4.1 Product/Service Factors 4.1. Product analysis In order to ascertain whether the products of Funk Cider match with the New Zealanders target market. A product analysis will be made. In this analysis, the products will be analysed based on the following aspects: Current market size, upcoming trends and competitive pressure. The New Zealand target market is willing to pay a little more money for a product which is high in quality and authentic. Statistics over the last 5 years have shown that many consumers are preferring ciders as compared to alcopops( (Morgan, Roy Morgan Corporation, 2014). This will allow Funk Cider to gain a foothold in the beverage industry. Over the years, one of the upcoming trends is the concern for healthier products has skyrocketed and most consumers are willing to pay extra for a product which is tasty and healthy at the same time. Funk cider is able to create this product for consumers as the product is non-pasteurised, no preservatives, no concentrates, no added sugar and no added water. In addition, the product is an export product which will definitely place a conception in consumer’s mind which will define it as a superior product. 4.2. Customer Profile in New Zealand According to the (NZ.stat Corporation), there has been a gradual increase in the service industry for the past 5 years. This implies that the economy in New Zealand has been stable and it implies that new Zealanders have considerable spending power on their disposable income. The world as we speak is heading towards an era where almost everyone has access to internet and is well aware of the negative effects that ciders bring about. Consumers are looking for alternatives such as healthier choices or just giving it up entirely so that they won’t get the repercussions of alcoholism. However based on research, cider is believed to be nutritional as compared to its counterpart, beer. One of the main reasons for that analogy is that ciders are made up of mostly apples and the alcohol content is at a bare minimum as compared to beers , wine and spirits( (Buczynski, 2016). In addition, studies in New Zealand have shown that the consumers buying alcohol is slightly higher at 59.4% as compared to in Australia which is at 49.6 % (Morgan, 2014). This gives retailer’s confidence to bring in exports from countries as the country has consumers who are purchasing at a good rate. As a result, this helps to boost the export industry and ultimately the economy. 4.3. Competitive Situation Operating strategy is always required, especially when entering a new market as research needs to be done. The alcohol industry in New Zealand (NZ) has been growing gradually over the years. However, big corporations that sell spirits are falling behind whereas cider companies are coming ahead in terms of market share. 4.3.1. Competitive landscape analysis A good tool to analyse the competitive landscape is the five forces model of Porter. This Model considers five forces to analyse the competitiveness within a industry and therefore show the attractiveness of entry into that industry (Karagiannopoulos,2005). 4.3.3.1. Threat of new entrants; Moderate The threat of new entrants in the cider industry is moderate. With the right amount of capital, competitors could decide to enter the market by acquiring the necessary equipment and skilled brewers. Many people enjoy a variety of different ciders, and since switching costs for it is low. Many would be more willing to try something new. Secondly, existing competitors have large amount of capital and experience. If new entrants do not have an adequate amount of capital to compete, they can easily become overpowered.. Lastly, many existing companies have developed well-known reputations and have successfully differentiated its product. For example, Heineken has successfully developed a brand that is recognized globally. 4.3.3.2. Threat of substitute products; High: The threat of substitute products in the cider industry is high. This is due to the low switching costs customers face with beer products. In the alcoholic drink market alone, consumers have many different other choices such as wine, spirits, and beers. Ciders may also be substituted for non-alcoholic drinks such as soft drinks and coffee 4.3.3.3. Bargaining Power of consumers; Moderate: Consumers have moderate bargaining power within organized liquor stores. There are multiple competitors so consumers can exert pressure to match competitor’s price or risk losing the sale. Funk Cider target crowd is between 18 – 50, as the product is an export product. Customers will be less prone to bargaining as there is limited export. 4.3.3.4. Bargaining power of suppliers; Low: Funk Cider has the luxury of having a wide selection of suppliers, particularly being a small batch purchaser. The important components for making a cider consists of mainly apples which are generally easy to obtain from farmers. Supply contracts are short and often flexible offering incentives for bulk purchasing. Therefore, companies would not face many switching costs in order to find other suppliers. For companies that do not own their own breweries in certain regions or markets, it is possible to contract with a brewing company or license to brew their products 4.3.3.5. Intensity of competitive rivalry; Moderate: The intensity of rivalry in the cider industry is moderate to high. This is due to the large number of competitors in the cider industry. However, there are several firms who control more global market share than others. These top companies are generally equivalent in size and power, and are constantly fighting to maintain and gain market share. In addition, the low switching costs buyers have also create a very competitive environment 5. Environmental Factor There are environmental factors which influence the performance of businesses particularly exporting products from one country to another, and these are characterised by internal and external factors (Calantone et al., 2006). In exporting Cider as a product, this section looks external factor particularly with constraints of host government in distribution, regulations and administrative practices. These constraints on external factors will be analysed using New Zealand wine industry business environment as a benchmark in this study. Finally, all outcomes will illustrate using PESTLE and SWOT analysis. 5.1 Host country’s business climate Exporting Cider products from Australia, a firm must consider business climate which violates global wine industry on an external level for host country like New Zealand (Dodds et al., 2013). The term “Business Climate” has a broad definition, however, due to economic environment and location of firms, the powers of government, financial institutions assess it as economic measures to quantify business climate within a geographical area, (Weaver et al., 2012). Host country business climate have an impact on the performance of International corporations exporting wine, as such exporting firms must adopt practices and policies that corporate better environment issues,(Dodds et al., 2013). As part of strategic management on an external factor, Foreign Direct Investment decision process is considered as key position a business, (Huang et al., 2014). Expanding Funk Cider product, the management has set a particular working relationship with government departments in New Zealand to control and prevent environmental failure. In measuring these factors, this section uses PESTLE and SWOT analysis to achieve the performance of our company. 5.1.1 Political Australia and New Zealand have strong political affiliation as such specific conditions are drawn on basics risk assessment that measures to control the danger of all pests and diseases which include registration of export licenses (Higgins et al., 2011). As such, compliance with government policy shipping products has to meet the required labelling and storage agreement for exporters, (Higgins and Dibden, 2011). 5.1.2 Economic In considering the economic development that coexists between Australia and New Zealand, there is greater emphasis which accommodates the scope of priorities of consumers, (Winger, 2003). Winger argued that the aspect of good manufacturing practices provide a safe and hygienic food consumption, companies must develop and ensure regulations requirement for New Zealand, and Australia is met to standard. According to free trade analysis made by the World Trade Organisation, the Australia New Zealand trade economic relations is comprehensively and efficiently compatible in the world, (Jarrod, 2009). The pursue competitive advantage in New Zealand has motivated consumer behaviour particularly the wine industry, (Dodds et al., 2013). Developing such concepts to export our product into New Zealand, creating a quality product for exportation is a top priority for our company. 5.1.3 Socio Cultural The impact on international competitiveness is economic development on a socio-cultural factor which can change business primarily exporting to a foreign country, (Apsalone and Sumilo, 2015). An environmental variation can offer diversification of production which influences the social and cultural setting of contemporary market,(Johanna et al., 2016). In dealing with consumption of alcohol, Australian and New Zealand socio-cultural links to corporate on basic fundamental rules which set as a measure not provide under 18 year with alcohol, (Dodds et al., 2013). 5.1.4 Technological The changing demand in business development continue to put pressure on the new market as such distribution channels which rely on new technology to overcome cross-border trade, (Berisha, 2015). They argued that using computer networks will allow rapid development promptly to meet the demand of our customers in New Zealand, (Berisha, 2015). The increase of competitive advantage through technology provide an important source in transferring knowledge for economic development particularly cross-border trade, (Sheng et al., 2013). 5.1.5 Legal Legal frameworks to ensuring employment, taxation, New Zealand meets import and export law, and Australia, exploratory requirements practices for international firms must be improved and certified, (Wells, 2006). All legal requirements meeting the standard of export and import conditions are mandatory for our company. 5.1.6 Environmental Sustainable environmental practices for the Wine industry in the New Zealand are a top priority for the government, (Dodds et al., 2013). They mentioned that New Zealand government considers ecological and environmental aspect as the economic development that draws the attention of stakeholders on exporting companies, (Dodds et al., 2013). Environmental management standards allow a company to evaluate environmental issue such labelling and declarations, (Cassells et al.,2012). Business has no control over competitors or changes in laws; however, managers of an international trade firm must ensure reactions to the evolution of external environment are evaluated against performance,(Johanna et al., 2016). Economic conditions vary due to external environmental factors, as such daily reporting through our network team allow a manager to decentralise strategy for the business, (Calantone et al., 2006). Funk Cider takes environmental measures in controlling its product for consumption. 5.2 Governmental constraints/incentives Commencing business in New Zealand, managers have to consider alcohol policy that would not jeopardise the operation, particularly the failure of a host to implement policy, price control on how much consumers pays, (Casswell and Maxwell, 2005). A current norm as a requirement for business to conduct in a foreign land is high institutional constraints and incentives facing most government to maintain political its control, (Deng, 2009). The demand of customer as an external driving factor and pressure from investors has a major constraint on both host and international firm with compliance regulations, (Dodds et al., 2013). In meeting the demand of these limitations, Funk cider will demonstrate its resources adequately for economic development using resource management strategies. 5.3 SWOT Analysis A framework of the business organisation stands at understanding its internal and external environment to competitive advantage in adopting a strategy performance for economy growth, (Menguc et al.,2010). Using two components to evaluate the performance of business, using strengths and weaknesses to deal with internal issues and an external factor considers its opportunity and threats in providing a competitive insight for the firm, (Gupta and Mishra, 2016). STRENGTHS - The Brand promotion in New Zealand - market will transform the product - International competitiveness WEAKNESSES Lack of knowledge worker Established domestic competition in New Zealand Unfocused and lack of core competency OPPORTUNITIES - Develop high product quality - Assess research ability for new market - Develop new technology as competitive advantage THREATS - Local environment - Cultural value and respect for local - Lack of sustainable practices 8.2 Business Advisers Public support by business adviser helps to evaluate their client business problem before recommending support. The author's research was conducted using a qualitative method design to report on a semi-structured interview. The participants in this study were 39 business advisers from accountants public funded business link regarded a relatively small number for qualitative research. The effectiveness business support has concentrated on constraints to operate; as such business advisers have tacit knowledge that enables them to diagnose business ills. The performance of any firm depends on the set control and management in identifying inconsistencies within the company. By improving the business performance, business advisers steps to provide support, (Mole, 2007). As such firm need retain potential advisors, who communicate effectively to the business in keeping with growth for return, (Lowry & Chapman, 2015). Business Advisor Criteria: Experience Expertise Work position¬¬¬¬¬ Experience in a retail store and promoting The ability to market New Zealand foreign perspective Marketing partner Sales and public relations Sales, New Zealand citizen with an understanding of different wine tasting background Sales person 8.3. Contingency Plans As a new competitor in an emerging economic, computing global trend requires developing advanced technology that will help raise our firm’s profit, (Menguc et al.,2010). The efficiency of a global manufacturing product involves in developing advanced technology to help build a high profit, (Banalieva and Sarathy, 2011). The expansion of product in a foreign market means setting up international networks for both export and imports in capital flow, (Banalieva and Sarathy, 2011). Product positioning in the emerging market and the capabilities of potential customer demands, firm therefore as part of its launching program must lower price or differentiate its offering on the target market, (Rodríguez-Pinto et al., 2008). Fund Cider company has a contingency plan to differentiate our product especially improving healthy choice for consumers in New Zealand and Australia.