Two Dogs Bites into the World Market: Focus on Japan (Case #32, Notes)
The Domestic Market
Adelaide is the capital city of the state of South Australia. The notion of a trendy product emerging from this small cosmopolitan but conservative city is relatively unusual. Firm internationalisation literature shows that companies that are eventually successful in international markets need to be successful in their domestic market. It is clear that TDI have managed to capture a reasonable share of the domestic market and are appear to be internationalising rapidly. Within the framework of firms internationalising which are defined as Domestics and Born Globals (McKinsey and Co. Australian Manufacturing Councill 1993), TDI appears to be a Born Global which means that it is internationalising within the first few years of starting its operations and has run into the capital shortage stage shown in the following diagram, hence the take-over by Pernod Ricard in 1997 provided them with a much needed capital injection to carry them to the next set of challenges which is new product introductions.

Figure 1: The current position of Two Dogs on A born Global Company Life Cycle
Given that domestic competition has appeared rapidly, it is likely that some of the most attractive international markets such as the US, EU and Japan are likely to be equally reactive to a local and other Australian competitors.

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