This is a guest post by Elise Burgess for Business.com.au.
The Australian business market and culture can be described as both sophisticated and modern. Australia has a fairly small population of 21 million, but is considered a global market. Australia presents itself as one of the leading western business markets. It is an ideal option for many US businesses looking to expand overseas into a profitable market.
The Australian business model is often compared to the US market. Key similarities presented in each include the familiar corporate framework, the business legal system, and even the overall approach to business. As a result, many Australian and American businesses have launched successful international ventures into the respective markets.
Yet there are several crucial elements that should be understood before entering any overseas market, even one that presents with as many similarities as these do. In order for an American company to consider entering the Australian business market, basic business knowledge demands that they understand the various different aspects of the Australian culture, economic environment, and individual industries.
For instance, the Australian business sector is a competitive market, yet due to the nation’s distance from most other trading options there are a number of markets that are dominated by established firms, particularly in one of the country’s strongest industries of exporting. This exporting strength means many Australian sectors have strong ties with profitable Asian markets, securing them as an ideal portal into such low-cost producer markets.
Additionally, the appeal of the Australian business culture is also based on the similar set up of consumer and industrial sectors, English-speaking business culture and the Australia-U.S. Free Trade Agreement. This agreement was enforced on 1 January 2005 and covers the reduction or elimination of tariffs on US produced products and services. Also as a result of the Free Trade Agreement, over 99 per cent of U.S. manufactured goods that were exported to Australia have been eliminated, encouraging US businesses to expand their market reach into the profitable Australian market.
Overall, US businesses with interests in the Australia market have found that the similar business culture, language, customer profiles, sales expectations and cultural environment make the Australian business market potentially a highly profitable venture.
This guest post was written by Elise Burgess, journalist for Business.com.au, the leading online directory for Australian business.