UAE and Australia-Home and Host country analysis
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UAE and Australia- Business Opportunities-Host & Home Market Analysis
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1. Introduction – purpose, organization structure, market analyses, home and host market factors, international market entry approaches(direct, intermediate, indirect)
2. Organization- Name, work, location, product, strengths& weaknesses, competition in the marketplace.
3. Home market – Country-cultural and economic factors,
3.1 Relevant history
3.2 Geographical setting-location, climate, topography
3.3 Social institution-family& education, Social organization (race, ethnicity & subcultures, social classes, group behavior
3.4 Political climate-political structure, political parties, stability of government, special taxes, role of government
3.5 Legal environment (organization of Judiciary system, code, common, socialist or Islamic law country)
3.6 Religion
3.7 Language-official, spoken % written dialects
3.8 Economic Climate-population(growth rates, density, distribution, etc, GNP, GDP-growth rates, income levels, distribution of wealth, resources, transport, major imports &exports, exchange rates, trade restrictions.
3.9 Technological environment.
4. Host Market-introduction to market, guide to economic & cultural considerations ---+ previous section details.
5. Market attractiveness for international entry
5.1 Relative psychological, geographical, economic & political closeness to the home market.
5.2 Competitive environment- does the market exist, latent or incipid, Select: co-option, creation, competition, co-operation
5.3 Market entry modes- 250 to 300 words- Modes-Direct or indirect exporting, Intermediate (management contracts, joint ventures, Franchising, Licensing, Contracted production) & Direct(Greenfield;Acquisition)
5.4 Evaluation of market entry modes-300 to 350 words- company’s objective for entering, cost of setup, level of control, flexibility of approach
Make decision on entry mode-growth or retrenchment? With a rationale. Elements of value chain provided in host country.
6. Product 20 % - product adaptation, core product, basic product, augmented product, contribute to company’s objective to meet demand, reason for adapting product, level of cultural grounding, meeting objectives?
7. Price: 20% of time- factors affecting-costs of production, external factors, market entry factors (shipping costs, handling expenses, transportation costs, duties) positioning factors, company’s objective, strategic pricing options, profit levels, other Ps.
8. Place- 20% distribution strategies- direct, indirect, intensive, selective, exclusive. Refer to assessment 2-potential partners and market entry. How you chose partners? Retailers, wholesalers, import/export agents, warehousing.
9. Promotion – 20% -marketing communications tools, AIDA factors with 4Cs & DRIP. How to adjust firm’s message-logo, brand, slogan, etc. for host market-cultural, political differences/restrictions.
10. Conclusion – (200-250 words) all factors presented, summation of potential for intl development, market entry options, marketing mix decisions-product, price, place, promotion. Objectives achieved?
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