Strategic Market Relationships or From Strategy to Implementation - Example

The paper "Strategic Market Relationships or From Strategy to Implementation" is a great example of a Marketing Business Plan. This export plan of Australasian Mining Resources Company from Australia outlines the significance of going international and focuses on two export markets: the United States and China, which are the biggest markets for bauxite and bauxite products like smelter grade alumina and finished aluminum. The United States is chosen because it is the world’s largest producer of alumina but relies on imports of bauxite, which it then processes to produce alumina. This market, therefore, presents a viable opportunity for selling large quantities of semi-processed bauxite. Similarly, China is a fast-growing economy with a very high demand for aluminum. Although the country has bauxite deposits, the deposits are impure and thus costly to exploit. It, therefore, relies heavily on imports of bauxite. The plan offers an overview of the markets as well as the selection and entry into these markets.

Australasian Mining Resources is a company involved in the exploration of mining of mineral resources. The company mainly mines bauxite, which is largely extracted using the open cast mining method. Bauxite is used in the production of aluminum. The bauxite is first refined to produce aluminum oxide of alumina, which is then converted into aluminum metal through a smelting process. Because Australia is the largest producer of bauxite in the world (High Commission of India, Canberra, n.d.), domestic demand for the product in the country is relatively lower compared to overseas markets. It is anticipated that the growth in global demand for alumina and aluminum in, particularly the period 2011-2012 as projected by Australian Mining (2007) will support an increase in Australia's bauxite production. Hence, expansion into foreign markets is critical given that high international demand for bauxite-related products.

The key objectives that Australasian Mining Resources aims to meet by selling its products abroad include attracting foreign demand, diversifying internationally and hence increasing the market base, and to capitalize on international sales where prices are often better than in the domestic market as noted by (Avery, Zhu & Cai p. 67). The bauxite export activity will especially capitalize on the high demand for the products in rapidly emerging economies such as China and other traditional importers like the United States.

INFORMATION ABOUT THE COMPANY

Australasian Mining Resources Company has been in the mining business for 10 years. The company has mainly been operating locally, relying on the Australian demand for aluminum and alumina products as well as other minerals such as metallurgical coal, iron ore, energy coal, and copper. The company has grown to reach a value of $30 billion over its years of existence and now targets the international market to increase its fortunes. Over time, the company has invested in more efficient mining machinery and now produces more than its normal sales capacity. In addition, there is relatively high competition from other established mining conglomerates which have taken a significant market share over the years. While meeting local demands for aluminum and alumina, Australasian Mining Resources has established an unrivaled portfolio of high-quality growth opportunities that have helped to ensure that the company can now meet the resources needs of the emerging economies at each stage of their growth.