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 soft copy and it is just assumption or data analysis which is only half contributed to business. When Practical analysis will be very important. After visit to the market you will know the practical scenario of market. Price & quality comparison with competitor and how it survey how they give the service to the customers. 5) Incentive by Government:- To build the business in the new country, government of their countries give the rebate on taxes to encourage the importer and motivate the relation of two countries through import business.
Marketing opportunities arise when customer group with different wants and needs are recognized. Market can be segmented by age, gender, location, geography and demography. For market segment must be large enough to provide and profitable customer base. To explain all the segment I am giving the examples for them.
Geographical factors - In Mumbai, India , Large size car may not be popular because of the parking problem as well as heavy traffic in the city due to huge population..And also the other reason that Mumbai is the metro city so people are time conscious and believe in public transport and metro train rather than personal vehicle.
Demographic factors - Married women will purchases the baby born products where men will plans their retirement and invest money to get the retirement insurance.
Technological - Technology has been changed day by day which directly effect to that related market and benefited to customers.
e.g. In India, there are lots of competition in the telecommunication. People buys the mobiles from the company but the technology will be change and because of that the new application will be created so that old version will be cheaper than the new one and people who doesn't afford the new version , they will take the old version.…...