FOCUSED PARTNRSHIP Essay Example
This paper describes Aptamil Milk Power an Australian Company and its entry to China. Aptamil offers alternative breast milk products for those mothers who choose not to breast feed for various reasons. Focused partnership offers practical service delivery which raises customer satisfaction and boosts the growth of the business. through partnership, various problems which affects businesses are solved more quickly than when a company is operating solely (Seufert, S., & Meier, C. 2013). Aptamil partnership with China is the most appropriate because in the Asia-Pacific region, there is less than 10% of direct or export sales. China also has the largest population globally who do not breast-feed and this will offer good market for the Aptamil products.
Focused partnership requires a strategic framework in terms of the company’s ambition, products innovation and designing, services and well formulated objectives among many other things which ensures the success of the partnership (Kapiki, S. T., Fu, J., & Mu, L. 2015). The reason why a strategic framework is needed is because the entry into Chinese market has some challenges especially to those companies which have limited experience to foreign markets. Some of the challenges which are experienced when entering into Chinese market include: identification and location of the market, hiring of the staff, government policies etc. therefore, Aptamil company should do a good research on the market in order to locate the company in the best place, hire the best staff and to ensure that business regulation policies are in place.
Aptamil strategic framework started with the ambition for producing baby feeding products which are nutritious because the number of women who breastfeed their babies worldwide is becoming very low. This began with a scientific research over 50 years ago into early nutrition and maternal health which was carried out by paediatricians in the Company. China is the potential market because the country is among those who register the lowest rates of breast-feeding worldwide. Research shows that only 28% of the babies are breast-fed in China. For this reason, the government and the health workers are trying to obtain alternative breast milk which is commercially produced and Aptamil Company is one of the potential suppliers because there is an opportunity (Lin, Y. 2015). .
The other aspect which the Aptamil Company can include in its framework is positioning. Positioning involves decision making process which is important for the proper functioning of the Company. Aptamil has the responsibility of ensuring that they make firm decisions regarding the success of the company. The products should be designed in such a manner that, they are unique from others from different companies. This will act as a competitive advantage to the company. The new design of the Aptamil products is attractive because the packages are decorated with bright colours and they are labelled with words which are captivating. They are labelled with names such as Aptamil Gold + and Aptamil Profutura. These labels do not affect the nutritional benefits of the products. The other way in which Aptamil improves the competitive advantage over other businesses which offer the same products in China is by producing variety of products. Under the framework is to invest in the foreign market of China. In China, any foreign investors must develop an international property rights which is a must for any new company entering the market for the first time. This is a protection strategy for China and is normally formulated by specialists and lawyers for the China’s market. The international property rights can include legal, technical and practical measures which are designed to infringement. A foreign company in China such as Aptamil can adopt some practical measures to protect their property rights apart from the legal practices. These include things like establishing a thorough diligence of other companies in china, signing partnerships with Chinese companies who share the same objectives with Aptamil Company (Lin, Y. 2015). .
Another aspect for focused partnership for Aptamil Company is its organizational structure. The company should be organized in such a way that it has focused team who can handle the challenges which faces the organization. The structure should also include business thinking which is important for the balancing of the organization’s activities as well as the growth and development of the business. Innovation can also be part of the structure of the organization. This involves collective contribution of thoughts from wide range of stakeholders. The innovation involves planning which results in improved products and this attracts more customers and more profit for the business (Hiebeler, R., Kelly, T., & Ketteman, C. 2012). .
There are some general challenges which face foreign companies which enter Asia-Pacific market such as China. One of the challenges is cultural transformation. The Chinese people are conservative and changing their attitudes is very difficult. This affects the foreign companies like Aptamil because their products could lack good market. To avoid this issue and many others, the company needs to re-adjust its objectives, change the human resource management and to be flexible in order to adapt the new environment. This could also include establishment of new opportunities in the market to avoid the pitfalls.
In conclusion, China is the potential market for Aptamil products because the country is among those with large percentage of mothers who do not breast-feed for varied reasons. However, entering into Chinese market is not easy but through focused partnership and formulation of strategic framework, a company such as Aptamil can penetrate into Chinese market with a lot of ease. First, the company should state its objectives clearly because this will act as a guide in its business. Other thing which Aptamil can do is to innovation on its products in a creative way so that it attracts more customers. The innovation should not affect the nutritional value of the milk power product. For successful entry into China, the Aptamil Company also requires to have full knowledge of what is required of them to enter in to the market. For example, the company should develop an International Property Rights (IPR) which is compulsory for any new foreign company in China.
Hiebeler, R., Kelly, T., & Ketteman, C. (2012). Best practices: Building your business with customer-focused solutions. Simon and Schuster.
Kapiki, S. T., Fu, J., & Mu, L. (2015). Strategic Framework Showcasing Greece in the Chinese Tourism Market. EuroMed Journal of Business, 10(3).
Lin, Y. (2015). Firm heterogeneity and location choice of Chinese firms in Latin America and the Caribbean: Corporate ownership, strategic motives and host country institutions. China Economic Review.
Seufert, S., & Meier, C. (2013). Strategic HRD and the role of Learning Business Partnership.
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