recommendations then your suggestions may be confined to, a recommendation to identify a local partner with capabilities in A & B.
Global Strategy – Assignment 2
Author’s Name
The Institutional Affiliation
Course Number and Name
Instructor Name
Assignment Due Date
Key Challenges and Risks
German Bionics proposed approach to entering the Australian market includes R&D contractual agreements and a Wholly-owned Subsidiary (WOS) model. The primary challenges and risks assessed include escalating competition from national and international rivals, encouraged by Australia's alluring ICT infrastructure and progressive tax incentives. Regulatory challenges are significant; potential geopolitical shifts could present unforeseen trade and regulatory challenges. A user-centric design ethos is required to ensure market acceptance due to consumer preferences, which also presents a challenge. Furthermore, a strong distribution strategy is required due to logistical challenges brought on by regional infrastructure differences. For German Bionic to successfully enter and succeed in this market, it is necessary to develop a comprehensive, proactive, and adaptable strategy rooted in the Australian markets competitive, regulatory, and infrastructure fabric.
Intensifying Rivalry
The first few months are crucial for establishing a foothold through contractual agreements when entering a new market, especially one proliferating because of innovations like ReWalk Robotics' exoskeleton technology. Historically, strategic alliances provided a foothold to navigate the competitive landscape by capitalizing on preexisting connections and the local acumen of partners (Daylan, 2023). The market dominance of German Bionic is ensured by this transition, which also represents a proactive response to the threats from the competition. In addition, encouraging regional R&D partnerships is essential for maintaining a climate of constant innovation and keeping German Bionic at the cutting edge