Adidas in Australia
Adidas is a foreign company that is targeting Australia as a market destination for its sports products especial shoes and sporting attires. However, the prevailing conditions in Australia are very different from those of Germany where Adidas is based. The difference is in terms of societal, political, and economical factors. Therefore, before the organization considers venturing in Australia, it is imperative that the company considers foreign market entry strategies. Since the company specializes in sports attire, it is only considerate that the sports culture of Australia as a foreign market to the company is studied well. In addition, company should consider both political and economical factors of the Australian society. Successful businesses are premised on sound politics and economic environments of countries where they are located. The favorable the politico-economical factors of a country the success of a business and the contrary apply. However, potential alliances are also important for foreign markets and are also part of entry strategy (Walter & Murray, 1988).
The above factors affect and are important to the entry into foreign markets. For instance, political and economical factors play key roles in the foreign markets entry through factors that influence them. Licensing, which informs the key option for entry into an international market like in the case of Adidas, is influenced by both economic and political factors. For instance, licenses are part of legislations of a country. Legislations are generated through a political process and means. Therefore, political stability of a state is an important factor to explore before venturing into a foreign market. Stable political states have favorable licensing procedures that make business easy. However, instability political States faces a number of challenges that even acquiring licenses to set up a business in such countries may not be very easy. Therefore, it is recommended that Adidas as a foreign market in Australia considers the above factors before venturing in a foreign market (Peng, 2009).
However, licensing can also take two ways. For instance, the organization may impose fees to be charged by it in order to release its ideas or technology to be adopted and used by the local companies. However, the same can only apply if both economic and political factors are put into perspective. In addition, societal factors are very important as they determine the consumers’ wiliness and capability to use such goods and products. The economic prevailing conditions would dictate whether the business imposes high license fees or charges lower ones. It would also be regulate by political factors of a country through legislated laws. On the contrary, the company like Adidas may use franchising as another mode of licensing. . In this case, the management may decide on the provision of concepts, branding and expertise advice to foreign companies in dealing in their products (Lymbersky 2008).
Strategic alliance is another way of entering a foreign market. Adidas whose headquarters is based in Germany may consider the above strategy in getting into Australian market that is foreign to it. Even though, Adidas Company remains one of the markets that are synonymous with sports products, there are other firms and companies that are dealing in the same or are in the line of the same products. Therefore, the company may consider coming together with the competitors that are also dealing with the same line of products in entering foreign markets like Australia. It is considered as one of the most efficient ways of entering foreign markets. Since the goods of Adidas would sell in the foreign markets as the products of their competitors, a number of procedures would not be involved in the same. Therefore, Adidas products may be sold as Nike products or as Fila products some of which are potential alliances of the same as they deal in competing products of Adidas, which are sports attire (Luo, 1999).
However, before considering potential alliances, it is essential to consider a number of factors. For instance, the cost of doing the same should be a matter of priority. In addition, the brand and the name integrity of the company should be given prominence. There are instances, where strategic alliances have failed. Some unscrupulous companies take advantage of their colleagues and enter agreements of the same in order to kill them in terms of business prospects. They may do so by branding their products in the name of foreign companies in order to increase their sales at the expense of the foreign company. Therefore, when the same occurs it is imperative that when strategic alliances are formed they be formed based on independence of their operations. They are supposed to remain independent of others in order to discourage unscrupulous businesses from exploiting their counterparts (Benjamin, 2006).
Another strategy that can be harnessed by a foreign company that aspires to gain entry into the local market as in the case of the Adidas Company in Germany is the joint venture. In the above strategy, the company may consider joining a company that has already acquired or gained entry into the target market. In the case of a joint venture, there is some essence of equity as the two businesses that come together settle to own equal portion of the same. A number of things prompt businesses to seek joint ventures. For instance, in a scenario where there are a lot of bureaucracies in terms of procedures and other legal requirements, the aspiring company may find it convenient to join another company for the same purpose. After joining, the two companies would have equal shares (Ahlstrom & Bruton, 2010).
Exporting is one of the strategies that a number of companies use in order to gain entry into foreign markets. For instance, when the company finds that there are a lot of bureaucracies in acquiring entry in a foreign market, they may consider venturing into the market through the exportation of their products into the target foreign markets. Adidas may gain entry into Australia through the exportation of her products into the market. This is one of the most effective strategies since the business would not have to meet the tedious procedure of entering foreign markets, even though their products would be sold in such countries. In conclusion, there are various ways that foreign firms and companies may use in order to gain entry into foreign markets. For instance, strategic alliances, exportation, licensing and joint ventures are among the most popular ways of gaining entries into foreign markets. Licensing can be in two ways that may be in the form of franchising or direct licensing. Exportation is the direct selling of the company’s goods and products to the foreign countries. Joint Ventures are where two or more companies come together and form a single business where both have equal shares. Finally, strategic alliances are where the business’s goods and products are sold by their competitors that have already gained entry into the foreign markets (Ahlstrom & Bruton, 2010).

References
Ahlstrom, D., & Bruton, G. D. (2010). International management: Strategy and culture in the emerging world. Australia: South-Western Cengage Learning.
Benjamin, L. K. J. (2006). Market entry strategies of foreign Telecom companies in India. Wiesbaden: Dt. Univ.-Verl.
Luo, Y. (1999). Entry and cooperative strategies in international business expansion. Westport, Conn. [u.a.: Quorum.
Lymbersky, C. (2008). Market entry strategies: Text, cases and readings in market entry management. Hamburg: Management Laboratory Press.
Peng, M. W. (2009). Global strategy. Mason, Ohio: South-Western/Cengage Learning.
Walter, I., & Murray, T. (1988). Handbook of international management. New York: Wiley.