ually producing the mulchers currently manufactured by Richardson in Australia via a licensing agreement. Richardson can benefit from this opportunity with a substantial increase to their profit margin. Exportation costs will be high for importing Richardson’s product from the United States, where it is currently being manufactured, to Australia, it may take several years to realize this gain. Currently, Richardson has enough investment in total assets ($332,180.80 as of 2000) and relatively low obligations/total liabilities ($4,180.80 as of 2000) to maintain stability and survival over the period between market entrance in Australia and growth, where profits will be optimistically actualized.2. If Richardson Manufacturing Company were to go enter the Australian market, alternative strategies should be considered. One of these strategies includes communicating with Australia’s current mulch manufacturer, whose product has proven to be less efficient in comparison to Richardson’s. It may be possible for Richardson to establish a joint venture or a contract-manufacturing license with this company. Richardson would benefit from the company’s knowledge and experience within the Australian market for decisions for advertising and the development of various distribution channels. In addition to this strategy, Richardson could also create foreign-direct investments if they are confident enough with the Australian market to be willing to undertake the risk of losing their investment or even generate a loss beyond their investment. In this situation, Richardson would experience a large amount of control of the market in Australia. They even consider developing product-adaptation to other parts of the world, including South America or other locations within Australia. Their previous interest in South America may be worth investigating and possibly incorporating into the exportation to Australia if Richardson chooses not to...
