Business and Management
Submitted By narinderhanda
There are lots of risk of entering a foreign market. And we can assess the risk by :
Checking the basics needs in the foreign market :
Whenever any business jump into the international market, first know what is the basic needs of customers as well as our product demand in the market. Also should measure the competition level in the market .
e.g ALL BALACKS KIWI LTD plans its business in India, than they will check the basic needs of fruits market as well as exotic .They will analysis the product demand in the market with the competition level.
2) Economic & financial Factors: Interest rates, exchange rates, inflation rates, credit are the economical and financial factors. Due to the inflation going on in fruits and vegetable market (on the seasonable product) in India no any importer will invest because Indian people are not aware for exotic fruits. To plans in a new country firstly get the finance from the host country and give them interest on that finance. Before get the investment first know the interest rate. E.g. If in India we can find fixed rate of interest & Pakistan we find fluctuating rate of interest we may prefer as fixed rate provide more security whereas fluctuating may be low in the beginning but have high risk involved in them.
3) Competition Forces:- India is the agricultural country where more than 60 percent people depend on that and its fruits and vegetable market is too strong and stabilized where local vendors and suppliers having the great experience that how to deal with customer and how to satisfy their needs. That market will be too tough for any importer because they will import the exotic fruits as well as they will face the duties and taxes to local government.
4) Personally Visit Location:- :Touch and feel " this is the method to do the practical work. Theory cal work is limited till the hard of…...