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International and Global Business - Preparation of detailed strategic report to management analysing the risks, possible methods of entry and attractiveness of entry for a nominated Australian company into a European and an Asian market - Essay Example

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This paper aims to present a detailed strategic report to management that analyses the risks, possible methods of entry, and attractiveness of entry for Austar, a nominated Australian company, into a European and Asian market. Austar is a telecommunications company whose focus…
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International and Global Business - Preparation of detailed strategic report to management analysing the risks, possible methods of entry and attractiveness of entry for a nominated Australian company into a European and an Asian market
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International and Global Business - Preparation of detailed strategic report to management analysing the risks, possible methods of entry and attractiveness of entry for a nominated Australian company into a European and an Asian market

Digital satellite technology is the domain that Austar utilises in its subscription television services to one third of Australia’s total homes (Austar United, 2008).
Austar is owned and operated by Austar United Communications Limited whereby 54 percent is owned by Liberty Global, whilst 46 percent is by public shareholders. Austar is also engaged in a 50-50 joint venture with Foxtel, wherein it owns 50 percent of XYZnetworks, a pay television provider. The extent of operation of Austar is seen in subscription television of 2.4 million homes in both regional and rural areas of all of Australia’s mainland states, with the exception of Western Australia. The company utilises a delivery method that uses Optus C-Class Satellite Optus C1 and a Darwin digital cable network ((Austar United, 2008). Recently, Austar has contemplated about making a major marketing push in the current year to launch more than 20 new channels, a high-definition version of Mystar set-top box, and more interactive services. The company reported a net profit after tax of $35.5 million, which is a $7.6-million loss compared to the previous period, as well as a 13-percent increase in earnings before interest, tax, depreciation, and amortisation. These results are attributed to positive impacts of the economic inducement programs of the Federal government, an internal focus m new customer acquisition, and a turnabout in consumer sentiments (Sinclair, 2009).
South Asia shows resilience on the telecom business, specifically in terms of revenue generated by operators and their spending capacity. Investments in developing markets welcome the telecommunication sector, particularly India, Sri Lanka, and Bangladesh (FRSU, 2009). These markets are positive areas of expansion for Austar. In Sri Lanka, two big operators lead the spending in the telecommunication sector, covering a relatively small population of 20 million ... Read More
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