Australia macroeconomic analysis

Macroeconomic analysis of Australia Australia’s economy is the world’s top 10 and is shown to be stable during the past 20 years. The GAP growth rate, averages 3. 5% and the GAP per capita is increasing, meaning that people have bigger buying capability and would be willing to purchase B&O’s expensive products. Unemployment rate has grown dramatically, despite declining for several years, it has Jumped to 6. 2% in 2014 which was caused by lack of available positions, rather than lack of relevant experience. Inflation is sustained rather low at a 2. In 2014 and the bank system is stable, which is beneficial for investors. For B the overall state of economy is an advantage, since it hasn’t undergone dramatic changes, remained almost unaffected by the recession in 2008 and is expected to experience further growth. Australia has a free trade agreements with different countries and is continuing to expand to Europe. Also there is an active Danish-Australian Chamber of commerce for ease of trade between the two countries. Another benefit is that the Australian market is open and encouraging reign investments and doesn’t have big limitations for investors.

Since it is a company policy for B to completely internationalist with their own shops, instead of retailing, Australian law wouldn’t prevent them of doing that. One of the country’s biggest imports is technology equipment and the consumer electronics industry is continuously growing and gaining market share. It would be beneficial for the company to Join CASE- Consumer electronics supplier association, which has a big influence on the market. Furthermore, in the recent years, relations between Australia and Denmark have strengthened and Danish investments amounted 6. Billion DOCK which has created an image in the citizen’s minds of quality of Danish originating products. Another field for B&O to operate in is the film industry, selling to businesses, since it has been growing rapidly and a lot of big companies have promoted themselves via positioning TV series and reality shows, which are extremely popular in Australia. The biggest struggle for B&O on the market would be establishing a brand image among the competitors, which are the world’s most famous brands such as Sony, Panasonic, Dolly, etc.

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Australian consumer’s buying behavior is determining the huge importance of quality and brand reliability. Without so, it will be hard for B&O to gain market share and sustain on the market. Currency issues will be a disadvantage for B&O, since the Australian dollar is really unstable and has experienced a massive drop from 0. 88 USED to almost 0. 06 USED. With the expectation of the US central bank to raise interest rates, the Australian dollar is expected to lower even more, despite the forecasts of finishing 2014 with a value of 0. 87 USED.

In that matter, the Danish Akron is more stable and would be the preferred currency when doing business in Australia. Overall, Australia is an attractive market for high-class technological products like B&O if they manage to establish their brand, the market has low entry barriers, legally-wise and consumers are curious towards innovative technology solutions as long as they provide value for their price. Looking at the overall fundamentals, Australia’s economy is stable and gradually rowing, without expectations of dramatic changes in the near future.

Nevertheless, the consumer electronics industry NAS a trend to declining and demand tort innovation which may be a problem for B. They should carefully plan their marketing and positioning strategy before entering the market, so they would be able to remain in it. Currency issues should also be considered if they want to establish their wholly-owned shops in Australia. To conclude, even though the Australian market is attractive and economically stable, B should carefully consider their entry strategy and internationalization plan, otherwise it will be a risk for them.

Overview: Advantages Disadvantages Growth GAP-3. 5% Growing unemployment rate- 6. 2% Low inflation rate-2. 3% Currency drop forecasts Demanding market Big market share of established companies Stable banking system and little legal limits References: HTTPS://www. CIA. Gob/library/publications/the-world-fastback/goes/as. HTML http:// case. Assn. AU/ http://en. Wisped. Org/wick/AustraliaâEDenmDenmarkions http:// www. tradinTragicomediesauComaAustralialoyment-rate