Inghams chicken and Expansion to Singaporean market


Singapore is known for its delicious foods that are that offered at a cheap price. Any food and restaurant company seeking to expand into Singapore needs to match up to the quality of food and offer a competitive price to the consumers. The restaurant business in Singapore is likely to pick up quickly due to the citizens’ love for food. Ingham’s chickens need the right market entry strategy to make a breakthrough into this food-loving country. Addition of the Inghams nuggets and other chicken tastes on the country’s menu introduces the people of Singapore to the most loved Australia fast foods. Inghams chicken has been performing well in the Australian food industry because of the best customer service and quality meals. Its expansion into Singapore is an opportunity to showcase its prowess in the food industry.

Expansion  into the Singaporean market

As the company seeks to expand into the Singaporean market, the strategists have to conduct market research of the country. Market research will give Inghams chicken an opportunity to understand the existing market conditions in Singapore. The research also helps the business to come up with the right market entry strategies that would ensure its success. It does not only help the business understand the business dimension but also gives an insight into the social, cultural and political behavior of Singapore. The consumer behavior is critical to the success of the business. The business is able to understand the rules and regulations that exist for foreign investors. It also shows consumer preference and whether Ingham’s chicken will be able to meet their needs. Research also helps the business to find the most suitable places to set up its restaurant in Singapore Creating with a winning market entry strategy need more than just market research, other factors have to be considered. Ingham’s chicken needs to set clear goals that it seeks to accomplish in Singapore. The goals have to be precise and keep the business working towards achieving them.
The choice of a suitable market entry strategy also requires the business to study and understand the existing competition. Study of competition requires market strategist to visit Singapore to assess the competition that awaits upon entry. Ingham’s chicken faces stiff competition from numerous chicken restaurants both local and international. Some of the competitors include Jinjja chicken, Jollibee, Arnold’s Fried Chicken, Carl’s Jr, 4 Fingers Crispy Chicken, KFC among others. Study of competition gives allows Ingham’s chicken to establish the number of competitors and the type of chicken it offers. The existence of different chicken restaurants in Singapore shows that there is a high demand for the product in-country Competitive analysis helps the business to make key decisions about its market entry.

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market entry strategies

Ingham’s chicken can employ a number of market entry strategies to succeed in the Singapore restaurant market. The best market entry strategy for Ingham’s chicken in Singapore is direct exporting of its services and product to Singapore. Direct exporting means that the business directly sells its product in an international market. Ingham’s chicken goes to Singapore with the idea of introducing a distinct chicken taste into the Singapore restaurant market. With the chicken nugget as its signature meal, the strategy gives the business full control of its recipe.
The high competition in the fast foods industry in Singapore makes the rest of the strategy unsuitable. Franchising and partnering may not be the best market entry strategies in this highly competitive market. Using either of the two strategies puts Ingham’s chicken at risk of being knocked out of the market. The partners and franchisee may intentionally sabotage the efforts of the business to enter into the market. The high quality of services and food provided by the Ingham’s chicken may be a threat to many existing restaurants hence the sabotage. Direct exporting enables Ingham’s chicken to have full control of its operation without fear of bad games. The management is responsible for handling foreign distribution, logistics of shipment and invoicing. The strategy is also a bold and confident announcement to the competitors that Ingham’s chicken is here to offer competition. It shows that the business has confidence in its product and offering quality services. Numerous restaurants in Singapore means that the price of fresh chicken in the country is high. Direct exporting gives Ingham’s chicken an opportunity to get chicken from Australian at a cheaper price. Statistics show that Australia produces chicken in excess. It means that the prices of fresh chicken in Australia will be cheaper due to the law of demand and supply. Getting chicken at a lower price is advantageous to the business because it will be able to offer competitive prices to its target customers.
The aim of entering into Singaporean market is to expand its market share and maximize. Direct exporting is the most suitable strategy to enable Ingham’s chicken to realise its objective. The business has in the past expanded into various international markets meaning that it has the necessary resource to expand it Singapore. Ingham’s chicken has an advantage to operating in Singapore because of the existing ASEAN-Australian-New Zealand Free Trade Agreement that eliminated the tariffs on imported goods. The Australian based restaurant will be able to export its chicken from home country at a cheaper cost. Maximizing profits means that the company reduces the cost of its raw materials. Ingham’s chicken only needs to comply with the existing laws that require pre-packed products for sale in Singapore to be labelled according to the general labelling requirement of Singapore Food regulation.
A great deal of knowledge, time and energy is needed to make the strategy successful. The business has the responsibility of hiring experts that will oversee a successful market entry and manage its work. Ingham’s chicken will have to hire an export manager who would oversee and manage exports of raw chicken from Australia. The department also needs to operate independently from domestics operation to efficient. The existing good trade relationship between Australia and Singapore makes direct exporting the best strategy to enter Singapore restaurant industry. The two countries share cultures and ways of conducting business making it easy to establish a business in Singapore. Direct exportation works well in an economically and politically stable country. Singapore enjoys long-standing political stability and good economic performance making it easy to execute the strategy. Ingham’s chicken is able to conduct its operations in Singapore with minimal interference that enable the business to compete effectively with its competitors.
The advantages of using direct exportation as a market strategy are that it gives the business control of its manufacturing processes. Ingham’s chicken maintains its operational values, mission and vision while in a foreign country. The business avoids the risks of poor production and services in the hands of partners. Direct exportation also gives the management of the business full information about the market and operation of the business. The restaurant has one on one interactions with its customers making it easy to get accurate feedback from them without bias. Relying on the third party for information puts the company at risk of information asymmetry which may hurt the operation of the business. Market information is crucial to the existence of business because most of the future decisions are made based on its accuracy. The use of direct exportation market entry strategy will help Ingham’s chicken realise greater profits due to the elimination of intermediaries. The market strategy plays a role in boosting customer confidence and security by doing business directly with them. Having full control of the operation of the business means that Ingham’s chicken has better protection of its trademark and patterns rights. In a market where there exists high competition patents rights are at risk of being stolen to attract more customers. Direct exportation allows the business to monitor the operations of its competitors and minimize risks of copyrights. The strategy also gives the business an easy time and cheaper way of withdrawing from the market in case it fails to live up to its objectives.
There exist a number of limitations to the use of direct exporting as a market entry strategy. Investing in foreign territories requires a lot of money, time and energy. The strategy is more expensive compared to partnering and franchising because all the finances come from Ingham’s chicken. Partnering and franchising are cheaper since the cost is shared between two or more business entities. Entering into a new market mean that Ingham’s chicken has to use a lot of many and manpower to market the business. Getting a customer base in a country with a lot of restaurant like Singapore needs a lot of work especially for foreign business. The successful operation of Ingham’s chicken in Singapore means channelling most the business energy and responsibility to the new market. Focus on Singapore might negatively affect the operation of other branches in other regions. Full control of operation can be seen as an advantage, but it comes with a downside. Ingham’s chicken takes full responsibility for whatever happens with no buffer zone. If Ingham’s chicken makes loses or breaks laws in Singapore all the blame lies on the business hence making a huge loss as compared to partnership strategy. Venturing into the international market can offer a challenge to customer communication. a local business has better communication between them and their customers compared to a foreign company. Lack of feedback from a customer means that Ingham’s chicken will have a hard time evaluating its performance in Singapore.
Direct exporting works perfectly between countries that have existing good diplomatic relationships. Direct exporting is the most suitable market entry strategy here because of the existing trade agreement between Singapore and Australia. In regions where the countries are not in good terms, the strategy might be very expensive and making it ineffective. A business has to do intensive market research before investing to avoid making wrong investment decisions. The inaccurate market strategy will make the business to make losses which it will bear the whole burden. The direct exporting strategy is effective only when a business does through research and has sufficient finances to fund its investment

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