able income to make this type of retail business venture profitable
The distribution of income must be relatively equal
The population must be sufficiently concentrated that there is sufficient demand for a retail superstore
Here is a partial list of the questions the new company would need to research before making a final decision about opening its first superstore in Australia:
Where should the first superstore be located?
Why is this location preferable over other locations?
What would be the ideal locations for additional superstores?
Should the facilities be leased or purchased รป and what are the risks and benefits of each strategy?
How do consumer tastes and demands differ in the Australia from the United States?
Since we cannot assume we understand the unique customer preferences in Australia, how will we determine the types of products to stock?
How much disposable income does the average citizen of Australia have?
How many citizens own cars? If the percentage is low, or the cars they drive are relatively small, what arrangements, if any, can be made to get the products delivered to members?
Who will be the company's major competitors?
What is their reaction likely to be to an American company opening its first superstore in Australia?
What restrictions are there on imports?
What percent of total sales will be in the form of imported products, and what percent will be locally acquired in Australia?
What duties or taxes apply to imports?
What taxes, duties and fees will this venture be required to pay?
What local or national laws will impact the superstore? Keegan makes the point that nations have the right to control the international transfer of wealth. Countries interested in encouraging foreign direct investment have few restrictions on the repatriation of profits on foreign owned businesses. Less enlightened countries can and often do make it difficult for companies...