engage in direct foreign-investment. Regardless of their decision, it will be necessary and prove to be beneficial to forgo extensive research within both markets and possibly all other feasible market opportunities. This research will, without a doubt, cost Richardson a large amount of money and time, which without proper planning and preparation, will eat into their profit margin and threaten the stability of the company. It is apparent that Richardson will not likely enter the Australian market immediately, and should prepare/analyze a detailed rollout plan to be used for successful implementation.3. The strategy that I would recommend to Richardson is to thoroughly investigate the Australian market, and if feasible, take advantage of the opportunity to increase profits and international status, recognition, and growth. If Richardson were to enter the international market solo, they would be required to expend a greater amount of time and money towards researching the Australian target market (and possibly other feasible target markets), marketing/entrance strategies, and developing various distribution channels. If Napier Bros. agrees to adopt a licensing agreement with Richardson importing Richardson’s product while assuming financial responsibilities for shipping and manufacturing costs, in addition to providing Richardson with a favorable amount of profit, Richardson should follow this strategy if capacity allows. By doing so, the demand for manufacturing Richardson’s product will be more continuous and stable throughout the year, since the Australian seasons are counter-cyclical to that of the United States. However, before implementing this strategy, the forecasted profits from this decision should be compared to those of a direct foreign-investment strategy. Because of the decline in total assets, Richardson may choose to put off direct foreign-investment until they have ensured the demand and profitability propou...
