The importance of the Australian market to Global Career Link is increasing as large numbers of job candidates return to Australia.
The company’s presence in Australia has also been a success in the eyes of its United Kingdom clients, who want to diversify away from a New Zealand candidate pool and into the larger Australian one.
Setting up
It took Global Career Link three attempts to successfully enter the Australian market. Firstly setting up an office in Sydney, co-locating with an indirect business associate, proved unsuccessful due to insufficient financial resources.
The second attempt was through a joint venture with a business offering complementary services. As Global Career Link got closer to cementing the joint venture a significant number of anomalies were discovered and Global Career Link terminated relations immediately.
Throughout this time, Global Career Link continued to provide services to Australian candidates from its New Zealand operation. The quality of service was not ideal and it was a costly exercise with staff spending time and money travelling across the Tasman.
On the third attempt, Global Career Link set up a Sydney office staffed by two employees from its New Zealand operation and one Australian administrator.
Global Career Link initially tried to stay ‘under the radar’ to minimise competition and market resistance. The plan was to understand the Australian environment, play by its rules and adapt as needed.
The hardest part was setting up the office, including replicating supplier relationships ranging from contracts with stationery suppliers to installing the PABX. This was time consuming and expensive (an estimated AU$150,000).
A substantial amount of the cost was due to a limited understanding of the Australian business environment. With more experience and knowledge, a second office in Melbourne cost $30,000.
Lessons
- A clear understanding of the Australian business environment dramatically reduces costs.
- Business in Australia is very competitive and different from New Zealand.
- A strong governance board with experience in the Australian market helps when entering the market.
More information:
www.globalcareerlink.com
