Overseas Opportunity
Explain ONE opportunity the business may receive from operating overseas.
An opportunity for [business] from operating overseas is access to a larger market of potential customers. Because the business can sell its products or services beyond New Zealand, it can increase sales volume and revenue rather than relying only on the relatively small domestic market.
• Access to a larger customer base than New Zealand alone
• Increased sales revenue from new international customers
• Diversification across countries, reducing reliance on the New Zealand market
• Access to lower-cost or specialist suppliers, skills, technology, infrastructure, or resources
• Greater brand recognition and market share through international expansion
• Learning from overseas customers, competitors, or business partners
• Economies of scale if higher sales volumes reduce average costs
• Access to a growing market or sub-market
Explain ONE advantage of gathering information before entering a new overseas market.
An advantage of gathering information before entering a new market is that [business] can better understand what local customers want. Research into customer preferences, price expectations, culture, and competitors allows the business to adapt its product, service, promotion, or distribution approach to suit that market.
• Customer needs, preferences, income levels, language, culture, and buying behaviour
• Price expectations and willingness to pay
• Competitors and market gaps
• Distribution channels, suppliers, and local partners
• Laws, tariffs, product standards, tax, customs, and labelling requirements
• Demand size and growth potential
• Local cultural customs and appropriate communication methods
Identify ONE government or non-government agency that could support the business to enter a new market.
NZTE could support [business] to enter a new overseas market. NZTE helps New Zealand businesses develop international-market knowledge, make connections, and plan market-entry strategies.
Explain ONE advantage the business may gain from entering a new overseas market or sub-market.
An advantage of entering a new overseas market or sub-market is that [business] can diversify its sources of revenue. If demand falls in New Zealand or an existing overseas market, sales from the new market may help the business maintain overall revenue.
• More customers and higher sales potential
• Access to a growing niche or sub-market
• Reduced dependence on one country or customer group
• Greater brand awareness internationally
• Ability to spread fixed costs over more units sold
• Use of existing products, capacity, intellectual property, or logistics networks in another market
• Access to partnerships, suppliers, or technology
Explain ONE threat the business may encounter when operating in a new overseas market.
One threat for [business] when operating in a new overseas market is strong competition from established local businesses or multinational firms. These competitors may already have customer loyalty, local market knowledge, efficient distribution networks, and lower costs, making it difficult for a new entrant to attract customers.
Accept one relevant threat, including:
• Strong local or multinational competitors
• Different laws, regulations, tariffs, product standards, or customs requirements
• Cultural misunderstandings or unsuitable marketing
• Exchange-rate movements
• High transport, freight, distribution, staffing, and setup costs
• Political instability, trade restrictions, or changing government policy
• Difficulty finding trustworthy suppliers, distributors, or partners
• Lower-than-expected demand
• Intellectual-property copying or brand imitation
• Supply-chain disruption or longer delivery times
Explain how this opportunity could negatively impact the economic sustainability of the business.
Although overseas expansion can increase revenue, it could negatively affect economic sustainability if the business needs to spend heavily to access or serve the larger market. For example, it may need to pay for overseas staff, facilities, distribution, marketing, compliance, or transport. If revenue does not grow enough to cover these additional costs, profit will fall and the business may not remain financially viable in the long term.
• More overseas sales → larger production or service capacity required → investment and operating costs increase → profits may fall if demand is uncertain.
• Overseas growth → more exposure to exchange-rate movements → revenue received may be worth less in NZ dollars → lower profit.
• Overseas market → stronger local competitors → price reductions or higher marketing spend → lower margins and weaker long-term profitability.
• Global supply chain → greater exposure to shipping disruption, tariffs, or regulatory costs → increased expenses → reduced economic sustainability.
Economic sustainability means the business can continue generating enough revenue and profit to remain financially viable over time.
Explain how this advantage could help the business successfully enter the new market.
This could help [business] enter the market successfully because it can make informed decisions rather than guessing. If the business adapts its offer and price to match local customer needs, customers are more likely to purchase. This increases the chance of earning sufficient revenue, gaining market share, and covering the costs of entering the overseas market.
• Research identifies legal requirements → business meets standards before launch → avoids fines, border delays, or rejected products → market entry is smoother.
• Research identifies a market gap → business targets an underserved sub-market → stronger differentiation → higher chance of sales.
• Research identifies a suitable distributor or partner → products reach customers efficiently → lower distribution mistakes and better customer access.
• Research identifies strong competitors → business adjusts price, service, quality, or marketing → more competitive market-entry strategy.
A student should explain what information is gained, what decision changes, and how that improves the likelihood of successful entry
Explain ONE advantage of using this agency to understand or enter the new market.
An advantage of using NZTE is that [business] could access market knowledge and business contacts that it may not have internally. NZTE could help the business understand customer demand, cultural expectations, competitors, local regulations, and suitable distribution channels. This reduces the risk of entering the market with an unsuitable product, incorrect price, or ineffective marketing approach.
Alternative agency chains:
• MFAT → provides trade-policy information and support → business understands tariffs or trade-agreement opportunities → can price and plan exports more effectively.
• MPI → assists with export requirements and certification → products are more likely to meet overseas biosecurity or food-safety standards → avoids border rejection and delays.
• Callaghan Innovation → helps fund or develop technology → business improves its product or production process → creates a stronger point of difference in the market.
• Local market-entry consultant → provides cultural and regulatory expertise → fewer costly market-entry mistakes → improves the likelihood of successful entry.
For full credit, students should explain the agency’s specific assistance and not simply say it “helps the business.
Explain how this advantage could improve the business’s revenue, profit, market share, or economic sustainability.
If the business gains customers in the new market, the number of sales may increase, raising total revenue. If the additional revenue is greater than the costs of market entry, transport, marketing, staffing, and compliance, profit can increase. This improves economic sustainability because the business has a more stable long-term income base and is less dependent on one market.
Other acceptable chains:
• New sub-market → business meets an unserved customer need → sales rise → market share increases within that segment.
• Higher sales volume → fixed costs spread across more units → average cost per unit falls → profit margin may improve.
• New country → business builds international brand awareness → repeat purchases and customer loyalty increase → more stable revenue.
• Diversified markets → downturn in one country is offset by sales elsewhere → revenue becomes less volatile → improved financial resilience.
Students do not need to claim that profit will always increase. A strong answer explains the condition: revenue must exceed the additional costs.
Explain how this threat could impact the business’s success in establishing itself in the market.
This could make it difficult for [business] to establish itself because customers may continue buying from familiar competitors. The business may need to spend more on advertising, lower its prices, or improve its service to persuade customers to switch. These actions increase costs or reduce profit margins, meaning the business may struggle to generate enough revenue to cover the costs of entering and operating in the market.
Other acceptable chains:
• New regulations → unexpected compliance costs and delays → slower launch and higher prices → reduced competitiveness and customer demand.
• Cultural misunderstanding → marketing fails or offends customers → poor brand reputation → lower sales and weak market entry.
• Exchange-rate fall → overseas revenue converts to fewer NZ dollars → lower New Zealand-dollar profit → weaker long-term financial viability.
• Unreliable distributor → goods do not reach customers on time → poor customer experience → damaged reputation and lower repeat sales.
• Political change or tariffs → costs rise or market access becomes restricted → price increases or lower profit → difficult to build market share.
The student must connect the threat to the business’s ability to establish itself, such as its sales, customer trust, costs, profit, market share, or long-term financial viability