Starting a Tobacco Business in Australia


Company XCX has well established operations in China.  As families run business, it has operated for generations and retained a sizable number of its clients for years. The company mainly specialize in liquor and tobacco. The main strengths of the company include a good brand name that is well known in the locality, good management skills run under the family business model, specialisation which has made it excel in tobacco and liquor, and good location where it is able to serve a large are. However, the business has bottled decision making because the head of the family makes important decisions.



How to open a liquor tobacco shop in Australian market ?


Pre-opening stage:


  1. Do a lot of Australian local tobacco and wine market researches:


Major retailers and manufacturers in the liquor industry?

What are the main or popular alcohols selling right now?

Consumer groups – characteristics, geography, consumer preferences


  1. Do a lot relevant laws and provisions researches:


How much tax do you have to pay for importing Chinese cigarettes? Other requirements, with proper licensing?

How much tax do you have to pay for importing Chinese wine? Other requirements, with proper licensing ?

How much tax do you have to pay for importing electronic cigarettes? Other requirements, do you need a license?


  1. Relevant significant costs/funding sources for opening a store:


Find  a large Australian Stock Listed cigarette company to look at the financial statements to analyze and summarize, pointing out the major expenses of operating a cigarette retail store?


Find a large Australian or already listed alcoholic retailer to see the report summary analysis, pointing out the important expenses of the alcohol retailers ?


  1. Background information of XCX liquor tobacco shop in China (By the way, this part is about the situation of a medium tobacco and alcohol company in China. What I want to say is that my family business is a tobacco and alcohol company exclusive shop in china, which is to telling a bit background information. Don’t really need to reference this part)


Briefly summarize the important collection of information related to the XCX company in china from aspects of inventory turnover process, and the core customer groups with the other factors such as business’s  strengths and weaknesses.


What are the challenges ?


  1. Situation analysis


Describe a scenario to illustrate the relevant core issue while starting  the tobacco and alcohol business.

Taking out the problem, try to find some solutions through the resources of books or website forums.


For example: How can the traditional retail industry keep up with the era of rapid technological development?

Electronic information marketing sales, e-commerce platform, electronic customer pre-sales and after-sales service (mobile software marketing, etc.)

  1. The stage of official running process:


Assume that the preliminary industry research work is completed, and the start-up capital is probably perfect. A real series of problems gradually emerged, first solve the problem of imperative and then delve into a little bit of future issues. (Operational phase)


What is it special about your store? Is it about operations, management, etc., compared to other competitors ?  (point of differences)


  • Various analytical models and strategies, self-analysis SWOT,
  • Resource Based View Theory
  • SWOT Analysis Framework
  • PEST Analysis Framework
  • Root Cause Analysis
  • Value Chain Model (choose 3 of them to discuss )



Various marketing models and strategies Questionnaire Market Survey


To be simplified, the consistency of the connection among these aspects of store, management and marketing. What are the highlights and advantages worth doing! ?




Reference: Harvard style for intext and end text referecning























Parameters (outlines) for this project:


What is the opportunity for your plan?


My chance is to use the experience of my own family business company in the tobacco and alcohol industry to open the first liquor tobacco business operating in Australia. Then I hope to expand at the speed of one each store per year.


What is the goal/benefit for your plan?


My shop opening plan is very simple, the goal is to establish the first integrated operation of tobacco and alcohol business. Retain the local tobacco and alcohol culture and try to implement the essence of China’s finest alcohol and tobacco. Let more people of other ethnic groups people  taste the long-standing sense of Chinese wine culture, and at the same time, more and more overseas Chinese can solve the strong homesickness by tasting some of the iconic Chinese liquors.



How does your proposal plan relate to the existing business and What is the relationship to the existing or new strategy?


New strategy :


What analytical and other MBA tools do you plan to use?


External analysis – What’s going on outside your business:

  • Porter’s Five Forces
  • Blue ocean Strategy
  • Scenario Planning

Internal analysis: What’s going on with your business

  • SWOT
  • Value Chain Analysis
  • Balanced Scorecard
  • Resources Based View (VRIN Model)
  • Kotter Change Model
  • Root cause Analysis (Fishbone Diagram)


What data and resources you will need?


Questionaries , interviews or surveys among