Economics
“Fun Toys” is a company that deals with children’s toys and gadgets. The primary aim of the company is to create a new fun world for young children. Currently, the company is based in the US, and it is committed to exploring international markets. However, there are certain factors that should be taken into consideration before the expansion. The factors may range from the competition, requirements, legislations, to the market niche. In this case, Australia is the best market to explore since they rely more on educational toys and gadgets. Australian parents invest more in ensuring that their children learn the English language. Therefore, our company will venture into creating educational toys and gadgets that satisfy the needs of our consumers.
The Australian market offers numerous benefits to international businesses. First, statistics show that although the informal market may have hit a drag in Australia, the toy market is flourishing. Hence, investing in the Australian market guarantees the success of “Fun Toys” regardless of economic shortcomings. Equally important to note is that there is an increase in demand for branded toy products in the US (Huang, 2014). Secondly, the future prospectus shows that the growth rate of the Australian market has been increasing steadily since 2009. Thus, the reliable GDP is convenient for our business since it guarantees profits. Finally, the constant increase in birth rate means that our products’ demand will increase with an increase in population.
However, there are certain requirements needed before exploring the Australian market. First, our company has to produce products that are branded and better than its competitors. Some of the competitors are Fisher-price, Lamaze, and Playgro. Secondly, understanding the legislative issue is vital before the company setups a station. Thirdly, the company has to recruit new and innovative toy designers who can develop new and convenient learning toy gadgets. Finally, our company will have to devise ways of getting cheaper raw material locally.
Reference
Huang, W. (2014). Feasibility Report on Educational Toys and Programs in Australia. International Journal of Business and Social Science, 5(2).