Summary of Australia insights
Conducting business abroad has become more difficult than 3 years ago according to Australian mid-cap CFOs. Despite the economic and regulatory difficulties facing all businesses, 96% of Australian mid-cap CFOs we interviewed are confident that their three year plans to expand internationally will succeed. On average, they expect 52% of their revenues in 2014 to come from sales outside Australia, up from the current 42%.
Australian businesses are focusing on expanding into China, India, New Zealand and Canada, while Australia plays an integral part in the expansion plans of Chinese, German and UK businesses.
Access to new customers, market size and strong existing client/customer relationships are the most important opportunities for companies looking to expand into Australia.
Finding the right local management, cultural or language barriers and currency fluctuations are the biggest challenges faced by Australian companies when expanding internationally.
Most Australian businesses act fast once a decision to open a new office is made - 72% open an office in less than a year. Half of Australian businesses claim that law firms/lawyers (50%), accountants/tax advisers (50%) and internal sources (50%) are the most trusted sources when expanding abroad.
Outlook for cross border growth
- China, India, New Zealand and Canada are important markets for Australian outward expansion
- Australian expansion abroad is driven by market size and growth opportunities
- Australian businesses are more likely to ‘play it safe’, expanding in their core sector and within existing products and services
- Investment in people will be the main focus over the next 3 years for Australian companies expanding abroad
Factors driving inward Australian investment
- Access to new customers
- Market size
- Strong existing client/customer relationships
Challenges for companies expanding in Australia
- Currency fluctuations
- Red tape & bureaucracy
- Intensity of local competition
Challenges faced when expanding internationally
- Finding the right local management
- Cultural or language barriers
- Currency fluctuations
Top insights for growth
- Do thorough research to improve your knowledge of the market
- Recruitment of good staff is key to success
- Find good contacts/ strong partners in the region
The in-country summaries are given as general commentary only. The global BDO Ambition Survey 2011 is based on 751 CFOs’ responses of mid-cap companies across 13 countries (50 in Australia). The survey was conducted by StrategyOne between 23 May – 8 July 2011