Report on

“Bamboo Clothing”

Course Title: International Business

Course Code: INB 301, Section:3

Submitted to
Md Latiful Khabir

Submitted by
Name ID
Fawziyah Fariha 2110810
Mehedi Hasan Siam 2130250
Junayed Ahmed 2130388
Anusha Hasan 2120473
Rebaka Alam Khan 2120122

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Table of Contents

Section:1......................................................................................................................................................3
Introduction.................................................................................................................................................3
Section 2:.....................................................................................................................................................9
SWOT ANALAYSIS........................................................................................................................................9
PESTEL Analysis of Japan:..........................................................................................................................10
PESTEL Analysis of UAE..............................................................................................................................13
PESTEL Analysis of AUSTRALIA...................................................................................................................16
Section 3:...................................................................................................................................................18
Why did we choose Australia for trading?.................................................................................................18
Section 4: The Best Strategy of Internationalization..................................................................................21
Section 5: The Appropriate Mode of Entry................................................................................................22
Section 6: Conclusion................................................................................................................................24
Section 7: Appendix...................................................................................................................................25
Section 8: Reference:.................................................................................................................................26

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Section:1
Introduction

Any fabric, yarn, or article of clothing created from bamboo fibers is known as a bamboo textile.
While historically only used for structural components like bustles and the ribs of corsets, new
technologies have emerged in recent years that make it possible to employ bamboo fiber for a
variety of textile and fashion uses. A breakthrough new fabric made of dreamy soft bamboo fiber
can provide many benefits to the environment, including adaptability and countless other
advantages.
The plant is the most sustainable natural source on the planet since it is the fastest growing
natural-organic resource used in the production of garments. New materials are continually being
sought after and adopted by the fashion industry. Using environmentally friendly items has
become a style statement. The fastest-growing tree on the planet, bamboo is used to make several
eco-friendly products. Bamboo, a renewable resource that is widely farmed in Asia, is used to
make a variety of products. Bamboo is incredibly eco-friendly because it requires little water to
grow, doesn't require toxic pesticides, and is completely biodegradable. The highly sustainable
bamboo has a bright future. Bamboo is a naturally occurring cellulose regenerating
biodegradable and environmentally beneficial fabric material. Bamboo, which is incredibly
resilient, has a promising future. In addition to being a sustainable textile fiber, it also offers UV
protection and antimicrobial qualities, making it a distinctive eco-friendly fabric in the twenty-
first century.

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I. BENEFITS OF BAMBOO CLOTHING

 Freshness: There are tiny microscopic holes in bamboo fabric, which keeps one feeling
fresh and dry.

 Softness: The softness and great comfort in bamboo fabric is unmatched. This wonderful
quality, together with its absorbency, is due to the bamboo fiber's rounded and smooth
structure. This structure feels incredibly comfortable against the skin because it doesn't
have any sharp or rough edges that could irritate the skin.

 Skin Friendly: As bamboo is hypoallergenic, it does not cause allergic reactions. Those
with sensitive skin or allergies may especially appreciate bamboo's special quality.

 Heat Regulation: Additionally, bamboo textiles have a number of insulating qualities

that affect heat exchange. Bamboo textiles feel cool in warm weather and offer additional
insulation from the chill of a cold day.

 UV/Sun Resistant: Bamboo can block up to 97.5% of harmful UV radiation and offers
natural UV protection. This makes it the perfect fabric to wear next to your skin on warm
days when you will be spending a lot of time in the sun.

 Eco Friendly: Global environmental issues like water scarcity, deforestation, soil erosion
and the greenhouse effect are all positively impacted by bamboo. To contribute to the
improvement of the world, bamboo is a textile that is by far more sustainable than cotton.

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II. POTENTIAL OF BAMBOO CLOTHING

Alternative plant-based fibers, including bamboo, have gained attention, thanks to textile
innovation as a solution for synthetic fibers made of petrochemicals. Raw bamboo is a highly
sustainable and adaptable resource.
Bamboo Clothing advertises using a variety of social media platforms and unnatural search
criteria. These techniques enable advertisements for Bamboo Clothes to show up for those who
frequently search for information on clothing or sustainability. Push marketing is an excellent
approach to get your target market to look at your products, which will improve sales. Because
of its amazing capacity for water absorption, bamboo is the plant with the fastest rate of growth
in the entire planet. This characteristic makes bamboo cloth three to four times more absorbent
than cotton, which is useful in the fashion industry. The wearer stays naturally drier and more
comfortable thanks to bamboo fabric's ability to wick moisture away from the skin and allow it
to evaporate.
It is easy to see why many businesses have been compelled to reassess their current inventory in
order to meet the growing interest and demand from the public given that bamboo can be mass
produced in a fraction of the time and at a fraction of the cost. its rising acceptance by younger
generations. Given its heavy reliance on pesticides, chemical fertilizers, and water, the textile
sector contributes significantly to environmental pollution. Today's life standards are rising.
People's needs are growing in all sectors, and this includes the need for new textile materials
with vital new or better features for needed higher comfort or industrial application. Because of
its adaptability, bamboo fiber is a great alternative to cotton when it comes to producing
protective, healthcare, and hygiene fabrics like bandages, gauges, wipes, patient-nurse uniforms,
and other items. Due to its significant therapeutic value, bamboo fiber is hailed as "the natural,
green, and eco-friendly new-modern-day textile material kind.

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III. HOW IS IT MADE?
Although growing bamboo seems simple, producing fabric for bamboo clothes requires other
considerations. In general, two methods are used to transform bamboo from plants into woven
fabrics, each of which has a different impact on the environment.

 MECHANICAL PROCESS:
The mechanical method, which involves chopping bamboo wood and using natural
enzymes to get bamboo stalks into the pulp of bamboo grasses, is a fully natural process.
The natural fiber is then combed out and spun into yarn following this procedure.
Another method involves using a mechanical device to grind up the woody components
into a powder that can then be combined with water. However, the process is costly,
time-consuming, and labor-intensive.

 CHEMICAL PROCESS:
Chemical process in which powerful chemicals were regularly employed to shatter
bamboo wood in order to obtain pulp for use in environmentally friendly bamboo
apparel. It is the greatest to use because it is non-toxic and beneficial to the environment.

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IV. COMPARISON OF BAMBOO AND COTTON CLOTHING:

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V. BANGLADESH’S BAMBOO INDUSTRY:

All of Bangladesh's districts have widespread homestead cultivation of bamboo. The primary
obstacles to bamboo growing for the nation's rural residents are a lack of adequate scientific
information concerning the collecting and planting of bamboo propagules. For homestead
forestry, choosing and planting bamboo species with thick walls and large stature may be
preferable. These types of bamboo are readily available to rural residents for use in 6
constructions of their homes and other structures. The best time to gather and plant various types
of bamboo propagules is between the months of March and June.

In Bangladesh, bamboo is one of the most significant non-timber forest products. It could be
used as a starting point for detailed socioeconomic research on bamboo-based businesses and
livelihoods in Bangladesh in the future. The manufacturing of bamboo crafts employs more than
50,000 people, the most of whom are women and indigenous people, and bamboo items are their
primary source of income in more than 1,000 villages around the Rajshahi region. Another
30,000 people rely only on the sale of bamboo crafts for their livelihood.

This growing sector of the economy still appears to be dependent on a single time of year.
Bangladesh Average Wholesale Prices: Bamboo is commonly used in Bangladesh for building
homes, scaffolding, shelving, fencing, ladders, mats, baskets, tool handles, pipes, toys, fishing
rods, and fishing traps, as well as for manufacturing handicrafts.

Bamboo data was reported at 430.000 BDT/Unit in Aug 2022. This stayed constant from the
previous number of 430.000 BDT/Unit for July 2022.

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Section 2:
SWOT ANALAYSIS

STRENGTHS OF BAMBOO CLOTHING:

1. Environmentally conscious and sustainable clothing
2. Durable and long lasting

WEAKNESSES OF BAMBOO CLOTHING:

1. Lack of reputation of bamboo clothing
2. Isn't mass produced as a result of less profit
3. Costlier comparing to other clothing
4. More time to harvest

OPPORTUNITIES OF BAMBOO CLOTHING:

1. The sustainable market is growing and gaining recognition
2. Can change the fashion industry

THREATS OF BAMBOO CLOTHING:

1. Producing bamboo fabric in large amount is difficult
2. Might take time to gain recognition

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PESTEL Analysis of Japan:

Political factors:
As the head of state in Japan's constitutional monarchy, the emperor. The Japanese monarch, like
many others around the world, has virtually little influence over the nation's political affairs. But
according to the nation's constitution and its citizens, the emperor is "the symbol of the State and
of the unification of the people." The executive authority to manage state affairs belongs to the
prime minister and the cabinet.
Japan's capital is Tokyo. A post-war pacifist constitution governs Japan. It contributes
significantly to the global community and is a significant assistance contributor (BBC, 2020).
Although the country's internal political situation is stable, Japan has several highly strong
neighbors who have a lengthy history of diplomatic difficulties. Territorial conflicts exist there
and political differences with several nations, particularly Russia, China, South Korea, and North
Korea.
Japan and the US continue to have a close relationship. The foreign and security policy of Japan
is inextricably linked to this connection. Additionally, Japan has been working hard to establish
and maintain connections with other superpowers including Australia, the UK, France, India, and
the UK. Concerns have been expressed over a proposal to change Japan's post-war pacifist
constitution. Politically divisive and potentially harmful to trade and foreign direct investment.

Economic Factor:
The economic environment of Japan is the second topic to be covered in the PESTEL analysis of
that nation. With a total GDP of almost $4.9 trillion, Japan has the third-largest economy in the
world. Additionally, it has Asia's second-largest economy. It belongs to the G20, APEC,
ASEAN, and G7. Although the government works closely with the industries, the country has a
mixed economic structure. Some of the key industries of Japan include transportation,
electronics, machine tools, steel, ships, chemicals, textiles, and processed foods. Some of the
largest vehicle manufacturers in the world, including Toyota, Honda, Suzuki, Mazda, Nissan,
Mitsubishi, and Yamaha, are based in Japan, which has a well-known automotive sector.
Japanese businesses are required to pay corporate tax on all their income, both domestically and
internationally. However, foreign businesses operating in Japan only pay taxes on the revenue
they bring in from within the country. In Japan, company tax, corporate inhabitant tax, enterprise
tax, and special local corporate tax are the four different types of corporate taxes. The
government has authorized a plan to decrease the corporation tax rate in Japan, which is

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currently 23.2%, to 20% for businesses that aggressively raise wages and increase domestic
capital spending.

Social Factor:
The tenth most populous nation in the world is Japan. Other sources, however, place it 11th in
the globe rather than 10th. There are currently 126.2 million people there (World meter, 2021).
The two main religions in Japan are Shintoism and Buddhism, and the majority language, spoken
by around 99% of the population, is Japanese.
Many societal issues confront Japan. The two major problems Japan is currently facing are an
aging population and a declining birthrate. Men can expect to live 81 years on average,
compared to 87 years for women. According to many estimates, the population of Japan will
probably be less than 100 million in 2048 and 87 million by 2060. Japan will be greatly impacted
by this and will be defeated by neighboring countries, especially China. As a result, many
Japanese lawmakers are now emphasizing the need for an "integrated" immigration policy to
bring in necessary foreign employees and close the skill gaps brought on by Japan's aging and
declining birth rate.
Japanese businesses are frequently preferred above foreign ones in Japan. Trading becomes
challenging for international businesses as a result. Indeed, this is a major factor in the failure of
many foreign businesses in Japan. For instance, Tesco (a British retail behemoth) had to shut
down its business in Japan in 2012 after being there for nine years (BBC, 2012). Like how
Wendy's, Pret A Manger, and numerous other international businesses failed in Japan. It is also
true, though, that certain foreign businesses prospered greatly in Japan. Therefore, it is crucial for
foreign businesses to conduct a thorough environmental scan before entering Japan.

Technological Factor:
The PESTEL analysis of Japan will now move on to the next issue, which is technology. One of
the nations in the world with the most advanced technology is Japan. It has pushed technical
innovation in ways that other countries will find difficult to replicate. The Japanese are renowned
for being incredibly inventive when seeking out and mastering the usage of contemporary
technologies.
Innovation from Japan is present in many different industries. For instance, automation systems
are frequently employed in Japan, especially in restaurants, airports, and healthcare facilities. In
terms of robotics development, Japan is far ahead of many other industrialized nations. In fact, it
is home to more than half of the world's industrial robots.
Japan has long used the contactless payment system; in fact, it was there before many other
nations even considered it. Additionally, Japan has excelled in fields including semi-conductors,

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chemicals, rail transportation, optics, and space research and development. Great opportunities
are presented by these advancements for both Japanese and foreign people and businesses.

Environmental factors:
Japan is a country that cares about the environment and is generally clean. It does, however,
currently suffer certain environmental difficulties. For instance, one of Japan's top environmental
concerns is trash management. Waste is produced in large quantities by industrial processes,
agriculture, and trash produced by contemporary civilization. There is pressure on Japan to
reduce waste and manage environmental degradation.
One of the nations most impacted by catastrophes and natural disasters is Japan. Japan
occasionally experiences tsunamis, floods, earthquakes, mudslides, cyclones, and volcanic
eruptions. Japan spent billions of dollars on reforms and reconstruction after these catastrophes.
Japan really has less visitors because of natural calamities, high costs, and communication
difficulties.

Legal Factor:
In Japan, people can work as assigned workers, independent contractors, directors, and
employees. All employees are entitled to certain job privileges and benefits, including set work
hours, breaks, vacations, and maternity leave. Employers must sign up employees for worker's
compensation insurance, health insurance, unemployment insurance, and pension insurance.
Regardless of the nationality of the employees, these are all applicable to employment
relationships (Ohta, 2021).

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PESTEL Analysis of UAE

Political Environment:
A constitutional federation, the United Arab Emirates. Abu Dhabi, Ajman, Dubai, Fujairah, Ras
Al Khaimah, Sharjah, and Umm Al Quwain are the seven emirates that make up this region. The
Federal Supreme Council, the highest constitutional authority of the Emirates, is made up of all
seven rulers. Each emirate is headed by a ruler. The UAE's capital is Abu Dhabi.
The UAE is seen as a major player in the Middle East and has significant influence on the
international scene. With the United States, Saudi Arabia, India, China, and many other nations
in the region and beyond, it maintains excellent diplomatic and commercial ties. However, its
involvement in the conflict in Yemen has strained its ties with Iran, a significant regional force.
It also played a significant role in the embargo of Qatar that got underway in 2017. It is
important to note that the UAE has recently taken steps to deescalate the volatile situations in the
Middle East, especially its conflicts with Iran.
Many analysts contend that the UAE has very little political freedom. Political parties are
outlawed, and all candidates for elective office must run as independents, even though only a few
elections are held for federal advisory bodies. Both domestic residents and foreigners are subject
to restrictions on their civil liberties. The seven hereditary rulers hold the utmost authority.

Economic Factors:
The United Arab Emirates' PESTEL research places a lot of emphasis on the economic
environment (UAE). The UN, World Bank, IMF, Arab League, OIC, OPEC, and GCC are just a
few of the international economic and political organizations that the UAE is a member of. Its
economy ranks as the 29th largest in the world. Its anticipated 2022 GDP is $425 billion
(Trading Economics, 2022).
The UAE's biggest exports include crude oil, refined oil, gold, diamonds, and petroleum gas.
India, Japan, China, Oman, and Switzerland are its main export markets. Top imports from
China, India, Germany, the United Kingdom, and Turkey include gold, jewelry, automobiles,
diamonds, and refined petroleum (OEC, 2022).
When it comes to per capita income, the UAE ranks among the richest nations in the world. Over
the years, it has experienced impressive economic success, with the main contributors being the
abundance of natural resources, economic diversification, innovation, and inflow of foreign
direct investment (FDI). It has established a wide range of businesses, including tourism and real

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estate development, that have a large positive impact on its economy and support its continued
ranking as one of the richest nations in the world. Its problem is that it relies too heavily on the
petroleum industry.
In general, businesses and people in the UAE do not pay taxes on their income or wealth. Major
oil and gas corporations and overseas bank subsidiaries, however, are subject to corporation tax
at a maximum rate of up to 55%.

Social Factors:
Despite its conservative history, the UAE is one of the more liberal nations in the Gulf. Dubai is
a thriving worldwide economic hub and a very active emirate. It is extremely advanced and
seamlessly incorporated into the rest of the developed world.
About 10 million people live in the UAE (World meters, 2022). Only 20% of Emirati citizens
live there, making it one of the world's nations with the greatest immigrant populations. India,
Pakistan, Bangladesh, the UK, the USA, Iran, Canada, China, the Philippines, South Africa, and
Nepal make up most of the immigrants that reside and work in the UAE. The UAE is one of the
top cosmopolitan centers in the globe, with over 200 different nationalities, according to some
sources.
In the Arab Emirates, men may expect to live for 76 years while women can expect to live for 78
years. The primary language is Arabic, and Islam is the predominant religion in the nation (BBC,
2020). In terms of GDP per person, the UAE ranks among the richest nations in the world.
Families prefer to coexist in Emirati society since the population is highly sociable. They
strongly support and uphold communal, tribal, and traditional bonds and principles.
There is a great need for higher education in the UAE due to the country's constantly expanding
population. Universities and other higher educational institutions have been erected all
throughout the nation to accommodate this demand, which has opened employment chances for
new professionals who might choose to work there. A market for abilities that can be utilized by
other nations in the region is created.
The United Arab Emirates currently has several social difficulties, nevertheless. For instance, the
wealth gap is an issue because, according to several statistics, the richest 1% of the population
hold more than half of the UAE's wealth. Obesity, drug misuse, a high cost of living, notably in
Dubai and Abu Dhabi, racial prejudice, and a high divorce rate are additional societal issues to
be aware of.

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Technological factors:
The United Arab Emirates' PESTEL analysis will now move on to the aspect of the technological
environment (EU). The use of social media is quite popular among Emiratis. They log onto
social media for 2.56 hours every day on average. A little more than 82% of people in the UAE
have Facebook profiles, while 82% of people use YouTube. Twitter, LinkedIn, Pinterest,
Instagram, and Tumblr are additional prominent social networking platforms in use.
To make it easier to pay for both government and non-government services, the UAE created the
dirham card in 2001. Over the years, the government has made significant investments in ICT,
life science, nuclear research, and space science. In fact, the Middle East's ICT market is
currently most attractive in the UAE.

Environmental factors:
One of the most traveled to nations worldwide is the UAE. There are many things that draw
millions of tourists each year, including a perfect mix between traditional religious culture and
modernity, opulent hotels, gorgeous retail malls, skyscrapers, crystal-clear beaches, historical
ruins, indoor theme parks, and diverse food. It's also important to note that the UAE is extremely
safe for female travelers traveling alone, especially since establishments like Dukes Dubai and
the Jumeirah Emirates Towers hotel in Dubai have floors exclusively for women and a female
staff.
But because the nation has grown so quickly in such a short period of time, it now faces certain
environmental difficulties. The ecosystem is being greatly impacted by constant building noise,
invasive species, carbon footprints, scarce water sources, overfishing, waste production, air
pollution, land degradation, and desertification. As a result, the nation is making investments in
renewable energy sources like solar and wind power, and it just unveiled its "Energy Strategy
2050."

Legal Factors:
A federal constitutional monarchy, the UAE is. No matter their nationality, all staff and
employees are subject to the country's labor laws. Adult employees are only permitted to work a
maximum of eight hours every day (48 hours a week). Nevertheless, it may differ slightly based
on the kinds of businesses. The UAE, which has a low crime rate, is among the safest nations in
the world, as was already mentioned. It demonstrates how rigorously the nation's laws and
regulations are enforced.

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PESTEL Analysis of AUSTRALIA

Political factor:
Political and legal concerns can significantly increase the company's level of uncertainty and
business challenges. The different political and regulatory issues in its market can nevertheless
have an impact on the company, even though it has no outlets. If import taxes from other nations
rise, the government may be able to persuade businesses to purchase fabrics locally. Moreover, if
any political instability happens it will cost the overall export business. To cite an example, if
any political issue happens or if Government impose new rules for export business it will
ultimately change the business policy. If the cost of imported goods is increased by taxation or
border tariffs, in these situations, the government typically encourages citizens to purchase
clothing from homegrown labels and regional designers.

Economical factor:
The economic environment will be discussed next in the PESTEL analysis of Australia. The
economy of Australia is the 14th largest in the world. In 2020, it was considerably less impacted
by the worldwide lockdowns, and by 2022, its GDP is projected to increase by 3.1%. Inflation,
consumer incomes, and business investment are all anticipated to progressively increase (OECD,
2020).
In Australia, a federal tax rate of 30% is applied to the taxable income of all businesses. Small
enterprises do, however, pay a 26% tax rate reduction. It's anticipated that this percentage will
shortly drop to 25%. (PwC, 2020). Individual tax rates vary according on each person's income.
Economic condition of a country is one of the key factors that leads consumer buying patterns.
For instant, after Covid 19 the economic condition of world fall drastically which eventually
hamper consumer buying pattern. If the economic condition goes down at that time Government
discourage its public for export item and encourage them to buy local products more. On the
other hand, if the economic condition goes up people can buy more foreign products.

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Social factor:
In terms of wealth, education, health, and quality of life, Australia is among the best places to
live in the world. Around 26 million people make up Australia's population, which is relatively
modest in comparison to other major economies (World meter, 2021). Men can expect to live for
80 years, while women can expect to live for 84 years. Australians are typically vivacious,
diligent, and outgoing. They are socially very acceptable and easily embrace new technologies,
trend. From these, we can say that if we establish bamboo clothing in Australia there is a high
chance that Australian people will welcome it.

Technological Factors:
Australia is one of the world's most technologically advanced countries. It is well-known for
embracing new technologies more quickly than many other developed countries. Over the years,
the country has seen tremendous technological advancement.
Local businesses are investing in technology to satisfy their customers' expanding demands.
These investments are anticipated to be driven by computers and equipment, software, tech
consultancy services, the cloud, and artificial intelligence, which should result in more
innovation and designs. Many analysts, however, believe that Australia has a long way to go
before it can compete with tech hubs in Asia, Europe, the Middle East, and the United States.

Environmental Factors:
In addition to blankets, sheets, and towels, a range of home items can be made from bamboo
fabric. Because of its softness and durability, bamboo clothing is fashionable in the apparel
industry. Due to their antibacterial properties, bamboo textiles are frequently used to create T-
shirts, underwear, socks, and other products of a similar nature.
Bamboo fibers are also widely utilized in performance clothes due to their ability to wick away
moisture. Hiking, which is frequently done in the winter months, requires extra attention to
controlling perspiration. In the summer, bamboo is without a doubt at its best, but it can also be
useful in the winter. When we sweat in the winter, the moisture in our bodies may make us feel
colder. While most synthetic textiles retain moisture, bamboo clothing wicks it away.

Legal Factors:
Australia's legal system is the final component of the PESTEL analysis to be discussed. Australia
has fair dealing laws, competition laws, and consumer laws to ensure fair trading for firms and
consumers. The main piece of legislation that controls work in the nation is the Fair Work Act of
2009. Similar to that, privacy rules address how companies manage the private information of
their clients.

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Section 3:
Why did we choose Australia for trading?

Low Political and Legal Barrier:

Doing business is highly welcomed by Australia and all levels of government are eager to
support the expansion of commerce, the economy, and employment. Australia's GDP per capita
is comparable to that of the UK, France, and Germany, and it ranks in the top 20 economies in
the world. Australia offers a business environment that is stable politically, open, and well-
regulated. The legal system is open, free, and easily accessible. The living standards are
outstanding, as is the weather.
Bangladesh is now Australia's 32nd-largest trading partner, with bilateral commerce in products
worth A$2.0 billion. Over the past ten years, bilateral trade in goods and services between
Bangladesh and Australia has increased many times, reaching over A$2.6 billion. The two
countries' trade connection has the potential to grow greatly as Bangladesh's economy continues
to expand, even though its full potential has not yet been realized.
Ready-made clothing (knitwear and woven clothing) and textile products make up the majority
of the goods exported from Bangladesh to Australia (approximately 93%). Other exportable
goods include jute products, processed food, fish, leather goods, and footwear. Bangladesh sold
items to Australia totaling 1.3 billion in 2021–2022 alone.

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 Special Access of Bangladeshi Goods to the Australian Market: As long as the Rules
of Origin (RoO) requirements are met, Bangladeshi goods have had duty-free, quota-free
access to the Australian market since July 1, 2003. On September 15, 2021, Australia and
Bangladesh formally ratified the Trade and Investment Framework Agreement (TIFA).
The TIFA will help to increase chances for bilateral commerce in a number of industries,
including infrastructure, education, and agriculture.
Due to having a strong trade relationship between Australia and Bangladesh, Australian
high commissioner Jeremy Bruer confirmed that they are planning not to change the
zero-tax structure that Bangladesh is currently enjoying. Such as, cut will help us to enjoy
a low production cost.

Income effects
One of the reasons why do we think Australia is a profitable market for our bamboo clothing is
their positive income elasticity of demand. Strong income growth of Australia, over the past ten
years has contributed to the import demand's explosive growth. Real GDP has increased at an
average yearly pace of approximately 4% since the early 1990s, and there have been no
recessions. Expenditures (actual GNE) have around 41% growth. In 2022, the Shirts segment
will generate US$0.94 billion in revenue. The market is expected to expand by 2.78% yearly.

Cultural preferences and geographic climate

Australia holds a number of heat-related records, including the maximum sunshine duration, the
hottest extended region, and the hottest summer environment. And considering their temperature
majority of them prefer to wear light weighted T-shirts, pants, and other costumes. Since bamboo
clothing is of light material so we do see the potential to boom in the market. Not only bamboo
clothing is a light material but it is incredibly smooth and soft due to the utilization of natural
materials. Additionally, Bamboo clothing offers excellent UV protection and can block up to
97.5% of dangerous UV radiation. It shields the skin from UV radiation from the sun. Such,
features can be hugely helpful for the Australian citizen where protecting their skin is an
essential part of their life and thus can lead them to choose bamboo clothing over any other type
of clothing.

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Our Selling Prices
Details Tk
Production price 430
Packaging cost 20
Shipping cost 357
(1 kg=4750 tk)
75g= 357
Tariff=0% 00
Profit 493
Selling price/unit 1300/ $18.87

Competitors selling price-

bamboobody.com-$24.75
target.com- $20.97

Comparing our selling price with the selling price of our competitors we can clearly see there’s a
major difference in the amount. Our low-cost strategy due to our efficient production capabilities
(cheap labor, economies of scale (achieving experience curve, location economies) will help our
customers to differentiate us with the competitors and hence, will lead them to choose us over
our competitors. Lowest production cost capabilities Since Bangladesh’s weather is highly
welcoming for the growth of bamboos so it gives us the opportunity to have a lower production
cost. And thus, it will be easier to have a lowest selling price for Australia leading us to have a
better market share

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Section 4: The Best Strategy of Internationalization

Launching new product to an international market it requires a sustainable strategy. For a

prosperous expand consumer base and accelerate profitability through internationalization,
companies need research and resources to adapt global market opportunities and choose the
appropriate international business strategies. There are four basic strategies to compete in
international market. They are Global Standardization, Localization, Transnational and
International Strategy.

The most appropriate strategy we would use to compete for bamboo clothes in Australia is
Localization. It is crucial to develop strong connections with potential market. Since there are
significant differences across nation between Bangladesh and Australia with regard to fashion
and design and cost pressures are not fierce, therefore, it would be the most suitable strategy.
Although, bamboo clothing is one of the high trends in Australia which enabled us to specifically
designed for Australian’s who are keen to purchase a fashionable and comfortable material rather
organic cotton material. Customizing clothes according to their preference such as summer and
winter clothes (T-shirts, Pants) are best way to segment our product and adapt process of targeted
market. By concerning about the cultural differences might reduce the aspects that may be
offensive to local culture of Australia. Also, higher customer satisfaction will lead to generating
higher sales of bamboo clothing. Moreover, this strategy will help to meet global standards with
essential local flexibility.

However, some factors might affect localization in Australia which could be the changes in
policies of government such as if the tax rate increases in Australia’s import duties it will
significantly increases prices, by affecting profit margins. Also, charging prices according to the
willingness of each product would be a prime concern.

For future development of bamboo clothing in international market we might adapt the use of
Transnational strategy which will help to reduce costs of production through location economies
and economies of scale, thus, considering global standardization and efficiency. This will
enhance our brand image by increasing profitability.

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Section 5: The Appropriate Mode of Entry

A mode of entrance is a strategy used by an organization to enter a foreign market. However,

there isn't a single method that every organization can use to join a foreign market. The choice of
market entry technique can be viewed as a competitive advantage in international marketing and
has a significant impact on global operations. Any enterprise or company attempting to enter a
foreign market must carefully examine the entry technique to employ and develop crucial
strategies in accordance with that decision. Licensing, joint ventures, exporting, turnkey projects,
franchising, or establishing a fully new subsidiary in the host nation are the most popular ways to
enter overseas markets.

Since our business is a new business so keeping that in mind, we have to choose an entry mode
that can serve us with maximum profit and success. A mistake in making such a decision can
incur us huge financial loss and time wastage.

Exporting- The act of exporting involves promoting and selling domestically produced goods on
international markets. The items are made domestically and do not need to be manufactured in
the foreign market.
Since we are a new business, choosing to export as our mode of entry can be the right choice
since it can help us to save the cost of establishing the substantial cost of building manufacturing
operations in the host country. Through contractual arrangements with a local business or
distributor, we will figure out a way to promote and distribute our items in the new location.
Since bamboo clothing has the potential to grow in countries with hot climates, we can assume
that Bangladesh can also be a successful market for bamboo clothing. If we produce this in
Bangladesh and can trade with Australia as well, we will also be able to benefit from economies
of scale because of the large scale of production. Additionally, bamboo is produced in large
quantities in a number of Bangladeshi regions, and because of the abundance of manpower
available to us, production of our products will be made simpler and more affordable.

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Future plans

Licensing- A business arrangement whereby one firm authorizes another company to produce its
goods in exchange for a certain fee. Leasing out patents, trademarks, copyrights, designs, and
other intellectual property to third parties is one of the fastest and most profitable methods to
expand firm.
Once, after establishing our brand image in the market of Australia, we will be licensing our
brand to other business persons. So that we can generate income out of it.
Wholly new subsidiary firm- in the future we have the plan to grow organically by establishing
a new subsidiary firm in Australia, which is one of the major and convenient way to grow. This
method will not only help us to realize location and experience curve economies, but will also
help us to have full control over our business.

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Section 6: Conclusion

International company success is the result of a variety of internal organizational elements and
efforts. The agenda of the organization is driven by various people with various contributions in
order to achieve success on a worldwide scale. Moreover, the organization will succeed if it has a
strong internet presence, addresses global concerns, and challenges its personnel to operate in a
global setting.

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Section 7: Appendix

Product Features:

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Section 8: Reference:

1) https://www.researchgate.net/publication/
242344782_Factors_influencing_international_fashion_retailers
%27_entry_mode_choice#pf3
2) https://www.tbsnews.net/economy/no-new-tariff-regime-bangladesh-even-after-ldc-
graduation-australian-high-commissioner

3) https://www.bodypeacebamboo.com/women/
4) https://bangladesh.tradeford.com/suppliers/natural-bamboo-fabric

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